Currency of Nouvelle Alexandrie Act, 1711

Bill as submitted to the "Hopper" of the Federal Assembly, 19.VII.1711

THE CURRENCY OF NOUVELLE ALEXANDRIE, 1711

THE READING OF

A

BILL

TO

ESTABLISH, REGULATE, AND PROVIDE FOR A PROSPEROUS AND WELL-ORGANIZED ECONOMY FOR NOUVELLE ALEXANDRIE; AMONG OTHER PURPOSES.

CURRENCY OF NOUVELLE ALEXANDRIE, 1711

Presented by Felipe de Almagro, Deputy from North Lyrica, (FHP)

Ordered, by the Cortes Federales of Nouvelle Alexandrie,
to be Printed, 1711 AN.
BE IT ENACTED by the King’s Most Excellent Majesty, by and with the advice and consent of the Cortes Federales, in this present 1st session assembled, and by the authority of the same, as follows:-

PART I GENERAL PROVISIONS

1 CITATION.

This Act may be cited in all purposes as the “Currency of Nouvelle Alexandrie Act, 1711.”

2 DEFINITIONS.

For the purposes of this Act, the term "national funds" shall mean any of the following assets:
1. All cash paid as the revenues of the federal government of Nouvelle Alexandrie, also known as “revenue”, in accordance with statutes, contracts, etc. or transferred into funds and assets prescribed by Royal Decree, Act of the Cortes Federales, or departmental regulation that have the same value as cash (hereinafter referred to as "cash, etc.");
2. Cash, etc. temporarily retained before transferring it to the regional and local governments by the federal government of Nouvelle Alexandrie;
3. Cash, etc. raised by issuing treasury bills or taking temporary loan from the Federal Bank of Nouvelle Alexandrie, or through other methods prescribed by Royal Decree or Act of the Cortes Federales;
4. Financial assets obtained for the purpose of operating national funds pursuant to this Act and other laws.
For the purposes of this Act, the term "revenue" shall mean national funds under subparagraph 1.1 of this Article, such as taxes, etc., transferred as tax revenues or as funds;
For the purposes of this Act, the term "expenditure" shall mean the payment of cash, etc. from the Treasury of the Federation of Nouvelle Alexandrie, in accordance with the budget processes of expenditures and the fund management plans under the law;
For the purposes of this Act, the term “federal government agency” shall mean all the executive government departments, agencies, and bodies established pursuant to the laws;
For the purposes of this Act, the term "head of a federal government agency" shall mean any federal government or administrative agency head established pursuant to the Proclamation of Punta Santiago or any federal law.
For the purposes of this Act, the term “bank” shall mean all corporations, other than the Federal Bank of Nouvelle Alexandrie, which regularly and systematically manage banking business.
For the purposes of this Act, the term “bank holding companies” shall mean a company, the primary business of which is to control companies carrying on financial business (hereinafter referred to as "financial institutions") or other companies closely related to the operation of financial business through the ownership of their stocks (including equities; hereinafter the same shall apply) according to the standards prescribed by the laws.

Insurers and companies engaged exclusively in mutual savings bank business or trust business shall not be deemed as financial institutions.

PART II THE CURRENCY OF NOUVELLE ALEXANDRIE.

3 THE NEW ALEXANDRIAN ÉCU.

The monetary unit of the Federation of Nouvelle Alexandrie shall be the Ècu (also referred to as “Federal Bank of Nouvelle Alexandrie notes”) and shall be legal tender for all payments within the territory of the Federation of Nouvelle Alexandrie.
Ècu shall be a unit of calculation and a single ècu shall be divided into 100 cents.
The symbol of the ècu shall be “€”, its abbreviation shall be “NAX€”.
The symbol of the cent shall be “¢”.
Coins shall be struck for the following denominations of ècu:
1. 1 Ècu;
2. 5 cent;
3. 10 cent;
4. 25 cents;
5. 50 cents.
The Ècu shall be issued by the Federal Bank of Nouvelle Alexandrie, through the Royal Mint.
Upon approval of the Council of State, the Federal Bank of Nouvelle Alexandrie may issue Ècu notes of any size, pattern, and denomination, as determined by the law.
The Federal Bank of Nouvelle Alexandrie notes held by the Federal Bank of Nouvelle Alexandrie shall not be the assets or liabilities of the Federal Bank of Nouvelle Alexandrie.

