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 the Colonial Auctions Exchange 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

• Loan Policy
• Blue Book
• VLM
• Veridian Bank
• Vieneo Financial Authority