Archive:Banking Code

**THE UNIVERSAL TRIUMVIRATE BANKING CODE**
**6.24.13 | 6.24.13**
Major Executive Nathan Maine
E. Stenbach

**A Law** to set rules for the establishment, management, security, and regulation of banks within the Triumvirate.

**Section 1: Bank Establishment**

A private citizen or group of citizens may establish a banking institution by getting an IOF account for the bank via the standard procedure for attaining an IOF account.
**Section 2: Record Keeping**

All private banks shall be required to maintain complete records of transactions, of accounts, of loans, and of all other storage and expenditure and assets and liabilities. The penalty for failing to keep absolute, complete, and accurate records shall be considered a Class I misdemeanor.
**Section 3: Savings Accounts**

Private banks are permitted to provide savings accounts to others, foreign and domestic, and may set their own interest on such accounts. Money in savings accounts may be utilized by the bank to make loans provided they adhere to any reserve requirements set.
**Section 4: Deposit Insurance**

The government of the Triumvirate, via the Department of Commerce, shall insure all banks up to ∇50 per depositor should a bank be unable to pay so as to prevent a bank collapse in the event of a run. The bank shall, once funds are available, pay the Department of Commerce back for all funds spent should the Department of Commerce have to utilize its deposit insurance.
**Section 5: Privacy**

To the utmost ability they can, banks are required to retain consumer privacy at a maximum and shall not speak of any dealings between themselves and others unless they are compelled to by a court or they are reporting what they fear is mal-intent or illegal use to proper authorities.
All bank records are subject to subpoena by the courts despite any privacy guarantee made by a bank.
**Section 6: Banking Reserve Requirement**

All private banks within the Triumvirate shall be required to maintain a 20% reserve of all assets, and, as such, may only loan out 80% of assets.
**Section 7: Private Loans**

Banks may issue loans as they see to any entity they see fit, using money from deposits made by their customers, provided they adhere to the reserve requirements and other regulation.
**Section 8: Private Debt Collection'**

Should a bank wish to collect on a loan that is due, it shall contact the debtor and ask for the loan return. If the debtor is unable to pay, site rules of bankruptcy in the Financial Code. Under certain circumstances the Department of Commerce may be involved in debt collection of a massive scale or of Union importance in terms of helping manage the collection and agreement.
**Section 9: Trusts**

Individual banks may set rules for private trusts. A trust being defined as a relationship whereby property (real, personal, tangible, intangible, or financial) is held by one party for the benefit of a unit or another. The settlor/trustor (the individual who creates the trust) may utilize a bank as a trustee (the holder of such property) for the benefit of a beneficiary (someone who derives advantage from the trust).
Each bank is entitled to set rules for release of trust property, for addition, for removal, and for who may have access to trust assets.
**Section 10: Certificates of Deposit**

Banks may offer sell their own certificates of deposit to consumers and determine the rules for such. Certificates of deposit are guarantees that an institution or individual puts money into a bank for a set, generally moderate to lengthy amount of time, and are guaranteed to get it all back with interest after such time has expired. An individual or institution may, by the rules bank set, cash in their certificate of deposit early but may face penalties to the amount they get back as the bank determines via its rules prior to the purchase of such certificate of deposit.
**Section 11: Banking and Transactional Crimes**

**Section 11.1: Fraud**
Fraud, defined as intentional deception made for personal gain or to damage another institution or individual, shall be illegal within the Triumvirate.
Any individual or institution that commits fraud of which the matter is below ∇300 shall be considered a Class I Misdemeanor. Any individual or institution that commits fraud of which the matter is at or above ∇300 shall be considered a Class IV Felony.
**Section 11.2: Theft**
Section 9 of the Financial Code is hereby repealed.
If any person should have their own personal funds interfered with, stolen, scammed, or affected unfairly by the acts of another person or group and be able to prove this and if the perpetrator(s) are to be discovered they shall owe the individual who had their funds interfered with, stolen, scammed, or effected by the perpetrator the amount of such funds influenced along with 25% of the money influenced. This shall be all the funds such perpetrator shall have to pay should they plead or be found guilty of these crimes. Should they have committed additional crimes, additional fines or punishment may be imposed for those additional crimes. Theft shall be considered a Class IV Felony.
**Section 11.3: Evasion**
Evasion, defined as the act by an individual or institution to avoid payment (either of a loan, due, or a tax) shall be considered a Class V felony. Note that evasion is not the same as inability to pay (in the case of bankruptcy), evasion is the intentional act of avoidance.
**Section 11.4: Embezzlement**
Embezzlement, defined as the act of dishonestly withholding or seizing assets for the purpose of theft of such assets by an individual or institution to whom such assets have been entrusted (to be held or used), shall be considered a Class V Felony.
**Section 11.5: Laundering**
Laundering, defined as the act of concealing illicit sources of money to make it appear as though it were legitimately earned or attained, shall be considered a Class V Felony.
**Section 11.6: Forgery**
Forgery, defined as the act of making, adapting, imitating, or altering objects or documents with the intent to deceive, shall be considered a Class III Felony.
**Section 12: Bank Shutdown**

Note that in many cases a bank shutdown may involve civil actions within court.
**Section 12.1: Intended Shutdown**
In the event of an intended shutdown, in which the bank plans to close business, it shall be unable to do so until all debts by the bank are paid in full (except in the event of bankruptcy). To those the bank has loaned money, it is not required that the bank wait until it gets its money back and may shutdown prior to then, but no owner or affiliate of the bank shall expect payment back to them on those loans.
**Section 12.2: Loss of Ownership**
In the event where a bank loses ownership (via the bank’s owner(s) leaving the Triumvirate, owners being elected to a position where they cannot own a business, etc.), all assets of the bank shall be promptly delivered to the Department of Commerce and it shall be their duty to manage all debts the bank has and pay them back when due (the Department of Commerce may not make new debts or loans) until all debts are paid. The Department of Commerce will not collect any loans the bank issued however. All unclaimed assets shall be kept by the Department of Commerce.
**Section 12.3: Cold Shutdown**
In the event of a cold shutdown, in which the bank is ordered by the courts to immediately shut down or, in the event of bankruptcy, can no longer pay its dues, all holdings by the bank shall go towards paying as many of its creditors fairly as much as they can of what is owed so that each creditor receives a fair amount of money (not necessarily equaling the complete expected value) in proportion to the amount given to the bank and in proportion to other creditors. All outstanding loans shall not be required to be paid back.
**Section 13: Bank Sale**

In the event where the owner(s) of a bank wish to sell it and its assets to another, all debts and accounts shall remain valid under their previous rules until all are paid or a full refund with all dues owed is returned to such consumers, debtors, and loaners.
**Section 14: Credit Score Compliance**

Banks shall utilize the same credit score system and comply within the system as is set within the CAPITAL Act when it comes to loans.
**Section 15: Maximum Asset Compliance**

If the total value of all assets of a bank exceeds ∇2,000 it shall be required that the bank adhere to additional rules.
**Section 15.1: Ownership**
Banks with total assets exceeding ∇2,000 must have at least three owners composing the board of the company and making major decisions or be publicly traded.
**Section 15.2: Shutdown**
All banks as such, in the event of a shutdown, must have shutdown procedures approved by a civil court within the Triumvirate.
**Section 15.3: Maximum Loan Size**
All banks as such may not make a single loan which composes of 50% or greater its total assets. Similarly, they may not make multiple loans to compose 50% or greater its total assets to a single individual or institution.