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reserves-law.md

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The Reserves Law

Preface

This Law sets the rules under which Public Administration may handle state Reserves held in currencies other than Merit and in valuable commodities.

Section 1: General Principles

Art. 1: Reserves

Liberland shall form reserves in commodities like silver, gold and other valuable materials and products and in currencies, both fiat and cryptocurrencies and others, other than Merits.

Art. 2: Subsidiarity

§ 1 Reserves shall be deemed a scarce resource and shall be kept safe and by the best available technologies. They shall never be handled except when a broad consensus is obtained that this should be necessary between more than one branch of Public Administration and the organs of Oversight.

§ 2 Reserves shall be spent only where it is very obvious that Merits cannot be used to achieve the goals of Public Administration. They shall be used for only those goals which are critical for the survival or prosperity of Liberland.

Section 2: Holding the Reserves

Art. 3: Keys to the Reserves

  1. Reserves shall be kept safe by: a) the Minister of Finance; and b) the Senate jointly, using state of the art security measures applicable to the type of reserves in question.
  2. Public Administration shall draft and maintain a Regulation regarding the specific measures required for the various types of Reserves actually held by Liberland

Art. 4: Cryptoreserves

§ 1 Reserves in cryptographic currencies other than Merits, henceforth ‘cryptoreserves’, shall be held in cold storages or they shall be invested.

§ 2

  1. Cryptoreserves shall be held in at least 10 cold storages manufactured by at least two companies which have both a well established reputation for reliability, security and user friendliness in the industry.
  2. The keys to those storages shall be held by the Minister of Finance and by the Senate, where both keys shall be necessary to make use of these Reserves.

§ 3

  1. Cryptoreserves held otherwise than in such cold storages shall be invested to keep or increase in their value.
  2. They shall be invested by at least two teams of trustworthy experts of well established reputation in cryptocurency investments, one hired by the Senate, one hired by the Ministry of Finance.
  3. These teams shall be composed of Citizens and the team of the Ministry of Finance shall preferably be Agents wherever possible.

§ 4

  1. No cryptoreserves shall be invested in speculative coins or instruments which have not reputably worked without greater disruptions for at least a year. 2) The teams of investors shall ensure that the developers and the maintainers of the platforms where those Reserves shall be invested are reliably accessible using methods of electronic communications and are quick to respond to issues; if this should prove impossible for a platform, that platform shall not be used for investment. 3) The investors shall always prefer platforms with respectable insurance of invested money over the other platforms.

§ 5 No more than one third of all Reserves shall be invested at any given time.

Art. 5: Regular Audit

The Ministry of Finance shall set up a system of regular audits, at least once per year, of the way reserves are being held and invested. The system shall then be changed according to the recommendation to reflect the state of the art in security and investment.

Section 3: Obtaining the Reserves

Art. 6: Valuables

§ 1 Any valuable material which should end up in the possession of Liberland shall become Reserves in Liberland’s Treasury and shall be treated as such.

Art. 7: Mandate to Have Reserves

  1. It shall be seen as one of the goals of the Public Administration to obtain Reserves for Liberland and all four Ministers shall be responsible to ensure that their actions yield increases in the Reserves wherever possible without compromising the attainment of other goals.
  2. The Prime Minister and the Ministers shall set up a system that rewards Agents for ensuring that the Reserves of the Treasury of Liberland increase.

Section 4: Spending the Reserves

Art. 8: Competent Organs

The Minister of Finance shall be the gestor responsible for any spending, unless the Prime Minister and the Senate together decide that either of them should be the gestor for the spending. This shall only happen when it is clear that the attainment of the goal of the spending would be impossible or very unreasonably difficult to achieve otherwise.

Art. 9: Spending Decision

§ 1 To trigger the spending from the Reserves, the Minister of Finance shall draft a Decision to be passed by the Congressional Assembly allowing for such spending to take place.

