A new line of thinking....Reinventing the SL Bank

With respect to long term growth and stability, we are making some changes at L&L Bank and Trust now to solidify our future. The following changes will become effective December 1 and will create the back bone for the ongoing short and long term goals for the bank. We are going to a more real world setting in our deposit products that is still conducive to the market. This change is an effort to help stabilize the banking community to more attainable lengths and secure investments long term. The following changes are:

*Prime rate will be eliminated for the time being until we see fit to establish one at a later date.

*Regular savings accounts will have a weekly yield of 0.1% weekly (0.0143% daily) with no penalty for early termination. Interest calculation will still be based on the average daily balance over a 7 day period.

*We will add a 1 week CD that has a weekly yield of 0.2% weekly (0.0286% daily) with a 50% early termination penalty with a L$1000 minimum. We are also adding a 2 week CD that has a weekly yield of 0.5% weekly (0.0714% daily) with a 75% early termination period with a L$5000 minimum. Early termination penalty is the percentage of interest earned at termination and does not affect the principal. Interest on CDs is still paid out daily.

*The 30 day CD will have a weekly yield of 0.75% weekly (0.1071% daily) with a 88% early termination penalty with a L$10,000 minimum and the 90 day CD will have a weekly yield 1.00% weekly (0.1423% daily) with a 100% early termination penalty with a L$50,000 minimum.

*120 and 365 day CDs will be eliminated until we see a future need to reestablish them.

****NOTE: Keep in mind that existing CDs are NOT affected and will run their current terms as is at the time they were created.****

*Secured loans interest will drop from 0.21% daily to 0.14% daily. Criteria will remain the same for the most part with each loan handled on a case by case basis.

*Unsecured personal loans will become available with 0.175% daily interest. Loans fulfilled within 24 hours to account. Loans will be handled on case by case basis.

*Affiliates will receive weekly bonuses for their affiliations at 0.01% of the average balance per user on their ATM if the average per user is over L$5000.

*We are currently combing the database for dormant and inactive accounts and will IM those account holders. A dormant account currently classifies as an account of a person who has not been in game for more than 60 days. An inactive account classifies as an account of a person who has not accessed their account via ATM or website in more than 60 days.

An adjustment will be made on the account to zero the balance and four IMs sent to the customer over a 14 day period if the person is in game and six IMs over a 14 day period if they are not. Unclaimed funds will be used to purchase shares of LLBT to be held in a special alt and a subaccount created for each person that will gain dividends. If the customer comes back within 6 months to reclaim funds, the shares purchased with those funds will be given to the customer or those shares sold at market value to equal 90% of the balance at the time the account was adjusted. The reason for this is to account for decrease in value of the linden.

Dividends paid to those shares will go to the fund being held under the alt and can be used in the case that 90% of the balance is more than the value of the shares sold. After 6 months, those shares will be retired and dividend funds will go to the fund held under LNLBT Miles. This assists greatly in buyback efforts. If an account is held by an avatar of a cancelled SL account, the account will be adjusted indefinitely. Dormant and inactive accounts efforts are effective immediately.

*LLCA dividends will be included as profit for LLBT. If LLBT pays a dividend for a particular month, the LLCA dividend will be included, if not, LLBT will issue a special dividend of 10% of the LLCA dividend to LLBT shareholders. The rest of the dividend will be reinvested into the bank.

These are the current short term goals and more additions will be added once we solidify our long term model. As growth continues we will branch back out but we feel that it is necessary to tap what we can control until the market for banking in SL is more stable and dynamic. I am coming to the conclusion that attempting to compete with tremendous promises is counter-productive and does nothing but stifle the inevitable as we have seen with the recent crash of very large banks. There is the possible and there is the possible impossible. We have seen that it is extremely hard to maintain the rates being paid by banks long term. Our preparations now are for our future later. We look forward to progressive growth and a long standing future in Second Life.