Tool marks?

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Did those who find this usually find or observe this mark on the bottom notes from xxxx990 to xxxx999 region?

You are definitely correct.  After having gone through a number of my records I see that the notes in 999 spot do contain such a mark and as you get to the 4th or 5th note down the mark disappears.

So now, how is this described when grading the note? 

Maybe UNC with "mechanical damage by the printer"?

I found some of these marks on other notes through out an intact virgin brick. Another possibiliy judging from the position it could be a mechanical handling problem when the watermark was registered on the paper prior to printing.

PD

If it was a defect linked to the watermark making, each note would have this mark, not only the fews last notes of each bundle (which are on the top of each bundle), so I still think that the mark is made by the wrapping/banding machine.  But it's possible that the mark is made when the ream is cut in strips and bundles.

Speaking about cutting notes, I observed that on every bundle, the infamous "cutting cup" on the security strip is most noticeable on the top  notes  (for a face-up bundle) and becomes weaker as you go down the bundle.  The cutting mark is absent on the last 20-30 notes (where the three last digits are *****30-00).  Have someone who had noticed this phenomenon? 

Because of this, I tend to believe that the reams a now cut by stacks of 100 sheets, instead of a full 1000 notes ream at once, maybe because the cut is easier and cleaner through 100 notes instead 1000.  Any comments?