12. A person cutting or breaking coin under clause (b) of Article 10 shall observe the following procedure, namely:- (i) if such person has reason to believe that 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; (ii) if such person has not reason to believe that the coin has been fraudulently defaced, he shall receive and pay for the coin at its nominal value. Explanation - For the purpose of this Article, a coin which, there is to believe has been defaced by sweating shall be deemed to have been fraudulently defaced.