Jan 15th 2008, 13:57 system announcement
by IntLibber Brautigan

ACE Policy on Dividends

The new LL Bank Policy forbids interest paid to depositors, or other direct returns on investments. (NOTE: This is not usury, usury is the charging of interest on loans, not the payment of interest on deposits).

Dividends paid by listed companies on ACE are not direct returns, because ACE acts as an intermediary between the CEO and the investor, therefore such dividends are indirect returns.

With regards to ACE itself making a direct return: ACE is owned by M2B LLC, a Delaware LLC. As such, under its operating agreement, it is legally entited by the Secretary of State of the State of Delaware, to assume debt, pay interest on accounts payable, and make distributions of profits to members of the LLC. These are the legal rights of individuals investing in ACE, which Linden Lab has no legal authority to interfere with.

With regards to requirements for banking licenses or charters, beyond our demonstrations of compliance previously stated, unless Linden Lab declares the L$ to be a valid fiat current money under United States Law (an ability only the US Congress and the Federal Reserve have), then they have no legal basis to require a banking license or charter to handle what they persist in claiming is not money. Even if Linden Lab succeeds in obtaining its own federal bank charter, a legal requirement for them to make such a declaration, we have satisfied all demands of their policy.

For this reason we foresee no issues in the future with regard to investing and trading on ACE.