Mortgage Foreclosure – Recoupment

We are looking for Once we, the creator of the promissory note have signed it and others are using it, RE-COUP E!" means we want our property #ack or have the account set off$ Recoupment in practice is a counterclaim in a civil procedure$ "hat is how one does a RE-COUP E!" We did a counterclaim on the grounds that% with the county, you can do a setoff$ &ou can use the financial lia#ility of the accounting ledger to offset the financial asset if you have the right to do that$ 'ut you have the right to do that if you are the creditor on the lia#ility side and the #ank or lending institution is the de#tor on the lia#ility side$ (f you give a #ank a promissory note, they are re)uired to give you a cash receipt$ "hey owe you that money under a RE-COUP E!" or asset$ (f you take the receipt #ack, they should give you some money$ "hey call it an offset in accounting, #ut in the UCC it is called a RE-COUP E!"Unless you do ask or do a defense in RE-COUP E!" under UCC *-*+,, and a claim under *-*+-, you have a possessory and property claim against the cash proceeds under the lia#ility side of the ledger$ UCC *-*+-, there cannot #e a holder in due course on a promissory note$ Under "itle ./ U0C .1.*2342.4 when you deposit a promissory note, it #ecomes a cash item$ (t #ecomes the e)uivalent of cash #ecause ( have a cash receipt$ ( talked to Walker "odd, one the heads of the Cleveland 5R'$ 6e has #een a government witness in court cases regarding 'OE$ 6e said that ( am correct that we are the creditor on the paya#les side of the ledger$ "he #ank owes you the money$ !o one is #ringing up RECOUP E!" as a defense$ &ou waive the defense and they go to collection on the receiva#les$ Under civil rule .*, you fail to #ring a mandatory counterclaim, which is #ased on the same transaction$ Under the rules you have waived it #ecause you were ignorant of the rules$ We have asked for all this information in discovery under civil rule *- if they don7t answer, they have admitted them$ "his is so powerful in this foreclosure that the #anks attorney is saying that discovery and records from auditors do not constitute admissions$ 6a8 9re you telling the court that the #anks records kept in the due course of #usiness are not admissions: "hey are hurting$ 0o in our motion for summary ;udgment ( put in admissions that they admitted #y nonresponse$ 0o now we have them in a dilemma$ "he other side is scram#ling$ "hey have come out with an affidavit of a lost note or destroyed instrument$ Under UCC *-*+< you have to show four elements to claim a lost instrument= .4 you were in possession at the time it was lost% /4 you have the right of enforcement of the note% *4 you have to show that the o#ligor on the note is indemnified #y you against and future claims% >4 the loss was not due to a transfer$


&our client is not applying the correct accounting entries under ?99P$ 0he is treating the account as a trade receiva#le through securiti@ation as an off #alance sheet financing techni)ue$ 0ince she has accepted the instrument that ( have tendered, ( have a claim or possessionary right in the instrument and its proceeds under *-*+- of the UCC$ 9ny defense and any claim in RE-COUP E!" under section *-*+, of the UCC, which ( shall eAercise at my option, if she does not credit my account$ "he .+<<-O(B will identify who the principal is from, which capital and interest were taken, and who the recipient or who the payer of the funds are, and who is holding the account in escrow and unad;usted$
By depositing the Note (an asset of the originators/ makers of the note)by the Mtg. Co., the loan, which had not yet been advanced to mortgagors by the mortgage company, was paid therefore there cannot be a holder!in!d"e! co"rse of the Note if it has already been paid. #o be a holder!in!d"e! co"rse of the note, the note m"st be held by the lender "ntil the note is paid off by the borrower and ret"rned to the borrower. $epositing the note, in effect, cancels the note beca"se the lender has %"st been paid (cash receipts for the deposit) and no receipt for the deposit was ever given to the borrower. #he Mtg. Co. m"st follow &''(, as do all banks, and show a corresponding liability for the asset (note) they deposited. #hat liability is money the bank )*+, to borrowers for their asset that was deposited. 's soon as the Note was deposited, the balance d"e on the Note was -+.). /owever, the mtg. co. sold the note and the transferee/assignee of the note carries the note on their books as an acco"nt receivable to be collected from mortgagor and thinking they are the holder!in!d"e! co"rse of the Note, which is impossible. /owever, the assignee, thinking that they are the holder!in!d"e! co"rse of the note, file a foreclos"re on the mortgagors when the mortgagors fail to make the payments. #he transferee/assignee is not aware and does not see the liability owed by the original lender who deposited the note beca"se it was entered onto another entities balance sheet. #his off!balance! sheet financing is illegal and a fra"d b"t common with banks who sell mortgages and notes to investors as sec"rities. #he 'ssignee, or new possessor of the Note, has no sec"rity interest in the note and cannot claim foreclos"re on the note beca"se it is not the holder!in!d"e! co"rse . #he note has already been paid. Mortgagors want their money back that was deposited by the original mortgage bank.


once foreclosure has #een initiated on a mortgage.+<<9 reports for a#andoned property EFuasi govt "he 5B(C.again govt entity f4 3ocal 0heriff E eAecuting unlawful sei@ure on unlawful court orders . one would #e the creditor anyway. and others are somewhat involved also. one can rescind it if% 2a4 they did not disclose the right to rescind at closing under 9ppendiA 6$ "hey never give the proper notice at closing$ 0o one could rescind every mortgage contract at foreclosure$ "hey give this option #ecause one could have registered the note on a UCC.govt h4 (R0 E accepting . Wall 0treet. they have opened the transaction to fraud$ 5irst check kiting. it says that this regulation C does not apply to residential mortgage transactions$ 6owever. which leaves plausi#le denia#ility. not to mention. finally malicious prosecution and finally eAtortion.udicated$ "he "ruth-in-lending act 2"(394.govt g4 ?overnment E #ank eAaminers on #ank #ooks . for the actors involved$ a4 Real Estate 9gent E licensed #y 0tate #4 'ank. overlooking all. section //-$/*. you can safely assume they show no real estate loans made$ "his is in conformance with the #ooks * . and the rest of the frauds perpetrated #y this collective team$ !O"(CE "6E P9""ER! 6ERE8 5urther #anking re)uirements demand )uarterly reports to several federal agencies= &ou may make a re)uest for a 5O(9 on each for the applica#le )uarter. which is regulation C. then fraud.advertising loans #ut making none-licensed #y govt c4 "itle co$ where conversion occurs. #y the local 0heriff at the point of a gun$ "here are usually at least --1 parties to this scheme% this way no one party has the entire scheme. false advertising.One must raise the claim at the appropriate time. also licensed #y govt d4 Recording mortgage without recording promissory note E county recorder. gives one the right to rescind any commercial de#t contract or agreement entered into$ 9ll commercial contracts for credit or loan provides for D/ hours to do a rescission$ "hat can #e eAtended for three years from the date that one discovers that one did not have full disclosure$ (n 9ppendiA 6. or you have not eAhausted your administrative remedies$ We need to get a data integrity review hearing or a secondary hearing #ecause we have new evidence to #e ad. and so they can7t foreclose$ Rescission completely discharges the security agreement 2the mortgage deed and the mortgage contract4$ One can ask for the entire amount of the mortgage note returned in the form of cash$ 'y not securing the Promissory !ote.govt e4 3ocal courts E #lind to the true law.

trying to su#poena the owners of the 5ederal Reserve 0ystem.concerning the "WO 5aces of Be#t. and have knowledge of only . operating as a trust in Puerto Rico. a 5ORE(?! CORPOR9"(O!$ 9t least the (R0 is incorporated here in the 0tate of Belaware$ "he Credit River Becision of . 5reddie ac. see the Walker "odd affidavit as an eAample$ Of what an eApert witness. #y termination. and or demand a forensic accounting of the #ookkeeping$ 0u#peona the #ank eAaminer.months$ 'ut perhaps. an attorney for the 5ederal Reserve testified to$ !o attorney can #e representing the #ank. layoff. or various other 9nother suggestion is to su#poena these #ank reports specifically for the loan. side of the accounting$ (t must #e a#solutely fraudulent either on the part of the #ank.<-1 demonstrates what happens. or 6UB$ "hese later entities #undle the promissory notes and trade them on W933 0"REE". or pu#lications from the 5ederal Reserve$ odern oney echanics.udge$ 6e was dead within . #ankers. done #y those with the re)uired 0EC licenses$ 'ut we will #e stone walled. downsi@ing or corporate re-structuring: 0ee attached files for more weapons for the end to this fraud$ 0ample Court filing of Counter-Claim #elow= > . lawyers and those others involved will cease once the light is shined upon their activities$ Bo they want to live in a decimated country resem#ling those nations in 9frica or (ndia: When will their lottery num#er #e called. or the attorney$ 'ut this is generally more confused #y adding a mortgage servicing company or another govt$ agency such as 5annie ae. they are un-named. when their system is thwarted #y an honest .

