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- Jul 1, 2024
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- #1
Author: Luke TheGreat, Death Fired
Sponsor: N/A
Type: Bill
A
Bill
To
Establish a Revision and Reconstruction of Current Banking Law
Preamble: To re-construct and build a new financial and banking framework for the Isle of Azalea in order to build a stable and sustainable banking system that can last into the future and help stimulate economic growth while maintaining government tax and otherwise revenue. This bill was edited and commented on by the Bank of Azalea board of governors, and many others.
1 - Repeals
(a) The following Bills shall be repealed upon passing: Financial Institution Establishment Act (https://cityrp.org/threads/financial-institution-establishment-act.2060/#post-2878),
(b) All edits, changes and amendments to these bills shall also be repealed apon passing.
(c.i) Section 8 of the Taxation Act (https://cityrp.org/threads/taxation-act.218) shall be repealed.
(c.ii) Section 8 (a.i) of the Better Banking Act (https://cityrp.org/threads/better-banking-act.2383) shall be repealed.
(c.iii) Section 3 of the Financial Revisions Act (https://cityrp.org/threads/financial-revisions-act.234/#post-939) shall be repealed.
2 - Definitions
(a) “MEA” shall be recognised as an acronym for the Azalean Ministry of Economic Affairs.
(b) “Commercial Banks” Any for profit financial institution operating in the Isle of Azalea that accepts and maintains deposits of Azalean Citizens within the relevant categories with MEA oversight.
(c) "Investment Banks” Any for profit financial institution who operates in order to create, sell, buy or otherwise manage financial assets and products, but whose deposits within are not secured or insured.
(d) “Retainer” a contract with a legal institution within which the legal institution agrees to serve the interests and needs of the given holder of the retainer contract in the courts of law and relevant additions to doing so as set by the terms of the retainer contract.
(e) “BOA” shall be acknowledged as the acronym for the Bank of Azalea.
(f) “Credit Rating” Shall be defined and recognised as the risk rating set by the Bank of Azalea for financial products and persons in order to properly manage and inform financial institutions upon the risks they are taking.
(g) “UBLIN” shall be recognised as the shorthand for Universal Bank Loan Index Number.
(h) “High Risk” Any financial product, person or otherwise with a financial rating at or below C.
(i) "Real Estate Development Loans” loans that are specifically tailored, made and designed for the funding of construction projects and have a clause to state that the funds provided may not be used for any other reason.
(j) “PSP” shall be recognised as the acronym for Payment Service Providers.
(k) “Criminal Fraud” shall be de-recognised and understood as set out within the criminal code section (8.a as off the 25/07/2025).
3 - Commercial Banks:
(a) Commercial Banks as defined will be required to maintain the following subsequent legislation:
(b) Once per month, they must submit a full information page as specified by the MEA containing at minimum the following information:
(b.i) Employees who are able to directly access and withdraw funds from both accounts and/or the balance of the bank.
(b.ii) The current active retainer or lawyer on staff.
(b.iii) Deposits, Cash on Hand, Cash on Loan and end of month balance change.
(b.iv) A risk exposure estimation rating. (A average rating of the held assets as by the BOA administered credit ratings).
(c) Commercial Banks over the deposits threshold of $100,000 must either have a lawyer on staff or on a retainer contract that is accessible by the MEA.
(c.i) Should a Commercial bank be unable to maintain or be able to gain a lawyer on staff or on retainer they may request an exemption, with a new exemption to be requested each month until a retainer or lawyer is found.
(d) All Commercial Banks shall be required to maintain a fund in holding/reserve in order to always be able to pay out depositors.
(d.i) There shall be a minimum reserve rate of 10% and a maximum required reserve rate of 40%, set to be voted upon by the BOA.
(d.ii) The BOA shall be required to vote every four months to set the reserve rate in which banks should maintain, banks are required to meet this requirement within 2 months of changes being made.
(e) Retail Banks; Products offered at retail banks include checking and savings accounts, certificates of deposit (CDs), personal and mortgage loans, credit cards, and business banking accounts.
(e.i) Retail banks will not be authorised to invest in any financial asset or product with a credit rating below C or purchase and hold for the purpose of gaining direct returns a/the stock of a given limited liability company.
(e.ii) Retail banks may only hold onto and purchase the shares of a given “stock” in a limited liability company in order to act as a broker between themselves and their clients and in order to create new financial tools or products in order to be re-sold directly to clients or on the general markets.
(e.iii) Any retail bank may invest into the following financial products: bonds, etf’s, indexes and any other future product which are credit rated above C and have not explicitly been stated that they cannot invest, buy, hold or otherwise in.
