Rescinded Economic Redemption Act

[ToadKing]

A
BILL
To

Facilitate the Creation of a State-Owned Withdrawal Facility and Ease the Economy After the Financial Collapse​

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 ‘Economic Redemption Act.'

(2) This Act shall be enacted immediately upon its signage.

(3) This Act has been authored by Representative ToadKing.

(4) This Act has been sponsored by Representative ToadKing.

(5) This Act has been co-sponsored by Senator DocTheory.


2 - Reasons
(1) With the failure of Vanguard & Co and The Exchange and massive liquidity issues in major banks, depositors and the economy will be left in ruins with the loss of deposits.

(2) The Department of Commerce is quite limited in how they can react leading to possibly a lot of the economy and deposits disappearing.

(3) Due to the potential succeeding collapses of other businesses as well that could greatly affect depositors, there needs to be a way to protect those depositors as well.

(4) To rapidly restore trading capabilities and resume normal operations of Redmont's only stock exchange through a public-private partnership.


3 - Information About This Act
(1) If the contents of this Act are in dispute with another Act, this Act will prevail to the extent of the discrepancy.

(2) This act is temporary and will impact other Acts once it expires.

(3) This Act and any provisions within it will apply ex post facto to any institution currently commandeered, nationalised, or seized by the Department of Commerce.

(4) § 6 and 7 of this Act will expire once the Secretary of Commerce and Congress consents to the termination of this part of the Act.
(a) Congress may consent to the termination by simple motion of both chambers of Congress.


4 - Definitions
(1) SOWF: State-Owned Withdrawal Facility, as defined in § 8.

(2) DOC: Department of Commerce.

(3) FRB: Federal Reserve Bank.

(4) Nationalisation: The full transfer of a private company to government ownership and operation.

(5) Public-Private Partnership: A cooperative arrangement between the government and the private sector for shared ownership and operation of a financial institution.

(6) Covered Institutions: Any Financial Institution that is currently seized, nationalized, or commandeered by the DOC, excluding The Exchange, Inc.


5 - Public-Private Partnership for The Exchange
(1) The Exchange, Inc. shall operate as a public-private partnership with 50% government ownership and 50% private ownership retained by current shareholders

(2) The Exchange shall be governed by a 6-member Board of Directors as follows:
(a) Government Chairman - DOC Official (independent from daily operations)
(b) Government Director - Financial regulation expert appointed by DOC
(c) Government Director - Independent financial services professional appointed by FRB
(d) Private Vice Chairman - Representing private shareholders and operational leadership
(e) Private Director - Technology and operations expert appointed by private shareholders
(f) Private Director - Independent financial services professional appointed by private shareholders

(3) The Government shall oversee regulatory compliance, depositor protection measures, and all company listing evaluation and scrutiny
(a) Private shareholders shall focus exclusively on technology development and trading platform operations
(b) Joint decision-making is required for major policy changes and strategic direction
(c) DOC employees with appropriate experience shall handle all listing requirements and regulatory assessments

(4) The FRB shall provide liquidity through direct currency minting to ensure The Exchange's trading capabilities and withdrawal processing
(a) Government receives 50% of all future profits in exchange for capital provision and regulatory backing
(b) Private shareholders retain 50% ownership

(5) Private shareholders maintain full responsibility for technology development
(a) Private shareholders retain control over day-to-day exchange operations and service delivery
(b) All technical systems, trading platforms, and infrastructure remain under private management


6 - Stock Repossession and Inactive Shareholder Management
(1) Inactive Player Stock Repossession
(a) If an individual/entity is inactive for more than 3 months, or has been inactive for more than 3 months prior to the enactment of this Act, companies may reclaim their stocks by purchasing back all shares owned by them at fair market value
(b) Companies must inform The Exchange of the share repossession, including the individual/entity’s username, playtime information, and number of shares
(c) If a player becomes active again, they may request to repurchase their shares at current market value

(2) Banned/Deported Player Stock Seizure
(a) All stocks and securities owned by permanently banned or deported players shall be transferred to government ownership
(b) The government may choose to:
(i) Hold the shares as government assets
(ii) Auction the shares to the public
(iii) Offer the shares to the issuing company for repurchase at market value
(c) Proceeds from any sale shall be deposited into the government balance

(3) Exchange Administration
(a) Stock Exchanges shall maintain records of all repossessions and seizures
(b) Stock Exchanges shall facilitate the transfer process under government oversight


7 - State Owned Withdrawal Facility
(1) The DOC and FRB will both jointly operate a State-Owned Withdrawal Facility (SOWF).