!O" "O 'E CO!0"RUEB 90 3E?93 9BM(CE$$ Claimant. mental anguish. 33C is #ound to uphold and o#ey federal and state law2s4 while conducting #usiness with the general pu#lic including #ut not limited to operating in Kgood faithK and Kwith clean hands$K Claim Be#tor% ortgaged to the 6ilt. 33C in respect to their agreements. . violation of e)ual protection of the law. /++: RE= OR"?9?E "O "6E 6(3". Bamaged #y ?overnment.Certified ail G Bamaged #y ?overnment CHO 'latant 5raud. 33C$ r$ (--(it.!otice of "ort Claiin with 9ssessment for Bamages (tein Gdate. 33C 9ccount !um#er "O W6O (" 9& CO!CER!= !O"(CE O5 "OR" C39( W("6 900E00 E!" 5OR B9 9?E0 0UPPOR"EB '& 955(B9M(" 9!B 955(B9M(" O5 !E?9"(ME 9MER E!" 09 P3E O!3& .ury to ClaimantKs private rights. 5lorida I@iplessJ 3ien Claimant OR"9?EB "O "6E 6(3". property.( ""60 P . .Kn iss ?etagrip 9ttention= 0lave master on the Plantation :::::: 0outh Plantation Way 0omewhere 0outh. fraud on the contract. of . violation of 0tate and 5ederal statute of K"ender of PaymentK. 33C in its contract and su#se)uent dealings with Claimant. peace of mind and otherwise$ Claim Be#tor% ortgaged to the 6ilt. supported #y 9ffidavit in 0upport of "ort Claim and 9ffidavit of !egative 9verment$ 0aid "ort Claim is presented as a matter of right. presumption is made that there is full disclosure made within such agreements and that such agreements involve Kgood faithK and Kclean hands$K Claim Be#tor% ortgaged to the 6ilt. 5lorida I@iplessJ 3ien Be#tor Lanuary ::. 0ecured Party Creditor and 9ttorney-(n5act of the Be#tor% B9 9?EB '& ?OMERM E!" herein presents this "ort Claim with 9ssessment for Bamages..uries and violations of commercial due process of law. arising out of private in. no meeting of the minds and dishonor. failed to give or make full disclosure as to the U$0$ 'ankruptcy and as to the removal of su#stance 2gold and silver4 #acked or otherwise called Kconstitutional moneyK also know as Kmoney of eAchangeK to the eAtent that said removal altered the conditioils . commercial rights. 0ee 2!ygaard v$ Continental4. there#y causing in.

!otice of "ort Claim with 9ssessment for Bamages (tem Gdate. /++: RE= OR"?9?E "O "6E 6(3". 33C 9ccount !um#er "o whom it ay Concern= 6erein. 33C$ W("6 ( r$ 6it. peace of mind and otherwise$ Claim Be#tor% ortgaged to the 6ilt.uries and violations of commercial due process of law. commercial rights. KWalker "odd 9ffidavitK4 Claim Be#tor% ortgaged to the 6ilt. ""60 P to the detriment of the Claimant #y and through the contract presented #y Claim Be#tor$ 20ee EAhi#it 9. of . Bamaged #y ?overnment. property.( Certified ail G Bamaged #y ?overnment ( cHo /A> hit palace 'latant 5raud. 5lorida I@iplessJ 3ien Claimant ( !O"(CE O5 "OR" C39( OR"9?EB "O "6E 6(3". 0ecured Party Creditor and 9ttorney-(n5act of the Be#tor% B9 9?EB '& ?OMER! E!" herein presents this "ort Claim with 9ssessment for Bamages. mental anguish. 33C in respect to their agreements. presumption is made that there is full disclosure made within such agreements and that such agreements involve Kgood faithK and Kclean hands$K Claim Be#tor% ortgaged to the 6ilt. 33C in its contract and su#se)uent dealings with Claimant. 0ee 2!ygaard v$ Continental4. failed to give or make full disclosure as to the U$0$ 'ankruptcy and as to the removal of su#stance 2gold and silver4 #acked or otherwise called Kconstitutional moneyK also know as Kmoney of eAchangeK to the eAtent that said removal altered the conditions of all contracts and agreements at least within the united 0tates of 9merica and as such. 33C is #ound to uphold and o#ey federal and state law2s4 while coilducting #usiness with the general pu#lic including #ut not limited to operating in Kgood faithK and Kwith clean hands$K Claim Be#tor% ortgaged to the 6ilt. fraud on the contract. .. no meeting of the minds and dishonor. violation of e)ual protection of the law. supported #y 9ffidavit in 0upport of "ort Claim and 9ffidavit of !egative 9verment$ 0aid "ort Claim is presented as a matter of right. 5lorida I@iplessJ 9MER E!" 3ien Be#tor Lanuary ::. 33C pursuant to its #usiness and upon approval of the said KagreementK transmitted the same through the U$0$ ails and across 0tate lines$ - . Claimant. violation of 0tate and 5ederal statute of K"ender of PaymentK. there#y causing in. arising out of private in.Kn iss ?etagrip 900E00 E!" 5OR B9 9?E0 9ttention= 0lave master on the Plantation 0UPPOR"EB '& 955(B9M(" 9!B :::::: 0outh Plantation Way 955(B9M(" O5 !E?9"(ME ( 0omewhere 0outh. KU$0$ 'ankruptcyK and EAhi#it '..ury to ClaimantKs private rights. .

+4 days and that they could prove that there was full disclosure. they were and are in full agreement with all the facts as they operate in favor of the Claimant and to the points made in the re)uest for KProof of ClaimK 2C95M4 document and that Claimant could KdischargeK the Claim Be#tor contract-de#t lia#ility via 'ill of EAchange$ On. !$9$ 9cct$ !o . Claim Be#tor did not and has not responded yet in order to correct Hre#ut any said Befault$ D . that it was not an unconsciona#le contract and as to what was loaned. and as to the operation or application of 6LR-. 33C. 0ection N of the U$0$ Constitution as it operates upon the KagentsK of government #y and though their KOath of OfficeK to said constitution2s4 and upon the KcreationsK of government% i$e$.::.!otice of "ort Claim with 9ssessment for Bamages (tern Gdate. or discharge said de#t #y tendering instrument. issues or otherwise KProofs of Claim. an 9ffidavit of Befault and Opportunity to Cure and to Contest 9cceptance was sent to OR"?9?EB "O "6E 6(3". 0ection N of the U$ 0$ Constitution4 "ake !otice of% Claimant. that claimant could KpayK with money of eAchange. 9rticle . 33C on Whenever. KCorporations and #anks doing #anking #usiness and in the collection of so-called monies andlor de#ts. money of account$ 20ee EAhi#it C.. ""60 P 'ecause Claim Be#tor('ank did not respond. #ecame aware of certain material facts as to the said U$0$ #ankruptcy.. along with other relative points.</ to this instant matter$ 9nd that Claim Be#tor 9greed #y their silence. that Claimant could KdischargeK any agreement-de#t lia#ility via 'ill of EAchange. and of possi#le fraud on the agreementlcontract #y Claim Be#tor. and 9ffidavit of Befault$ / of . . Opportunity to Cure. if Claim Be#tor provided KProof. Conditional 9cceptance for Malue for Proof of Claim4 (n an effort to #ring closure to the pro#lems Claimant has had relative to the discharge of OR"?9?EB "O "6E 6(3". initiated a private administrative process for determination of a#ove and 9ccepted for 6onor and Malue the contract and any and all presentments and agreed to continue to make KpaymentsK conditioned on and predicated upon Claim Be#tor #y and through itKs KagentsK to provide KProof of ClaimK and as agreed. there #eing no meeting of the minds. a proper meeting of the minds2s4 no fraud on the contract.K #ecause it was the ClaimantKs signature that really funded the loan as agreed #y Claim Be#tor$ (t seems as though there was some confusion on the part of the Claim Be#tor('ank pursuant to their ina#ility to provide the re)uested KProof of ClaimsK as presented in the a#ove descri#ed correspondence$ (t was presumed that they would respond within the allowed ten 2. /++:$ (t was sent Certified ail G $ Once again. Claimant mailed a Conditional 9cceptance with a re)uest for Proof of Claim on Octo#er -th.2interstate commerce4 Claimant.. that the 0tates #eing in violation of 9rticle . /++-. i$e$. no full disclosure and the presunOptionth at it was an unconsciona#le contractlagreement$ Claimant. was never disclosed #y Claim Be#tor if Claim Be#tor could or did loan socalled O!E& or if KitK Chase 6ome 5inance.K Claimant would continue to make what is called payments$ 20ee EAhi#it B. the liillitations placed upon corporations and #anks in the lending of credit.. 33C loaned itKs CREB(" and for any de#t incurred. via Certified mail O u h # e r $ Claimant merely sought disclosure as to how any lia#ility could #e created to #egin with.