(e.iv) Retail banks may not charge any fee from processing and conducting transfers between players, companies or organisations as long as said transaction is between two active clients and accounts within said retail bank.
(e.v) Any retail bank that is part of a “group” or otherwise functioning in a wider limited liability company setting must maintain separate accounts (including holdings and surplus accounts) to the rest of the “group” or limited liability company in order to maintain compliance with the above categories.
(e.vi) Retail banks may invest into construction development projects brokered and secured by any relevant Building Societies, as long as the product has been rated at or above C in credit/risk ratings from the BOA.
(e.vii) Retail banks shall have all customer deposits insured to the sum of 20% of deposits as outlined in section 7.
(f) Building Societies; Building societies are financial institutions with the principal purpose, established in law, of making residential and commercial plot mortgages, funded by deposits. These institutions are allowed and designated to help facilitate the giving of mortgages to all those that need them especially where general banking institutions may designate as too high a risk.
(f.i) Building Societies shall only be allowed to provide mortgages for the purchase of land or to provide Real Estate Development Loans. Building Societies will also be authorised to directly invest into construction projects as a source of income.
(f.ii) Building Societies may not hold, buy or sell shares in public companies other than to hold shares as additional collateral for a mortgage. Conversely building societies may take ownership of a percentage share of a construction or development project that it is investing into or is acting as a broker in order to provide opportunities for clients to directly invest into a project or many projects.
(f.iii) Any Building Society that is part of a “group” or otherwise functioning in a wider limited liability company setting must maintain separate accounts (including holdings and surplus accounts) to the rest of the “group” or limited liability company in order to maintain compliance with the above categories.
4 - Investment Banks:
(a) Investment banks; defined as a non-public bank that acts in order to produce, facilitate or manage investments and investment strategies on behalf of themselves or clients.
(a.i) All investment banks are required to publicly make it within reasonable powers to maintain the public informed that they are an investment bank not a Commercial Retail Bank.
(a.ii) All investment banks are required to have a process to screen members of the public before allowing them to join or deposit.
(a.iii) All investment banks within the best of their ability are required to screen applicants to verify that they have at least $10,000 in assets not including those they wish to deposit into the investment bank. If they fall below this threshold an investment bank may not take on the client as a customer.
(a.iv) All investment banks are required to disclose to the public their average risk rating from the previous month at all times.
5 - Non-profits:
(a) Payment Service Providers (PSP); is a third-party company that enables businesses to accept and process electronic payments in order to facilitate pure via discord payments.
(a.i) A PSP may not use client funds to invest, accrued interest or charge interest. It may only raise funds via a fee on payments on/via discord/or otherwise.
(a.ii) All PSP’s are required to maintain minimal tracking, tracing or otherwise direct access to see, access or manipulate transactions hosted via themselves or accounts held within the PSP directly. PSP’s may use limited information which they gather in order to create analytics and reports in order to sell to any financial institution as long as this information does not directly track, trace or give specific information as to an individual or small group of people (10 people at minimum).
(a.iv) All PSP’s will be exempt from sharing client information with any member of the government or public unless said information is required or court ordered to be publisied.
(a.v) PSP’s may either be owned by an group of individuals or directly by a financial institution, psp’s may not publicly sell shares in itself or hold any assets other than those directly related to its operations.
(a.vi) Any financial institution that owns or operates a PSP may add the PSP’s information to their MEA designated information page as long as the information between their general operations and the PSP’s operations are clearly separated.
(a.v) Any PSP owned or managed by a group of individuals must maintain and post a MEA report including that specified in section (2.b).
(b) Credit Union; Is a financial cooperative that provides and supplies all the equivalent products and services of a retail bank see (2.e), as such is required to conform to all relevant reporting duties of a Retail bank.
(b.i) Credit Unions will not be authorised to invest in any financial asset or product including loans with a credit rating of D. Products of rating C may only consist of a maximum of 20% of assets within the organisation at any one time.
(b.ii) Credit Unions will not be authorised to purchase and/or hold for the purpose of gaining direct returns a/the stock of a given limited liability company.
(b.iii) All profits acquired by the end of the month by a credit union, must be distributed evenly across all members of the union.
(b.iv) Credit Unions shall be mandatorily structured so that rather than directly “depositing” money, a citizen is buying a share in the Union, all shares within the union shall be valued at $1 and have 1 vote. In association to this Credit Unions will be required to follow the rules set in relevant laws of a Limited Liability Company and shall have the same legal rights as one.
(c) Financial Products Sub Companies; any financial company that exists for the sole purpose of being a financial tool or product. For example a holding company for an etf.
