Awaiting Assent True Economic Redemption Act

[Dogeington]

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 ‘True Economic Redemption Act.'

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

(3) This Act has been authored by President Kaiserin_, Secretary Avaneesh2008, and FRB Governor Smokedchief, with inspiration and input from Executive Advisor Smallfries4, Speaker Omegabiebel, xSyncx, Attorney General gribble19, Construction Secretary xEndeavour, and Vice President juniperfig, among others.

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

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

2 - Reasons

(1) With the failure of Vanguard & Co, Voyager, 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) To preserve large chunks of the economy which may be at risk due to ongoing economic factors.

(3) To protect depositors due to the succession of collapsing financial institutions in Redmont.

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 not impact other Acts once it expires.

(3) No part of this Act shall be construed so as to restrict the powers of any institution, neither during the time this Act is in effect nor after it expires – though it may implicitly empower institutions so as to carry out the provisions of this Act.
(a) An institution being empowered or compelled to exercise some authority within this Act does not necessarily insinuate that it does not hold the power to do so ordinarily.

(4) This Act will expire once the Secretary of Commerce and Congress consents to its termination.
(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 § 5.

(2) FAMC: Financial Asset Management Corporation, as defined in § 6.

(3) DOC: Department of Commerce.

(4) FRB: Federal Reserve Bank.

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

(6) Covered Institution(s): Any Financial Institution that is currently seized, nationalized, or commandeered by the DOC

5 - State Owned Withdrawal Facility

(1) The DOC and FRB will both jointly operate a State-Owned Withdrawal Facility (SOWF), which will be granted a tax-exempt DB account in-game.

(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 cannot be pursued by depositors.

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

(10) The SOWF is empowered to create rules for withdrawing deposits over time. They may create different rules for individuals, business, and financial institutions.
(a) They may also create rules to have early withdrawals, including charging 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.

6 - Financial Asset Management Corporation
(1) The DOC will operate a Financial Asset Management Corporation (FAMC), which will be granted a tax-exempt DB account in-game.
(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.

7 - 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.