Repossession

Repossession

Overview

Repossession is the process by which Veridian Bank reclaims vehicles and other secured assets that were pledged as collateral for a loan when the borrower fails to make required payments. All vehicle loans on Vieneo are secured loans, meaning the bank holds a legal claim (lien) on the financed vehicle until the debt is paid in full.

Secured Loans and Vehicle Liens

When a colonist purchases a ground, air, or space vehicle through Veridian credit:

• A vehicle lien is recorded in the bank ledger and attached to the hull registry.
• The borrower retains operational control of the vehicle but not clear title.
• Each monthly payment includes both principal and interest.
• After full repayment, the lien is released automatically in the nightly audit.

Failure to pay results in delinquency status. After **three consecutive missed payments**, the lien enters **repossession eligibility** and may be contracted to independent agents (players) for recovery.

Player Repossession Contracts

Recovered vehicles are physically returned to a Veridian-controlled facility and logged through the VLM system. Players performing the recovery are rewarded with a fixed Repossession Fee based on the vehicle’s class and complexity:

Vehicle Class	Typical Example	Repo Fee (₡)
Light ground	Car, rover	250–500
Heavy ground	Truck, hauler	750–1 000
Air	Transport aircraft	2 000–3 000
Space	Shuttle, freighter	3 000–5 000
Capital / DIHV	Interstellar carrier	10 000 +

Fee Accounting

• The repossession fee is **paid to the agent** upon verified delivery.
• The **same amount is added to the borrower’s outstanding principal** as part of repossession costs, consistent with real-world practice.
• This ensures the bank’s asset recovery expense is borne by the delinquent borrower, not by other depositors.

Valuation and Liquidation

Once a vehicle is recovered:

1. Veridian assumes ownership and transfers the asset to the Bank-Owned Vehicles inventory.
2. A valuation is performed using the current Blue Book algorithm.
3. The **listing price** is determined by:

List Price = max( 0.70 × Blue Book Value , Remaining Principal )

1. If the vehicle is damaged, its value is reduced proportionally.
2. The asset is then listed on vBay for public sale.

Settlement of Proceeds

Sale proceeds are applied in this order:

1. Repossession and handling costs
2. Remaining loan principal and accrued interest
3. Any **surplus** beyond what is owed is credited back to the former owner
4. Any **deficiency** (if sale < debt) remains as a collectible balance against the borrower

Example

A T-27 cargo transport with ₡100 000 principal remaining is repossessed at a cost of ₡3 000 and sold for ₡120 000.

Stage	Amount (₡)	Description
Repo fee	–3 000	Paid to recovery agent (added to borrower’s balance)
Principal repaid	–100 000	Loan cleared
Surplus returned	+17 000	Credited to borrower after fees

Policy Summary

• Liens are created automatically for all Veridian-financed vehicles.
• Repossession eligibility begins after **three missed monthly payments**.
• Player agents may claim repossession bounties according to the fee schedule.
• The repossession fee is **added to the borrower’s principal**.
• Vehicles are listed for resale at **70 % of Blue Book value or the remaining principal, whichever is higher**.
• Surpluses are refunded to the borrower; deficiencies remain due.
• All transactions are recorded in the nightly audit under Repossession Fees and Bank-Owned Assets.

See Also

• VLM
• Veridian Bank
• Tow Illegal Vehicles