(3)A person cutting or breaking coin under the provisions of clause (b) of sub-section (1) shall observe the following procedure, namely:—(a)if such person has reason to believe, that the coin has been fraudulently defaced, he shall return the pieces to the person tendering the coin, who shall bear the loss caused by such cutting or breaking;(b)if such person has reason to believe, that the coin has not been fraudulently defaced, he shall receive and pay for the coin at its face value.
