It is legal tender, cut or un-cut...
... What IS not legal is to MIS-CUT these and THEN represent them as 'errors' produced by the BEP making them worth MUCH MUCH More as errors. I see these on eBay all the time and usually the seller claims "I don't know if these are real errors.... but I got these from..." The serial numbers for un-cut money start with 99.... (a Dead give away).