When someone is banned from SL, their profile is hidden from general view, and they can't log on, but their account still exists. I know, because I was recently seeking a merchant whose vendors seemed to have disappeared from several popular sites, and could only find their profile by looking for it via an object they had created. I found out later they were banned at the time, though I don't know for how long. For all I know, they still are banned.
If they have vendors in-world, those scripted vendors have no way to know that the person is banned, and they continue to accept payments and dispense merchandise. (Verified by individuals who located a still functioning vendor for said merchant, and who purchased merchandise from such vendors, and got their merchandise OK.) But does a banned merchant actually get those payments? Can they still profit from SL while banned? Should they? Or does the money paid for the merchandise just 'go away'? Do they still collect weekly stipend payments too?
My suspicion is that they do continue to make a profit from their in-world vendors, even though they are banned, and that they do collect stipends, as well. If they come back at the end of a suspension, they could still collect that money.
What if they are banned for life, then? Could they still access their funds via the website, selling those Lindens for a profit until the sites for their vendors no longer have the rent or land payments current on them, and the land owner removes them, or the parcel ownership defaults, and the Lindens take it over?
I am unclear as to my own feelings on this.
As a content creator, I would want to get paid for what was delivered to a customer - especially if the ban was only temporary, and I was later expected to provide support for that merchandise.
Yet as a resident, I don't want to see someone who has been kicked out of SL for violating the TOS still being able to profit from SL.
As a customer, even though I may not want to support a person who has been banned for griefing or for other causes, I have no way to actually KNOW why they appear to have been banned, or how justified the action against then was. So while I do not wish to support those who violate the TOS, I still might end up buying from them, either because I do not know they are banned, or because they are the only source for a needed item.
I would be interested in hearing the official Linden policy on this.
* Should temporarily banned individuals be able to continue to profit from SL?
* Should someone who has been banned for life be able to do so, or to leave any assets in-world at all?
========== Reply to Torley's response =======
Thank you! I feel much better about that now. I don't mind if a suspended user still collects money when they get back. They may well have learned their lesson and be truly repentant, or it may have been a non-disciplinary suspension. But if someone has actually been kicked out of SL for good, I wouldn't like the idea of them still milking the system for profits. If their remaining vendors still provide product, and the money spent just becomes a sink, and goes away, that is preferable to a banned-forever person making money here.