Constitutions of 1975 and of 1989/Constitution of 1975/Law concerning the State Bank of the Principality of Sealand
Law concerning the State Bank of the Principality of Sealand
With reference to paragraph 20 of the Constitution, the following law is published on October 1st, 1975, for the State Bank of Sealand:
§ 1.The State Bank shall bear the designation “State Bank of the Principality of Sealand”
§ 2.The State Bank is a direct legal person of the Principality of Sealand and has its domicile in Sealand with the right to operate branches and appoint agents in any part of the world.
§ 3.The State Bank, with the help of powers concerning Currency policy which are vested in the State Bank by law, shall regulate the money circulation and the credit supply of the Principality with the aim of safeguarding the currency and shall also look after the banking side of payment transactions at home and abroad.
§ 4.The State Bank shall be managed by the President of the State Bank. He is responsible for executing decrees issued by the State Council on the subject of money and currency.
§ 4.1.The President of the State Bank shall be appointed by the Sovereign.
§ 4.2.The President of the State Bank must have special professional qualifications and be approved by the Privy Council from time to time.
§ 4.3.The President of the State Bank has the right to carry out
§ 4.4.Foreign exchange transactions and business abroad.
§ 4.5.Dealings on the open market.
§ 4.6.Looking after central duties for safeguarding the currency and issue of banknotes.
§ 4.7.Deposit and investment.
§ 5.The President of the State Bank must inform and advise the Sovereign and the State Council in matters of importance with regard to currency policy.
§ 6.The State Bank has the exclusive right to issue banknotes. These notes are made out in Sealand Dollars and are the only unrestricted paper legal tender. The smallest banknote is for fifty Sealand Dollars. The State Bank may withdraw banknotes from circulation. The State Bank is not obliged to replace notes which have become lost, destroyed, forged, counterfeit or invalid.
§ 7.The State Bank shall fix the interest rates and, when the case arises, discount rates to be used in each case for its transactions for the purpose of controlling money circulation and borrowing and shall define the principles for its credit business and open market operations.
§ 8.
Banks domiciled in Sealand and wishing to conduct business need the authorization of the State Bank. When granting this permit, the State Bank may impose restrictions. Observance of these restrictions shall be controlled by the State Bank or by an inspection organization appointed by it. Violations may be punished by withdrawal of the permit to operate a bank.§ 9.The State Bank must advise on the issue of coins. It does not have the right to mint coins itself. Have them minted, or to put them into circulation in some other way.
§ 10.The State Bank may transact business with natural and legal persons, authorities or other institutions of a kind either at home or abroad. Business transactions in this sense are:
§ 10.1.buying and selling of bills of exchange and cheques foreign currency
§ 10.2.buying and selling of debts and securities as well gold, silver and platinum
§ 10.3.granting of loans against securities
§ 10.4.taking charge or custody of valuables and securities
§ 10.5.accepting cheques, bills, money, orders, securities and interest coupons for collection
§ 10.6.carrying out other banking commissions and business
§ 11.The State Bank's financial year is the calendar year. An annual account made out in Sealand dollars must be produced and shall be examined at the request of the Sovereign.
§ 12.The net profit is to be used as follows:
§ 12.1.10% of the net profit is to be used as reserve fund
§ 12.2.20% of the net profit is to be carried to a special revenue fund
§ 12.3.the rest is to be paid over to the Principality or as otherwise decided by the Privy Council
§ 13.The annual account of the State Bank shall be published at the request of the Sovereign and shall show:
§ 13.1.Assets: gold, silver, platinum, credit at banks, foreign currency and cheques, bills of exchange accounts receivable
§ 13.2.Registering regulations etc. do not apply to the State Bank. The President of the State Bank shall be entered in the commissioned register of the Principal of Sealand.
§ 14.Any person distributing money tokens (coins, notes) or using them for payment without authorization shall be punished. In addition all international regulations on fraud and attempted fraud will apply.
§ 15.The President of the State Bank shall organize the State Bank as his own responsibility.
Roy of Sealand