(c.i) All companies that come under this category must be registered under the MEA as such and must specify the reasoning and product the company is made in order to create. The MEA may request an audit or transaction logs from a Financial Products Sub company at any time from any reason in order to check that the company is not being used for the purpose of laundering money or tax avoidance purposes..
(c.ii) All registered financial products sub companies shall be given an exemption from the player company limit.
(c.iii) Financial Products Sub Companies may only be created on behalf of a financial institution other than another Financial Product Sub company.
(c.iv) Financial Products Sub Companies may not be operated as an independent company, and may only own chests shops in order to show its value/assets as such must make sure that these chests are not accessible by the public.
6 - Additional legislation and reporting requirements
(a) All banks are required when giving out debt to associate a Universal Bank Loan Index Number (UBLIN) within their record for credit rating and fraud protection purposes.
(a.i) UBLIN’s shall be required to follow the following pattern: (Bank Short Code) / (Number listing loan) / (type) / (Player) / (Active Loan Yes/No). Template/Example: HR/001/Morgage/Luke201556/N.
(a.ii) All financial institutions shall receive a Bank Short Code upon registration with the MEA.
(b) All financial institutions that receive a plot via a foreclosure upon liquidation of a delinquent mortgage holder, may maintain that plot in exception to any plot cap for a maximum of two months in which time the bank is expected to either sell this plot on or otherwise reduce their plot holdings in order to become within limitations once more.
(c) All financial institutions other than PSP’s (5.a) and Financial Product Sub Companies (3.c) shall be required to show activity and either an in-game location offering financial products or maintain a website (/discord server) in which players may purchase, use or otherwise apply to use financial products.
7 - Bank of Azalea Credit Ratings
(a) All financial institutions are required by law to provide the bank of Azalea with a monthly update on the following criteria’s in order for the to maintain and only in order to maintain and manage crediting ratings:
(a.i) Current Active UBLIN codes held by the bank.
(a.ii) Any and all closed or no longer active UBLIN codes.
(a.iii) Any UBLIN codes that are currently in delinquency.
(b) All credit ratings (not UBLIN’s) shall be accessible to banks at any time in order to properly assess and maintain risk analysis and compliance. Other citizens, businesses or otherwise organisations may request access to the data-base via the BOA but a $500 fee will be filed in exchange for access in order to pay for the maintenance of the database.
(b.i) Citizens may also request to see their own credit rating from the database which shall inquire for a $10 fee from the BOA.
(c) All Citizens of Azalea shall start with a credit rating of C.
(d) The Bank of Azalea will be required to maintain and create the credit rating system in order for banks to comply with.
(d.i) The details of how the Bank of Azalea’s created credit rating system functions must be either publicly available or available upon request.
8 - Taxation Upon Financial Institutions
(a) All financial institutions shall be exempt from normal company taxation other than Financial Products/Sub-companies (5.d).
(a.i) All financial institutions other than Financial Products/Sub-companies (5.c) shall have a mandatory 0.25% tax on every withdrawal.
(a.ii) All financial institutions other than Financial Products/Sub-companies (5.c) and Payment Service Providers (5.a) shall have to pay a 10% tax on net income earned per standard yearly quarter.
(b) PSP companies will be required to pay two monthly fees: $500 to the BOA and $500 to the MEA for a total of $1,000 per month.
(b.i) All PSP companies will be required to pay a 15% charge on all remaining profits distributed to members of ownership after the above is accounted for; if the PSP decides to distribute its profits that is, withdrawals must be distributed evenly across all owners.
(b.ii) PSP’s must declare to the MEA when it is doing a withdrawal to the owners of the organisation and the amount being withdrawn and distributed.
(c) All Credit Unions shall be required to pay a monthly upkeep fee to both the BOA and MEA for the sum of $1,000 each per month for a total of $2,000.
(c.i) Credit Unions shall be required to maintain a fund in holding/reserve in order to always be able to pay out depositors.
(c.ii) There shall be a minimum reserve rate of 25% and a maximum required reserve rate of 50%.
(c.iii) The BOA shall be required to vote every four months to set the reserve rate credit unions should maintain, banks are required to meet this requirement within 2 months of changes being made.
(d) For all financial institutions within which a required reserve rate is set, a tax shall be levied on idle funds above 10% over that of the reserve rate. For every 10% over that threshold, $1000 will be charged at the end of the quarter along with any other taxes. Tax shall be capped at a maximum of no more than 10% of the bank's non-depositer funds.
(b.i) Example: Reserve Rate set by the BOA; 30% The amount liquid in financial institution x is; 70%, As such the extra tax would be: $3,000
9 - Insurance
(a.) All financial institutions specified shall have as specified insurance coverage in order to maintain trust and protect depositors.