. there is discharge. 33C to do #usiness within the state of California and 0outh Carolina$ >$ Produce evidence that pursuant to the loan agreement.the financial instrument as full satisfaction and accord in discharge of the implied de#tlo#ligation$ 0ection *--+* of the Uniform Commercial Code says= R(f tender of payment of an o#ligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused./2#42-4$ Pursuant to the fact that Claimant did not have access to K oney of EAchangeK 2gold or silver4 to pay de#ts at law 29rticle . and #earing the #ona fide signature of the claimant$ /$ Produce the evidence that OR"?9?EB "O "6E 6(3". that Claimant provided 1 . 33C. #ut instead $ $ $ they did in factaccept the 'ill of EAchange .</$ Claimant allowed OR"?9?EB "O "6E 6(3" 33C to use her EAemption !um#er social-#ut not---secure for the discharge of Q UC6BE'"$ (t is here noted that OR"?9?EB "O "6E 6(3" 33C. Claimant re)uested the original K'lue (nk 0ignatureK to #e returned within /+ days from receipt of the letter of re)uest$ "o date.</ via the 'ill of EAchange 2instrument4. further confused themselves and the issues at hand #y refusing to post the discharge to the ClaimantKs account.U0 Constitution4. Claimant did not assume the discharge had #een complete until the full D/-hour time had passed pursuant to the "ruth in end inP 3aw$ O f t e r t h i sti me had passed.!otice of "ort Clairn with 9ssessnOenfto r Bamages (tem Gdate.+ . Claimant had demanded that OR"?9?EB "O "6E 6(3". the financial instrument has not #een returned to Claimant$ "o date. Claimant knew that-the matter had #een resolved #ecause of the allowances esta#lished for Claimant within the eAemption created from 6LR-. upon agreement #y Claim Be#tor$ 5urthermore. /++:. the de#t was forgiven to the amount of the offer$RJ Even though any supposed lia#ility for the amount of Q UC6BE'" had #een discharged with ClaimantKs 'ill of EAchangeleAemption. 33C loaned money via the loan agreement or otherwise put something to risk via the contract with the Claimant$ . #y their silence. 0ection . 33C has given full disclosure that KtheyK #y their 9greement to loan money $ $ $ they gave or loaned the lawful consideration for ClaimantKs loan$ *$ Produce the license for OR"?9?EB "O "6E 6(3".. the Claimant relied upon the remedy provided #y Congress to discharge the supposed lia#ility. 33C has continued to dishonor Claimant #y refusing to provide full disclosure as to what has happened to the original 'ill of EAchange$ On 9nydate.$ Produce a certified color copy of the Kloan agreementK unaltered. which would have resulted in the situation #eing taken care of in fdl satisfactionlthe account #alance then #eing @ero$ 2+4 OR"?9?EB "O "6E 6(3". conse)uently. OR"?9?EB "O * of . thus #y such ignoring of the truth in lending time allowance of D/ hours. 33C= . failed to state a claim upon which relief could #e granted 2. . which was a tendered offer. !$9$ did not refuse or return the 'ill of EAchange 2within three 2*4 days44 for the discharge of said amount. pursuant to 6LR-. to the eAtent of the amount of the tender$$$IR "herefore. OR"?9?EB "O "6E 6(3". OR"?9?EB "O "6E 6(3" 33C. that OR"?9?EB "O "6E (3".$ Produce evidence that pursuant to the loan agreement. ""60 P "((E 6(3"$ 33C has refused to ad.. when the mortgage company refused to accept the 'ill of EAchange.ust the account.(n efforts to #e in compliance with 5ederal 3aw.

#reach of agreement. conspiracy to defraud #y OR"?9?EB "O "6E 6(3".anything of value that was used to give value to any instrument to #e applied to the loan agreement$ -$ Produce the evidence that OR"?9?EB "O "6E 6(3". OR"?9?EB "O "6E 6(3". nor given notice of alleged loan dispute. Claimant gave !otice of the fact that she was not disclosed as to the terms of the loan agreement nor were the terms of the loan agreement eAplained in any way.!otice of "ort Claim with 9ssessment for Bamages ltern Gdate. supported #y affidavit2s4 and relative to the stipulated matters #y general ac)uiescence and agreement of the Respondent Claim Be#tor. pursuant to the a#ove re)uested particulars from Claim Be#tor. Respondent2s4iClaim Be#tor identified herein have and had a mandatory duty via the eApectation that said Respondent2s4 would act and operate in K?ood 5aithK and with KClean 6andsK in respect to the transactionHcontract and in respect to all facts$ "hese acts and agreements made and done to and upon Claimant were #reached and such matters were #rought to the attention of the Respondent2s4. otherwise all facts stand in the record as true as the Claim Be#tor had a mandatory duty to give full disclosure as to all aspects of the transaction2s4 and upon receiving the KinstrumentK failed to ad. agreed and confessed to their #reach of their mandated duty% which #reach caused in. showing all of the #ookkeeping entries regarding the loan agreement$ 'ecause none of the a#ove particulars were acknowledgedlresponded to. #reach. the particulars < .</ as it affected contracts$ <$ Produce certified evidence that OR"?9?EB "O "6E 6(3". nor was any disclosure made. refused and #reeched that duty.+$ Produce certified copies of the ?99P accounting per this account.ury was not committed against the Claimant$ 0aid Respondent2s4 went silent and failed or refused to #ring forth Kproof of claimK to the contrary and therefore stipulated. 33C and the Claim Be#tor failed to give full disclosure of any of the a#ove facts and therefore > of .uries as supported #y the stated facts that are presented in the 9ffidavit in 0upport of "ort Claim as a matter of right. or in. Claimant thus states claim for said in. title and interest in #ehalf of the Claimant and e)ual protection of the law including #ut not limited to 6LR-.. violated the agreement with the Claimant and therein caused in. fraud in the factum.ust the account to K+K and Claim Be#tor failed. 33C utili@ed K?eneral 9ccepted 9ccounting PrinciplcsK 2?99P4$ . 33C accepted anything of value from the Claimant that was used to give value to any instrument to #e applied to the loan agreement and that Claimant was not the KlenderK per the agreement and transaction$ D$ Produce the evidence that the Claimant did not fund the loan agreement and was not to #e repaid the so-called inoney that funded that loan agreement$ 1$ Produce the evidence that all material facts were fully disclosed in the loan agreement including full disclosure of the eAistence of 6LR-. and the attached 9ffidavits must #e re#utted within thirty days 2*+4 #y OR"?9?EB "O "6E 6(3". under necessity$ Pursuant to this Claim.ury to the Claimant as stated herein$ 6erein.ury to the Claimant$ "6ERE(!. 33C. and those mentioned in paragraph one 2(4.</$ "his "ort Clainl must #e responded to. whereupon Respondent2s4 were given several opportunities to #ring forth Kproof of claimK that such duty. -( ""60#(P violated the Kclean hands doctrineK and violated the rights.

