Star Wars: Diplomacy
Imperial Credit Union Act - Printable Version

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Imperial Credit Union Act - Atticus Jager - 01-03-2021

Imperial Credit Union Act
Within the mandate set out by the Supreme Commander and High Moff of the Galactic Empire, the establishment of the first Imperial Credit Union is declared in order to strengthen commercial and financial resilience within the worlds of the Empire.
The initial goals of the ICU will be to partially buy out high-interest debt from distressed systems in order to lower interest payments year over year until a satisfactory situation has been achieved or the entire system debt has been bought out with a homogenous lower rate.

Article I: the bank shall hold a target reserve ratio no less than 2.5% and no higher than 10%; the initial optimal target shall be 3% in it's first 3 years of operation, with growth of this reserve to be permitted following this inaugural period. The reserve will be permitted to grow after a unanimous board decision.

Article II: the Imperial Credit Union is permitted to take in deposits from Imperial and external entities to establish a range of accounts. The can include but are not limited to operational, savings, and investment accounts in order to grow overall deposits for the ICU and allow for diversification of the ICU to ensure it's operational integrity and stability.

Article III: establishing a benchmark interest rate of 2.75% in order to facilitate the transfer of external debts from Imperial Systems and Sectors towards lower interest rate loans during economic crisis or to facilitate Imperial debt management.

Article IV: an initial fund of 996,000,000,000 Imperial Dataries to establish the initial reserve of the Imperial Credit Union. Such an initial fund would allow up to 33,200,000,000,000 Imperial Dataries for internal loans to system and sector governments.
(OOC:  996,000,000,000 / 0.03 = 33,200,000,000,000)
a) the permission of system and sector governments to purchase shares that will result in dividend payouts from ICU profits that are to be established at a later date.
b) an initial 5,000,000,000 from the contributions provided will be earmarked for the establishment of infrastructure, hiring and training of personnel for the creation of the Imperial Credit Union in all settled worlds under Imperial control in order to provide services to government and private entities, as to Imperial citizens and residents.

Article V:  establishes a Board of Directors for the Imperial Credit Union, made up of three representatives from System Governments with oversight by a Moff that is elected as Board Chair. This board will be permitted to conduct all internal changes and tasked with the ongoing expansion and operations of the ICU under the auspice of the Imperial Credit Union Act. Any decisions or amendments made by a unanimous Board vote can be overturned by a special session of the Council of Moffs and a minimum 60% vote.

Article VI: the Imperial Credit Union will be permitted to issue bonds at any rate following a unanimous board decision.

Article VII: a board member may be recalled or reinstated at any time by the Council of Moffs. The Board has the power to expand the board as deemed necessary per annual board meetings.

Article VIII: contributors to the establishment of the Imperial Credit Union provides the System or Sector government ownership equal to the funds provided that make up the capital raised for the ICU.
Sub-article I: additional contributions can be made on an annual basis, providing shareholders with the first right to do so, and new contributors second.
Sub-article II: the amount of capital raised on an annual basis is to be determined by the Board of Directors the one year ahead of the opening for additional contributions and to be capped at a certain percentage of existing capital to ensure no bad faith actors can attempt a majority take over of the ICU.

Article IX: dividends will consist of 35% of the profits from interest of loans and other services spread out proportionally to the shareholder percentage of each entities' holdings.

Article X: all rates, ratio aspects, and other internal mechanisms of the Imperial Credit Union, including the Act itself is subject to change through a proper unanimous vote by the Board and ratified by the Sector Moffs through a simple majority.
Initial Funding in Imperial dataries and shares held.

Bastion System: 22,000,000,000 - 2.2%
Bextar System: 3,000,000,000 - 0.3%
Borosk System: 20,000,000,000 - 2%
Braxant Sector: 100,000,000,000 - 10%
Carrion Sector: 5,000,000,000 - 0.5%
Dynali Sector: 25,000,000,000 - 2.5%
Endoraan System: 25,000,000,000 - 2.5%
Entralla System: 100,000,000,000 - 10%
Perinn Sector: 100,000,000,000 - 10%
Prefsbelt Sector: 100,000,000,000 - 10%
Muunilinst System: 501,000,000,000 - 50%

Total Initial Funding 1,001,000,000,000 Imperial Dataries


RE: Imperial Credit Union Act - Shadows - 01-10-2021

Approved
The ICU is now an official organization. At this point, news about it is limited as people have no idea what to expect. Actions establishing it will generate more results and effects.