(2) Said facility’s goal is to facilitate the withdrawal and payment of deposits owned by banks that are unable to pay them back.

(3) All depositors in covered institutions whose deposits were transferred to the SOWF will receive a part of their deposit proportional to the amount of money
gained from the liquidation of the assets transferred to the SOWF from the
covered institution.

(4) The Department of Commerce may transfer any amount of unrecovered deposits from covered institutions to be covered by the SOWF.

(5) The DOC is responsible for both the disbursement of funds through the SOWF and for communication with the public regarding the state and progress of the facility.

(6) The FRB is responsible for the minting of funds needed for the SOWF.

(7) Both the DOC and the FRB are responsible for managing the accounting of funds as well as drafting rules of withdrawal.

(8) The SOWF is allowed to decide how much of deposits post-liquidation of assets will be covered by the facility. Deposits not covered by insurance, liquidation or this additional funding will be considered unrecoverable and can not be pursued by depositors.

(9) Congress may appropriate funds from the monthly budget to help contribute to the SOWF.

(10) The SOWF is allowed to create the rules for withdrawing deposits overtime. They may create different rules for individuals, business, and financial institutions.
(a) They may also create rules to have early withdrawals if they charge a percentage of the withdrawal as a fee.

(11) The SOWF is empowered to create SOWF Notes for the trading of money stored in deposits in the institution prior to withdrawal.
(a) SOWF Notes will mature at a date to be decided by the SOWF, and may mature at staggered times.
(b) SOWF Notes may be transferred between entities as decided by the SOWF.
(c) The SOWF may charge entities to transfer SOWF Notes to another entity. They may charge an entity to receive or give SOWF Notes to another entity as long as the entity is not an individual.
(d) SOWF Notes shall not be considered legal tender, but they shall be backed by the full faith and credit of the Commonwealth government and accepted as payment by government institutions.
(i) Private companies are not required to accept SOWF Notes as payment, but are encouraged to do so.
(ii) Payments made to government institutions that will be transferred to private entities require the consent of the private entity to be made in SOWF Notes.

(12) The SOWF will be operational until all deposits under its care have been reimbursed and this Act expires.

(13) If there are remaining funds in the SOWF at the time of its dissolution, those funds which are the result of minting will be destroyed, and the remainder will be placed in the government’s balance.


8 - Financial Asset Management Corporation
(1) The DOC will operate a Financial Asset Management Corporation (FAMC).

(2) The FAMC’s goal is to make sure all secured assets including plots and securities held in trusteeship by seized Financial Institutions are returned to owners with the least disturbance to secured creditors.

(3) The DOC may transfer any secured assets including plots and financial securities held in trusteeship by a seized Financial Institution for safekeeping by the FAMC.

(4) The FAMC is required to take any actions that best support secured creditor’s interests and is allowed to sell contracts regarding secured assets to other financial institutions.

(5) Any profits that the FAMC receives will go towards the SOWF.

(6) The Exchange, Inc., operating under the public-private partnership established in Section 5, shall be excluded from FAMC management. All Exchange securities and operations shall be governed by the partnership structure.


9 - Bankruptcy Exemption
(1) The DOC reserves the right to refuse to declare any currently seized, commandeered, or nationalised institution mentioned in this Act as bankrupt.

(2) The DOC may retroactively declare the bankruptcy status of any institution mentioned in this Act as void.

(3) The Exchange, operating under the public-private partnership model, shall not be subject to bankruptcy proceedings while under government partnership.


10 - Severability
(1) If one section or part of this Act is declared unenforceable or unconstitutional, only the offending section or part shall be void. All other sections or parts will remain in effect.