PCGS Banknote Lifetime Limited Guarantee of Grade and Authenticity – United States and World Banknotes
Scope of Guarantee.
PCGS guarantees that all United States and world notes submitted through the PCGS Banknote service shall be graded in accordance with the PCGS Banknote Standards and under the procedures of PCGS. In addition:
All U.S. and world notes graded and encapsulated by PCGS are guaranteed genuine.
The grade of all U.S. and world notes graded and encapsulated by PCGS is guaranteed.
In the event the purchaser of a banknote certified previously by PCGS believes that the note has been overgraded with respect to such standards and procedures, or is not genuine, the purchaser may submit such a note to PCGS through the PCGS Banknote “Guarantee Resubmission” procedures and PCGS will re-examine the note to determine the note's grade and authenticity.
If the grade determined under such “Guarantee Resubmission” procedures is lower than the grade originally assigned to the note, or if the note is found to be not genuine or misattributed (subject to Sections 2(h), 2(j) and 8 below), PCGS shall pay the current market value (no limit for U.S. notes and up to $10,000 for world notes) for the note in question at the originally assigned grade, or at the owner of the note's option, the difference between the current market value for the note in question at the newly established grade and the current market value of the note in question at the grade originally assigned (up to $10,000). PCGS will also refund the regrading fee and postage and insurance costs incurred by the note owner in sending the note through the PCGS Banknote service.
IT IS UNDERSTOOD THAT PCGS WILL BE THE SOLE DETERMINER OF THE CURRENT MARKET VALUE OF THE NOTE AND THAT CURRENT MARKET VALUE IS DEFINED AS DEALER REPLACEMENT VALUE, I.E. THE PRICE A DEALER WOULD MOST LIKELY HAVE TO PAY TO REPLACE THE NOTE.
Exclusions from Guarantee.
This guarantee shall not apply to (a) items that are not graded or which have received a “Details” grade only; (b) notes as to which an obvious clerical error has been made with respect to the description of the note (see Section 4 below); (c) notes which have been removed from their PCGS Banknote holders or where the PCGS Banknote holder shows evidence of tampering or is counterfeit (see Sections 5 and 6 below); (d) notes which have been environmentally damaged due to improper storage or natural disasters such as fire and flood, or which display latent damage or deterioration subsequent to certification resulting from the manufacturing process or otherwise (see Section 7 below); (e) notes whose status in the numismatic community has changed subsequent to their original certification; (f) paper notes issued for purposes other than as a medium of exchange, unit of account, or store of value; (g) checks; (h) satire and advertisement scrip; (i) certificates of authenticity; (j) stock or bond certificates or any document relating to an investment security; (k) autographs and signatures on documents;(l) sample product; (j) notes for which the Guarantee claimant was the original submitter (or the original submitter’s agent, employee, affiliate, family member, or representative, or anyone otherwise in privity with the original submitter; (m) notes for which PCGS has notified the owner of a certification error and the owner fails to return the note to PCGS within 14 days of said notice and/or transfers title or possession of the note thereafter (see Section 4); (n) attributions of banknotes (see Section 8 below); (o) premium values for unattributed varieties; (p) reholdering or reattribution due to a change in the note’s collectability or overall numismatic status (it is sometimes the case that the greater numismatic community or certain authorities within the field will reclassify a note, including but not limited to its catalog number in a major reference work, the status of a variety or error, or some other characteristic of a particular banknote. Any subsequent changes in a note’s value due to such reclassifications are not covered by the PCGS Banknote Guarantee).
How to Use the PCGS Banknote Grading Limited Guarantee.
The submitter of a note using PCGS’s Guarantee Resubmission service agrees to be bound by all of the terms, conditions, and limitations set forth herein:
If you have a note that you feel is overgraded or counterfeit, call PCGS Banknote Customer Service and they will help you fill out the proper submission forms. For approximate turnaround times, please ask a PCGS Banknote Customer Service Representative. After PCGS Banknote examines your note, if we feel your note has been overgraded or is counterfeit, you will be contacted by phone or email and given the current market values so you can decide which of the repayment options you wish to use. If PCGS Banknote determines that the original grade is correct, your note will be returned to you with the original grade and you will be responsible for the regrading fee and postage charges.
Clerical or "Mechanical" Errors.
PCGS occasionally makes errors in inputting data which is shown on the insert in the PCGS Banknote holder; consequently, the PCGS Banknote Guarantee does not cover obvious clerical errors, what we call "mechanical errors." The key concept is how obvious the error is to the naked eye. If you can easily tell just by looking at the note that the description on the holder is wrong, then the note/holder combination is not covered by the PCGS Banknote Guarantee. Some examples would include the following:
A date listed on the holder that does not match the date or catalog number of the note.
A grading designation that is obviously incorrect.
A variety attribution that is obviously incorrect.
A blatantly obvious clerical input or printing mistake with respect to the actual grade of the note.
If PCGS notifies the owner of a note that the PCGS label has a mechanical error, the owner must return the note to PCGS within 14 days for reholdering. If the owner does not do so: (a) the PCGS Banknote Guarantee will no longer apply to that note, (b) the owner may not sell, trade, or otherwise dispose of the note to any third party, and PCGS reserves the right to require return of the note or recoup any damages incurred by PCGS or any third party as a result of any transfer of notes which the owner is or should have been aware carried a mechanical error.
Notes Removed from PCGS Banknote Holders.
The PCGS Banknote Guarantee does not apply to notes removed from PCGS Banknote holders. There are no exceptions to this policy. You remove a note from a PCGS Banknote holder at your risk.
