Bill: Draft New Player Lending Program Act

[ToadKing]

CONGRESS OF THE
COMMONWEALTH OF REDMONT
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A BILL TO

Establish a New Player Loan Program

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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:
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PART I — PRELIMINARIES​

1. Short Title and Enactment

(1) This Act may be cited as the 'New Player Lending Program Act'.

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

(3) This Act has been authored by Rep. ToadKing and Omegabiebel, with inspiration from Ameslap.

(4) This Act has been co-sponsored by Rep. IgnitedTnT.

2. Reasons and Intent

(1) To lower initial barriers for new players.

(2) To promote economic integration and retention of new players through accessible finance.

3. Definitions

(1) For the purposes of this Act, the following definitions shall apply:

(a) New Player Lending Program (NPLP). Means the lending program established by this Act.

(b) Eligible Player (Borrower). Means a player that:
(i) Has no less than 6 hours and no more than 48 hours of total playtime on the server; and
(ii) Has not previously received a loan under the NPLP; and
(iii) Agrees to the repayment terms and conditions of a loan under this program.

(c) Registered Lender (Lender). Means a commercial bank or credit union registered with the DOC and approved as a lender under this Act.

(d) Unsecured Loan. Means a loan made without collateral backing the repayment obligation.

(e) Secured Loan. Means a loan backed by eligible collateral as defined in this Act.

(f) Loan Principal. Means the original money lent, excluding any interest.

(g) Default. Means failure to make required payments under the loan contract for 7 consecutive days after payment was due.

(h) Guarantee Coverage. Means the percentage of the outstanding loan principal that the Commonwealth will pay to the lender in the event of default.

PART II — LOAN PROGRAM​

1. New Player Lending Program (NPLP)
(1) The DOC shall establish and administer the NPLP as defined in this Act.

(2) Eligible Players may obtain loans from Registered Lenders under the NPLP.

(3) The Loan Principal of a loan underwritten under the NPLP shall be guaranteed by the Commonwealth.

(4) The NPLP shall be advertised using the in-game shoutouts.
(a) The text shall be set by DOC and shall refer to an explanatory page maintained by the DOC.

2. Loan Limits and Terms
(1) Loan terms shall be negotiated between the Lender and the Borrower, subject to the maximum limits set out in this section.

(2) Unsecured Loans:
(a) Maximum loan principal: $10,000
(b) Maximum interest rate: 10%
(c) Maximum loan term: 3 months

(3) Secured Loans:
(a) Maximum loan principal: The lesser of $50,000 or 95% of the eligible collateral value
(b) Maximum interest rate: 10%
(c) Maximum loan term: 3 months

(4) No player may receive more than one loan under the NPLP at any time.

3. Eligible Collateral
(1) The following items may serve as eligible collateral for secured loans:
(a) Plots owned by the borrower;
(b) Tractors, valued at no more than the current dealership price;
(c) Drills, valued at no more than the current dealership price;
(d) Items with a value that is directly calculable from buys or sells listed on the most recent Consumer Price Index, valued at no more than that CPI-derived amount.

(2) Collateral must be legally owned by the borrower at the time the loan is made.

(3) The lender must perfect a security interest in the collateral in accordance with applicable law.

4. Loan Registration Requirements
(1) All loans made under the NPLP must be registered with the DOC within 24 hours of the loan contract being signed.

(2) The DOC shall maintain a public forum section for NPLP loan registrations.
(a) Each thread shall have a tag indicating the current status of the loan (Active, Paid, Defaulted, etc.).

(3) The loan registration must contain:
(a) The complete loan contract;
(b) Evidence of all necessary signatures;
(c) Proof that the borrower met the eligibility requirements at the time of signing;
(i) Including all due diligence conducted on the borrower.
(d) For secured loans, a description of the collateral and its value;
(e) The name of the Registered Lender.

(4) The lender must update the loan registration within 48 hours of any significant development, including:
(a) Default by the borrower;
(b) Payments that reduce the outstanding principal balance;
(c) Extensions or modifications to payment terms;
(d) Full repayment of the loan;
(e) Seizure of collateral.

5. Loan Contract Requirements
(1) The loan contract must explicitly state that it is issued under the NPLP.

(2) The loan contract must include:
(a) The loan principal amount;
(b) The interest rate (if any);
(c) The repayment schedule, including payment amounts and due dates;
(d) The loan term;
(e) For secured loans, a description of the collateral and its value;
(f) The consequences of default;
(g) A clear statement that the loan must be repaid and is not a grant;
(h) A statement that the loan is subject to the maximum limits established by this Act.

(3) The loan contract must be written in clear, plain language understandable to a new player.

PART III — DEFAULT AND GUARANTEE PAYMENT​

1. Default Procedures
(1) A loan shall be considered in default if the borrower fails to make required payments for 7 consecutive days after a payment was due.

(2) Upon default, the lender must:
(a) Update the loan registration to reflect the default status within 48 hours;
(b) Notify the DOC of the default;
(c) Make reasonable efforts to contact the borrower and collect payment;
(d) For secured loans, follow applicable law to seize collateral.

(3) The lender may claim guaranteed payment from the Commonwealth no sooner than 7 days after default is declared, and no later than 30 days after default is declared. A lender that fails to claim within this period shall forfeit their right to guarantee coverage for that loan.