(a.i) All relevant with this coverage are insured directly by the MEA, who shall be responsible for enacting and paying out this insurance within at least 3 weeks of financial institutions bankruptcy or failure.
(b) The BOA may insure any non limited liability company that is a financial institution to a maximum of 20% of deposits with a fee to be decided by the BOA based on perceived risks.
(c) The BOA may insure any limited liability company, based on an audited value of the company that has been cross checked by a member of the BOA, in order to protect citizens who have invested from sudden market shocks and to encourage financial literacy and an investment culture to help increase growth, while also protecting members of credit unions.
(c.i) This insurance may only cover a maximum of 15% of a shares value based on the asset value of a company should share prices drop below that point, or if the company becomes insolvent.
(c.ii) BOA limited liability insurance will charge a 5% of profits fee per month.
(c.iii) Any company organisation or otherwise with BOA limited liability insurance may be requested to comply with BOA audits at any time.
10 - Enforcement
(a.) Failure to maintain a set minimum reserve shall be dealt with in a three stage system. A bank may submit an application of reasoning or excuse as to not being able to meet reserve requirements for the BOA to vote on in order to grant or deny.
(a.i) Failure to maintain a set minimum reserve one week in infraction. Warning
(a.ii) Failure to maintain set minimum reserve two weeks in infraction. Warning and a $5,000 fine paid to the MEA.
(a.iii) Failure to maintain a set minimum reserve within three weeks of being in-infraction . The financial institution shall be disbanded and liquidated, with all creditors, debtors and account holders reimbursed. All held debts shall be offered for purchase by auction to any financial institution with an exemption from credit rating barriers.
(a.iv) This shall be accumulated time across the change in reserve rates with the timer/week counter resetting after the next two quarterly votes.
(b) Failure to inform the MEA of impending financial insolvency or time off high risk with at least a week's notice, shall be considered a Criminal Fraud and shall be punished as current criminal code demands.
(b.i) Failure to maintain and stay within set credit rating brackets shall be warned and if compliance is not achieved 7 days after shall also be prosecuted as Criminal Fraud.
(c) Failure to comply with monthly MEA information releases shall be punished with a $500 per day fine after a 7 day grace period has passed starting the 1st of each month.
(c.i) Continued failure to comply for over 31 days will lead to dissolvement and liquidation of the financial institution and funds being recovered to all clients as best as possible after relevant debtors including the government have been paid.
(d) Failure to comply with an MEA or BOA audit (after at minimum 7 days have passed) will be given a $1,000 per day fine until compliance is achieved.
(d.i) Continued failure to comply for over 31 days will lead to dissolvement and liquidation of the financial institution and funds being recovered to all clients as best as possible after relevant debtors including the government have been paid.
(e) Failure to correctly manage and account taxes on profits at the end of each quarter after a 7 day leniency period (of which the MEA is expected to warn) shall be followed by a three stage process.
(e.i) Warning to be administered after 7 days over the leniency period. Over this a $1,000 per day fee shall be levied by the MEA.
(e.ii) Final warning to be administered after 14 days of non compliance over the leniency period. After which fines of an additional $2,000 per day to be levied against the offender.
(e.iii) Liquidation; after 21 days over the leniency period has passed the financial institution shall be immediately liquidated with the government ceasing 15% of all assets followed by a standard liquidation process paying debtors, depositors, etc.
(f) Failure to maintain BOA reporting of UBLINS’s shall be met with a $500 per offending article rewarded to the BOA.
(g) Financial institutions who do not show activity and are not actively trying to offer products and services shall be considered as actively trying to commit “Financial Institutional Tax Evasion” which shall have a 15 minute jail period, up to $5,000 in fines levied by the MEA and BOA. Furthermore, the infringing financial institution may be liquidated if no changes occur after 30 days of the court ruling.
(g.i) The MEA shall be given the powers in order to investigate financial institutions in order to check and prosecute those suspected of operating fraudulently or to not be actively offering any products in order to avoid taxation. The MEA may not use this power in order to view, investigate or interfere with individuals accounts within a given institution.
(h) Any created bank that has not submitted an financial institution application/disclosure to the MEA after warning within 14 days shall be ceased and any assets or finances shall be taken by the government all depositor accounts found shall be reimbursed and all remaining assets shall be ceased.
(i) If a financial institution maintains an asset below their designated minimum credit rating for more than 1 month, the BOA shall be required to either authorise exception for the assets or the asset may be ceased to be liquidated by the BOA with the funds gained returned to the bank minus a $1,000 fine.
11 - Supersede
(a) In any legal conflict the Rebuild Banking Act shall supersede any other current, perious or post creation bills or acts.
Enactment: This Act comes into force immediately upon passage. All existing financial institutions shall be given 14 days to re-submit their applications to the relevant type and make themselves compliant.