!otice of "ort Claim with 9ssessment for Bamages (tem Gdate. 0eal% !O"9R& PU'3(C. court clerk.uries and violations of commercial due process of law. Claimant: 0ecured Party Creditor.of the various a#ove-mentioned fraudulent deceptions and a#uses to Claimant made #y OR"?9?EB "O "6E 6(3". CER"(5(C9"E O5 BE59U3". in and for said 0tate y Commission eApires% . financial and commercial stress and mental anguish there#y causing in.of .uries have damaged ClaimantKs rights. 9ttorney in 5act in #ehalf of LO6! BOE9CT!OW3EB?E E!" 0"9"E O5 0OU"6 C9RO3(!9 4 4 0cilicet County of 'erkley county 4 0U'0CR('EB "O 9!B 0WOR! #efore me this day of . commercial rights. 9uthori@ed Representative. etc after #onding the case$ (!C3UBE copies to CEOHC5O of #ank8 U0E 9 !O"9R& 9" EMER& 0"EP$ 9!B BOCU E!" &OUR 9(3(!?0 9!B "6E(R BE59U3"0$ . ""60(M(P Wherefore Claimant herein claims onetary Bamages as real and appropriate as so enumerated herein at a sum certain of One 6undred 5ifty illion Bollars 2Q. and have caused su#stantial and financial in..+++$++4 in K9merican ?old Coin . of . that Bamaged #y ?overnment. well #eing. ""60 P (!C3UBE W("6 COP& O5 'O!BEB PRO (00OR& !O"E. state of mind. /++D$ ls H SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS Bamaged #y ?overnment.RBollars in specieR 2money of eAchange4 or RBollars in CurrencyR or R oney of 9ccountR 2Credit4$ Bated this day of .. 9!B PROPER (R0 5OR 0 20EE CERO "6E 9CCOU!" 5(3E4 9!B (!0"RUC"(O! 3E""ER "O "RE90UR& "O 3(FU(B9"E "6E 'O!BH 0EE 9""9C6EB "RE90UR& 3(FU(B9"(O! 5(3E$ 5ile all privately with attorneys.+. no meeting of the minds and dishonor of tendered instrument. a !otary. see 2 C ontinentalK4$ "here was also violation of e)ual protection of the law..+ . . violation of 0tate and 5ederal K"ender of PaymentK statutes. personally appeared and lcnown to me to #e the inan whose name su#scri#ed to the within instrument and acknowledged to #e the same$ . peace of mind and otherwise of Claimant$ "hese in.udge. 33C. .uries$ .!otice of "ort Claim with 9ssessment for Bamages (tem Gdate.+++. -...ury to ClaimantKs private and personal rights./++-. and its agents have initiated untold private in. fraud on the contract. property.

0tate of aine$ 4 4 Befendant SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS 4 4 4 4 4 .. !$9$. 0U' (" PR(M9"E3&. 9!B &OU 69ME ?(ME! LUR(0B(C"(O!. 0tate of 5lorida. . 00$ 9(!E B(0"R(C" COUR" B(0"R(C" "WO PRE0FUE (03E Civil 9ction. County of 9ny. County of 6ills#orough. 4 Plaintiff vs$ U!B(0PU"EB 9"ER(93 59C"0 4 4 4 0EP9R9"E 0"9"E E!" O5 4 4 4 4 4 LO6! 6$ BOE. an individual of 9ny "own. U!"(3 95"ER 933 BE59U3"0 9!B "RE90UR& 3(FU(B9"(O! 0"9"E O5 9!&.09 P3E 0"9"E E!" O5 59C"0 E RE E 'ER "6(0 (0 9R?U E!". Bocket !o$SSSSSSSSS '9!T O5 9 ER(C9. a corporation with an office and place of #usiness in "ampa.

a live-#orn human #eing. 9ny County.uristic entity$ /$ "he . a domiciliary in 9ny "own.-9$ "he defense may #e raised only #y the person whose identification was misused$ 2. was created #y '9!T O5 9 ER(C9.D-9.$ y name is Lohn 6enry Boe% ( am a live-#orn human #eing$ ( am not LO6! BOE./ . County of 6ills#orough. 0tate of 5lorida. section *.> and <+.Lohn 6enry Boe.. aine$ 4 Counterclaiment vs$ 4 4 '9!T O5 9 ER(C9. 4 Befendant 4 4 4 4 4 4 4 4 4 . a corporation with an office and place of #usiness in "ampa. there#y resulting in constructive fraud$ *$ (t is a defense to a civil action for monetary damages that the damages arose from the misuse of a form of legal identification and the use of that identification has resulted in the conviction of a person other than the defendant under "itle .uristic entity. !$9$.D R0 U. LO6! BOE.*-94 . and do not serve as fiduciary for this noneAistent . !$9$ at the time of the alleged loan without disclosing the fictional status of that entity to me.

+$ (f a so-called civil action against the .udgment of that person7s peers or the law of the land$W 1$ Collection initiated #y '!9 9 ER(C9 '9!T. including the Constitution of the United 0tates and the Constitution of the 0tate of aine. property or privileges. or agent of the United 0tates. which is an 9dopted 9ct of aine and other 0tates of the Union. nor #e deprived of life. and rights. !$9$ is therefore null. nor an (ndian tri#e recogni@ed #y the ?overnment of the United 0tates$ . which is repugnant to the course of the common law$ . void. U-. LO6! BOE. predicated on the notion that 0tates adopting the UCC are instrumentalities or political su#divisions of the United 0tates su#. and unenforcea#le$ D$ 9t 9rticle . is filed #y '9!T O5 9 ER(C9. and the Constitution of the 0tate of aine. and have never presented myself as an officer. li#erty. #ut #y . !$9$ it will #e attempting to deprive me of constitutionally secured due process in the course of the common law$ . V"he accused shall not #e compelled to furnish or give evidence against himself or herself.. the Constitution of the 0tate of aine stipulates that. 2e42/42c44.uristic entity./ U$0$C$ U.>*.$ Under the Conflict of 3aw Boctrine.$ aine is one of the several 0tates party to the Constitution of the United 0tates where the Constitution of the United 0tates.ect to sovereignty of the United 0tates under territorial clause authority 29rt$ (M U*$/. a political su#division. territory or insular possession of the United 0tates. Constitution of the United 0tates4$ <$ "he Uniform Commercial Code proceeds in the course of civil law.>$ ( am not. employee. #enefits and protections . !$9$ presumed authority of the Uniform Commercial Code 2. are construed as organic acts and constitute the law of the land$ -$ "he ledger-entry hypothecated VcreditW transaction originally effected with '9!T O5 9 ER(C9.* .

in the capacity of 5ederal "aA X 3oan Bepositories. !$9$. and there#y function in the role of Vfiscal agentW of the United 0tates$ .ure.-+/2e4. Consumer Credit Protection 9ct4$ .*$ "he lending institution.2a42/42944$ . deposits in the said financial institutions may #e insured only for officers. '9!T O5 9 ER(C9. and (ndian tri#es. and in succession. there#y predicating all credit and other financial transactions on credit of the United 0tates 2see definition of VcreditW at .-$ Whether demand deposits or savings. #y force or threat of force. traffic in what is descri#ed as Vpu#lic moneyW./2c4 2see . do operate under auspices of a 5ederal grant of authority. may solicit and do #usiness with only those people . are always superior to the adopted acts. 2*.D$ 9s 5ederal taA and loan depositories./$ 9 person may not. intimidate or interfere with or intentionally oppress or threaten any other person in the free eAercise or en.4 . the 0tate of aine is prohi#ited from enforcing contractual o#ligations predicated on such colora#le #ills of credit effected #y mere ledger-entry accounting$ . respectively. secured to that person #y the Constitution of aine or laws of the 0tate or #y the United 0tates Constitution or laws of the United 0tates$ 2.>. the financial institutions. officers. employees and agents of the Bistrict of Colum#ia and insular possessions of the United 0tates./ U$0$C$ U.. C5R UU /+/ X /+*4. including the Uniform Commercial Code 2Constitution of aine 9rticle N U*.> .secured therein. did. respectively and collectively. employees and agents of the United 0tates. or intentionally attempt to in.oyment of any right or privilege. and o#viously. as defined at /.D R0 U/<*. and any other lending institution involved in succession. intentionally in. U$0$C$ U.$ "his Vpu#lic moneyW is not authori@ed as a medium for payment of de#t #y the Constitution of the United 0tates.ure. U$0$C$ U. the said financial institutions.. intimidate or interfere with. Constitution of the United 0tates 9rticle M(.1/.>$ 9s fiscal agent of the United 0tates. clause /4 .

