Ok..so stop pickin' on North Dakota...It's a great place! (Smarter than you think!)
1. The motel owner stole the money off the counter of the hotel proprietor, so he was probably also the town banker.
2. It's even more insidious than one of my favorite stories (told to me by my banker friend): A Bank offered a woman a credit card. It carried a $250 initiation fee. When she saw the fee, she canceled the card. They said fine but you still owe the fee which she refused to pay. By the time she filed bankruptcy the card was up to $5300. The Bank took a $5300 write off against their profits, the amount the bank loaned to the woman, zilch, nada, squat, zero. A fake write off but fully allowed. They loaned nothing and lost nothing. Think of the victims who pay these fees?
Conclusion: it was all fake -- the town, etc. -- but it was fully allowed. The major flaw...I actually read this and tried to participate...SOMEBODY LET ME SEE THAT $100!