Rescinded Federal Deposit Insurance Program Act

[wetc]

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A
BILL
To

Protect The Depository Funds of The People

The people of Democracy Craft, 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 “Federal Deposit Insurance Program”.
(2) This Act shall be enacted immediately upon its signage.
(3) The Act has been co-sponsored by: MilkCrack (Seen by the DEC, and it's members whom chose to view it, input received, thanks guys!)

2 - Reasons

1. Guarantee the security of Depositor’s money into registered banking institutions.
2. Grow the investments and development of the Commercial Banking sector with federal security.
   1. Introduce new security measures to safeguard depositors, and protect the deposits of individuals.
3. Grow trust in the financial sector through Federal Regulation and Guarantees.

3 - Applicable Institutions

1. Institutions deemed applicable for this program must be registered Financial Firms with the DEC and FINFA.
   1. Exact details are to be decided by FINFA, but the criteria would center around total capital under management, total capital in deposits, etc.
2. Applicable Institutions (AI’s), to be eligible for the FDIP Act, must adhere to regulation introduced by the DEC and FINFA, regarding rapid adaptation.
   1. Economics are quick moving, and AI’s need to adhere to innovative regulations and laws introduced by entities such as the DEC to maintain the FDIP program, and ensure the safety and security of our Commercial Banking Industry.

4 - Steel Net

1. The following are the terms and specifics of the actual security systems in place to ensure the safety and longevity of deposits.
   1. All AI’s, through the FDIP Act, will have the capabilities to ensure all depositors up to $50,000.
   2. FINFA will be responsible for facilitating the logistics of FDIP payments.
      1. The DEC, and the greater Federal Government will be responsible for all legal, financial, and operational action taken in FDIP payment situations.
   3. The FDIP program insures depositors up to $50,000 for each individual. The FDIP payment may only be collected under terms of fraud collapse, monetary theft issues, or other situations deemed applicable by the DEC and other aforementioned regulatory agencies.
   4. FDIP payments will only be eligible when a Deposit-Threat-Crisis (DTC) is declared by FINFA.
      1. When a DTC is declared, depositors of the correlated AI are eligible for relief payments equitable to their deposited funds.
         1. FDIP payments are not obligatory, and are paid out only by request, in order to receive payment, a depositor must request one with FINFA, it is likely they will be reached-out to regardless.
   5. FDIP payments are not instantaneous, and will take time to be cleared by the DEC and FINFA, depositors are not guaranteed instantaneous, or lump sum payments.
      1. FINFA, in coordination with the DEC, will work out individual payment plans in the event of a DTC.

5 - Iron Well

1. The following are the procedures and policies enacted by the DEC and FINFA to collect funds for FDIP payments.
   1. In the event of an Executive Fraud Collapse (EFC) situation, the DEC may take direct action to liquidate banking assets to cover FDIP costs. In addition, it may pursue Executives charged with Fraud.
      1. An EFC situation will be declared by FINFA, and the DEC will be responsible for all monetary pursuits taken to collect funds and protect the depositors.
      2. In the unlikely event asset liquidation doesn’t fully cover costs, the DEC is permitted to use appropriated budget funds to compensate the cost, or work with FINFA to produce low-interest lines of capital.
   2. In all other officially declared DTC scenarios, funds will be summoned through responsible parties as deemed by FINFA.
      1. The DEC holds the right, in any DTC situation, to liquidate directly responsible parties’ assets, or follow other capital raising procedures as cited in Section 1.A.II.
      2. Responsible parties can only officially be declared by FINFA, with aid and help from the DEC.
   3. If liquid Capital does not make itself available, FDIP payment may be issued in the form of FINFA approved High Liquidity Assets (HLA’s).
      1. Any payments made may be a combined sum of liquid capital, and HLA’s. All depositors who receive HLA’s must be given an equitable sum of HLA’s to Capital, based on current market value of the specific HLA, or the internal graded value issued by FINFA.

6 - Coal Gabblers

1. The below are the criteria for a Depositor with funds in a FDIP approved Institution.
   1. Depositors are only eligible to receive FDIP payments within two weeks of an officially declared DTC scenario.
      1. Extensions can be approved by the DEC, with valid reason for delay.
   2. Each individual Depositor is only applicable to receive $50,000 for any given DTC scenario.
      1. Any funds deposited over $50,000 is not safeguarded by the FDIP program, and cannot be multi-claimed.
         1. Regardless of separated funds, each deposit is only protected up to $50,000, two individuals may not file for up to $100,000 in reparations under the same deposit.
   3. Depositors declared direct influences in a DTC scenario (As declared by FINFA), are not eligible for FDIP payments.
      1. Depositors may be declared intelligible for a multitude of reasons, mainly, direct involvement in the DTC scenario, criminal activity related to fiscal crimes, recent violent activity, clear neglect for security of finances, etc.
         1. All depositors will be declared ineligible by FINFA, under recommendation from the DEC.

