Propose Amendment to Article XIV
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Article XIV – Financial Regulation
- Section A: All banks operating in Scotland must separate their investment and commercial operations, and/or continuously prove that that there are sufficient reserves to guarantee consumer deposits in their commercial operations in Scotland.
- Section B: The Scottish government shall have the authority to set the leverage ratio for investments and financial products which bind all financial institutions operating in Scotland. The repayment of any loan or credit in excess of 15% annual percentage rate interest shall not be compelled. Provisions shall be made by the CSL to assure that the interests of consumers are represented and respected in the financial regulation process.
- Section C: Upon this constitution coming into effect, the Scottish government shall establish a sovereign wealth fund for all revenue from its natural resources within its territorial waters. All revenue from natural resources and energy production shall be publicly held and invested in the public sector.
- Section D: The Currency
- § 1. The National Currency of Scotland shall be the Scots Pound divided into 100 pence. It will be Constitutional Money guaranteed by the State under the Constitution. It shall be the sole legal tender and circulating medium of exchange comprising cash and all credit instruments. It will be issued free of debt by the Constitutional Monetary Authority (CMA.) The origination or placing into circulation of any other money or money substitute denominated in the national currency shall be an act of counterfeit.
- § 2. The Scots Pound will be legal tender and carry the guarantee of the State only within Scotland’s borders.
- § 3. In the exercise and function of its jurisdiction, the Constitutional Monetary Authority will be independent of the legislative and executive branches of the Government. Its members will be nominated by a Public Appointments Commission, and appointed by Parliament by a simple majority vote in a secret ballot. The CMA shall be funded by making its own requisition upon the normal revenues of the State.
- § 4. The primary executive arm of the CMA shall be The Central Bank of Scotland which will originate the currency and regulate its distribution through the Chartered banking system. The Charter shall preclude any foreign national or corporation from the ownership or effective control of any commercial banking institution chartered under this Constitution.
- Section E: Government Revenues
- § 1. Parliament is empowered to raise taxes and is required to set a balanced budget for the full anticipated term of its administration. On each anniversary the Public Auditor will be required to provide interim accounts and should these indicate a potential deficit the government will be obligated to make a public bond issue for that amount with a one year maturity and make provision for this repayment by an immediate and matching increase in taxation. The government may not issue any other bonds or debt instruments other than as required by the Central Bank in settlement of foreign balance of trade deficit and as limited within its regulation by the Constitutional Monetary Authority.
- § 2. In determining its domestic tax strategies the government shall favour revenues derived from consumption and land values rather than impositions upon earnings from employment.
- Section F: The principles contained in Sections D & E above shall be conditioned by the relevant conditions detailed in the Corpus of Scottish Law.
Justification for Amendment
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