2. Guarantee Payment
(1) Upon a valid claim for guaranteed payment, the Commonwealth shall pay the lender 100% of the outstanding loan principal at the time of default.

(2) The Commonwealth shall not pay:
(a) Any interest charges;
(b) Any costs or legal fees.

(3) To receive guarantee payment, the lender must demonstrate:
(a) The loan was properly registered with the DOC;
(b) The borrower was an Eligible Player at the time of loan origination;
(c) The loan complied with all requirements of this Act;
(d) Default occurred, and the lender made reasonable efforts to collect payment;
(e) For secured loans, the collateral was properly valued.

3. Rights of the Commonwealth Upon Payment
(1) Upon paying guarantee coverage to a lender, the Commonwealth shall be subrogated to all rights of the lender with respect to the defaulted loan.

(2) The Commonwealth may pursue collection of the debt from the borrower.

(3) Any amounts collected by the Commonwealth from the borrower shall be retained by the Commonwealth.

PART IV — LENDER REGISTRATION AND CONDUCT​

1. Lender Registration
(1) Any commercial bank or credit union registered with the DOC may apply to become a Registered Lender under the NPLP by submitting an application to the DOC containing:
(a) A description of the loan products the applicant intends to offer under the NPLP, including whether they intend to offer unsecured loans, secured loans, or both, and any additional terms they intend to apply within the limits set by this Act;
(b) Confirmation that the applicant is in good standing with the DOC and has no outstanding sanctions; and
(c) Agreement to comply with all requirements of this Act.

(2) The DOC shall approve or reject an application within 7 days of receipt.
(a) Rejection must be accompanied by written reasons.

(3) The DOC may suspend or remove a Registered Lender from the program where the lender:
(a) No longer meets the eligibility requirements of this section;
(b) Has committed serious or repeated violations of this Act or another Act; or
(c) Has had its registration as a commercial bank or credit union revoked by the DOC.

(4) A Registered Lender may voluntarily withdraw from the program by providing written notice to the DOC, provided all outstanding loans and guarantee obligations under the program are resolved.

2. Prohibited Conduct
(1) A Registered lender shall not:
(a) Unduly pressure an Eligible Player to take a larger loan than the player initially requested;
(b) Make a loan under the NPLP to a player who has already received an NPLP loan;
(c) Misrepresent the terms or nature of an NPLP loan;
(d) Fail to conduct basic due diligence on the borrower’s ability to repay;
(e) Make a loan knowing that the borrower cannot or will not repay it.

(2) Violation of these prohibitions shall result in:
(a) Denial of guarantee coverage for the loan in question; or
(b) Suspension from participation in the NPLP; or
(c) Administrative sanctions.

3. Due Diligence Requirements
(1) Before making an NPLP loan, a Registered Lender must:
(a) Verify the player’s eligibility under this Act;
(b) Check the DOC loan registry to confirm the player has not previously received an NPLP loan;
(c) Make a reasonable assessment of the player’s ability to repay based on all available information;
(d) For secured loans, verify ownership and value of proposed collateral.

(2) The lender must document its due diligence and include this in the loan registration.

PART V — ENFORCEMENT​

1. DOC Authority
(1) The Department of Commerce shall administer this program and possesses the authority to issue guidance and policy necessary for its effective operation.

(2) The DOC shall maintain the loan registry, ensure all registrations comply with the requirements of this Act, and process claims for guarantee payments submitted by lenders.

(3) In overseeing program integrity, the DOC may monitor lender conduct and audit loan registrations for compliance.
(a) Where violations are identified, the DOC has the authority to impose appropriate sanctions, including suspension or termination of lenders' participation in the program in cases of serious or repeated misconduct.

(4) To maintain transparency and accountability, the DOC shall publish monthly reports detailing the program's performance. These reports shall include:
(a) The total number and volume of loans made under the NPLP;
(b) Default rates;
(c) The total amount of guarantee payments disbursed; and
(d) An assessment of the program's overall costs and effectiveness in achieving its stated purposes.

2. Review and Adjustment
(1) The DOC shall conduct regular reviews of the program's operation and outcomes.

(2) Following this review, the DOC may submit recommendations to Congress for legislative adjustments to the program's parameters, including:
(a) Modifications to loan limits;
(b) Guarantee coverage percentages;
(c) Player eligibility criteria; and
(d) Collateral requirements.

(3) Such recommendations shall be based on empirical data regarding program performance and lessons learned from implementation.

PART VI — IMPLEMENTATION​

1. Implementation Timeline
(1) The DOC shall have thirty days following enactment to prepare the program for operation.

(2) During this implementation period, the DOC shall:
(a) Establish the loan registry forum section;
(b) Publish guidance and procedures for program participants; and
(c) Create materials designed to inform both new players and lenders about the program's operation and requirements.

(3) Loans may be issued under this program beginning fourteen days after enactment, provided the DOC has completed the necessary preparatory steps outlined above.

2. Funding
(1) Funding for guarantee payments shall be allocated from the DOC's monthly appropriation.

(2) When a lender submits a valid claim for guarantee coverage following a loan default, the Commonwealth shall process and disburse payment within seven days of receiving the claim, subject to verification that all program requirements were met.

(3) The DOC may request supplemental appropriations from Congress if guarantee payment obligations exceed available budget resources in any given fiscal month.