Academy Banking Technology: Loan Shark (Medium)

[Captain Jack]

This technology will be available in the new forthcoming Hideout Building: Academy
It will give extra options to Bankers

Technology costs are up to you to suggest.

-Level 1 unlocks a new Bank ability for the Banker: Investigate
This ability allows the banker (through target's consent) to view the liquid able assets of the target.

-Level 10 unlocks a new Bank ability for the Banker: Collateral Guarantee
This ability allows the banker (through target's consent during loan acceptance) to place a collateral marking to any of the assets owned by the loan receiver. The bank may liquidate the marked assets in case the receiver has debts (in case of a ship collateral, the ship is sold to the shipwright and banker gets the owned funds). Excess funds generated through a single liquidation, end up in the players hand treasury.

-Level 20 unlocks a new Bank ability for the Banker: Confiscate
This ability allows the banker (through target's consent during loan acceptance) to confiscate gold coins directly from the hand treasury or any bank savings or treasure hole or gold bars (market price at port taken in mind) at any warehouse. Confiscate can be used in combination with Collateral Guarantees and up to the owned amount each time.

-Each level recovers lost loans to inactive players by 1% (max 100% is allowed in combination with nation law insurance). Funds are drawn by the game directly and up to the amount of Loan Shark Level * 500,000

-Each level generates 2% more profit from loans paid by newcomers (Players with less than 3000 turns). Bonus is paid (and calculated) alongside with each player payment (automatic or not). Bonus is paid by the game. Max profit allowed this way is 50,000 * Bank Level per contract (7 days minimum is applied, which means a maximum of 142k extra profit per day, per contract). This bonus will be valid only once per receiving player. All these result to a maximum of 40% extra profit when issuing a loan offer to a newcomer. The max profit claimed in this way can be 1M from any given player.

[Most Lee Harmless]

I see a few issues which would need covering : if an asset is 'marked' as collateral then some means to prevent disposal by the player must be in place, i.e shipwright and market must be closed for that asset. There is also then the case of ships being plundered and captured thus taking the asset out of the bankers control : in one case, it could be used as a means to remove those assets from seizure, by 'losing' them to a friendly force or just to deny the banker any debt recovery.

As a slightly separate issue, but related : will nation debts (unpaid taxes, defaulted insured loans, etc) sold to banks be automatically embraced by this tech ? Then we could see a realistic market form for such debt sales to qualified banks, who could seek recovery from a debtors assets if no 'pay-back' deal can be reached.

* looks at Mexico's massive debt list :
* sacrifices 10 goats :
* makes a wish.

[Sir Henry Morgan]

I see a few issues which would need covering : if an asset is 'marked' as collateral then some means to prevent disposal by the player must be in place, i.e shipwright and market must be closed for that asset. There is also then the case of ships being plundered and captured thus taking the asset out of the bankers control : in one case, it could be used as a means to remove those assets from seizure, by 'losing' them to a friendly force or just to deny the banker any debt recovery.

I do see a need for a bit of clarification - I can see the ship being marked as collateral. Once this is done, your scenario could be played out; or...

If the ship is sold to the shipwright, the proceeds are forwarded to the banker to settle part or most of the debt, with excess going to the seller. As for the private market, the only recourse I can see is that the borrower may be able to put it on the market, and it may sell - but as collateral, it will still be subject to seizure by the banker - either from the auction block or from the new owner.

The simplest means would be that the markets would not accept any ship being used as collateral for a loan. (As the captain and his crew may be loyal to the banker perhaps...)

If a ship is used as collateral and plundered, it may still subject to repossession by the banker, with the excesss proceeds beyond the cost off the what is owed going to the current owner of the vessel...an interesting twist to be played...

However, if the vessel is sunk - it is lost, and the debt will remain unpaid. (This may be the same result if a ship is plundered away as well - someone flying the Jolly Roger wouldn't care much if there was a loan against it or not).

The most simple scenario would be that the asset that is borrowed against will be placed into escrow, and inaccessible until the debt contract is completed.

Aye, a bit of clarification for this rum addled mind would be proper.....

[Shadowood]

Did this ever get sorted out?

[DezNutz]

What about Nation's ability to collect debt?

[DezNutz]

-Level 20 unlocks a new Bank ability for the Banker: Confiscate
This ability allows the banker (through target's consent during loan acceptance) to confiscate gold coins directly from the hand treasury or any bank savings or treasure hole or gold bars (market price at port taken in mind) at any warehouse. Confiscate can be used in combination with Collateral Guarantees and up to the owned amount each time.

I disagree with this on only 1 point. A Bank shouldn't need Lvl20 Loan Shark Tech to be able to confiscate funds that are already in that bank.

Example:
Bank A has a loan with Player A.
Player A also has an account with funds in Bank A.
Player A has failed to make payments on the loan with Bank A.
Bank A can freeze the account of Player A, but has no means to recover those funds without Loan Shark Tech.
Why can't Bank A recover the funds from the account in their own Bank without needing to research Loan Shark Tech. Bank A can freeze the account and then use the funds as they see fit, but the account will still show the money belonging to Player A.

[Maha]

may i ask where the development of this tech is?

is it possible to use the bank levels for this feature? with the credit exchance the bank as investment has gone down a lot. this would revamp it.

or each bank level allow 10 'investigations' and 1 follow up action per month. while the loanshark tech provide what actions are available

insight of outstanding debt by other banks, and 'reputation' would be nice to include in the loanshark tech.

[Maha]

bump, i edited my last posting.

[Grimrock Litless]

Bump

I think that this should be allowed for all bankers to use(Without needing for tech), but you can only use it once every 2 days.

Can only be used when a player owes you loan money greater than that of the normal rate.

If target have buildings they are automatically sold for 70% of the cost money as a last resort.

Takes only 5 % of the money they owe you.

Money taken repays the loan.

Following the below sequences.

Gold at hand
Gold in your bank
Goods
Crews
Cannon.
Ships.
Tech
Building Upgrades
Buildings
Hideout

[Mercanti]

Interesting post