previous - reality - further

        REA-7           LETSfund.                     January 8th,   1986


        More power to the people.

        Green money is all very well so far as it goes, but no use beyond 

        Every community has need for substantial conventional cash funds 
        for community development.  

        Neither the banks, the credit unions, the investment packages, 
        the government, nor even the community itself seems to be able to 
        properly provide for this.

        Such programs as do exist are cumbersome, expensive and 

        A minor optional extension of the LETSystem should be considered.

        Unpaid levies.

        Incorporate a second organization, the LETSfund with a proper 
        constitution, board of directors, etc. whose membership is that 
        of the LETSystem.

        Establish, by consent, a levy, to be charged in conventional 
        funds to each business as a flat rate commission on their green 
        dollar turnover.

        This levy is held by the LETSystem as an account receivable with 
        all the participating businesses, who are assured that it will 
        NEVER be collected without their approval.

        This is equivalent to giving payment and then having that payment 
        returned as a zero interest loan which cannot be called.

        The accounts receivable are transferred from the LETSystem to the 
        LETSfund, which becomes thus an asset backed entirely by the 
        local businesses in proportion to their participation in the 

        Landsman Community Services Ltd.              REA-7     Page    1

        REA-7           LETSfund.                     January 8th,   1986


        Any local individual or business seeking funding can apply to the 
        LETSfund for support.

        Proposals are prepared, with or without assistance from the 
        LETSfund staff, and are made available to LETSfund members.

        Members who consider any particular project of value may 
        discharge part or all of their obligation to the LETSfund by 
        advancing funds, or perhaps cash credit, to the proposer.

        For the funds or credit advanced the LETSfund receives equity in 
        the proposal.

        If the proposal is successful, the proposer may repurchase the 
        equity, under predetermined terms and at a premium, from the 
        LETSfund, which has thus funds to redistribute.

        The first option to reacquire those funds, at zero interest, is 
        available to the original supporters.


        When you go to a conventional bank to borrow, you do so because 
        you need additional resources to overcome some particular hurdle.

        Borrowing temporarily increases the resources at your disposal 
        but increases the hurdle you have to overcome.

        The banker wants you to succeed but he makes sure he is covered 
        if you fail.

        Often this means he will withdraw support when things look 

        A more responsible form of banking, in which the risks and 
        benefits are more likely to receive careful attention, occurs 
        when the bank becomes part of the project.

        If it goes, they gain; if it fails, they too take a loss.

        Things work better when we are in it together.

        Landsman Community Services Ltd.              REA-7     Page    2

        REA-7           LETSfund.                     January 8th,   1986

        The local stock market.

        The most powerful vote is the one you make with your dollar.

        A LETSfund represents all the best aspects of a mutual fund or a 
        stock market and does it in such a way as to show us the results 
        of our speculations.

        The accounting necessary to support the records of a LETSfund can 
        easily be managed with the current LETSystem software.

        Landsman Community Services Ltd.              REA-7     Page    3

previous - reality - further