I.   Introductory Provisions

Valuation, also known as Valuable Consideration, is the thirty-first of thirty-three (33) Administrative Elements of Trust being the act of ascertaining by using some standard unit of measure and account, the value or worth of an object or concept as property.

The standard unit of measure by which a Trust or Estate values its credits or debits or assets or liabilities may be an internal unit of measure or an external unit of measure:

(i) An internal unit of measure and account is a wholly internal system of measure of the value of assets and liabilities based on some means and method of approximating the value of a single indivisible unit and ensuring that such a system is consistent across all accounting of the Trust or Estate; and

(ii) An external unit of measure is an external system of measuring the value of assets, liabilities and transactions of the Trust or Estate based on some accepted currency.

Providing a Trust or Estate or Fund is able to consistently calculate the value of assets or liabilities and present abstracts of accounts using generally accepted external units of measure and value, there is no reasonable law that should prevent a Trust or Estate or Fund from adopting its own internal unit of measure and account.

By tradition, an object or concept as property may be valued by two ways as In Use (“Ideal Value”) and In Exchange (“Commercial Value”):

(i) Value In Exchange or “Commercial Value” is when an object or concept as property is valued using some standard unit of measure and account based upon either its Actual or Evidential (Proof) purchasing power of other property; and

(ii) Value In Use or “Ideal Value” is when an object or concept as property is valued using some standard unit of measure and account based upon its utility in satisfying the demand for certain needs or wants as a Service or Ownership.

In terms of Value In Exchange or “Commercial Value”:

(i) Actual Commercial Value is called a “thing or chose in possession” and is when Value In Exchange is considered a fundamental characteristic and feature of the property in question as in the case of Government Bonds, Bank Notes, Merchandise, Stocks and Mortgages; and

(ii) Evidential Commercial Value is called a “thing or chose in action” and is when Value In Exchange is based upon the Value of a security of a pledge or promise, not the actual value of the underlying asset.

In terms of Value In Use or “Ideal Value”:

(i) Service Ideal Value is when Value In Use consists of the knowledge, skill, genuius, talent and te operation of the mind as part of the delivery of service; and

(ii) Ownership Ideal Value is when the Value in Use consists of a controlling share of ownership of certain Property that if purchased at the right price unlocks certain value, or realizes certain losses upon previous purchase price and obligations.

Where a Trust or Estate has adopted an internal, indivisible and consistent unit of measure for the valuation of its assets and such a system has been applied to the Inventory of the Trust or Estate, the sum total of units of account and measure may be defined as the Capital Stock of the Trust or Estate.