CIVITAS
PHX / 01 / Phoenix conversion and recovery rules
PUBLIC CHARTER EDITION / 2956

HCC-to-CEB conversion rates and funded principal repayment.

1. Cash and charter claims
HCC records a cash claim; CEB records a charter equity or industrial debenture claim. If held funds are lost or become inaccessible, the charter record can retain the amount owed. It does not restore the lost funds.

2. Conversion rates
Normal conversion costs one HCC per CEB. After a continuity notice, it costs 2.5 HCC per CEB. The final stage closes new deposits and cash-to-charter conversion. Principal recovery requires a separate treasury approval and funded recovery pool.

3. Recovery funding
Treasury can allocate existing HCC balances to the recovery pool. Principal repayments cannot exceed its funded balance. Funding the pool does not by itself authorize repayments, and no interest is added automatically. Neither repayment nor a return is guaranteed.

4. Declared complete cash reset and reopening
The Recovery register implements a complete cash-reset procedure. Treasury proposes the documented event during the final stage; a different Treasury officer authorizes it. Outstanding transfers, reservations, leases and funded credit contracts must first be resolved so their consent and settlement paths are not bypassed. The service records pre-reset HCC balances, posts balanced retirement journals and pauses recurring payments. CEB and original history remain. Financial admission stays closed during reconciliation. Bookkeeping records each active custodian’s observed post-reset balance; an independent auditor must match each observation and separately authorize opening. Fresh independently confirmed deposits may then fund the redemption pool. Redemption requires both a remaining CEB claim and funded pool capacity. Treasury closes the event to return to normal operations. No cash, interest or guaranteed return is created by an opening notice.

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