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Content-Type: text/x-zim-wiki
Wiki-Format: zim 0.4
Creation-Date: 2013-08-01T16:52:35-04:00

====== Economy And Commerce ======
Created Thursday 01 August 2013

[[Currency]]
[[Banking]]
[[Corporations and Free-Traders]]

Though each [[Stellar Nations|stellar nation]] (and many independent planets and systems) issued their own currency in the past, the [[Concord Dollar|Concord dollar]] now reigns supreme. Even on [[The Verge|the Verge]], the [[Galactic Concord]] has set aggressive timetables for the conversion of all planetary economies to convert to the Concord dollar. Other currencies do still exist, most notable the Rigunmor Star Consortium’s [[Rigunmor Guilder|guilder]] (valued at 100 guilders to 1 Concord dollar), but virtually all economies accept the Concord dollar and convert it at very favorable rates in those cases where there is a local currency.

The [[Galactic Bank]], one of the administrative bureaucracies of the Galactic Concord, is the central that controls the flow of currency into the interstellar economy.

The Concord dollar is purely electronic. Financial networks, overseen by the Galactic Bank, account for, track, and transfer funds completely virtually. A [[bioelectric scan]] is the standard means confirming money and accessing accounts. To transfer money, a citizen simply confirms her bioelectric signature with a merchant, bank, or financial institution and authorizes the move. Sophisticated megabit encryption protects the banking community from fraud and other disasters.

The vast distances between stars complicate banking and the timely transfer of these funds, however, and citizens in the 26th century can find themselves financial limited as they travel. Typically, the traveler transfers funds in advance via a drivespace communication relay.

To buy and sell in systems without a drivesat relay, an individual can carry a [[3D drive|3D]] crystal that contains the same data as a drivespace transfer. The 3D crystal  can be protected by its owner’s bioelectric signature, and is heavily encrypted.

Funds from a 3D crystal can be accessed directly by banks, financial institutions and properly equipped merchants. For greater security, however, it is usually prudent to simply take the crystal to a bank or other institution and set up a new account locally in any system in which a character intends to stay for more than a few days.

One of the greatest advantages (and to some eyes– disadvantages) of this system is that virtually all transactions are very carefully tracked and recorded. While the Galactic Bank protects the confidentiality of all transactions very strenuously by both legal and security measures, there are always those who wish to keep certain transactions espe-cially confidential. For these people, and for those who travel beyond the reach of traditional financial institutions, some banks and other institutions offer anonymous 3D crystals.

Anonymous 3D cyrstals contain only a verified transaction number for a specific Wealth bonus worth of funds. Most banks only issue anonymous 3D crystals for customers well known to them, and then for a fee. In order to purchase an anonymous crystal, the purchaser decreases her Wealth bonus as though she had succeeded at a Wealth check equal to the crystal’s Wealth bonus +11. When making a purchase with an anonymous 3D crystal, however, the Wealth checkis always made by taking 10. The +1 Wealth discrepancy represents the fee for the 3D crystal. Once purchased, an anonymous crystal is considered a separate Wealth bonus from the character’s. It can increase and decrease just like the character’s own Wealth bonus, from Wealth awards, purchases, sales and other transactions. Anonymous crystals never increase due to Profession checks, however, as these represent increases to a character’s actual Wealth, which remains safely tucked away in the Galactic Bank’s systems.

When the need for an anonymous crystal is over, it can be re-deposited into the character’s main account. The resulting change to the character’s actual Wealth works just as though the character had sold an item with a sale price equal to the 3D crys-tal’s current Wealth bonus.

===== ANONYMOUS TRANSACTIONS =====
A hero with a Wealth bonus of +15 “purchases” an anonymous crystal with a +10 Wealth bonus. Her real Wealth bonus is decreased as though she had succeeded at a Wealth check against a purchase DC of 21. Thus, her real Wealth is reduced by +2 (+1 for a purchase DC of 15 or greater, +1 because the purchase DC is 6 greater than her real Wealth). While she retains the 3D crystal, any purchases she makes with it are treated as though her Wealth bonus were +10, and all of her Wealth checks are made by taking 10. Any decreases or increases to Wealth are applied to the crystal, not to her real Wealth. When she is done traveling in the remote reaches, her anonymous crystal has been reduced to a bonus of +3. Re-depositing these funds into her real Wealth would actually have no affect, as the crystal’s Wealth bonus is less than her real one and less than 15. While this may seem like a loss, keep in mind that the character has paid for purchases and services during her travels that have not affected her real Wealth at all.


=== CREDIT RATING ===
**Credit**
**Factor Adjustment**
Per debt previously defaulted on -10
Verifiable income source +3
Collateral equal to DC +5
Collateral greater than DC +10
Collateral 5 less than the DC +2
5 year loan +10
10 year loan +5
Interest rate +2 +3
Interest rate +3 or more +5
Trustworthy feat +2
Applying in native culture +2
Per 5% down payment +1


===== WEALTH AND MONEY =====
When making purchases that represent many different components (such as a starship or robot), it can be necessary to determine the cost in Concord Dollars of the individual components and then total that cash value to determine a purchase DC. The chart above allows this by assigning a value, in Concord Dollars, to purchase DCs. While the chart can be seen as a rough guide to the cash value of a particular purchase DC, it is important to remember that this only an approximation made for use in particular circumstances.