4 CENTRALIZED MANAGEMENT OF COUNTERFEIT OR ALTERED BANK NOTES.

After the investigation or trial on counterfeit or altered notes is completed, the Federal Bank of Nouvelle Alexandrie may centralize the management of the relevant counterfeit or altered notes.
Matters necessary for the centralised management of the forged or altered notes referred to in paragraph (1) shall be determined by the Federal Bank of Nouvelle Alexandrie after consultation with the relevant government agencies.

5 EXCHANGE, ETC. OF FEDERAL BANK NOTES.

The Federal Bank of Nouvelle Alexandrie shall meet the demand for exchange between denominations as far as circumstances in the Federal Bank of Nouvelle Alexandrie notes permit.
Federal Bank of Nouvelle Alexandrie shall exchange any Federal Bank of Nouvelle Alexandrie note unsuitable for circulation due to damage, contamination, or any other cause with a new note.

6 PROHIBITION OF DAMAGE TO COINS.

No person shall damage coins by melting, pulverizing, or compressing them or by any other means without permission by the Federal Bank of Nouvelle Alexandrie, in order to use coins for other purposes in the pursuit of making profit.

7 ISSUANCE OF COMMEMORATIVE NOTES.

The Federal Bank of Nouvelle Alexandrie (hereafter referred to as “the Federal Bank”) may issue commemorative notes or coins in order to commemorate figures whose achievements need to be honored widely, incidents or events which are meaningful both domestically and abroad, cultural properties, or any important cultural or historical markers as determined by the law.

PART III THE TREASURY OF THE FEDERATION.

8 THE TREASURY OF THE FEDERATION OF NOUVELLE ALEXANDRIE.

The Treasury of Nouvelle Alexandrie (hereafter referred to as “the Federal Treasury”), under the jurisdiction of the Department of the Treasury, shall be responsible for all matters of trade and economics not explicitly or implicitly assigned to other government agencies, departments or bodies by law.
The Federal Treasury takes charge of the cash, bills, securities, national funds, and other properties of the federal government and the Department of the Treasury is the competent authority of the Federal Treasury.
The responsibilities of Federal Treasury shall include, but not be limited to:
1. The revenues and expenditures of His Majesty’s Government;
2. International and domestic trade;
3. Policy relations with international finance or trade organizations;
4. Fiscal and monetary policy;
5. Economic infrastructure;
6. Management of nationalized industries;
7. Other duties may be provided by Royal Decree, Acts of the Cortes Federales, or Departmental Order of the Department of the Treasury.
The national treasury is to commission the Federal Bank of Nouvelle Alexandrie to act as an agent to take charge of disbursing, safekeeping, and transferring activities of cash, bills, securities, and national funds, and the safekeeping of deed documents of federal properties, unless the law provides otherwise.
In places where the Federal Bank has no branch offices, after obtaining the agreement from the Department of the Treasury, the Federal Bank could commission other banks, cooperative banks, or postal offices to be the agent in handling the government treasury tasks, in accordance with the laws.
Unless this Act and other laws provide otherwise, the handling of the disbursement, safekeeping, and transferring of cash, bills, securities, national funds, and other properties of the federal government and the safekeeping of deed documents of properties shall be carried out by the commissioned bank or institution of the National Treasury.

9 MONEY UNDER THE GOVERNMENT’S CUSTODY.

Public or private money held in the federal government's custody (hereinafter referred to as "money in custody") pursuant to any Act or subordinate statute shall escheat to the Federal Treasury, except as otherwise provided for in any other Act, unless a request for refund thereof is made by not later than five (5) AN years from the date on which any of the following subparagraphs applies:
1. Money in custody with a deadline after which the obligation to retain terminates: Date after such obligation terminates;
2. Money in custody without a deadline after which the obligation to retain terminates: Date after such money is taken into the federal government’s custody;
3. Money in custody, the refund of which cannot be requested because a lawsuit therefore is filed: Date after the relevant judgment becomes final and conclusive.
For the revenues listed below, all federal government agencies may safekeep on their own accord, and in accordance with this Act and the laws, escheat to the ## Federal Treasury:
1. their petty revenue;

t## he revenue of the agency which is located outside the range from a branch of the Federal Bank, a commissioned bank, or agent institute of the Federal Treasury;

