I.   Introductory Provisions

Transactions are the sixth of thirty-three (33) Administrative Elements of Trust being all the communications, deals, exchanges, transfers, conveyances and proceedings of the Trust or Estate or Fund.

The Trustees of a valid Trust, or Estate or Fund are accountable for all Transactions received and dispensed by the Trust or Estate or Fund.

The primary nature and type of transactions between Trusts, Estates and Funds differ to some degree:

(i) The primary transactions of a Trust pertain to the grant, or gift, or assignment or delegation of possession or ownership of property by some Instrument of Scripture or Deed; and

(ii) The primary transactions of an Estate pertain to the grant, or gift, or assignment or delegation of the use and enjoyment of property as well as actual commercial transactions of value such as cash, merchandise, real estate, bonds, securities and stocks; and

(iii) The primary transactions of a Fund pertain to the grant, or gift, or assignment or delegation of unsecured and secured promises including (but not limited to) bills receivable, bills payable, expenses, interest discounts, commissions, wages and salaries.

During the normal course of events of a Fund that is solvent and not subject to fundruptcy or any proprietary version of it, in relation to transactions:

(i) All value received is reflected as credits into the Accounts as such values received do not owe any further values; and

(ii) All value payable is reflected as debits into the Accounts as obligations for which the Trust or Estate or Fund must make good its performance.

During the fundruptcy of a Fund, subject to the rules of administration of fund under fundruptcy and such proprietary versions as “bankruptcy”, in relation to transactions:

(i) All value received is reflected as debits into the Accounts as such values received owe values to be given, surrendered or yielded under administration; and

(ii) All value payable is reflected as credits into the Accounts as such values given are “underwritten” under the insurance and administration terms of fundruptcy.