Once Paper Money Reaches a Certain Age, what happens to it?

What happens to money once it becomes unusable? I was just thinking about this the other day when I got a torn apart ten dollar bill, scotch taped in 3 different areas and looked very old. Money is handed from person to person, place to be place for years and years, over time age will effect everything. Where is the last place an old paper bill would end up. Somebody would have to take that loss at some point? I was thinking if it ended up at the bank, the bank would probably store it or something and not give it back out. I only had a ten dollar bill, but they make hundred dollar bills and even possibly thousand dollar bills, that's a big loss of profit for somebody because a paper bill has gone bad. Whats the worst a bill could be before a bank would accept it and give you a newer bill. lol That was just a stoned thought I had, what happens to all the old money that will not be accepted as currency because of its condition?

you are funny... LMFAO, I had a stack of hunderds I had to throw away because they got to old.

The goverments destorys the old currancry and prints new money. no one loses except the tax payers

It gets turned into those gimmick "million dollar pens", but mostly recycled. And yes, 1000 bills exist, but you'll probably never own one in person. They are used internationally (if I recall) and not in general circulation. A friend of mine aquired one a long time ago, but had to go to a national bank, and get this, had to hand over 1200 to get it, even though it's value was only 1000. Not sure if this is even a possibility anymore.
http://www.ehow.com/about_5267961_happens-old-paper-money.html

http://en.m.wikipedia.org/wiki/Large_denominations_of_United_States_currency

Continue to use it for sniffing drugs. I cant count how many times i need to snort and i dont have a bill around

I shall take any unwanted bills

it is incinerated by the government. i think they print more to replace it though

Luger187 said:

it is incinerated by the government. i think they print more to replace it though

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When does it come to the point that they know they should incinerate it or send it to the government? When will somebody take it out out circulation? Who's duty is it to send old ripped up money to be incinerated? What if no stores nor banks would accept a torn up hundred dollar bill, what would be the following action to pursue?

the banks decide when money is no longer fit for circulation

It gets shredded. Here is a dude who built a house out of shredded money.

http://news.yahoo.com/blogs/technology-blog/jobless-man-builds-house-1-82-billion-worth-042027289.html

it gets burnt after being tested for drugs, 99% of british notes got coke on or something.