Rescinded Banking Act

[GoldBlooded]

Rescinded due to the Commercial Standards Act.

A
BILL
To

Consolidate financial laws​

The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment
(1) This Act may be cited as the 'Banking Act.'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by: Senator xEndeavour, Former Rep. RandomIntruder
(4) This Act has been co-sponsored by: Senator xEndeavour

2 - Reasons
(1) Laws concerning financial institutions are spread across multiple acts
(2) Consolidate all laws concerning taxation into the Taxation Act

3 - Rescind
(1) The following acts are rescinded:
(a) Act of Congress - RI Financial Institution Codification Act
(b) Act of Congress - Financial Services Act

4 - Financial Institutions
(1) A Financial Institution is a business that deals with deposits, loans, and/or investments.
(2) There are four types of financial institutions: Commercial Banks, Investment Banks, Stock Exchanges, and Credit Unions.

5 - Definition and Characteristics of a Commercial Bank:
(1) A Commercial Bank is a Financial Institution that is privately owned.
(2) A Commercial Bank is only governed by the owner or a group of owners who may make all decisions regarding the bank and its investments, employees, and interest rates, among other business decisions.
(3) Profits of a Commercial Bank are shared among owners/shareholders.

6 - Definition and Characteristics of a Investment Bank:
(1) An Investment Bank does not take deposits.
(2) An Investment Bank is allowed to brokerage stocks through Stock Exchanges.
(3) An Investment Bank is privately owned and governed, with profits shared per owner discretion.
(4) An Investment Bank may also charge for services such as financial advising or market research.

7 - Definition and Characteristics of a Stock Exchange:
(1) A Stock Exchange is the sole Financial Institution able to buy and sell securities, otherwise known as stocks.
(2) A Stock Exchange reserves the right to charge clients commissions for each transaction in order to make a profit.

8 - Definition and Characteristics of a Credit Union:
(1) A Credit Union is a Financial Institution that is governed by the members.
(2) A Credit Union must elect a leader through a democratic fashion.
(3) Profits of a Credit Union are distributed to the members of the Credit Union or reinvested back into the Credit Union through interests, services, or other costs that benefit all members of the Credit Union.

9 - Registration of Financial Institutions:
(1) All Financial Institutions must be registered on the Business Portal.
(2) All Financial Institutions must be declared as a Financial Institution in the title of the business page as either a Commercial Bank, Investment Bank, Stock Exchange, or a Credit Union.
(3) Should a Financial Institution change its classification from one type to another, it will need to update its business portal to reflect the change.

10 - Powers of the Commerce Department
(1) The Department is authorized to monitor financial transactions and may publish generalized reporting on transaction statistics.
(2) The Department is afforded access to financial institution accounts on request for the purposes of monitoring them for compliance.

 

[LilDigiVert]

Presidential Assent

This bill has been granted assent and is hereby signed into law.