Finance:: Foreclosure and Private Forfeiture ---------------------------------- Property acquired before negotiation and appropriation of a loan cannot be taken by the lender in case of default unless the loan contract at issue specifically identifies said property as subject to forfeiture in case of borrower non-performance (default). Any property not serving as a means of livelihood, and acquired after appropriation of a loan, can upon court authorization be seized as repayment in the case of default. The debt is reduced by the fair market value of the seized property, and if a surplus results, that surplus must be delivered to the borrower. On Bankruptcy ------------- No individual or incorporated entity can receive state protection from creditors, and no state protection from losses is available to creditors or depositors. For corporations, unresolved debts are the continuing joint responsibility of the incorporated entity's stockholders, for each in proportion to his share of ownership. Assets and Obligations at Time of Death --------------------------------------- Each party who is the prospective beneficiary in a contract with an individual (in this section, this individual is identified as the ``decedent'') is entitled to recompensation if that individual dies or becomes by injury permanently incapable of performing in accordance with the terms of the contract. Recompensation can be by delivery of the current MMSE, or through any settlement method specified in the contract. When a settlement method other than the MMSE is available, the beneficiary must accept it and cannot demand an MMSE settlement. The party currently in custody of an item, the delivery of which constitutes full settlement of a contract, can at his discretion settle the contract with an MMSE, which the beneficiary must accept as full settlement. Any party who is the beneficiary in a contract with the decedent, and who is also party to a contract in which the decedent is the beneficiary, must assign the MMSE's of those contracts in which the decedent is the beneficiary to the settlement of those contracts in which the decedent is not the beneficiary, provided that any settlement agreement reached by the beneficiary and the estate of the decedent takes precedence. When no specified settlement method is feasible other than delivery of the MMSE, settlement must be accepted in the form of (1) monetary metals or contractual currency at market rates, or (2) designation of the beneficiary as the beneficiary of a pre-existing contract between the decedent and another party in which the decedent was the beneficiary, or (3) reassignment of the material or land assets of the decedent at fair market value, or (4) through designation of the beneficiary as the beneficiary of a pre-existing contract between two parties in which the beneficiary party became party to the contract as the result of a gift by the decedent, or (5) through reassignment to the recipient of a gift or gifts given by the decedent, of a contractual obligation of the decedent, only if the recipient received the gift or gifts after this contractual obligation was originally incurred, and only if the MMSE of the reassigned obligation is equal to or less than the market value of the gift or gifts. When multiple beneficiaries seek recompensation, settlement must give priority to a contract signed at an earlier time. Settlement of a more recently signed contract cannot commence until all earlier contracts have been settled. Recompensation must proceed first through untransferred assets (assets held by the debtor at the time of his death) and then through transferred assets (assets transferred by the debtor to others before his death). Within a class of assets (transferred or untransferred), recompensation must first proceed through monetary and other fungible assets, thence to assets without sentimental value, thence to reassignment of contractual beneficence, and finally to assets with sentimental value. Only after all of these avenues of recompensation have been exhausted can there be a reassignment of contractual obligation. The declaration of sentimental value is performed by the prospective inheritors or recipients on the bases of their choice. The inheritors or recipients can, at any time, volunteer currency equal to the fair market value of an item, which the beneficiary of an obligation must accept in lieu of the non-fungible asset. Obligations which cannot thereby be settled or reassigned are nullified. In the presence of a will, those assets which remain after settlement of obligations are assigned according to the will, with the designated beneficiaries exercising discretion (before settlement begins) regarding preferred form of obligation settlement as though it had already been transferred as a gift. In the absence of a will, remaining assets are assigned wholly to the partner, or in the absence of a partner, divided evenly among the genetically closest tier of relatives giving preference to the younger and closer tiers. On Money -------- Contractual money is any contract between a private guarantor (the issuer) and any entity that can be a party to a contract, which can be arbitrarily transferred, wherein the issuer is bound to exchange the money for a redemption value, on demand but possibly only after a certain date, as agreed to. The following restrictions apply to all contractual money. Except in the initial issue, the issuer cannot control the transfer of money it guarantees. Only an incorporated entity can issue contractual money. The incorporated entity must publicly announce any issue of contractual money, revealing particularly the quantity issued, the expiration date, and the terms of the money contract. The state cannot issue contractual money. The redemption value of any contractual money must not include any contractual entitlement; in particular, the redemption value cannot include contractual money. After redemption, no contractual obligation or entitlement can remain in connection with the money redeemed. In no case can holders of contractual money demand by way of redemption that the issuer dedicate more than 33% of its production or service capacity within a particular domain, as defined in