!$9$. the Privacy 9ct 2. !$9$ has not secured the re)uired ?9O determination of lia#ility 2see procedural regulations in "itle >. and its predecessors of interest. Code of 5ederal Regulations4$ /*$ 9s fiscal agent of the United 0tates.>/.ect to all applica#le 5ederal statutory and regulatory mandates. et se)$4./ U$0$C$ U . this colora#le authority has no application or compelling force of law in the face of fundamental law 29rticle N U*. #ut not limited to. are su#... operate as fiscal agents of the United 0tates to eAtend VcreditW of the United 0tates on all home loan transactions. the definition of the term VdwellingW in regulations governing the 6ome ortgage Bisclosure 9ct. the 5ederal ./+/$* X /+*$*4 ./ U$0$C$ UU . and in said capacity. the financial institutions. U$0$C$ U*D+/4 //$ '9!T O5 9 ER(C9. '9!T O5 9 ER(C9. C5R UU /+/$. no private enterprise has power to unilaterally grant authority to defer payment of de#t./2a44.1$ Once )ualified as 5ederal taA and loan depositories. U$0$C$ U.previously listed who are authori@ed to receive and use pu#lic money 2*.>//2*4% also. the said fiscal agent of the United 0tates must secure a determination of lia#ility from the ?eneral 9ccounting Office as general agent of the "reasury of the United 0tates 2*.<$ 9uthority of the 5ederal 6ome 3oan 'ank is predicated on the presumption that loans are made in 5ederal 0tates su#.. .. including. Regulation C at . aine Constitution4 /. respectively. the said VcreditW #eing hypothecated on credit of the United 0tates$ 2O#viously. or to create de#t then defer its payment4 .ect to sovereignty of the United 0tates under the territorial clause at 9rticle (M U*$/ of the Constitution of the United 0tates 2see definition of the term V0tateW at .$ Prior to initiating a civil action to collect an o#ligation to the United 0tates./ C5R U /+*$/2d4 /+$ Even though 0tate officials participate in the Cooperative 5ederalism fraud via uniform acts and various intergovernmental compacts and agreements. had to apply and #ecome 5ederal 6ome 3oan 'anks 2.

++$<2a4 X 2c44$ *+$ Regulation C preserves the right to effect rescission in the event of ina#ility to pay even for officers. including the original credit application. and the regulation can #e employed as a complete defense at any time$ /<$ (t appears that the loan originator. the re)uirement #eing notice that any given form is 2. the Consumer Protection 9ct. 2/4 mandatory. !$9$. including Regulation C 2. operated under color of authority of the United 0tates #y altering the re)uisite credit card loan application #y making unauthori@ed alterations.+.$ !o information-gathering form provided #y '9!T O5 9 ER(C9.- ./ C5R U//-4.. C5R U. '9!T O5 9 ER(C9. and agents of the ?overnment of the United 0tates. et se)$4. prohi#it the interested agent or agency from securing administrative or . !$9$. specifically at . specifically #y not displaying re)uired information 2/> C5R UU *.Register 9ct 2>> U$0$C$ UU. including the original application form. !$9$.*/+4 />$ "he Privacy 9ct re)uires specific disclosure on all information-gathering forms. included the re)uired Privacy 9ct notice either in instructions or on its face$ /-$ "he Paperwork Reduction 9ct re)uires each information-gathering form to display a currently valid O ' num#er and give notice that if it does not display a currently valid O ' num#er then whomever the form is given to is not re)uired to complete the form$ /D$ !o form provided #y the originating financial institution. and the Paperwork Reduction 9ct 2. or 2*4 necessary to secure or retain a #enefit$ /.4 voluntary. displayed the re)uisite O ' num#er and notice$ /1$ Paperwork Reduction 9ct regulations. et . '9!T O5 9 ER(C9.*/+$-. C5R U .udicial remedies if and when information-gathering forms fail to display the re)uired O ' num#er and notice. employees.

as codified in Regulation C. and who are lawfully vested with the privilege of using VcreditW of the United 0tates for deferred payment purchases via fiscal agents of the United 0tates such as '!9 9 ER(C9 '9!T. moneti@ed signature. has operated under color of authority of the United 0tates. without lawful authority for said solicitation and eAecution.D . deposited into a transaction account hypothecated VcreditW and allegedly loaned to the . eAcept the one who7s signature allowed it to #e created$ "hat signature #elongs to me and was stolen #y '9!T O5 9 ER(C9.uristic entity$ "he so-called VmoneyW used to fund the alleged loan did not eAist in any previous account with any #ank and.$ "he money to fund the alleged loan was created from nothing #ased upon my. either ver#ally or in writing. defines Vactual fraudW .$ ( was never informed of the right of rescission secured #y Regulation C$ */$ '9!T O5 9 ER(C9. was and still is owned #y no#ody. under the #anking procedure known as a Vcreated depositW. never loan their money. they loan you your money$ *-$ "he a#ove stated procedure of created deposits. !$9$ using deception and misrepresentation$ 9ll #anks. to counterfeit a security of the United 0tates$ **$ 'lack7s 3aw. who may #y law receive pu#lic money for their own use.ures another who relies on it in acting$ *>$ "he "ruth in 3ending 9ct. in effect. which actually takes something of value from the live #orn human #eing. at the time of the credit agreement% there#y resulting in actual fraud and a violation of Regulation C$ *D$ "he a#ove stated procedure of created deposits is not a frivolous claim$ Created deposits are descri#ed at length in the following pu#lications= . the live #orn human7s. Dth ed$. states that a lender must give #orrowers written disclosure on essential credit terms$ *. #ecause it never eAisted prior to the alleged loan. !$9$.al. as trustee in interest.9 concealment or false representation through a statement or conduct that in. !$9$ *. is an essential credit term that was not disclosed.

defines Vfraud in the inducementW . Carroll Fuigley. created as a ledger entry #ased upon my moneti@ed signature$ "his was not disclosed in writing or ver#ally$ (f ( am re)uired to pay #ack that fictional money.<</.-< Fuestions and 9nswers on oney. !$9$ will #e un. >. '9!T O5 9 ER(C9.ury to me% thus resulting in Vconstructive fraud$W >+$ 'lack7s 3aw. p$>1$ ECO!O (C0 .1 . !$9$ to #e un. pp -*--. !$9$. defines Vconstructive fraudW .-. moneti@e it. Y.$ '9!T O5 9 ER(C9. to #egin with. Y.+$ *1$ 'lack7s 3aw. )ueries **. Y.$ . duties. !$9$ intentionally deceived me and misrepresented themselves in relation to the accepting of the signature for value$ "his has caused '9!T O5 9 ER(C9. and Economic 9ctivity.<-.5raud occurring when a misrepresentation leads another to enter into a transaction with a false impression of the risks. Dth ed$. or any of its successors. did not inform me they were going to accept my signature for value. esp$ a#out a fact relating to value$ >. elville Ulmer.<>1. E$M$ 'owden..<--. 0enate Bocument 1D-/>+.ustly enriched at the eApense and in.Unintentional deception or misrepresentation that causes in. 9l#ert 6art. Dth ed$. there#y in./. deposit it and then create money with it$ ( was not aware the money used to fund the alleged loan was coming from me.ury to another$ *<$ '9!T O5 9 ER(C9. Y. >D. and -D$ Economics% "he 0cience of Common 0ense.*<$ "ragedy and 6ope. or o#ligations involved% an intentional misrepresentation of a material risk or duty reasona#ly relied on.ustly enriched since the money entered into that ledger account was never theirs to #egin with$ "his act #y the #ank has resulted in fraud in the inducement$ .oney.uring the other party without vitiating the contract itself."heory and Practice. pp$ />--/. pp$ . Be#t.