===== LOANS =====
Anyone who wants to buy a spaceship or funs a colony needs a great deal of money– hundreds of thousands or even millions of Concord dollars. If you don’t have the funds (and not many do), you need to approach a bank for a loan. Banks won’t lend money toj ust anyone– only individuals with proven employment records are eligible, but any corporate merchant can secure a loan. A corsair or an outlaw will need to find another source of funds.

In exchange for the loan, the bank requires that the debtor sign a contract detailing how the loan will be repaid. Typical repayment plans last five, ten, or twenty years; the interest rate depends on the length of the loan, the debtor’s credit status, the bank’s perceived risk, and the collateral. Normally the plan requires quarterly payments on the debt. If the payments fall behind, the bank seizes the assets purchased with the loan, and possibly other assets as well. In many places (including the [[Rigunmor Star Consortium]]), a defaulting debtor suffers criminal prosecution and punishment, up to and including the debtor’s enslavement (only in the Star Consortium). By signing the note and failing torepay the debt, the debtor relinquishes any rights to appeal, much like a criminal who jumps bail.

=== APPLYING FOR A LOAN ===
Loan application is a complex and time-consuming process. It generally takes a nu-ber of hours equal to twice the purchase DC of the loan to complete this process.

The first thing the character needs to decide is how much Wealth she is prepared to invest in the initial down payment. The more Wealth the applicant is willing to put down up front, the better disposed the bank is toward the loan. In order to determine the down payment, first convert the purchase DC of the amount of money to be borrowed into cash, using the table on the previous page. Most loans demand a down payment of 5% to 20%, depending on the credit of the borrower. Determine the cash amount of the down payment and covert it to a purchase DC for the down payment, then make a nor-mal Wealth check. The down payment is sub-tracted from the loan amount, and then the loan is converted back to a purchase DC, rounded down.

The interest rate of the loan represents the bank’s profit. Interest rate is directly added to the final purchase DC of the loan (and thus to the principle of the loan). All banks require a minimum interest rate of +1 Wealth, but the applicant can improve her chances of getting a loan by agreeing to a higher rate. Normally, interest rates only go as high as +3, but for a particularly risky loan the bank may demand even higher rates.

Once the time has been spent and the terms agreed upon, the would-be debtor makes a Credit check against the final purchase DC of the loan.

The Credit check is similar to a Wealth check, but it takes a number of other factors into account. It is always made as though taking 20.

The base total of the Credit check is equal to: (20) + Wealth bonus + Reputation + Character Level + Charisma bonus + Credit Rating.

Credit Rating is determined by the factors detailed on the chart below:

The final purchase DC of the loan equals: (Cash borrowed –Down Payment, converted to purchase DC) + Interest Rate

=== LOAN PAYMENTS ===
Loan payments are generally made quarterly. The payment is made by making a Wealth check against a purchase DC, just like buying an item.

The purchase DC of the payment is deter-mined by the final purchase DC of the loan and the length of the loan. Covert the final purchase DC of the loan to cash, then divide by the number of payments (years x 4). Convert the cash value of a payment to a purchase DC (always rounding up) and that’s the quarterly loan payment.

Debtors who want to repay their loans quickly can do so by simply adding to their quarterly payments or making extra payments. The cash value of additional payments is subtracted directly from the principal of the loan, and when the total over payment reaches the cash value of a payment, one payment is subtracted.

To completely pay a loan off, determine remaining balance by subtracting the cash value of payments made from the cash value of the original principal.

You can take 20 on loan payments and pay-offs.

=== GETTING A LOAN ===
//To better understand the loan process, con-sider Axel, a level 10 hero who wants to buy a Fast Freighter. Axel is a working trader and has been frugal. He has a Wealth bonus of +23, his Reputation is +5, his Charisma bonus is +2, and he has never defaulted on a loan. The base purchase DC of the Fast Freighter is 52. Axel wants a 20 year loan with a +1 interest rate, and he is willing to put down a 5% down payment. The cash value of his loan is (purchase DC 52 = $20,000,000—5% [or $1,000,000, purchase DC 42] = $19,000,000, rounded down to a purchase DC of 51 +1 for interest = purchase DC 52, a cash value of $20,000,000//

//Axel spends 104 hours (at roughly 8 hours per day of looking, that’s 13 days!) trying to get a loan together before he gets to make a Credit check: (20) + Wealth bonus (+23)+ Reputation (+5)+ Character Level (+15)+ Charisma bonus (+2)+ Credit Rating (+5 for collateral, +1 for 5% down payment, and +2 because he applies in his native cul-ture) = 73. The bank finds Axel well-qualified for this loan.//

//When all is said and done, Axel owns his new Fast Freighter, his Wealth is +15, and he has 20 years of quarterly loan payments to look forward to.//

//His loan payments come out to: Cash borrowed ($20,000,000)/(20 years x 4) = $250,000 or purchase DC 37.//

//With his remaining +15 Wealth bonus, Axel can’t quite afford to make a single loan payment. Naturally, the ship will also require fuel, maintenance, and so on. He’d better hop into that Fast Freighter of his and get to work!//
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