7 - Shackles And Chains

1. The below are the rules and regulations that govern and surround the FINFA Agency, and the explanation for their existence.
   1. FINFA is a necessary Grading Agency that will be used to better understand the more complex financial instruments.
      1. At the time of writing, some of the biggest complaints about current governance are inactive committees, over-bureaucracy, and unnecessary attempts to copy real life structures.
         1. FINFA will differ from this in that it doesn’t act as a committee, it exists to provide insight from a relevant group of people. It counters inactivity by sustaining its relevance through its own necessity for existence.
         2. As the financial industry goes, with more complex instruments being issued everyday, the need for intelligent insight into the matter is becoming apparent, FINFA will provide this insight by having people who understand the contracts, dissect them, report their findings directly to the DEC, and allow the DEC to handle any contracts, instruments, or institutions in a more well-informed manner.
   2. Why can’t FINFA just be incorporated as a DEC committee?
      1. Frankly, this was the original plan, just to open a new committee for the DEC. The issue that made itself evident was the need for relevant people, many of the individuals in the DEC don’t understand these types of instruments or economics, and the people who do, usually don’t have the time to deeply look into it like FINFA will; due to other obligations. (i.e. Higher Ups | Leadership)
         1. Luckily, the DEC will still be able to retain control of the agency, but in a way that allows for the work to be shifted to FINFA’s relevant composition, and the administration to be left with the talented and experienced individuals in the DEC.
         2. Essentially, FINFA will be able to conduct all operations they need to within the agency. DEC will be able to regulate FINFA, through a work contract.
            1. FINFA will be required to sign a work agreement with the DEC that allows for DEC intervention and regulation, whilst giving FINFA the ability to retain a third-party composition.

1. FINFA composition will be determined by a majority vote (51%) from inter-agency members, the vote will be forwarded to the DEC and they will retain the ability to veto the vote with a probable report and reason for the veto.
   1. Any major change issued by FINFA members as designated by the Agency must be reported to the DEC, and they hold the right to veto the change if proper cause and report is filed.
   2. FINFA retains the right to add clauses and change monetary values to this bill or any others correlated to FINFA.
      1. Any changes need DEC first, and a majority vote from the agency members before any changes are enacted.
2. The DEC retains the right to remove any FINFA member with unanimous congressional approval, a FINFA super-majority vote (65%), and the filing of a justifiable cause for removal by the DEC.
   1. At time of enactment, the current FINFA composition is Citi Credit’s Wetc, and Redmont People’s Trust’s Xeu100.
3. DEC retains the right to request reports on information pertaining to any public activities FINFA does, and can audit their practices at any time.
   1. The DEC retains administrative control over FINFA, and holds the right to delegate additional responsibilities to the agency as they deem fit.

1. Will the DEC be able to incorporate its own members into FINFA?
   1. FINFA retains the ability to have a private composition, but anyone can be a part of it, as long as they go through the proper procedures mentioned above, and demonstrate a responsible amount of knowledge that would be needed to conduct the responsibilities FINFA has.
      1. Individuals who are on FINFA do not need to be part of a larger firm, entity, or business. FINFA will retain relevance by keeping their composition open to anyone, that is, anyone who is beneficial to the agency.
2. What is FINFA’s duty?
   1. FINFA is a financial grading agency. They are responsible for dissecting and analyzing more complex instruments, contracts, or institutions in Redmont.
      1. Notably, their responsibilities include:
         1. Providing concise, cohesive data and reports to the DEC regarding instruments or details the DEC needs.
         2. Managing logistics of Fiscal Bills such as this one, or others where complex financial data management and investigation is deemed necessary.
         3. Looking into multi-tranche contracts or instruments and determining pitfalls or self-destructive issues built into contracts that may be deemed illegal or fraudulent.
3. FINFA Conclusion
   1. FINFA is not another useless organization, it holds purpose. FINFA is necessary to help better understand complex financial instruments, institutions, and situations.
   2. FINFA needs to remain open to third-party individuals so it can adapt constantly and remain adaptive to constantly developing and changing environments.
   3. FINFA works for and with the DEC. Through a mutually signed work agreement, FINFA will be regulating, and regularly audited and inspected by the DEC. FINFA will be an agency of private composition, but retains every intention and responsibility of any DEC assignment, or ordinary FINFA assignment,
   4. FINFA remains under the regular auditing and investigation of the DEC, and they will be closely watched to ensure the safety and security of Redmont’s economic on goings.
   5. FINFA is a good thing, it is a necessary agency, and it will act relevantly, and actively, to tackle complex issues, file reports on those issues to the DEC, so our trusted, experienced, and talented friends over at the DEC, can take proper action to regulate complex issues, in a cohesive and efficient manner.

-Wetc Out

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[Westray]

Presidential Assent

This bill has been granted assent and is hereby signed into law.