>> the guild should penalize the killer
I like it. Especially for the first couple offenses.
Thereafter, I think the guild should inform the constable. While it may be beyond the bounds of the actual city limits, I'm sure word could get around. Then, in addition to the guild, prices reduced for buying, increased for selling, potential loss of citizenship if applicable, vandalizing of any owned properties, big charges over little misdemeanors, turned away by the NPC Cleric, double RT from the local healer, etc. . . style-o-thing.
The community is bigger than just the characters - and the community cares for its own.
Doug