Post by Josephus I on Feb 28, 2017 22:25:03 GMT
Economic Reform Bill 2017
Introduction:
The purpose of this Bill is to use the opportunity of a reborn Nova England to create a secure, stable and prosperous economy. Through the use of the methods as outlined in the following Bill, Nova England will in brief convert the economy to a Gold-Backed standard and Full-Reserve Banks.
Section 1: Gold Backed Standard
I. All legal tender will be backed by the National Reserves of Gold contained within the Newcastle-Upon-Eastmoor Reserve. As such all legal tender is redeemable for a fixed value of gold.
II. The rate set will be 23.22 grams of fine gold for 1 Denarii.
III. The maintenance of Gold Reserves falls under the remit of the Nova English Government.
Section 2: Full-Reserve Banks
I. All banks and cooperative societies are to operate under a 100% Reserve.
II. Deposits by customers are the legal property of the customer and not the bank.
a. The ‘Deposit’ may not be used by the bank for any activities including but not limited to; Loans, investments and credit.
b. The bank may levy ‘reasonable’ account charges, which will be monitored by the Ministry of Internal Affairs to ensure fair practice.
c. Deposits are redeemable in full by the customer.
III. Banks are still able to provide lending and investment services but not utilising money deposited in a ‘Deposit’ Account.
a. Banks may offer ‘Saving’ Accounts wherein the customer agrees in contract that the monies deposited may be used for the purpose of loans and investments. With the benefit being a level of interest accrued to the account.
b. Banks may use the sale of stocks and bonds to generate cash that can then be utilised for Loans & Investment. In addition to the profits of the interest and investments that may be reused.
Section 3: Registration of Banking Organisations
I. All banking and financial organisations are required to register their corporation with the Ministry of Internal Affairs.
a. Organisations operating without following this process will be subject to seizure by the State with appropriate sentences for those found culpable.
b. Ministry of Internal Affairs Auditors will carry out periodic audits to ensure that banks are compliant with Section 2.
i. Where banks are found not to be compliant they will be first offered the opportunity to make corrections.
ii. If the issue is not dealt with the Ministry of Internal Affairs will temporarily seize the bank to correct the issue. Existing assets of the bank from their Loan/Investment departments may be used by the Ministry of Internal Affairs. Costs for this will then be deducted for the take-over from the bank’s assets.
iii. Where the issue cannot be covered from the bank’s Loan/Investment portfolios. The Ministry of Internal Affairs will seize full control of the corporation. Following which all assets including those of directors and other responsible parties will be seized and utilised to ensure that all deposit demands are met. The bank will then be auctioned, with existing customers being advised of alternative providers. All guilty persons responsible for this action will then be prosecuted and given subsequent prison sentences.
Section 4: Provision for Loan Providers
I. Banks, cooperative societies and financial service providers are to register with the Ministry of Internal Affairs if they wish to provide Loan services.
a. Organisations operating without following this process will be subject to seizure by the State with appropriate sentences for those found culpable.
b. Interest Rates applied to these services are at the behest of the organisation.
c. Prior to the provision of loans to customers, organisations must ensure that the customer is able to make payments – Failure to do so will render the contract null.
i. Where customers are unable to make payments, the bank must first offer a reasonable repayment plan.
ii. If this is not achieved by the customer they will then face prosecution from the State. Which may include but is not limited to; Seizer of Assets, Imprisonment or Imposed government service.
iii. The organisation may not call upon debts prior to the final settlement date as agreed by contract with the customer.
Section 5: Government Spending
I. The Witan will issue a yearly budget, tracking all government spending within the period.
II. The Government may not exceed this budget and may not run a budget in deficit.
a. All Government spending will be audited by the Ministry of Internal Affairs and an independent bank. The bank will be chosen at random to act as an independent party. Following which the full audit will be released by the Ministry of Internal Affairs barring any classified sections which will remain redacted.
III. During times of National Emergency the government may raise funds through the sale of government bonds. However this may only be achieved through a super-majority vote in the Witan or at the specific behest of the reigning monarch.
a. Super-Majority Vote being a majority above 2/3 in the Witan.
b. National Emergencies include but not limited to; Natural Disaster, War or Major Terrorist activities.
IV. Where departments are found to be in breach of these rules, the responsible parties will be prosecuted by the State.
Members of the Witan are invited to vote for the above Bill - As set out within the 'Rule of Law', there are five days for your vote to be cast. (Voting Ends - 04/03/17)