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Quote:
CANCELLED NOTES from csaquotes.com

Many CSA notes have been cut-cancelled or cut-out-cancelled to indicate that they were paid and collected by the government. This is different than damage or repairs and these notes deserve their own pricing. These notes, especially clean cut-cancels, are attractive and desirable in their own right. Some varieties are extremely difficult if not impossible to get not cancelled. In general, cut-cancelled notes command a price of 2/3 that of an equivalent uncut note. While cut-out-cancels vary, on balance they are worth about 1/3 that of an equivalent uncut note. Some varieties with cut cancellation will be worth a bit more than these ratios. Some more common types perhaps a bit less.

There are those who say that clean cut-cancellations with no paper loss have little effect on value. My experience leads me to believe this is not true. I've not seen a cut-cancelled CSA note bring a similar price as an uncut example of the same note in the same grade in the past couple of years. I've also never been able to sell cut-cancelled notes for the same price as un-cut examples to the people who postulate that there is little difference in value. It may have been true in 1996 at Criswell's 1996 prices, but it is not true today. Therefore, I use reasonable estimates in CSA Quotes based on real sales for cut and cut-out cancelled notes. I will change this when I find someone(s) who will by my cut-cancelled type notes at un-cut prices. NOTE: Some rare varieties are only available cut (or a cut cancelled example may be the only available for decades) and this guideline may not apply to R9 and better notes the same way it does for type examples.