Sponsor: N/A
Type: Bill
A
Bill
To
Establish a Revision and Reconstruction of Current Banking Law
Preamble: To re-construct and build a new financial and banking framework for the Isle of Azalea in order to build a stable and sustainable banking system that can last into the future and help stimulate economic growth while maintaining government tax and otherwise revenue. This bill was edited and commented on by the Bank of Azalea board of governors, and many others.
1 - Repeals
(a) The following Bills shall be repealed upon passing: Financial Institution Establishment Act (https://cityrp.org/threads/financial-institution-establishment-act.2060/#post-2878),
(b) All edits, changes and amendments to these bills shall also be repealed apon passing.
(c.i) Section 8 of the Taxation Act (https://cityrp.org/threads/taxation-act.218) shall be repealed.
(c.ii) Section 8 (a.i) of the Better Banking Act (https://cityrp.org/threads/better-banking-act.2383) shall be repealed.
(c.iii) Section 3 of the Financial Revisions Act (https://cityrp.org/threads/financial-revisions-act.234/#post-939) shall be repealed.
2 - Definitions
(a) “MEA” shall be recognised as an acronym for the Azalean Ministry of Economic Affairs.
(b) “Commercial Banks” Any for profit financial institution operating in the Isle of Azalea that accepts and maintains deposits of Azalean Citizens within the relevant categories with MEA oversight.
(c) "Investment Banks” Any for profit financial institution who operates in order to create, sell, buy or otherwise manage financial assets and products, but whose deposits within are not secured or insured.
(d) “Retainer” a contract with a legal institution within which the legal institution agrees to serve the interests and needs of the given holder of the retainer contract in the courts of law and relevant additions to doing so as set by the terms of the retainer contract.
(e) “BOA” shall be acknowledged as the acronym for the Bank of Azalea.
(f) “Credit Rating” Shall be defined and recognised as the risk rating set by the Bank of Azalea for financial products and persons in order to properly manage and inform financial institutions upon the risks they are taking.
(g) “UBLIN” shall be recognised as the shorthand for Universal Bank Loan Index Number.
(h) “High Risk” Any financial product, person or otherwise with a financial rating at or below C.
(i) "Real Estate Development Loans” loans that are specifically tailored, made and designed for the funding of construction projects and have a clause to state that the funds provided may not be used for any other reason.
(j) “PSP” shall be recognised as the acronym for Payment Service Providers.
(k) “Criminal Fraud” shall be de-recognised and understood as set out within the criminal code section (8.a as off the 25/07/2025).
3 - Commercial Banks:
(a) Commercial Banks as defined will be required to maintain the following subsequent legislation:
(b) Once per month, they must submit a full information page as specified by the MEA containing at minimum the following information:
(b.i) Employees who are able to directly access and withdraw funds from both accounts and/or the balance of the bank.
(b.ii) The current active retainer or lawyer on staff.
(b.iii) Deposits, Cash on Hand, Cash on Loan and end of month balance change.
(b.iv) A risk exposure estimation rating. (A average rating of the held assets as by the BOA administered credit ratings).
(c) Commercial Banks over the deposits threshold of $100,000 must either have a lawyer on staff or on a retainer contract that is accessible by the MEA.
(c.i) Should a Commercial bank be unable to maintain or be able to gain a lawyer on staff or on retainer they may request an exemption, with a new exemption to be requested each month until a retainer or lawyer is found.
(d) All Commercial Banks shall be required to maintain a fund in holding/reserve in order to always be able to pay out depositors.
(d.i) There shall be a minimum reserve rate of 10% and a maximum required reserve rate of 40%, set to be voted upon by the BOA.
(d.ii) The BOA shall be required to vote every four months to set the reserve rate in which banks should maintain, banks are required to meet this requirement within 2 months of changes being made.
(e) Retail Banks; Products offered at retail banks include checking and savings accounts, certificates of deposit (CDs), personal and mortgage loans, credit cards, and business banking accounts.
(e.i) Retail banks will not be authorised to invest in any financial asset or product with a credit rating below C or purchase and hold for the purpose of gaining direct returns a/the stock of a given limited liability company.
(e.ii) Retail banks may only hold onto and purchase the shares of a given “stock” in a limited liability company in order to act as a broker between themselves and their clients and in order to create new financial tools or products in order to be re-sold directly to clients or on the general markets.
(e.iii) Any retail bank may invest into the following financial products: bonds, etf’s, indexes and any other future product which are credit rated above C and have not explicitly been stated that they cannot invest, buy, hold or otherwise in.
(e.iv) Retail banks may not charge any fee from processing and conducting transfers between players, companies or organisations as long as said transaction is between two active clients and accounts within said retail bank.
