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One of the elements missing from BR has been debt and banking, until =
now. This should also improve the position of Guilders.

Contract Loan
Type: Domain (Free action for the Guilder sub-class)
Success: 10+
Base Cost: 1 GB, 1 RP

Contract Loan is a special kind of Diplomacy action conducted by regents =
with guilders. The object is to receive an offer of a Loan on the =
guilder's terms. The regent may then accept or reject the terms as part =
of the action, or expend another turn in negotiations. While any regent =
can be the object of this action (for example the Prince of Avanil could =
ask the WIT for a loan) it would be considered just like a diplomacy =
action for both regents. However rogue regents have the ability to loan =
money they do not have by issuing letters of credit. =20

A rogue regent can loan twice his maximum potential income (counting =
only guild holdings and trade routes) for one season by issuing letters =
of credit. The letter of credit are treated like GB's and no special =
accounting of them separately, except that the total volume of GB's =
loaned must be recorded. The letter of credit is a promise to pay based =
on the reputation of the rogue regent, so even if his debtors default, =
he must cover the debt because they are in his name.=20

As an example, let's say that Heirl Diem wants to borrow money. He can =
go to his PC buddies and get what ever terms they see fit to grant. But =
what if he needs more? He approaches Guilder Kalien and expends a =
domain turn to contract for a loan of a specific amount. Kalien is =
listed as a thief by class, so we will assume he is (I also assume some =
DM's have adjusted him as a Brecht to the guilder sub-class). Kalien =
must expend a turn to negotiate (though if he were a guilder sub-class =
he could reply as a free action) the loan. If Heirl Diem fails his =
success chance, Kalien is not interested in issuing a loan to Diem at =
this time. If he succeded, Kalien will issue terms which Diem can =
accept or refuse. If Diem finds Kalien's terms to steep, he must =
negotiate again to seccure the terms he wants.

Typical terms include
a.. A term of 1 year (4 seasons)
b.. an interest rate of 20% over that term=20
Improved terms can never be had on the first loan. Over time with a =
closer relationship (an one can be assumed at game start in certain =
situation) better terms can be agreed. 10% per year over a 3 year term =
should be considered the best terms available for NPC to offer. Since =
the guilder is responsible to meet all debts they prefer to loan small =
amounts to many regents rather than place all their eggs in one basket =
and risk bankrupcy.

Borrowers may always default, though it should hurt their ability to =
borrow again. But a guilder whose borrower defaulted must cover the =
dept with his own money (or borrow himself to cover it) or he is =
declared bankrupt. Bankrupcy is not protection, but a stigma. Consider =
all the guilder's holdings contested for the purpose of rival contest =
actions (but not for income and regency). His ability to loan money =
sinks to 100% of his maximum potential income for one season, the rest =
having to be repaid in cash.

If a rogue regent ever suffers a bankrupcy before having his previous =
letters of credit paid from a previous bankrupcy, all his holdings are =
considered contested for all purposes, and he may never loan money he =
does not have again (though his successors may).

Kenneth Gauck
c558382@earthlink.net

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One of the elements missing from BR has been debt and banking, =
until=20
now.  This should also improve the position of Guilders.
 
Contract =
Loan
Type: Domain (Free action for the =
Guilder=20
sub-class)
Success: 10+
Base Cost: 1 GB, 1 RP
 
Contract Loan is a special kind of =
Diplomacy=20
action conducted by regents with guilders.  The object is to =
receive an=20
offer of a Loan on the guilder's terms.  The regent may then accept =
or=20
reject the terms as part of the action, or expend another turn in=20
negotiations.  While any regent can be the object of this action =
(for=20
example the Prince of Avanil could ask the WIT for a loan) it would be=20
considered just like a diplomacy action for both regents.  However =
rogue=20
regents have the ability to loan money they do not have by issuing =
letters of=20
credit. 
 
A rogue regent can loan twice his =
maximum=20
potential income (counting only guild holdings and trade routes) for one =
season=20
by issuing letters of credit.  The letter of credit are treated =
like GB's=20
and no special accounting of them separately, except that the total =
volume of=20
GB's loaned must be recorded.  The letter of credit is a promise to =
pay=20
based on the reputation of the rogue regent, so even if his debtors =
default, he=20
must cover the debt because they are in his name.
 
As an example, let's say that Heirl Diem wants to =
borrow=20
money.  He can go to his PC buddies and get what ever terms they =
see fit to=20
grant.  But what if he needs more?  He approaches Guilder =
Kalien and=20
expends a domain turn to contract for a loan of a specific amount.  =
Kalien=20
is listed as a thief by class, so we will assume he is (I also assume =
some DM's=20
have adjusted him as a Brecht to the guilder sub-class).  Kalien =
must=20
expend a turn to negotiate (though if he were a guilder sub-class he =
could reply=20
as a free action) the loan.  If Heirl Diem fails his success =
chance, Kalien=20
is not interested in issuing a loan to Diem at this time.  If he =
succeded,=20
Kalien will issue terms which Diem can accept or refuse.  If Diem =
finds=20
Kalien's terms to steep, he must negotiate again to seccure the terms he =

wants.
 
Typical terms include

A term of 1 year (4 seasons)
an interest rate of 20% over that term =

Improved terms can never be had on the first =
loan.  Over=20
time with a closer relationship (an one can be assumed at game start in =
certain=20
situation) better terms can be agreed.  10% per year over a 3 year =
term=20
should be considered the best terms available for NPC to offer.  =
Since the=20
guilder is responsible to meet all debts they prefer to loan small =
amounts to=20
many regents rather than place all their eggs in one basket and risk=20
bankrupcy.
 
Borrowers may always default, though it should hurt =
their=20
ability to borrow again.  But a guilder whose borrower defaulted =
must cover=20
the dept with his own money (or borrow himself to cover it) or he is =
declared=20
bankrupt.  Bankrupcy is not protection, but a stigma.  =
Consider all=20
the guilder's holdings contested for the purpose of rival contest =
actions (but=20
not for income and regency).  His ability to loan money sinks to =
100% of=20
his maximum potential income for one season, the rest having to be =
repaid in=20
cash.
 
If a rogue regent ever suffers a bankrupcy before =
having his=20
previous letters of credit paid from a previous bankrupcy, all his =
holdings are=20
considered contested for all purposes, and he may never loan money he =
does not=20
have again (though his successors may).
 
Kenneth Gauck
c558382@earthlink.net

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