Instructions on the Method and Procedure for Replacing Damaged Convertible Mark Banknotes Due to Damage Caused by Electrochemical Equipment

CENTRAL BANK
OF BOSNIA AND HERZEGOVINA
No.: UV-122-01-1-10/16 LjJ
Sarajevo, 15 and 16 February 2016

Pursuant to Article 7, point b. of the Law on the Central Bank of Bosnia and Herzegovina ("Official Gazette of BiH", 1/97, 29/02, 13/03, 14/03, 9/05, 76/06 and 32/07) and Article 49, paragraph (2) of the Regulation of the Central Bank of Bosnia and Herzegovina, UV-104-01-1-116/15 of 28 December 2015, the Governing Board of the Central Bank of Bosnia and Herzegovina, at its 2nd session held on 15 and 16 February 2016, adopts

INSTRUCTION

on the method and procedure for replacing damaged convertible mark banknotes damaged by marking as a result of the effect of electrochemical equipment for banknote protection

Article 1.
(1) This Instruction regulates the method and procedure for replacing damaged convertible mark banknotes, issued by the Central Bank of Bosnia and Herzegovina (hereinafter: KM and Central Bank), which have been damaged by marking as a result of the effect of electrochemical equipment for banknote protection (hereinafter: banknotes damaged by marking) used by commercial banks (hereinafter: bank) in the handling of banknotes. (2) Banknotes damaged in the manner specified in paragraph (1) of this Article are withdrawn from circulation and cease to be legal tender in Bosnia and Herzegovina.

Article 2.
The replacement of banknotes damaged by marking in the manner specified in Article 1, paragraph (1) of this Instruction is carried out for the full amount of the nominal value of the banknote in the case of:
a) damage resulting from an attempt at theft, robbery, or burglary, without compensation b) damage resulting from improper handling or damage that occurred due to equipment error, with compensation for the service performed in accordance with the regulation of the Central Bank which establishes the tariff of compensation for services performed by the Central Bank (hereinafter: tariff of the Central Bank).

Article 3.
(1) In order for banknotes damaged by marking to be replaced in accordance with this Instruction, it is necessary:
a) that the bank submits a request for the replacement of banknotes on the request form, which is an integral part of this Instruction, b) that the bank explains in writing the case, cause, and type of neutralization and the equipment used for the protection of banknotes, after which the banknotes changed their external appearance, c) that the banknote is in one whole piece, and its serial numbers, letter and numerical denomination markings on the front and back are visually legible, d) to establish that it is an unquestionably authentic banknote, e) to provide proof that the electrochemical equipment for banknote protection is authorized and used in accordance with the procedures of the authorized organization, f) to establish that the damage to the banknotes occurred as a result of theft, robbery, burglary, improper handling, or due to equipment error. (2) The Central Bank may request other information which it deems necessary to perform the replacement of banknotes damaged by marking.

Article 4.
In the event that a review by an authorized official of the Central Bank cannot reliably establish that it is an authentic banknote, the Central Bank will subject the banknote damaged by marking in the manner specified in Article 1, paragraph (1) of this Instruction to complex analysis (expert appraisal), from which the conclusion depends whether the banknote will be replaced.

Article 5.
The bank, for the services performed in the analysis of banknotes damaged by marking from Article 4 of this Instruction, pays compensation to the Central Bank in accordance with the regulation of the Governor of the Central Bank, in each specific case, depending on the costs incurred by the Central Bank in the analysis procedure.

Article 6.
Banknotes damaged by marking, in accordance with this Instruction, are submitted and replaced at the Treasury Department of the Central Office of the Central Bank and at the treasuries of the main units and branches of the Central Bank.

Article 7.
The Governor of the Central Bank is authorized to adopt a regulation for the implementation of this Instruction.

Article 8.
This Instruction enters into force on the day of its publication in the "Official Gazette of BiH".

Article 9.
This Instruction will also be published in the "Official Gazette of the Federation of BiH", "Official Gazette of the Republika Srpska" and "Official Gazette of the Brčko District of BiH".

Article 10.
On the date of entry into force of this Instruction, the Instruction on the method and procedure for replacing damaged convertible mark banknotes damaged by marking as a result of the effect of electrochemical equipment for banknote protection ("Official Gazette of BiH", 5/10) ceases to be valid.

Chairman of the Governing Board of the
Central Bank of Bosnia and Herzegovina GOVERNOR dr. Senad Softić

REQUEST FOR REPLACEMENT OF BANKNOTES DAMAGED BY MARKING

No.:
Date:
Time:
Request submitted by:
Request received by:

Competent Treasury:
Date of transaction:
Requested transaction time:
Approved transaction time:
Authorized person for execution of the task:
Type of currency:

DENOMINATION STRUCTURE
SUBMISSION	RECEIPT
BANKNOTES		BANKNOTES
Denomination	Number	Amount		Denomination	Number	Amount
200				200
100				100
50				50
20				20
10				10
5				5
1				1
Total:			Total:
TOTAL:			TOTAL:

Status of request:
Authorized Person

M. P. Signature