(e.v) Any retail bank that is part of a “group” or otherwise functioning in a wider limited liability company setting must maintain separate accounts (including holdings and surplus accounts) to the rest of the “group” or limited liability company in order to maintain compliance with the above categories.
(e.vi) Retail banks may invest into construction development projects brokered and secured by any relevant Building Societies, as long as the product has been rated at or above C in credit/risk ratings from the BOA.
(e.vii) Retail banks shall have all customer deposits insured to the sum of 20% of deposits as outlined in section 7.
(f) Building Societies; Building societies are financial institutions with the principal purpose, established in law, of making residential and commercial plot mortgages, funded by deposits. These institutions are allowed and designated to help facilitate the giving of mortgages to all those that need them especially where general banking institutions may designate as too high a risk.
(f.i) Building Societies shall only be allowed to provide mortgages for the purchase of land or to provide Real Estate Development Loans. Building Societies will also be authorised to directly invest into construction projects as a source of income.
(f.ii) Building Societies may not hold, buy or sell shares in public companies other than to hold shares as additional collateral for a mortgage. Conversely building societies may take ownership of a percentage share of a construction or development project that it is investing into or is acting as a broker in order to provide opportunities for clients to directly invest into a project or many projects.
(f.iii) Any Building Society that is part of a “group” or otherwise functioning in a wider limited liability company setting must maintain separate accounts (including holdings and surplus accounts) to the rest of the “group” or limited liability company in order to maintain compliance with the above categories.
4 - Investment Banks:
(a) Investment banks; defined as a non-public bank that acts in order to produce, facilitate or manage investments and investment strategies on behalf of themselves or clients.
(a.i) All investment banks are required to publicly make it within reasonable powers to maintain the public informed that they are an investment bank not a Commercial Retail Bank.
(a.ii) All investment banks are required to have a process to screen members of the public before allowing them to join or deposit.
(a.iii) All investment banks within the best of their ability are required to screen applicants to verify that they have at least $10,000 in assets not including those they wish to deposit into the investment bank. If they fall below this threshold an investment bank may not take on the client as a customer.
(a.iv) All investment banks are required to disclose to the public their average risk rating from the previous month at all times.
5 - Non-profits:
(a) Payment Service Providers (PSP); is a third-party company that enables businesses to accept and process electronic payments in order to facilitate pure via discord payments.
(a.i) A PSP may not use client funds to invest, accrued interest or charge interest. It may only raise funds via a fee on payments on/via discord/or otherwise.
(a.ii) All PSP’s are required to maintain minimal tracking, tracing or otherwise direct access to see, access or manipulate transactions hosted via themselves or accounts held within the PSP directly. PSP’s may use limited information which they gather in order to create analytics and reports in order to sell to any financial institution as long as this information does not directly track, trace or give specific information as to an individual or small group of people (10 people at minimum).
(a.iv) All PSP’s will be exempt from sharing client information with any member of the government or public unless said information is required or court ordered to be publisied.
(a.v) PSP’s may either be owned by an group of individuals or directly by a financial institution, psp’s may not publicly sell shares in itself or hold any assets other than those directly related to its operations.
(a.vi) Any financial institution that owns or operates a PSP may add the PSP’s information to their MEA designated information page as long as the information between their general operations and the PSP’s operations are clearly separated.
(a.v) Any PSP owned or managed by a group of individuals must maintain and post a MEA report including that specified in section (2.b).
(b) Credit Union; Is a financial cooperative that provides and supplies all the equivalent products and services of a retail bank see (2.e), as such is required to conform to all relevant reporting duties of a Retail bank.
(b.i) Credit Unions will not be authorised to invest in any financial asset or product including loans with a credit rating of D. Products of rating C may only consist of a maximum of 20% of assets within the organisation at any one time.
(b.ii) Credit Unions will not be authorised to purchase and/or hold for the purpose of gaining direct returns a/the stock of a given limited liability company.
(b.iii) All profits acquired by the end of the month by a credit union, must be distributed evenly across all members of the union.
(b.iv) Credit Unions shall be mandatorily structured so that rather than directly “depositing” money, a citizen is buying a share in the Union, all shares within the union shall be valued at $1 and have 1 vote. In association to this Credit Unions will be required to follow the rules set in relevant laws of a Limited Liability Company and shall have the same legal rights as one.
(c) Financial Products Sub Companies; any financial company that exists for the sole purpose of being a financial tool or product. For example a holding company for an etf.
(c.i) All companies that come under this category must be registered under the MEA as such and must specify the reasoning and product the company is made in order to create. The MEA may request an audit or transaction logs from a Financial Products Sub company at any time from any reason in order to check that the company is not being used for the purpose of laundering money or tax avoidance purposes..