, figured over a one month period, to the fulfillment of currency obligations. To resolve conflicts among redeemers, redemption is on a first-come first-served basis. All contractual money must specify an expiration date, after which it is null and void. In the case that fulfillment of money contracts by the issuer is delayed because the proportion of performance capacity dedicated to money fulfillment is already at or above the maximum legally mandatable level, the expiration date of the currency is extended until all money presented in a timely manner for redemption has been fulfilled. For money to be enforceable at court, a contract tax must be paid on it prior to its issuance. For each year of enforceability, the current baseline proportion of the money must be paid as taxes. The tax is paid using a portion of the money being issued. All taxes must be paid prior to any other issuance of the money. The national unit of state must retain in escrow the money thereby assigned to it for 80% of the lifetime of the money, a period hereinafter called the escrow period. The state must make publicly available detailed information on its complete inventory of escrowed money, revealing particularly the quantity held, the issue date, the expiration date, and the terms of the contract. At any time after the escrow interval has elapsed, the state can present the money to its issuer for redemption or can exchange it in profitable or fair market activities, and in any case must redeem or exchange it before it expires. Whenever money is redeemed before the escrow period has elapsed, a tax refund is forthcoming, equal to the contract taxes paid for the money redeemed covering the interval from the time of redemption to the time of expiration. The tax refund is effected by voiding that proportion of the escrowed money. No law can affect the mining, refining, minting, use in trade, and custody, by individuals and incorporated entities, of precious minerals, including gold, silver, platinum, palladium, and diamonds, in any quantity, as negotiable currency or otherwise, except as specified in this document. The Loan -------- A loan is a contract between two parties (each an individual or incorporated entity) in which one or more items or entitlements are transferred from a lending party to a borrowing party, and the borrowing party is bound to minimum settlement terms of future action specified in the contract. Any number of non-monetary minimum settlement methods can be specified, in addition to the required MMSE. A sale or trade, in which two parties exchange items as a single transaction creating no post-transaction obligations between them, cannot be construed to be a loan, even if a contract of trade or sale is entered in advance of the transaction. The single transaction constituting the sale or trade can involve a period during which one party has custody of items he has received from the other party and of items to be transferred to the other party. This period is ended when custody of those items destined for the other party is relinquished, and until this period is ended, none of the items can be put to any use not implicated in the aforementioned relinquishment of custody. No loan can specify obligations for either party which apply after the performance of a settlement method. No loan can forbid, or specify penalties for, early settlement. A simple loan is a loan that does not make the borrower the beneficiary of some contract, and in which the borrower can settle the loan by returning the loaned item(s) to the lender provided he has otherwise adhered to the terms of the contract. Simple loans can obligate the borrower to initial and periodic payment or other performance, monetary or otherwise. Legislation cannot affect the terms of simple loans. No loan contract can specify restrictions or requirements regarding employment of item(s) loaned, provided that damage to or loss of item(s) can be subject to penalty. A contract loan is a loan in which the lender transfers to the borrower the benefits and entitlements of some contract. A contract loan is not a simple loan. A simple loan is not a contract loan. For purposes of law, contractual money is a contract loan, even though the borrower may borrow only tangible goods. The exchange of a loan for a loan is a trade, and cannot be construed to be a loan between the parties to the transaction. The exchange of a loan for a service or tangible goods, when neither party is the borrower identified in the loan, is a trade and cannot be construed to be a loan between the parties to the transaction. An arrangement of storage or accounting in which the party managing storage or accounting has no decision-making authority with respect to the items stored or accounted for cannot be construed to constitute a loan to the managing party. No law can require a party to be or become a party to a loan, or prohibit a party from, or reward or punish a party for, being or becoming a party to a loan, or change its manner of application on that basis, except insofar as an individual who has breached a contract can by court order be impaired in his ability to enter and enforce contracts. The state cannot be a party to a monetary loan in which the other party is non-state, except that the state can hold contractual money. Insurance --------- For the purposes of this section, a party is either an individual, an enumerated set of individuals, or an incorporated entity. Insurance is a contract, known as a ``policy,'' in which the insuring party is bound to perform a specified action or set thereof which materially benefits a beneficiary party, in the case that the policy is triggered. All parties to the policy are named therein. The policy trigger is the transpiring of one or more events affecting the insured party, specified in the policy, in a manner specified therein. The insured party can be equal to the beneficiary party. All parties to the policy must formally agree to it by cryptographic signature. A policy can obligate the beneficiary to periodic payment to the insurer, without which the insurer can be relieved of his obligations, if so specified in the policy. As with any contract, an MMSE must be specified, by which the insurer can free himself of all obligations. The beneficiary is responsible for timely payment of contract taxes, as a baseline proportion of the MMSE. Only an incorporated entity can be an insuring party. A monetary insurance policy is a policy that triggers explicitly upon the event that another policy or set thereof triggers, or triggers on the basis of ripe contractual obligation or responsibility for payment as a consequence of contractual non-performance, or on the basis of the financial standing of the beneficiary, and in particular, on the net financial liabilities of the beneficiary. No incorporated entity can simultaneously be an insuring party in one monetary insurance policy and a beneficiary party in another monetary insurance policy. No policy can trigger on the basis of liability for law-breaking, or expenses incurred as a consequence thereof. No law can require a party to be or become a party to an insurance policy, or prohibit a party from, or reward or punish a party for, being or becoming a party to an insurance policy, or change its manner of application on that basis. The state cannot be a party to an insurance policy.