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[BullNBear52]

Yes banks have to accept damaged currency as long as you have more than half the bill.

When accepting cash for deposit they have to separate the fit bills from the unfit bills that go back to the Fed for destruction.
https://www.frbservices.org/resources/financial-services/cash/faq/currency-quality-program.html#:~:text=%22Fit%22%20currency%20has%20been%20processed,and%20folded%20or%20missing%20corners.

And ATMs require a higher degree of fit bills so the machine doesn't malfunction.

What is disappointing is the currency in ATMs is not faced. All the Jacksons, heads up and looking in the same direction.

There is one ATM I use that uses new money. I always thought the smell would make a good after shave.

My wife thinks I have OCD. She may be right.