Bill 5-2 Fundraising for Expansion

[Patroklus Murakami]

At the recent Finance WG of the Sim Planning Committee we agreed to put forward a bill to the RA authorising the collection of loans to pay for Colonia Nova, hence the following bill.

The bill authorises the Guild to start raising funds immediately within a few boundaries set by the RA. I wanted to provide a bill that would enable immediate action but provide a little room for manoevre so that the GM and SPC don't have to keep returning to the RA for authorisation if changes are needed. I'm not wedded to any of the figures, the RA can choose to be provide more or less guidance as it sees fit.

I have assumed the interest rate is per annum, if it's 6% per month this can easily be amended (and if it is, I"m definitely up for investing!)

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[b:3o9a80bw]Bill 5-2 Fundraising for Expansion[/b:3o9a80bw]

1. The Representative Assembly authorises the Guild to raise funds for expansion of the Confederation of Democratic Simulators by the purchase of a second simulator to be known as 'Colonia Nova'.

2. The Guild is authorised to take out loans on behalf of the CDS to pay for the purchase, initial set up (including payment for design, layout, building and infrastructure) and transitional running costs of Colonia Nova from Second Life residents.

3. The Sim Planning Committee shall advise and decide on the detail of the amount, interest rate and pay back period along with any reasonable incentives that may be offered to investors to raise the capital required subject to the following conditions:

[list:3o9a80bw]The amount raised shall be no less than US$1500 and no more than US$2500.

The interest rate shall be in the range 5-8% per annum.

The pay back period shall be one year though monies loaned will be paid back earlier if at all possible. In the unlikely event that it takes longer than a year to pay back the money loaned a higher interest rate, to be determined by the RA at that time, will apply.

Any incentives to invest shall be carefully considered where these may affect the long-term revenue base.[/list:u:3o9a80bw]

[Claude Desmoulins]

I vaguely remember Sudane mentioning the possibility of commiting some of our cash reserves to CN. This might lower the necessary loan amount. I hope she can comment before the meeting.

[Sudane Erato]

Yes, Pat's anticipated financing needs are based on a CN start-up budget of about US$2000 (a figure which Claude had originally proposed some months ago). I've estimated that NStadt's existing reserves could contribute perhaps US$500 of that amount.

Hence the US$1500 figure for financing.

I haven't prepared the analysis report yet, but I have posted the usual numerical reports for July. I think they show that providing US$500 from out current funds is quite do-able.

Sudane

[Gwyneth Llewelyn]

Perhaps just a slight (pedantic, I know) comment on the bill, the authorisation should either be "to the Guild" or "to the Treasury".

[Patroklus Murakami]

No problem Gwyn, happy to accept the amendment. I'll replace references to 'the Guildmaster' with 'the Guild'.