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        ID-9-2          Definition.                   January 8th,   1986





                           Definition of a LETSystem.





        A LETSystem, Local Exchange Trading System, is a self-regulating 
        economic network which allows its members to issue and manage 
        their own money supply within a bounded system.





                            Essential Characteristics.



        1)   The agency maintains a system of accounts in a quasi-
             currency, the unit being related to the prevalent legal 
             tender.


        2)   Member accounts start at zero, no money is deposited or 
             issued.


        3)   The agency acts only on the authority of a member in making 
             a credit transfer from that member's account to that of 
             another.


        4)   There is never any obligation to trade.


        5)   A member may know the balance and turnover of another 
             member.


        6)   No interest is charged or paid on balances.


        7)   Administrative costs are recovered from member accounts on a 
             cost of service basis.




        All these characteristics are necessary for an organization to 
        qualify as a LETSystem.







        Landsman Community Services Ltd.              ID-9-2    Page    1