§ 2 Each spending of the Reserves shall be strictly goal-based and there will be one Decision made for each individual goal or for one very narrowly and specifically defined set of goals where the connection of the sub-goals to each other shall be readily apparent.

§ 3 The Decision shall designate per name the team of Persons who shall be responsible for the spending and the handling of the Reserves. No Reserve shall be handled without the direct and personal oversight of at least two of those Persons.

§ 4 A spending Decision shall contain a timetable in which the goal should be attained and a risk-benefit analysis. It shall also contain strict time-based criteria counted in units of three months or less according to which the spending can be judged as a success or a failure with respect to the attainment of the goals.

Art. 10: Unlocking the Reserves

§ 1 Should the Decision pass and not be vetoed, the Minister of Finance and a Senator chosen for this by the Senate shall come together physically to unlock the Reserves together.

§ 2 The Minister of Finance and the responsible Senator shall see to it personally that the unlocked Reserves arrive safely in the hands of the Agents responsible for the Reserve spending according to the given Decision.

Art. 11: Spending Audit

§ 1 The Minister of Finance shall every three months bring before the Congressional Assembly and the Senate a Report as to how far the fulfillment of the goals set by the Decisions has proceeded.

§ 2 Should the Audit report any delays, those delays shall be explained and measures shall be taken to rectify the situation or at least to mitigate the delay.

Art. 12: Congress Oversight

The Congress shall adopt one of the following courses regarding the spending in question: a) accept the Report and the situation therein described and the spending shall continue for the next 3 months as planned; b) order measures to rectify the situation, changing the individual Decision by an Amendment; c) ask the minister to re-submit the rapport with corrections if the Congressional Assembly should find it lacking, in no more than 5 days; or d) revoke their decision and order the Minister of Finance to stop the spending and to ensure that as much of the allocated Reserve as possible should return to the Treasury.

Art. 13: Aborting

§ 1

  1. Should the Minister of Finance and the Senate decide that the original goal of the spending has become unattainable, they shall Abort the spending by their joint declaration.
  2. They shall personally ensure that the remaining Reserve allocated to the aborted spending is returned to the Treasury in a way in which as much as possible of that Reserve can be retained.

§ 2 The Congress shall have the power to review the Aborting and should they find that this has been done without good reasons, they might start proceedings regarding personal responsibility according to this Law against the possible culprit.

Art. 14: Attainment of the Goal

§ 1

  1. When the goal is attained, the Minister of Finance and the responsible Senator shall prepare a report, signed jointly, and present it before the Congressional Assembly.
  2. The Congressional Assembly shall then vote on the information contained in the Report and whether it is in their opinion sufficient to entail the fulfillment of the goal or goals stated in the Decision on the spending.
  3. Should the Report be found inconclusive, they shall return it to the Minister of Finance for reworking which shall take no more than 5 days.

§ 2 Should the Congressional Assembly find the situation described in the Report as insufficiently fulfilling the goals stated in the Decision, they shall reject the Report and provide a binding interpretation of the goals, so that the Minister of Finance might continue the spending.

§ 3

  1. Should the Congressional Assembly find that the goals of the Decision have been attained, they shall accept the Report.
  2. The Minister and Finance and the responsible Senator shall personally ensure that the remaining Reserve allocated to the aborted spending is returned to the Treasury in a way in which as much as possible of that Reserve can be retained.

Section 5: Personal Responsibility

Art. 15: Liability

Should an Agent or an Elected Official or a Senator act irresponsibly towards the Reserves, they shall be liable to repay the losses Liberland will have suffered because of their negligence.

Art. 16: Role of the Courts

A Court shall decide on the Personal responsibility of the official based on an application made by: a) the Senate where the negligent party is a Minister, including the Prime Minister or their Agents; b) the Minister of Finance where the negligent party is a Senator or a Representative; c) the Congressional Assembly against any defendant.

Section 6: Final Provisions

Art 17: Final Provision

This law shall gain Legal Force on … and shall remain in force in perpetuity or until its legal effects should be terminated or until it should be replaced by another Law.