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REA-7 LETSfund. January 8th, 1986
LETSfund.
More power to the people.
Green money is all very well so far as it goes, but no use beyond
that.
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
inadequate.
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
LETSystem.
Landsman Community Services Ltd. REA-7 Page 1
REA-7 LETSfund. January 8th, 1986
Proposals.
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.
Equity.
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
difficult.
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
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