Economic model

Proposed use of funds

The purpose of Reparation Bonds is to finance the machinery required to pursue, prepare for and implement reparatory justice. A live bond would therefore need a defined use-of-funds policy rather than an unrestricted statement that money is “for reparations”.

Research & evidence

Historical, legal, economic and archival research; evidence preservation; expert analysis.

Negotiation & legal work

Professional advice, negotiation infrastructure, litigation or dispute-resolution costs where lawfully undertaken.

Institution building

Registers, identity and verification systems, governance, accounting, compliance and administrative infrastructure.

Productive reparatory projects

Projects capable of producing durable community assets, services, income or institutional capacity under the final mandate.

Protection & custody

Security, data protection, audit, insurance and preservation of assets or records where appropriate.

Operating reserve

A transparently capped reserve for administering the bond programme and maintaining continuity.

Illustrative repayment waterfall

This is a design model only. Final priority, security, ranking and permitted repayment sources must be defined contractually and legally before any funded bond exists.

Tier 1 — Required taxes, custody and transaction costs
Amounts that must legally or operationally be satisfied before distributable cash is available.
Tier 2 — Essential bond administration
Register maintenance, paying-agent/accounting costs and other capped servicing expenses.
Tier 3 — Contractually due bond return
Any lawful interest or other agreed return due under the final bond terms.
Tier 4 — Principal redemption
Repayment of funded principal when due under the maturity/redemption provisions.
Tier 5 — Residual reparatory allocation
Remaining qualifying funds continue to the relevant reparatory purposes under the governing mandate.
Critical distinction: reparations receipts are not automatically bondholder property. Only the final lawful contract can define which revenues, if any, are available to service the bond.