1. the revenue which is collected and kept on the collection point where the competent authority deems as proper, in accordance with the laws;
2. the revenue of the agencies located overseas where there are no branches of the Federal Bank, commissioned banks, or agents institute of the Federal Treasury; or
3. the revenue of the agency which has no fixed location.
The head of each federal government agency shall pre-notify a person who has a right to claim a refund, as prescribed by Departmental Order of the Department of the Treasury, of the fact that the person has a right to claim the refund of the relevant money in custody before the right granted to the person is extinguished by prescription under paragraph (1) of this Article.
Money in custody shall not bear interest unless any Act or subordinate statute or any contract provides otherwise.
No custody certificate may be the subject matter of sale, transfer, or pledge.
No revenue stamp needs to be affixed to a certificate of deposition of money in custody.
No head of a federal government agency shall store national funds in cash unless statutes require such.
Revenue collection officers, finance officers, expenditure officers, officers empowered to order receipt and disbursements of funds, public officials in charge of accounts, other accounting-related public officials prescribed by law shall keep books and record matters necessary for the management of national funds, as prescribed by Royal Decree, Departmental Order of the Department of the Treasury, or Act of the Federal Assembly.

PART IV THE FEDERAL BANK OF NOUVELLE ALEXANDRIE.

10 THE FEDERAL BANK OF NOUVELLE ALEXANDRIE.

There shall be a government-owned Federal Bank of Nouvelle Alexandrie (hereafter referred to as “the Federal Bank”) established as the government’s and banker’s bank, an independent government agency under the jurisdiction of the Department of the Treasury that is non-transferable.
The Federal Bank shall have the exclusive right to issue currency within the territory of the Federation of Nouvelle Alexandrie.
The Federal Bank shall take heed of financial stability in performing its monetary and credit policies. Its main duties and responsibilities shall be:
1. to promote financial stability;
2. to guide sound banking operations;
3. to maintain the stability of the internal and external value of the Ècu;
4. to foster economic development within the scope of the above objectives.
The monetary and credit policies of the Federal Bank shall be established neutrally and executed independently, and the autonomy of the Federal Bank shall be respected.
The Federal Bank shall value the market mechanism in performing its monetary and credit policies.
The Federal Bank shall make efforts to secure the public character and transparency in executing its business and operating its organization.
The Federal Bank shall determine the price stabilization target, in consultation with the Council of State.
The Federal Bank shall annually establish and publicize the operational directions for its monetary and credit policies.
The Federal Bank shall do its best to achieve the price stabilization target referred to in paragraph (8).
The Federal Bank shall have its main offices in the Federal Capital District; and if deemed necessary to perform its business, it may have its branch offices and agencies.
Branch Regional offices of the Federal Bank shall be established in each of the Regional capitals, funded as provided by the law out of the federal budget.
Further details about the establishment and direction of construction or acquisition of the real estate necessary to establish these Branch regional offices shall be provided by Royal Decree or Departmental Order of the Secretary of the Treasury.
The Commission for Federal Bank Regional Offices is hereby created to direct and manage the construction and acquisition as needed for the establishment of the Branch Regional offices, with further details about the operation, powers, responsibilities, and other affairs of the Commission for Federal Bank Regional Offices being provided by Royal Decree or Departmental Order of the Secretary of the Treasury.
The establishment and abolishment of branch offices for the Federal Bank shall be authorized by a resolution of the Board of Directors and reported to the Secretary of the Treasury for their approval.
Further details about the operation, powers, responsibilities, and other affairs of the Federal Bank shall be provided by this Act, an Act of the Cortes Federales, or other appropriate laws and regulations.

