This information comes from the current Official Red Book of USA Paper Money by Arthur L. and Ira S. Friedberg (page 41).
Gem Uncirculated (Gem Unc) (UNC-65)
A note that is flawless, with the same freshness, crispness, and bright color as when first printed. It must be perfectly centered, with full margins, and free of any marks, blemishes, or traces of handling.
Choice Uncirculated (Ch Unc) (Unc-63)
An Uncirculated note that is fresher and brighter than the norm for its particular issue. Almost as nice as Gem Uncirculated but not quite there. Must be reasonably well centered.
Uncirculated (Unc) (Unc-60)
A note that shows no trace of circulation. It might not have perfect centering and might have one or more pinholes, counting smudges, or other evidence of improper handling, while still containing its original crispness. Sometimes large-size notes will be encountered which are obviously Uncirculated, but which have some tiny pinholes. It was customary in the onld days to spindle or pin notes together, and that is why so many Unc notes might show tiny pinholes. Such imperfections do not generally impair the choice appearance of a new note, and such notes are to be regarded as being UNC, although they generally command slightly lower prices than note in perfect condition.
About Uncirculated (AU) AU-50, AU-55 and AU-58
A bright, crisp note that appears new but upon close examination shows a trace of very light use, such as a corner fold or faint crease. About Uncirculated is a border line condition, applied to a note that may not be quite Uncirculated, but yet is obviously better than average Extremely Fine note. Such notes command a price only slightly below a new note and are highly desirable.
Extremely Fine (EF) (EF-40 and EF-45)
A note that shows some faint evidence of circulation, although it will be bright and retain nearly full crispness. It may have two or three minor folds or creases but no tears or stains and no discoloration.
Very Fine (VF) (VF-20, VF-25, VF-30 and VF 35)
A note that has been in circulation, but note actively or for long. It still retains some crispness and is still choice enough in its condition to be altogether desirable. It may show folds or creases, or some light smudges from the hands of a past generation. Sometime, Very Fine notes are the best available in certain rare issues, and they should accordingly be cherished just as much as Uncirculated notes.
Fine (F) (F-12 and F-15)
A Fine note shows evidence of much more circulation and has lost its crispness and very fine detail, and creases are more pronounced, although the note is not seriously soiled or stained.
Very Good (VG) (VG-8 and VG-10)
A note that has had considerable wear or circulation and may be limp, soiled, or dark in appearance, and might even have a small tear or two on an edge.
Good (G) (G-4)
A note that is baldy worn, with margin or body tears, frayed margins and missing corners.
Notes regarding grading:
In general, discriminating collectors will not acquire Fine or lower grade notes because they have lost their aesthetic appeal, but this generally applies only to common notes. However, a really rare note has a ready market even in Good condition, because it may not otherwise exist, or if it is choice, will have an extremely high price commensurate with its great rarity.
Regarding Improving or repairing currency: such improvements are generally accepted and should always be mentioned when offered for sale whether by an auctioneer or a dealer; anything else is a misrepresentatation.
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I actually like this system and may adopt it myself for use here in Canada. One of the big take aways here is that not all UNC are treated the same, some UNC 65's will command strong premiums over an UNC 60 (remind you of say, umm coins?).
I have seen use of an UNC 67 as well (such as the note Rick started this thread with) which is described as follows:
Superb Crisp Uncirculated-67: A nearly flawless note with perfect centering. Full wide margins all around. Colors are totally bright, crisp and vibrant. Quality is outstanding.
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You can all draw your own conclusions as to where the Canadian market may be headed one day. When we say a note is aEF, do we mean VF-35 to VF-39?
Food for thought.
Troy.
Canadian Paper Money