(c.ii) All registered financial products sub companies shall be given an exemption from the player company limit.
(c.iii) Financial Products Sub Companies may only be created on behalf of a financial institution other than another Financial Product Sub company.
(c.iv) Financial Products Sub Companies may not be operated as an independent company, and may only own chests shops in order to show its value/assets as such must make sure that these chests are not accessible by the public.
6 - Additional legislation and reporting requirements
(a) All banks are required when giving out debt to associate a Universal Bank Loan Index Number (UBLIN) within their record for credit rating and fraud protection purposes.
(a.i) UBLIN’s shall be required to follow the following pattern: (Bank Short Code) / (Number listing loan) / (type) / (Player) / (Active Loan Yes/No). Template/Example: HR/001/Morgage/Luke201556/N.
(a.ii) All financial institutions shall receive a Bank Short Code upon registration with the MEA.
(b) All financial institutions that receive a plot via a foreclosure upon liquidation of a delinquent mortgage holder, may maintain that plot in exception to any plot cap for a maximum of two months in which time the bank is expected to either sell this plot on or otherwise reduce their plot holdings in order to become within limitations once more.
(c) All financial institutions other than PSP’s (5.a) and Financial Product Sub Companies (3.c) shall be required to show activity and either an in-game location offering financial products or maintain a website (/discord server) in which players may purchase, use or otherwise apply to use financial products.
7 - Bank of Azalea Credit Ratings
(a) All financial institutions are required by law to provide the bank of Azalea with a monthly update on the following criteria’s in order for the to maintain and only in order to maintain and manage crediting ratings:
(a.i) Current Active UBLIN codes held by the bank.
(a.ii) Any and all closed or no longer active UBLIN codes.
(a.iii) Any UBLIN codes that are currently in delinquency.
(b) All credit ratings (not UBLIN’s) shall be accessible to banks at any time in order to properly assess and maintain risk analysis and compliance. Other citizens, businesses or otherwise organisations may request access to the data-base via the BOA but a $500 fee will be filed in exchange for access in order to pay for the maintenance of the database.
(b.i) Citizens may also request to see their own credit rating from the database which shall inquire for a $10 fee from the BOA.
(c) All Citizens of Azalea shall start with a credit rating of C.
(d) The Bank of Azalea will be required to maintain and create the credit rating system in order for banks to comply with.
(d.i) The details of how the Bank of Azalea’s created credit rating system functions must be either publicly available or available upon request.
8 - Taxation Upon Financial Institutions
(a) All financial institutions shall be exempt from normal company taxation other than Financial Products/Sub-companies (5.d).
(a.i) All financial institutions other than Financial Products/Sub-companies (5.c) shall have a mandatory 0.25% tax on every withdrawal.
(a.ii) All financial institutions other than Financial Products/Sub-companies (5.c) and Payment Service Providers (5.a) shall have to pay a 10% tax on net income earned per standard yearly quarter.
(b) PSP companies will be required to pay two monthly fees: $500 to the BOA and $500 to the MEA for a total of $1,000 per month.
(b.i) All PSP companies will be required to pay a 15% charge on all remaining profits distributed to members of ownership after the above is accounted for; if the PSP decides to distribute its profits that is, withdrawals must be distributed evenly across all owners.
(b.ii) PSP’s must declare to the MEA when it is doing a withdrawal to the owners of the organisation and the amount being withdrawn and distributed.
(c) All Credit Unions shall be required to pay a monthly upkeep fee to both the BOA and MEA for the sum of $1,000 each per month for a total of $2,000.
(c.i) Credit Unions shall be required to maintain a fund in holding/reserve in order to always be able to pay out depositors.
(c.ii) There shall be a minimum reserve rate of 25% and a maximum required reserve rate of 50%.
(c.iii) The BOA shall be required to vote every four months to set the reserve rate credit unions should maintain, banks are required to meet this requirement within 2 months of changes being made.
(d) For all financial institutions within which a required reserve rate is set, a tax shall be levied on idle funds above 10% over that of the reserve rate. For every 10% over that threshold, $1000 will be charged at the end of the quarter along with any other taxes. Tax shall be capped at a maximum of no more than 10% of the bank's non-depositer funds.
(b.i) Example: Reserve Rate set by the BOA; 30% The amount liquid in financial institution x is; 70%, As such the extra tax would be: $3,000
9 - Insurance
(a.) All financial institutions specified shall have as specified insurance coverage in order to maintain trust and protect depositors.
(a.i) All relevant with this coverage are insured directly by the MEA, who shall be responsible for enacting and paying out this insurance within at least 3 weeks of financial institutions bankruptcy or failure.