11 ADMINISTRATION OF THE FEDERAL BANK.

The Federal Bank shall be headed by a Governor of the Federal Bank of Nouvelle Alexandrie (hereafter referred to as “the Governor” or “the Governor of the Federal Bank”).
The Governor shall be the chief executive in directing and supervising the operations of the Bank, shall carry out resolutions of the Board of Directors, and shall represent the Bank on all occasions. The Deputy Governors shall assist the Governor in the execution of the above duties.
The Governor of the Federal Bank shall be nominated by the President of the Government, on the advice and with the consultation of the Secretary of the Treasury, and appointed by H.M. the King after confirmation by a majority vote of the Federal Assembly.
The Governor of the Federal Bank may have up to two (2) Deputy Governors, all of whom shall be nominated by the Secretary of the Treasury, acting upon the recommendations of the President of the Government, for appointment by H.M. the King for a term of four AN (4 Anno Nortone) years and may be reappointed upon the expiration of such term.
The Federal Bank shall have a Board of Directors, consisting of as many directors as may be nominated by the Department of the Treasury, on the advice and consultation of the Premier, and appointed by H.M. the King.
The Governor shall be the chairman of the Board of Directors. Whenever the Governor is unable to attend, the Deputy Governor designated to act for the Governor shall be the chairman.
The powers and functions of the Board of Directors shall be as follows:
1. to examine policies concerning money, credit and foreign exchange;
2. to examine the adjustment of the Federal Bank's capital;
3. to approve the operation plans of the Federal Bank;
4. to examine the records, budgets, fiscal audits, statements, and reports of the Federal Bank;
5. to examine and approve major by-laws and regulations of the Federal Bank;
6. to examine the establishment and abolition of the Federal Bank’s branch offices;
7. to approve the appointment and the removal of the Federal Bank department heads and their deputies, and branch managers;
8. to examine matters proposed by the Governor;
9. to examine the Federal Bank's assets and liabilities;
10. to audit the the Federal Bank’s accounts;
11. to examine the reserves for the issuance of currency by the Federal Bank;
12. to examine the amount of currency issued by the Federal Bank;
13. to examine and approve the Federal Bank’s fiscal reports;
14. to investigate any case involving violation of this Act and the by-laws and regulations of the Federal Bank.
The Governor of the Federal Bank, the Secretary of the Treasury, the Secretary of State, and the Secretary of Social Security and National Solidarity shall be ex officio directors of the Board of Directors.
Except for the ex-officio directors, directors shall be appointed for a term of four AN (4 Anno Nortone) years and may be reappointed upon the expiration of such term.
The Board of Directors may delegate all or part of the above powers and functions to the Governor of the Bank. The resolution of the Governor shall be reported to the Board of Directors for record and approval. The Board of Directors shall establish rules and regulations of board meetings. Such rules and regulations shall be reported to the Department of the Treasury for record.

12 OTHER PROVISIONS FOR THE FEDERAL BANK.

The Federal Bank may, whenever necessary and in extreme or extraordinary circumstances or emergencies, delegate the minting of the Federation’s currency on its behalf to other government mints.
Further details about the operation, processes, and protocols for the emergency minting of the currency at mints other than the Royal Mint shall be provided by Royal Decree or Departmental Order of the Secretary of the Treasury.
The Federal Bank, to assist economic development, may establish various funds, using savings deposits re-deposited by financial institutions and other special funds to refinance banks for their medium and long-term loans.
The Federal Bank may, at its discretion and in the light of financial and economic conditions, prescribe an upper limit for the interest rates of bank deposits, and approve the range of interest rates on bank loans as proposed by the bankers' associations.
The Federal Bank may, in the light of financial conditions, purchase and sell in the open market the bonds issued or guaranteed by the government, financial bonds issued by banks and bills accepted or guaranteed by banks.
The Council of State may veto any decision of the Federal Bank to issue Government Bonds at any time prior to issue.
The Federal Bank may, whenever it deems that the monetary and credit conditions so warrant, prescribe a maximum limit for various kinds of credits extended by all, or any category of, financial institutions.
The Federal Bank shall license and examine all other banks that are to operate within Nouvelle Alexandrie, as well as establish general regulations for their operation, regulation, and solvency.
The Federal Bank may contract foreign loans under its credit, or, by Royal Decree, contract, or assist in the contracting of foreign loans in the name of the Federation, under such terms as the Royal Decree may provide.

PART V CLOSING PROVISIONS.

13 COMMENCEMENT AND APPLICATION.

This Bill shall apply to all of the Federation of Nouvelle Alexandrie.
This Bill shall not become law unless it has been given Royal Assent.
This Bill shall be published and made publicly available.
In the event any provision or part of this Bill is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Bill, will be inoperative.