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 Uploading ....Resource Based Cooperative Trust Fund
This is the most important part of the Resource Based Cooperative financial structure. The trust fund is where the money goes that will be used to launch the Resource Based Economy research community. The reason for using a trust fund and not a simple savings account or some other type of investment is that a trust fund is set up with conditions for withdrawal of the money.
In our case, we will write conditions that guarantee the trust fund can only be used to establish and operate an RBE research community. This ensures that the long term goal of the co-op will be met, and gives us credibility within the wider group of RBE advocates. Ideally the fund deposits and balance will be made publicly available at all times, though it's unclear at this time if that will be possible.
Setting up the trust fund is one of the most difficult early challenges we face. The trust conditions must be written with extreme care to eliminate any potential for misuse of the fund. It is not enough to specify, "Fund to be used only for the construction and operation of a Resource Based Economy research community." That is too vague to be useful. Someone could decide to buy land and build their own home for personal gain, and call the project a Resource Based Economy research community. They would then have legal access to the fund.
To prevent this we need to carefully define the terms we use, set strict and clear conditions, and decide what will be considered acceptable forms of proof that withdrawal conditions have been met. No small task.
External Information and research material.Here is some information on conditional trusts:
http://www.naepc.org/journal/issue04i.pdf
Aspects of a trust variant called an incentive trust might be useful:
https://en.wikipedia.org/wiki/Incentive_trust
Much more research is required.
One interesting condition is 'dollar for dollar', where the trust fund money is matched to an external source. The ratio could be anything we choose. It would help ensure the commitment of anyone making a withdrawal from the trust.
Definition of Terms:Resource Based EconomyResearch Community
It is generally understood that the first material requirement for an RBE community is land. How do we make sure that land is purchased for the right reason? How can the people building an RBE community prove their intentions before it is built?
-a partial answer is to require that the land cannot be occupied by residents (set a minimum stay to qualify as residence) until properly designed and engineered plans for infrastructure and homes are presented.
Construction materials: May not be purchased with Trust money unless land has been purchased and construction plans are in hand which meet all legal requirements applicable to projects of this kind. Engineering approval is also required and the cost for this approval can be met with Trust money if and only if approval is granted.
Funding of operations: Should provide some level of start-up capital and then only be used to cover shortages of basic necessities, defined as human requirements as well as raw material for any pre-existing production facilities necessary for continued operation of the community. |
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