European Loan Provision Act 2021
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European Loan Provision Act
Proposed by Councilor Kelarōn Juvinal (Union of Syndicates) :: Passed (7-0), February 26th, 2021 :: Unamended
PREAMBLE
This act aims to create an exchange of sorts as to facilitate the provision of loans to member-states.
SECTION I: The European Loan Exchange (ELE)
I. The ELE is headed by the President of the European Central Bank, or, in the vacancy of that position, by the Premier Commissioner, who shall hereby be referred to as being its President.
II. Member-states of the European Union, or legal private institutions, may register available loans they wish to provide with the ELE.
III. Member-states of the European Union may apply for and receive loans through the ELE.
IV. If requested, loans may be negotiated between provider and receiver, facilitated by an authority appointed by its President.
SECTION II: Rights of Member-States Regarding the ELE
I. Member-states may apply for specific loans offered through the ELE; however, they may also choose the option of being allotted one by the ELE.
II. Member-states may withdraw "open" loans - that is, loans that are available - from the ELE at any time.
III. Member-states may deny the allotment of a loan to another state on the basis of economic unpredictability, economic instability, political illegitimacy, or political authoritarianism.
SECTION III: Retribution
IV. Member-states may have the option to ensure that the money provided in the loan is spent in the manner that was agreed upon by sending a team of inspectors from their own nation, the EU, or both.
V. Member-states that have been found to intentionally have violated the agreed terms may be persecuted through the European Court of Justice for immediate repayment of the loan with an interest payment to the loaning member-state and may be barred from the ELE in a loan taking or providing procedure for no less than one year. This entire clause shall not be applied if it has been founded that the violation was only done intentionally by an individual or group of individuals, who shall be the ones persecuted for the violation and not the member-state on where the violation took place.
