Spera Bank Policy Regarding Defaulters and Breach of Terms

From Republic of Texas

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This SOP was ratified by the Leadership Committee on 12 January 2020 with immediate effect. The contents of this page are now actively included in Spera Bank Lending so any subsequent revisions will be seen there only.

Collateral or Co-Signers

All first time customers must submit either 30% collateral, have reputable co-signers guaranteeing the totality of the loan, fees, and interest, or accept significantly higher interest rates (a minimum rate increase of 2% but not to exceed 7%). Subsequent borrowers may have this requirement waived at the determination of Spera Bank Executive Leadership.

Late Fees

Any customer that makes any payment late will incur a fee added to the balance of the loan. This will be determined at the greater of either, and is in addition to any additional terms set at the beginning of the loan contract:

  1. 10% of the original principle amount
  2. 10% of the current total balance

At its sole discretion and strictly for small nations with limited earning potential, Spera Bank may elect to offer the following as a one-time-only kindness:

  1. 1% of the original principle amount added each day.
  2. In the event that the borrower defaults a second time during the life of that loan contract, then the difference of this reduced late fee and the standard late fee will be assessed onto the contract.

Recovery of Debts

Any customer who fails to make any payment on time surrenders to Spera Bank, its officers, agents, and successors its sovereignty. Spera Bank may elect to utilize any means at its sole discretion to recover the balance of that payment due, as well as any additional expenses incurred in the endeavor.

  1. Any customer who is also a leader or government officer of an alliance further affirms that its alliance and all members will be subject to these terms, and Spera Bank may seek to recover any portion of the due payments from any available members. The aforementioned leader or officer agrees that this is justifiable and they are fully responsible for the incursion on their alliance.