PHOENIX, Ariz. (Aug. 3, 2018) – Today, an Arizona law goes into effect taking another step toward establishing gold and silver as money. The new law supplements Federal Reserve notes with honest money that has stable, constitutionally protected value.
Rep. Mark Finchem (R-Tucson) sponsored House Bill 2013 (HB2013). The new law recognizes silver and gold as liquid capital for trust companies.
Practically speaking, the bill does two things.
- Modifies the definition of “liquid capital” to include legal tender for trust company certification. (Sec. 1)
- Defines legal tender as a medium of exchange, including specie, that is authorized by the U.S. Constitution or Congress for the payments of debts, public charges, taxes and dues. (Sec. 1) Specie is defined as coins having precious metal content.
Trust businesses act as “fiduciaries.” A fiduciary is a person who holds a legal or ethical relationship of trust. Typically, a fiduciary handles money or other assets for another party. A trust company in Arizona must maintain $500,000 of liquid capital reserves in order to operate. The new law authorizes trust companies to count gold and silver specie as part of their liquid capital.
Under the current law, liquid capital is defined …
Read more at The Tenth Amendment Center
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