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        REA-4-1         Constitution.                 January 8th,   1986




                                  Constitution.


             Example of a Constitutional Structure for a LETSystem.




        Structure

             In the Comox Valley, the LETSystem is constituted as a non-
             profit trust.  It acts as an agency for its members, through 
             the executive direction of a trustee.  The trustee reports 
             to a Board of Advisors, and also is available to all 
             members, willing to hear their comments and requests.

             Thus, members use and direct a vehicle whose operation is 
             maintained by the trustee.  The ethics and accountability of 
             the trust and trustee are established by the support of the 
             Advisory Board, who will withdraw their association and 
             support if dissatisfied with the operations.




        Functions

             The LETSystem receives, records, and distributes information 
             given to it by its members.

             It provides and maintains a computer supported "noticeboard" 
             to which each member has access.  Members can place notices 
             and search for information.

             The LETSystem operates a system of accounts whereby members 
             can record quasi-monetary transactions amongst each other in 
             a closed system.

             The LETSystem supports itself by charges applied to member 
             accounts in the quasi-monetary function.




        Guidelines

             The LETSystem has no political or ideological bias.

             It exercises no control over its members' activities, beyond 
             declining to record trivial or improper information.

             It manages its affairs so as to be a viable economic entity, 
             requiring no long-term subsidy.





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        REA-4-1         Constitution.                 January 8th,   1986






        Members - Terms of Reference


             Any individual, business, community organization, or 
             government agency may apply for membership.

             A member may hold several accounts.

             Members are required to abide by the agreements.

             The trustee has the right to deny or rescind membership.






        Trustee- Terms of Reference


             The trustee:

               - is the operator and custodian of the LETSystem and is 
                 thus responsible for all aspects of its performance.

               - undertakes to record and distribute the information 
                 provided by the members, except when that information is 
                 considered inappropriate or damaging to the interests of 
                 the members as a whole.

               - maintains the financial accounts of the system.

               - adopts policies consistent with long-term viability.

               - assesses and implements the necessary user fees.

               - reports to the Board of Advisors.

               - may be replaced and will seek to ensure that 
                 replaceability.

               - undertakes to make the LETSystem increasingly accessible 
                 to and compatible with all sectors of the community.













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        REA-4-1         Constitution.                 January 8th,   1986






        LETSystem Advisory Board



                 The LETSystem is operated as a non-profit trust on 
                 behalf of its members by a trustee.

                 The trustee reports to a Board of Advisors, and will 
                 keep them informed of the operations, accounts, and 
                 directions of the LETSystem.

                 The Board of Advisors may make, individually or as a 
                 group, any requests or recommendations to the trustee, 
                 including the trustee's resignation or replacement.

                 The Board of Advisors is neither legally responsible for 
                 the actions of the trustee, nor financially liable for 
                 any debts incurred.

                 Advisors may resign without notice, and have their 
                 reasons published in the network if they wish.

                 A list of the current members of the Board of Advisors 
                 will be included in the material made available to the 
                 public.





        Financial Accountability



                 The capital assets of the system will be kept minimal 
                 and essentially current.  Lease or rent will be used 
                 whenever possible.

                 The LETSystem will contract out as much as possible to 
                 existing local businesses.

                 Normal conservative accounting procedures will be used, 
                 and all administration records will be available for 
                 inspection.     This does not apply to "green dollar" 
                 accounts, which are confidential.

                 All long-term liabilities will be retired as soon as 
                 possible.  Short-term liabilities will only be 
                 undertaken when necessary.

                 Charge rates to each aspect of service will be 
                 calculated to reconcile the monthly operating costs on 
                 an ongoing average basis.          



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