offered as a counter-presentment.* -.+< /*-. /++*. P$O$ 'oA NNN.>/$ 'lack7s 3aw. /++*$ >1$ "he Be#t Collector Bisclosure 0tatement. stipulated all )uestions must #e answered truthfully and honestly under penalties of per. defines Vfraud in the factumW . !$9$.< .$ LOE '3OW X LOE '3OW. hereinafter known as Be#t Collector Bisclosure 0tatement. 2. on Lanuary .. to LOE '3OW 9!B LOE '3OW via Certified ail. Dth ed$..ect to a defense of the o#ligor #ased on$$$5raud that induced the o#ligor to sign the instrument with neither knowledge nor reasona#le opportunity to learn of its character or its essential terms 2. 9ny "own. Return 0ignature Re)uested.5raud occurring when a legal instrument as actually eAecuted differs from the one intended for eAecution #y the person who eAecutes it. receipt num#er D++./* 9!& 0"REE". R0 U *-. 9(!E <<<<<. Respondent. !$9$ does not possess a contract disclosing all pertinent information re the creation of a deposit #ased upon the moneti@ed acceptance for value of plaintiff7s signature$ "his has resulted in Vfraud in the factumW >>$ "he right to enforce the o#ligation of a party to pay an instrument is su#. on SSSSSSSSSSSS. 9!& "OW!. aine <<<<<.+++$++ with '9!T O5 9 ER(C9. hereinafter known as LOE '3OW 9!B LOE '3OW. pursuant to the 5air Be#t Collection Practices 9ct$ 2EAhi#it 94 >D$ "he Be#t Collector Bisclosure 0tatement was received #y= T$ Boe of LOE '3OW 9!B LOE '3OW on SSSSSSSSSSSSS.42a42iii44$ >. or when the instrument may have had no legal eAistence$ >*$ '9!T O5 9 ER(C9.*+. containing siA 2pages4 and D+Z )uestions in order to verify the validity of the de#t. /++*. or referenced alleged de#t will #e considered to #e invalid$ .ury within thirty 2*+4 days of receipt.D. +</+ ++. mailed an original presentment in the form of a dunning letter to LO6! BOE. hereinafter. . >-$ Respondent mailed a counter-presentment. 9""OR!E&0 9" 39W. regarding an alleged de#t of Q/.

. Es)$ of LOE '3OW 9!B LOE '3OW did respond nearly . and not evidence of a legal.. #ona fide contract./$ "he copy of the alleged credit agreement was not a certified copy. #y non-response to Be#t Collector Bisclosure 0tatement.>$ Pursuant to the terms of the counter-presentment LOE '3OW 9!B LOE '3OW tacitly agrees. not reada#le due to copier distortion. . !$9$ and Respondent. !$9$ continued to pursue a collection activity after refusing to verify the alleged de#t. #ona fide de#t #etween LOE '3OW 9!B LOE '3OW and Respondent.+$ Loe 'low. and a copy of an alleged credit agreement 2EAhi#it C4. that there is no verifia#le.*$ "he original Be#t Collector Bisclosure 0tatement has not #een answered in full..+ days late with copies of statements 2EAhi#it '4 showing merely an alleged de#t #etween '9!T O5 9 ER(C9.. or '9!T O5 9 ER(C9. . they are in violation of "he 5air Be#t Collection Practices 9ct #y using interstate communications in a scheme of fraud #y /+ . .ury sustained #y Respondent$ .><$ LOE '3OW 9!B LOE '3OW failed to respond within the plainly stipulated thirty 2*+4 day time period. as well as any other in.$ 9 monthly #illing statement is only prima facie evidence of a de#t. and did not appear as a promissory note.$ 'ecause '9!T O5 9 ER(C9. or other de#t instrument. !$9$ and Respondent% LOE '3OW 9!B LOE '3OW also waives all claims against Respondent and indemnifies and holds Respondent harmless against any and all costs and fees heretofore and hereafter incurred and related re any and all collection attempts involving the hereina#ove-referenced alleged account$ 9ny attempt to collect an unverified de#t is in violation of the 5air Be#t Collection Practices 9ct and LOE '3OW 9!B LOE '3OW may #e lia#le for damages for any continued collection efforts. .

9""OR!E&0 9" 39W. /++*./* 9ny 0treet. 9ny "own.using threat. this SSSSSSSSSS day of SSSSSSSSSS. aine <<<<<<Receipt no$SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS Lack 9$ Boe 'ack to 9nswerHCounterclaim STATE OF MICHIGAN /. deception. P$O$ 'oA AAA. 9ny "own. intimidation. CER"(5(C9"E O5 0ERM(CE aine 2<<<<<4 ( here#y certify that ( have mailed a copy of the foregoing 9nswerHLudicial !otice and Counterclaim. . #y U$0$ Certified ail Return Receipt Re)uested. aine <<<<< Receipt no$ SSSSSSSSSSSSSSSSSSSSSSSSS and Clerk of Bistrict Court. and enticement to coerce me to commit some act creating a legal disa#ility where none eAists$ Bated Lanuary . /++*.. aine SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS Lohn 6enry Boe (n propria persona cHo P$O$ 'oA NNN 9ny "own. to LOE '3OW 9!B LOE '3OW. at 9ny "own. .

a&/ o'4e2 (%&a&)%a$ %&s'2@5e&'s a' '4e /%s)o@&' .. I . A s@55a21 C%o>2a?4%)a$ s*e')4 a&/ 2es@5e %&)$@/%&> (@2'4e2 /e'a%$s o( 51 // . a&/ 4%s'o2%)a$ ?2%&)%?$es s'a'e/ 4e2e%&. ) Case No. I . I 4a+e se2+e/ as a& eG?e2' . se)@2%'%es. a&/ o'4e2 (%&a&)%a$ %&s'2@5e&'s %& )o&&e)'%o& . %&)$@/%&> '4e No'e. @&/e2 ?e&a$'1 o( ?e20@21B 7. ) E. Co&/s.%'&ess.s a&/ ?a2's o( '4e o?e& 5a2*e' '2a/%&> /es* (@&)'%o& %& Ne. (o2 &%&e 1ea2s. I a5 5a*%&> '4%s a((%/a+%' Case/ o& 51 eG?e2%e&)e a&/ eG?e2'%se as a& a''o2&e1. M1 D@a$%(%)a'%o&s as a& eG?e2' . e)o&o5%). N. E. 2e>a2/%&> )e2'a%& (a)'s a' %ss@e %& '4%s )ase o( . I( )a$$e/ as a .2%'e2. TODD. Ha55e2 6#47 08) C9o 87:! E)4o Roa/ R1a& O. ) 3333333333333333333333333333333333333333333333333333333333333333333333 33 Ha2s4a+a2/4a& Da+e a&/ #2a'%5a H. /a'e/ No+e5Ce2 :3.%'&ess %& 5o&e'a21 a&/ Ca&*%&> %&s'2@5e&'s a2e as (o$$o. Ca&*e2sI a))e?'a&)es. A5o&> o'4e2 '4%&>s.$e/>e o( '4e $e>a$.s.%&/o.$e/>e. T4a' I a5 (a5%$%a2 . M%)4%>a& 4!::< 6373) ::3-3800 No. To//.%'4 '4e #2o5%sso21 No'e a&/ D%sC@2se5e&' ReD@es' a&/ A@'4o2%Aa'%o&. S@%'e 4000 De'2o%'. -a$*e2 F. 2esea2)4 .4%)4 I ?2e+%o@s$1 4a/ &o /%2e)' a&/ ?e2so&a$ *&o. I Ce)a5e o&e o( '4e Fe/e2a$ Rese2+e S1s'e5Is 2e)o>&%Ae/ eG?e2's o& '4e $e>a$ 4%s'o21 o( )e&'2a$ Ca&*%&> a&/ '4e ?$e/>%&> o( &o'es. Co&/s. a&/ 'ea)4e2.o2* (o2 '4e Rese2+e Ba&*sI /%s)o@&' . N.%'4 51 . I . I a$so 4a+e 2ea/ eG'e&s%+e$1 '2ea'%ses o& '4e $e>a$ a&/ (%&a&)%a$ 4%s'o21 o( 5o&e1 a&/ Ca&*%&> a&/ 4a+e ?@C$%s4e/ se+e2a$ a2'%)$es )o+e2%&> a$$ o( '4e s@C0e)'s 0@s' 5e&'%o&e/. Sos&%)* ) +. I 5a*e '4%s A((%/a+%' Case/ o& 51 o. I& a//%'%o&.o2*e/ as a& e)o&o5%) 2esea2)4 o((%)e2 a' '4e Fe/e2a$ 7 Rese2+e Ba&* o( C$e+e$a&/.%&> s'a'e5e&'s. MI 4!30: D%)*%&so& -2%>4' #LLC De(e&/a&'s.ARDHAN DA.A. Yo2*.& ?e2so&a$ *&o. I . #ROFESSIONAL BACKGROUND HUALIFICATIONS :. 800 -oo/. 03-04 44!-C" ) #$a%&'%((.%&/o.$o2 6#<4<=3) B$oo5(%e$/ H%$$s. e)o&o5%s'. 7===. La. a )%'%Ae& o( '4e U&%'e/ S'a'es a&/ '4e S'a'e o( O4%o o+e2 '4e a>e o( :7 De(e&/a&'s a&/ #$a%&'%(( C@' )a$$e/ '4e ENo'eF %& '4%s A((%/a+%'.a2/ A+e&@e.o@$/ 'es'%(1 as s'a'e/ 4e2e%&. %& ?2o?2%a ?e2so&a A''o2&e1s (o2 Ba&* O&e. ) ) De(e&/a&'s. 'o>e'4e2 so5e'%5es 2e(e22e/ 'o %& o'4e2 /o)@5e&'s (%$e/ C1 De(e&/a&'s %& '4%s )ase as '4e Ea$$e>e/ a>2ee5e&'F Ce'. 0o%&'$1 a&/ se+e2a$$1. ) Ho&. eG)e?' '4a' I 4a+e 2e$%e/ e&'%2e$1 o& /o)@5e&'s ?2o+%/e/ 'o 5e. 'o e&aC$e '4e Fe/e2a$ Rese2+e 'o 5a*e a/+a&)es o( )2e/%' '4a' Ce)a5e o2 )o@$/ Ce)o5e 5o&e1.o2*e/ as a& a''o2&e1 a&/ $e>a$ o((%)e2 (o2 '4e $e>a$ /e?a2'5e&'s o( '4e Fe/e2a$ Rese2+e Ba&*s o( Ne. ) AFFIDA. I a5 )o5?e'e&' 'o 5a*e '4e (o$$o.E.s.IT OF -ALKER F. )o5es '4e A((%a&'. a&/ /e)$a2es as (o$$o. Da+e M%)4ae$ C.A.#ERT -ITNESS FOR DEFENDANTS HARSHA.. Yo2* a&/ C$e+e$a&/.E a&/ ) #RATIMA ass%>&e/ 2es?o&s%C%$%'1 (o2 D@es'%o&s %&+o$+%&> Co'4 &o+e$ a&/ 2o@'%&e &o'es.%'&ess %& se+e2a$ '2%a$s %&+o$+%&> Ca&*%&> ?2a)'%)es a&/ 5o&e'a21 %&s'2@5e&'s.IN THE CIRCUIT COURT FOR THE COUNTY OF OAKLAND ) BANK ONE. Fo2 :0 1ea2s.

