Archive:Monetary Code

**THE UNIVERSAL TRIUMVIRATE MONETARY CODE**
**6.8.13 | 12.8.13**
Speaker of the Administration Andrew Mearl
Major Executive Nathan Maine, Minor Executive and Head of the Treasury Andrew Hester

**A Law** to allow the government of the Triumvirate to effectively manage and influence monetary policy, appropriately coin more currency, and regulate the value thereof.

**Section 1: The Department of the Treasury as Monetary Regulator**

The Department of the Treasury shall have the power to control money supply via the use of loans provided by this and alternative legislation and by the use of government bonds. The overall amount of Tri in circulation however, may not be influenced by the Treasury as only the government may, by law, coin more Tri which shall be delivered to the vaults of the Treasury.
The Treasury shall be tasked with a triple mandate of maintaining stable prices, raising appropriate money for government utilization, and maximizing employment.
**Section 2: Government Bonds**

The Department of the Treasury is enabled the ability to sell bonds and to regulate the rates for each series of bond within the permitted interest rate set by this law. The Treasury shall not discriminate as to who they sell bonds to, business or individual, foreign or domestic, but must do solely what is in the best interest of the government and the Triumvirate people and sell to the best and most efficient buyer. No approval by the Executive Branch or the government, except in the direction as to bond series in section 2.1 of this law is necessary for the Treasury to sell bonds or pay back those who return their bonds legitimately from the funds of the government directly in the Treasury. The Treasury may determine management, naming, and organization of bonds.
**Section 2.1: Debt Limit**
A total debt limit of ∇2,500 shall be authorized.
**Section 2.2: Definitions**
Bond Series is the type of bond. Some bond series may have a general purpose such as raising long-term revenue or maintaining a stable monetary climate, while others may have a specific purpose like raising short-term revenue so as to handle a crisis. Each individual bond is represented by the numbers following the series letter. (Ex. Series A Bond, #001 would be a member of the A-000 series of bonds, it would be the first one sold)
Price is the original purchase of the bond, as in its purchase value that the consumer pays to the government when they buy the bond.
Amount is the total amount of those kinds of bonds allowed to be sold by the Treasury.
Length of Return is the amount of time, after the original purchase date, that the bond is ready to be returned and the consumer may receive the bond price and the interest back.
Return is the total, set, amount that a bond is redeemable for when it matures.
Creation Date is the time when the bonds are first allowed to be sold by the Treasury.
Dissolve Date is the time when the bonds are no longer allowed to be sold by the Treasury should the amount either be unlimited or not have been reached yet.
**Section 2.3: Determining Interest Rate at Sale**
Interest rate is determined by the rate between the price of the bond when purchased and the return. The difference is configurable as the interest rate.
**Section 2.4: Bond Returns**
After the return date, the Treasury must pay, in full, the return amount to the owner of the bond. They must round up if there is not an exact return. Should the Treasury fail to pay, the bond owner may request payment in case the Treasury has forgotten, and the Treasury shall then pay the owner the return amount so long as the request for return payment is made within one month from the date the bond matured.
**Section 2.4.1: Return Subject Lacking**
Should the subject of the return, to whom the government owes money for the bond, no longer possess an active financial account within the Triumvirate, then the bond shall be cancelled and the government shall not have to pay the bond return.
**Section 2.5: Failure to Return**
In principle, it should be impossible for the government to default on debt via bonds as the government can coin further Tri to pay off all bonds, however, should that not be practical or be it unable to occur, then a debt default shall commence and creditors shall not be returned what is owed, tarnishing the credit of the Triumvirate and discouraging further investment by the private sector.
**Section 2.6: Bond Sales**
Consumers, businesses, and foreign entities are permitted to sell bonds at their own will and to their liking with no restriction on price but may not alter the terms of the bond (the return and return date shall remain so as to not affect the government end).
Political parties shall be forbidden from purchasing government-issued bonds in general.
The Head of the Treasury, Deputy Head of the Treasury, and any affiliated institutions under them shall not be able to purchase government bonds personally.
There shall be no restriction on the maximum amount of bonds a person, foreign entity, or institution may purchase and possess unless otherwise noted.
**Section 3: Maintaining Supply of Money**

The Treasury shall utilize the sale of bonds via open market operations to increase and decrease the supply of money. They shall sell bonds to decrease the money supply and purchase bonds to increase money supply, doing what is in the best interest of the government and of the people.
**Section 4: Un-backing of the Tri**

Effective with the passing of this law, the tri shall be backed solely by consumer confidence and government guarantee. The Financial Code shall be amended to adjust for this.
All current RSGP previously used for backing shall continue to be held by the Triumvirate government for use as the Executive Branch may allow.