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The Ordinance required that the territories set up governments with popularly-elected legislatures and with court systems to be appointed by the legislature. The governor of any territory was required to live in the territory and own at least 1,000 acres of property. The right of habeas corpus was written into the charter, as was freedom of religious worship and bans on excessive fines and cruel and unusual punishment. Many of these concepts were later incorporated in the U.S. Constitution and the Bill of Rights.
Under the ordinance, 5000 settlers were required to have a legislature. 60,000 were required to gain admission as a state.
The Ordinance also provided for means by which these territories could enter the Union as states. Significantly, the Ordinance barred slavery in these territories.