I& a Ca&*%&> $a. RELE. La. a&/ )@22e&)1 &o'es 2e/ee5aC$e (o2 >o$/ o2 s%$+e2 o& /e5a&/. 5os' o( '4e (@&/s a/+a&)e/ 'o Co22o.(@$ 5o&e1F (o2 '4e U&%'e/ S'a'es. despite some language about “lawful money” explained below. I conclude that the Note. '4e2e %s &o 2easo& 'o Ce$%e+e '4a' #$a%&'%(( .(@$ 5o&e1 o2 e+e& $e>a$ 'e&/e2). See. (@&/s a))e?'e/ (2o5 )@s'o5e2s. I conclude that #laintiff and $efendants /* . $a.. o&)e e)o&o5%) eG)4a&>e 4as 5o+e/ Ce1o&/ '4e Ca2'e2 s'a>e.(@$ Mo&e1.2%'%&>s o& '4e s@C0e)'.S. T4%s %s a )ase aCo@' eG)4a&>es o( 5o&e1 o( a))o@&' 6)2e/%'). In light of these facts.o@$/ 2e(@se a s@Cs'%'@'%o& o( '4e )2e/%' o( a&o'4e2 Ca&* o2 Ca&*e2 as )o5?$e'e ?a15e&' o( '4e De(e&/a&'sI 2e?a15e&' oC$%>a'%o& @&/e2 '4e No'e. )o&(@s%o& aCo@' '4e /%s'%&)'%+e&ess o( '4ese '. T4e s@5 o( '4ese '2a&sa)'%o&s %s '4e s@5 o( )2e/%' eG'e&s%o&s %& '4e e)o&o51. I& )$ass%)a$ e)o&o5%) '4eo21.sB -4e& a Ca&* a))e?'s C@$$%o&. a )o5?a2a'%+e$1 s5a$$ a5o@&' o( 5o&e1 o( eG)4a&>e 6e. -eCs'e2Is o&$1 '4ose (o25s o( 5o&e1 o( eG)4a&>e 6'4e (o25s 0@s' 5e&'%o&e/.s a& a))o@&'%&> )o&+e&'%o& '4a' $%es a' '4e 4ea2' o( '4e /o@C$e-e&'21 Coo**ee?%&> s1s'e5 )a$$e/ '4e Ma')4%&> #2%&)%?$e.=08.(@$ 5o&e1 o( '4e U&%'e/ S'a'es o( A5e2%)aF 6see E#2o5%se 'o #a1F )$a@se). &o' aCo@' eG)4a&>es o( 5o&e1 o( eG)4a&>e 6$a. >o$/. '4e2e a2e '. ?$@s U. s%$+e2.S. '4e No'e eG?$%)%'$1 2e(e2s 'o 2e?a15e&' %& E$a.ANCE OF SUBTLE DISTINCTIONS ABOUT TY#ES OF MONEY 4. I )o&)$@/e '4a' a )o55o& 5%s)o&)e?'%o& aCo@' '4e &a'@2e o( 5o&e1 @&(o2'@&a'e$1 4as Cee& ?e2?e'@a'e/ %& '4e U. a&/ o((%)%a$ )@22e&)1 &o'es) 5a1 s@??o2' a +as'$1 $a2>e2 D@a&'%'1 o( C@s%&ess '2a&sa)'%o&s /e&o5%&a'e/ %& 5o&e1 o( a))o@&'. -%'4 '4e eG)e?'%o& o( )@s'o5a21 s'o2es o( +a$@e $%*e >o$/ a&/ s%$+e2.o '1?es o( 5o&e1B 5o&e1 o( eG)4a&>e a&/ 5o&e1 o( a))o@&'.7< 'o M%)4%>a& Na'%o&a$ Ba&* (2o5 '4e ?2o)ee/s o( '4e No'e.(@$ 5o&e1 o&$1 %&)$@/e/ >o$/. T2a/%'%o&a$$1 a&/ $e>a$$1. 8. GAA# (o$$o. T4e $%aC%$%'%es 2e?2ese&' '4e a5o@&'s '4a' '4e Ca&* o.o )o&)e?'s 4as $e/ 'o ?e2s%s'e&' a''e5?'s 'o '2ea' 5o&e1 o( a))o@&' as '4e eD@%+a$e&' o( 5o&e1 o( eG)4a&>e. s%$+e2. T4a' . T4%s ?2%&)%?$e . ?@C$%)a'%o&s. Ba&*s a2e 2eD@%2e/ 'o a/4e2e 'o Ge&e2a$$1 A))e?'e/ A))o@&'%&> #2%&)%?$es 6GAA#).e2s. clearly contemplates both disbursement of funds and eventual repayment or settlement in money of account (that is. es?e)%a$$1 s%&)e '4e 7=30s. es?e)%a$$1 %& a (2a)'%o&a$ 2ese2+e Ca&*%&> s1s'e5. I2o&%)a$$1. 5o&e'a21 a&/ Ca&*%&> s1s'e5s. GENERALLY ACCE#TED ACCOUNTING #RINCI#LES 3. I& 2ea$%'1.o2* eG?e2%e&)e. La.. Co&>2ess /e(%&es '4e ?42ase E$ '4e (o25 o( 5o&e1 o( eG)4a&>e '4a' '4e (e/e2a$ >o+e2&5e&' 6o2 a&1 s'a'e) )o@$/ Ce 2eD@%2e/ C1 s'a'@'e 'o 2e)e%+e %& ?a15e&' o( 'aGes o2 o'4e2 /eC's. )o&'eG'.e2s 6asse's o( '4e Ca&*s) are created by the banks themselves a&/ a2e &o' 5e2e$1 '2a&s(e22e/ (2o5 o&e se' o( /e?os%'o2s 'o a&o'4e2 se' o( Co22o. I&'e2&a'%o&a$ D%)'%o&a21 6:/ e/. A$so. /2a('s. 7=80). T2a/%'%o&a$$1. Fo2 &ea2$1 300 1ea2s %& Co'4 E@2o?e a&/ '4e U&%'e/ S'a'es. ?2o5%sso21 &o'es. a&/ e/@)a'%o& . 2ea/%&> '4e )@s'o5e2s. as /e(%&e/ C1 Co&>2ess. Co&/s a&/ &o'es 2e/ee5aC$e (o2 >o$/) '4a' )o&s'%'@'e/ '4e 2ese2+es o( a &a'%o&a$ Ca&* ?2%o2 'o 7=73 6/a'e o( )2ea'%o& o( '4e Fe/e2a$ Rese2+e Ba&*s). )@22e&)1. $a.%$$ Ce 'e&/e2e/ 'o De(e&/a&'s a&/ 5a1 Ce 5a/e a+a%$aC$e 'o '4e Co@2' a&/ 'o #$a%&'%((Is )o@&se$ @?o& 2eD@es'.as a& eG)4a&>e o( '4e )2e/%' o( Ba&* O&e 6#$a%&'%(() (o2 )2e/%' a??a2e&'$1 a&/ ?2e+%o@s$1 eG'e&/e/ 'o De(e&/a&'s C1 M%)4%>a& Na'%o&a$ Ba&*. Against this background. )o%&. %' 5@s' 2e)o2/ o((se''%&> $%aC%$%'%es '4a' 5a')4 '4e asse's '4a' %' a))e?'e/ (2o5 )@s'o5e2s. money of exchange would be welcome but is not re uired to repay or settle the Note!" T4e (a)'@a$ Cas%s o( '4%s )o&)$@s%o& %s '4e 2e(e2e&)e %& '4e D%sC@2se5e&' ReD@es' a&/ A@'4o2%Aa'%o& 'o 2e?a15e&' o( J=8.(@$ 5o&e1 . I& a (2a)'%o&a$ 2ese2+e Ca&*%&> s1s'e5 $%*e '4e U&%'e/ S'a'es Ca&*%&> s1s'e5. '4e 5o&e'a21 Case o( '4e e)o&o51 $a2>e$1 )o&s%s's o( )2e/%' %&s'2@5e&'s. o2 a&1 o'4e2 s%5%$a2 %&s'2@5e&'s 64e2e%&a('e2 E%&s'2@5e&'sF) (2o5 )@s'o5e2s a&/ /e?os%'s o2 2e)o2/s '4e %&s'2@5e&'s as asse's. F2o5 51 s'@/1 o( 4%s'o2%)a$ a&/ e)o&o5%) .>.o2*s as (o$$o.(@$ 5o&e1 . )4e)*s..