Notes that Have Been Tampered or Counterfeit Holders.
Unfortunately, some unscrupulous individuals occasionally try to defraud people by removing notes from PCGS Banknote holders, replacing them with less valuable notes, and then resealing the holders. Most of these "reholders" are crude and obvious. Some are more sophisticated. There are also those who counterfeit PCGS Banknote holders. The PCGS Banknote Guarantee does not apply to notes that are in holders that have been tampered with, nor does the PCGS Banknote guarantee cover notes in counterfeit PCGS Banknote holders. We shall not return any note that A) we determine not to be genuine and encapsulated in a PCGS holder, B) is overgraded with an incorrect PCGS label, and/or C) is incorrectly described in a counterfeit or tampered with PCGS holder.
Notes that are Environmentally Damaged.The PCGS Banknote holder, while excellent for long-term storage and protection, does not protect notes from harsh environmental conditions. Consequently, the PCGS Banknote Guarantee does not apply to notes that have been environmentally damaged. For example, if your notes are damaged in a flood or fire, the PCGS Banknote Guarantee would not apply to those notes. This also applies to notes stored in environmentally risky locations (high humidity, see next paragraph.) Likewise, if a note begins to display damage or deterioration subsequent to certification resulting from a latent condition arising during the manufacturing process or otherwise, this Guarantee shall not apply.
Attributions and Information from Third Parties.
Information contained in the PCGS Banknote Grading label, but which originates from third parties, is not covered by the PCGS Banknote Guarantee. Such third parties include, but are not limited to, the United States Bureau of Engraving and Printing and from PCGS Banknote Grading submitters and such information includes, but is not limited to, attributions relating to variety, reference, and/or pedigree.
Many banknotes are numismatically significant for exhibiting certain varieties, ink coloration, spelling variants, or particular paper or printing distinctions, and PCGS Banknote professionals will recognize and attribute these on legitimate banknotes as they deem appropriate. However, it is sometimes the case that certain varieties once recognized as distinct from other notes from the same issue are eventually demoted and/or reclassified due to ongoing numismatic research. In such cases where a variety or attribution is no longer recognized by the numismatic community, we may also discontinue formal recognition of the variety or attribution on our labels. Thus, PCGS Banknote does not guarantee that we will always recognize certain varieties and/or attributions and thus all policies concerning these designations may change without notice at any time.
In the case that a note submitted to us under PCGS’s Guarantee Resubmission service is determined to be overgraded, counterfeit, or altered, we will provide monetary compensation based on a fair market value estimate determined by us for a generic example of said note in its stated original grade without regard to potential value for varieties or pedigree, variety, or reference.
Disclaimer of any Other Express or Implied Warranties.
EXCEPT FOR ANY EXPRESS WARRANTIES SET FORTH IN THIS GUARANTEE, PCGS BANKNOTE DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED, REGARDING PCGS BANKNOTE AND / OR THE SERVICES, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL PCGS BANKNOTE OR ANY OF ITS AFFILIATES, OR ANY OF ITS OR THEIR RESPECTIVE EMPLOYEES, OFFICERS, DIRECTORS, OR AGENTS, BE LIABLE TO CUSTOMER OR ANY OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS GUARANTEE IN NO EVENT SHALL THE AGGREGATE LIABILITY OF PCGS BANKNOTE, ITS AFFILIATES, AND ANY OF ITS OR THEIR RESPECTIVE EMPLOYEES, OFFICERS, DIRECTORS OR AGENTS TO THE CUSTOMER OR ANY THIRD PARTY FOR WHOM THE CUSTOMER MAY BE ACTING, ARISING FROM ANY CAUSE, ACT, OMISSION, OR OTHER CIRCUMSTANCE, EXCEED THE FEES PAID OR PAYABLE FOR THE SERVICES ORDERED BY THE SUBMITTER OF SUCH ITEM(S).
Applicable Law/Dispute Resolution/Waiver of Trial by Jury.
THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA AS APPLIED TO TRANSACTIONS TAKING PLACE WHOLLY WITHIN CALIFORNIA BETWEEN CALIFORNIA RESIDENTS, AND WITHOUT REFERENCE TO CALIFORNIA CHOICE OF LAW RULES. CUSTOMER HEREBY CONSENTS TO PERSONAL JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA WITH RESPECT TO ANY LEGAL ACTION TO ENFORCE THE TERMS AND CONDITIONS OR OTHERWISE ARISING UNDER OR WITH RESPECT TO THIS GUARANTEE, AND AGREES THAT THE SUPERIOR COURT OF CALIFORNIA, COUNTY OF ORANGE, OR, IF APPLICABLE, FEDERAL DISTRICT COURT SITTING IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, SHALL BE THE SOLE AND EXCLUSIVE VENUE, AND THE STATE OF CALIFORNIA SHALL BE THE SOLE FORUM, FOR THE BRINGING OF SUCH ACTION. THE PCGS GRADING GUARANTEE DOES NOT APPLY TO ANY CLAIMS BROUGHT OUTSIDE OF THE COURTS OF ORANGE COUNTY, CALIFORNIA.
CLAIMANTS UNDER THIS GUARANTEE HEREBY WAIVE TRIAL BY JURY.
Any provision of the PCGS Banknote Guarantee that is held by a court of competent jurisdiction to be illegal, invalid, or unenforceable shall be ineffective to the extent of such illegality, invalidity, or unenforceability, without affecting in any way the remaining provisions of this Guarantee.