Barratry and Banks

>Date: Sun, 9 Feb 92 8:13:30 EST
>From: [email removed] (Richard Johnson)
>Subject: (3679) Piracy
>
>Had a group of players about ten years ago, who it seemed, wanted
>nothing more than to get hold of subsidized vessels (mechants,
>retiring scouts, etc)..and then skip on the payments.  By the time
>all the "forms" had been observed (serving notice, forclosure, and
>so on) the ship had been renumbered, repainted, and sold ofr a *VERY*
>tidy profit.

You must have been a very lenient referee, Richard. I see things haven't
changed that much in ten years. :->

Seriously, that just begs the question, just how stupid ARE the banks that
are responsible for the loans on these criminal capital machines? (With the
related question, if they were that stupid, why are the banks still in
business? Hmm. Sounds like another Hard Times reason. Everybody got bored
and greedy, applied to each other's banks for subsidized ships, then they
all skipped out and sold the ships.... Hmmm...)

Anyway, I would refer you to JTAS#16: "Giving the Bank a Fighting Chance."
I quote: "Banks finance ships knowing the risks involved, and *they do
everything possible to push the odds over into their favor.*" It goes on
to detail some easy preventative measures (credit checks, collateral,
full background review, intended use plan) as well as some more effective
measures (a timer built into the ship's computer which must be reset by
a bank official after each payment has been made). "Most banks, however,
find it simpler to deny the loan application in the first place."

This is in addition to the difficulty inherent in tampering successfully with
a black box and the computer anyway. The subsidized ships aren't THAT much
alike so that you can't tell them apart. Besides, even if they DID sell
the ship, they should have hordes of bank personnel and bounty hunters hot
on their trail, unless they repainted and renumbered themselves too! :->

Plus, if I were the bank, I would repo first and tend to the formalities
later (which would be legally justifiable given the high value and mobility
of a starship).

- ---
"A well regulated militia, being necessary to the security of a free state,
 the right of the people to keep and bear arms, shall not be infringed."
                   -- United States Constitution, Amendment 2

Nicholas Sylvain ([email removed])
Marshall-Wythe School of Law
College of William and Mary