I.   Introductory Provisions

Assets are the fourteenth of thirty-three (33) Administrative Elements of Trust being the Valuations entered into the Accounts of a Trust, or Estate, or Fund calculated at the time of an Inventory or by a special Valuation for each and every valid Record of Rights, Property and Title within the control of the Trust, or Estate, or Fund.

An Asset is not the actual registered and recorded Right, or Property or Certificate or Voucher itself, but the calculated Valuation entered into the Accounts at the time of performing an Inventory or special Valuation. Therefore, an Asset may be calculated as greater or lesser than the original recorded agreement and may also change over time.

All Records of Rights, Property and Title within the control of the Trust, or Estate, or Fund may be Valued and converted into Assets according to four classes being Primary, Capital, Operating and Exchangeable:

(i) Primary Assets are those Assets from which all others depend or are derived principally being Rights and Trust (Goodwill); and

(ii) Capital Assets, also known as Fixed Assets are those Assets dependent upon Primary Assets which are used to produce and manage Operating Assets and Exchangeable Assets. Examples of Capital Assets include (but are not limited to) land, buildings, plant and machinery, vehicles, furniture, patents, trademarks, shares, debentures, securities and bonds; and

(iii) Operating Assets, also known as Current Assets are those Assets expected to be consumed, or sold, or purchased, or manufactured, or exchanged within a normal period of “operating cycle”; and

(iv) Exchangeable Assets, also known as Liquid Assets are those Assets capable of being sold or exchanged quickly, with normally minimum risk of loss of estimated face value. Generally speaking, Money is considered by definition to be the most Exchangeable (liquid) form of Asset. However, other forms of Assets may also be highly “liquid” depending upon the context and conditions, such as precious metals, jewels and commodities.