Here's a rough draft of what I'm aiming for. Tell me what you think.
[Draft] Banking Standards Act
General Assembly
Category: -Free Trade
A resolution to reduce barriers to free trade and commerce.
Resolution Name:
Description:
Strength: significant
Description: The WA,
DEFINES banks as:
1) An organization, usually a corporation, chartered by a federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositor's checks; and issues drafts and cashier's checks.
2) And/or an institution (public or private) that collects funds (from the public or other institutions) and invests them in financial assets (such as stocks).
RECOGNIZING that many banking institutions in many nations do not fully adhere to definition 1;
APPALED that some banking institutions may even commit acts of fraud against their patrons;
REALIZING that a set of international banking guidelines would better the financial community as a whole;
Mandates the following articles:
I. Banking Fraud Regulations
1. Defines fraud as a deliberate action by an individual or group to cheat a person or group of people, causing damage. Typically, such an action has a misrepresentation to deceive, or purposeful withholding of information that would help an individual make the correct decision.
2. Actions committed by the bank
a)For any fraudulent action committed by a banking institution, it is the responsibility of the established government is said nation to enforce punishment on the bank. Based on the severity of the fraud, punishment may range from a fine to shutting the bank down.
b)However, in the case of a bank knowingly investing a patron’s funds into a corrupt hedge fund or bad stock, if the sum of the patrons’ initial funds exceed 1% of the banks entire funds the punishment is immediate termination of the bank.
c)Any person affected by the fraudulent action may also file a civil suit in said country if they feel more action is necessary.
3. Actions committed by the patrons
a) For any fraudulent action committed by a patron against a bank, it is the responsibility of the bank to report them to the established government in said member nation. Based on the severity of the fraud, punishment may range from fining said patron to arresting them and taking them to trial.
II. Mortgages and Loans
1.Qualifications for a loan
a)Banks may set their own qualifications for loaning funds to citizens. However, if the banks loans are defaulted upon in mass, it is not the responsibility of the government to forgive the loans.
2.Banks rights (concerning loans)
a)Banks may reserve the right to refuse to loan funds to any patron for a poor credit score, bad assets, not enough job history, etc.
b)Banks, when they loan, may draft a legally binding contract upon which the loaner and the person receiving the loan agree to and sign. If a bank does not have such a contract written up, proving a patron defaulted on a loan will become a strenuous task.
c)If a patron is in violation of the written contract concerning their loan, it is at the discretion of the bank to take legal action against the patron.
3.Policies to follow when foreclosing
a)Banks are to notify the patron 30 days prior to foreclosing.
b)Banks are to send a secondary notice if 15 days elapse and no payment is received.
c)If payment is received within the 30 day period or another agreement is reached all action of foreclosure against the patron must cease.
d)If a bank does foreclose on a patron’s property, they may do with it as they deem fit.
e)If a bank fails to submit notice of foreclosure 30 days and 15 days prior to foreclosure, the foreclosure is null and void.
