6. Uses Clearing System & Self-Liquidating Credit
The JMS-Monetary Authority has a "Department of Clearing", which is in charge of the Clearing System. JMS allows certain banks who are specialized and trustworthy enough to work and be entrusted with funds from The RESERVE of 33%. These banks can then make requests to the JMS-MA to obtain funds out of The RESERVE of 33% and apply it to where trade, commerce or longer term investments have a justified demand for establishing the required loan or debt.
In this way this Department of Clearing interfaces with JMS-Banks which are faciltating such trade or commerce via the circulation of "Commercial Paper" that is used in the set up of Self-Liquidating Credit Projects. As such the process can be completed towards Self-Liquidation of the outstanding Credit.
Investment Banks authorized to work with The RESERVE of 33% deal with longer term and more complex projects so the "clearing" will be completed after a longer period.
The Clearing System finally "clears" these loans or debts, which were initiated by banks for the mentioned purpose. When "clearing" occurs the loan or debt is paid back by the Bank into the JMS-RESERVE, minus the remuneration the Bank took for its services.
A JMS-Bank can make a loan or finance a producer or distributor of hot-item consumer goods. Such loan is dubbed "Commercial Paper". Commercial Paper is considered liquid, when the underlying merchandise is liquid. Therefore such paper is called "self-liquidating", because at the time the merchandise matures into Value in JMS-Currency, the JMS-Money that is paid by the consumer will liquidate the loan.
The highest quality Commercial Paper matures in 91 days. This period is determined by the length of a season while consumption patterns differs with the seasons. One of the Commercial Paper-instruments by which the commerce part in this phenomenon can be taken care of is the International Bill of Exchange.
If a JMS-Bank needs funds to do so it can be licensed and authorized to have funds allocated out of The RESERVE of 33% of the Monetized Quantity of JMS-Currency to facilitate this. The JMS-Bank then interfaces with the Clearing System of the JMS to handle and complete the Self-Liquidating Credit-process.