(b) The BOA may insure any non limited liability company that is a financial institution to a maximum of 20% of deposits with a fee to be decided by the BOA based on perceived risks.
(c) The BOA may insure any limited liability company, based on an audited value of the company that has been cross checked by a member of the BOA, in order to protect citizens who have invested from sudden market shocks and to encourage financial literacy and an investment culture to help increase growth, while also protecting members of credit unions.
(c.i) This insurance may only cover a maximum of 15% of a shares value based on the asset value of a company should share prices drop below that point, or if the company becomes insolvent.
(c.ii) BOA limited liability insurance will charge a 5% of profits fee per month.
(c.iii) Any company organisation or otherwise with BOA limited liability insurance may be requested to comply with BOA audits at any time.
10 - Enforcement
(a.) Failure to maintain a set minimum reserve shall be dealt with in a three stage system. A bank may submit an application of reasoning or excuse as to not being able to meet reserve requirements for the BOA to vote on in order to grant or deny.
(a.i) Failure to maintain a set minimum reserve one week in infraction. Warning
(a.ii) Failure to maintain set minimum reserve two weeks in infraction. Warning and a $5,000 fine paid to the MEA.
(a.iii) Failure to maintain a set minimum reserve within three weeks of being in-infraction . The financial institution shall be disbanded and liquidated, with all creditors, debtors and account holders reimbursed. All held debts shall be offered for purchase by auction to any financial institution with an exemption from credit rating barriers.
(a.iv) This shall be accumulated time across the change in reserve rates with the timer/week counter resetting after the next two quarterly votes.
(b) Failure to inform the MEA of impending financial insolvency or time off high risk with at least a week's notice, shall be considered a Criminal Fraud and shall be punished as current criminal code demands.
(b.i) Failure to maintain and stay within set credit rating brackets shall be warned and if compliance is not achieved 7 days after shall also be prosecuted as Criminal Fraud.
(c) Failure to comply with monthly MEA information releases shall be punished with a $500 per day fine after a 7 day grace period has passed starting the 1st of each month.
(c.i) Continued failure to comply for over 31 days will lead to dissolvement and liquidation of the financial institution and funds being recovered to all clients as best as possible after relevant debtors including the government have been paid.
(d) Failure to comply with an MEA or BOA audit (after at minimum 7 days have passed) will be given a $1,000 per day fine until compliance is achieved.
(d.i) Continued failure to comply for over 31 days will lead to dissolvement and liquidation of the financial institution and funds being recovered to all clients as best as possible after relevant debtors including the government have been paid.
(e) Failure to correctly manage and account taxes on profits at the end of each quarter after a 7 day leniency period (of which the MEA is expected to warn) shall be followed by a three stage process.
(e.i) Warning to be administered after 7 days over the leniency period. Over this a $1,000 per day fee shall be levied by the MEA.
(e.ii) Final warning to be administered after 14 days of non compliance over the leniency period. After which fines of an additional $2,000 per day to be levied against the offender.
(e.iii) Liquidation; after 21 days over the leniency period has passed the financial institution shall be immediately liquidated with the government ceasing 15% of all assets followed by a standard liquidation process paying debtors, depositors, etc.
(f) Failure to maintain BOA reporting of UBLINS’s shall be met with a $500 per offending article rewarded to the BOA.
(g) Financial institutions who do not show activity and are not actively trying to offer products and services shall be considered as actively trying to commit “Financial Institutional Tax Evasion” which shall have a 15 minute jail period, up to $5,000 in fines levied by the MEA and BOA. Furthermore, the infringing financial institution may be liquidated if no changes occur after 30 days of the court ruling.
(g.i) The MEA shall be given the powers in order to investigate financial institutions in order to check and prosecute those suspected of operating fraudulently or to not be actively offering any products in order to avoid taxation. The MEA may not use this power in order to view, investigate or interfere with individuals accounts within a given institution.
(h) Any created bank that has not submitted an financial institution application/disclosure to the MEA after warning within 14 days shall be ceased and any assets or finances shall be taken by the government all depositor accounts found shall be reimbursed and all remaining assets shall be ceased.
(i) If a financial institution maintains an asset below their designated minimum credit rating for more than 1 month, the BOA shall be required to either authorise exception for the assets or the asset may be ceased to be liquidated by the BOA with the funds gained returned to the bank minus a $1,000 fine.
11 - Supersede
(a) In any legal conflict the Rebuild Banking Act shall supersede any other current, perious or post creation bills or acts.
Enactment: This Act comes into force immediately upon passage. All existing financial institutions shall be given 14 days to re-submit their applications to the relevant type and make themselves compliant.