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A
BILL
TO
Establish a deposit insurance program in Alexandria
1 - Short Title and EnactmentBILL
TO
Establish a deposit insurance program in Alexandria
(1) This Act may be cited as the “Royal Deposit Insurance Program Act”.
(2) This Act may be numbered as P.B.##-###.
(3) This Act shall be enacted immediately upon its passage.
(4) This Act was authored by MP Capt11543.
(5) This Act has been co-sponsored by Member of Parliament ItsStormcraft.
2 - Reasons
(1) Without any protection for depositors’ funds, a bank failure would devastate the bank's customers and the Alexandrian economy.
(2) The passage of this Act will strengthen the public's faith in the Alexandrian banking system.
3 - Definitions
(1) For the purposes of this Act, the following terms are defined:
(a) “Depository institution” - Any financial institution which accepts and holds monetary deposits in Alexandrian pounds for its customers.
(b) “Depositor” - Any person or legal entity who holds an account with a depository institution using Alexandrian pounds.
4 - Royal Deposit Insurance Program
(1) The Ministry of Trade and Finance shall establish and manage the Royal Deposit Insurance Program (hereinafter “RDIP”).
(a) The Ministry of Trade and Finance shall appoint a Manager to oversee the RDIP, and may appoint other staff as necessary to carry out the RDIP.
(b) To achieve its purpose, the RDIP shall manage the Royal Deposit Insurance Fund (hereinafter “RDIF”), which shall be kept entirely separate from other funds allocated to the Ministry of Trade and Finance.
(2) Every depository institution which does business within the Kingdom of Alexandria shall pay a depositors’ insurance premium into the RDIF in the amount of 5% of their reserve requirement as determined by the Royal Bank of Alexandria.
(3) The RDIP shall insure all depositors’ funds in any depository institution, up to a limit of £50,000 per depositor per institution.
(4) The Ministry of Trade and Finance shall audit registered depository institutions to ensure that they can meet their obligations to their depositors. If the Ministry of Trade and Finance finds that a depository institution is unable to meet its obligations, the RDIP shall take over the institution as receiver.
(5) When it holds a financial institution in receivership, the RDIP has the authority to take any lawful step it deems necessary to ensure that all depositors at that institution retain their deposits, or recoup them up to the insurance limit, including but not limited to:
(a) Securing an agreement with a second depository institution to acquire the institution under receivership and take over its operations.
(b) Collecting outstanding debt and pursuing restitution from fraudulent activity perpetrated against the institution.
(c) Liquidating the institution’s assets and using the proceeds to pay back depositors.
(d) If depositors’ funds cannot be recouped up to the insurance limit using the assets of the institution under receivership, the RDIF may be used to pay out depositors.
5 - Amendments to the Criminal Code and Procedure Act
(1) The Criminal Code and Procedure Act is amended by inserting into §20(6) the following paragraph:
“(h) Royal Deposit Insurance Program (RDIP) Fraud - A player is guilty of RDIP Fraud if, as a proprietor or employee of a depository institution (as defined by the Royal Deposit Insurance Program Act), they conceal, transfer, or exchange for another currency depositors’ funds in an attempt to avoid their obligations under §4(3) of the aforementioned Act.
(i) Maximum punishment: £1,000 + 30 minutes in jail + restitution.”
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