Is The signature touching the number 12 considered an error being none of the other signatures touch the numbers? I was just wondering.
No. The notes are printed and design shifts can occur. If they are major...then you'll have something. Wait to see what the currency guys say. EDIT: I stand corrected.
Okay Sheila, here's what I see. Your bill is cut slightly off center on the front but more centered on the reverse. Look at the borders. That happens so much it's considered normal. There's nothing on the back of the bill that catches my attention. What you have is a minor design shift on the front of the bill. Bills are printed several times in order to print them on sheets. Part of the design shifted on your bill. The signatures are fine, it's the lower right 12 that shifted into the signature. Also, the green seal over the "ONE" above the signature has shifted. The left edge of the green seal should be just barely touching the right inside of the "O", that's about 1/16th of an inch. Minor but it happened. Nice catch. Even though it's worn, I'd keep it. It's only a dollar and it's something new to you. Here's the web site for the Bureau of Printing and Engraving. They are responsible for printing all of the paper money we use. http://www.moneyfactory.gov/ Please take the time to check it out as they have an on-line tour. Hope that helps a bit. Gotta go. Have a nice evening.
Notes are printed in steps. If the second step is off registration then a design shift can occur. You will also find the green seal shifted left or right from it's true position sometimes. If it is radical they can bring a nice premium. This one is more akin to a minor die crack on a coin.