I Ce$%e+e '4%s 'o Ce e22o2 %& '4e 'eG' o( '4e a@'4o2Is a((%/a+%'. '4a' 5o&e1 %s $%5%'e/ 'o $e>a$ 'e&/e2 %s 2e0e)'e/.) /2a('s o2 C%$$s o( eG)4a&>e /2a. A s1&'4es%s o( '4ese so@2)es.4%)4 2e)o>&%Aes '4e )%2)@$a'%&> 5e/%@5 as a ?a2' o( '4e o((%)%a$ )@22e&)1 o( '4a' >o+e2&5e&'. . %( so. I' . Se)'%o& 7-:07 6:4) 6O((%)%a$ Co55e&').e2sI /%2e)'%o&. as a??$%e/ 'o '4e (a)'s o( '4e ?2ese&' )ase. .4o /e)$a2e/ o& 78 Ma2)1 7=< '4a' a('e2 78 L@&e 7=< '4a' Fe/ Res No'es . T4e 5os' )o55o& (o25 o( $e>a$ 'e&/e2 'o/a1 %s Fe/e2a$ Rese2+e &o'es. s%&)e 7=<4. C1 '4e 5%/&%&e'ee&'4 )e&'@21 '4e1 )o55o&$1 5a/e $oa&s 'o Co22o. 'e&/s 'o +a$%/a'e '4e )$ass%)a$ '4eo2e'%)a$ +%e.%'4 '4e Coo**ee?%&> e&'2%es '4a' @&/e2$%e '4e $oa& a))o@&' %& /%s?@'e %& '4e ?2ese&' )ase. . )a&&o' Ce 2e/ee5e/ (o2 >o$/ s%&)e 7=34 o2. E$a. o( 5o&e1. K%&/$eCe2>e2. '. 4o. ET4e 2e?a15e&' oC$%>a'%o& @&/e2 '4%s a>2ee5e&' s4a$$ )o&'%&@e @&'%$ ?a15e&' %s 2e)e%+e/ %& (@$$1 a&/ (%&a$$1 )o$$e)'e/ (@&/s. 4as Cee& '4e (o25 o( 5o&e1 o( eG)4a&>e )o55o&$1 @se/ %& '4e U&%'e/ S'a'es s%&)e 7=33.F T4@s.& @?o& '4e5se$+es 6)$a%5s o& '4e )2e/%' o( '4e /2a.4a'e+e2 '4e >o+e2&5e&' sa1s '4a' %' %s.ees) %&s'ea/ o( 3 /%sC@2se5e&'s o( C@$$%o&. CREDIT N COMMERCE :4=-:87 67=:=) a&/ C4a2$es #. A FINANCIAL HISTORY OF -ESTERN EURO#E 80-83 67=!4). MONEY.4a' (o25 o( 5o&e1 or credit %s '4e 2e?a15e&' oC$%>a'%o& /@eKF <... Mo2eo+e2. 37 U.4%)4 a+o%/s '4e e&'%2e D@es'%o& o( EI& .F %& %'s o'4e2. T4e '4%2/ ?a2'%es 4a/ 'o /e'e25%&e (o2 '4e5se$+es . T4e 2e(e2e&)e/ O((%)%a$ Co55e&' &o'es '4a' '4e /e(%&%'%o& o( 5o&e1 %s &o' $%5%'e/ 'o $e>a$ 'e&/e2 @&/e2 '4e U.4%)4 C1 $ Lo4&so& . '4ese /2a('s a&/ C%$$s )a5e 'o se2+e 5os' o( '4e o2/%&a21 (@&)'%o&s o( 5o&e1.(@$ 5o&e1 Ce)a@se %' a$$o. .C.4e'4e2 s@)4 E)2e/%' 5o&e1F 4a/ +a$@e a&/.F . 877! 6C). I& '2a&sa)'%o&s . 'o '4%2/ ?a2'%es. Mo/e2& )2e/%' a>2ee5e&'s 5%>4' %&)$@/e 2e?a15e&' $a&>@a>e s@)4 as. HO.41 #$a%&'%(( . o2 o'4e2 (o25s o( 5o&e1. )o%&.4e& /o5es'%) ?2%+a'e >o$/ '2a&sa)'%o&s . . I' %s ?oss%C$e '4a' '4%s $a&>@a>e %s 5e2e$1 a $e>a)1 (2o5 '4e ?2e-7=33 e2a.C. T4e '1?%)a$ (o25 o( s@)4 eG'e&s%o&s o( )2e/%' .C.%se 5o/e2&-see5%&> No' /2a('e/ . 5@)4. Se)'%o&s 8703.BANKS BEGAN TO LEND THEIR O-N CREDIT INSTEAD OF REAL MONEY !. a&/ 877= 6a).o@$/ 2e'a%& '4e a2)4a%) $a&>@a>e. %s as (o$$o. %' %s ?@AA$%&> .S. I& 51 o?%&%o&.C. a' '4e Co22o. %s a )o&)e?' '4a' so5e'%5es s@2(a)es %& )ases o( '4%s &a'@2e. (o2 s%$+e2. Mo&e1 %s /e(%&e/ %& Se)'%o& 7-:07 6:4) as Ea 5e/%@5 o( eG)4a&>e a@'4o2%Ae/ o2 a/o?'e/ C1 a /o5es'%) o2 (o2e%>& >o+e2&5e&' a&/ %&)$@/es a 5o&e'a21 @&%' o( a))o@&' es'aC$%s4e/ C1 a& %&'e2>o+e2&5e&'a$ o2>a&%Aa'%o& o2 C1 a>2ee5e&' Ce'. Le>a$ 'e&/e2 @&/e2 '4e U&%(o25 Co55e2)%a$ Co/e 6U.o o2 5o2e &a'%o&s.e2s o2.a2/.exchanged reciprocal credits involving money of account and not money of exchange% no lawful money was or probably ever would be disbursed by either side in the covered transactions" T4%s )o&)$@s%o& a$so %s )o&s%s'e&' .o@$/ &o' Ce eG)4a&>e/ (o2 s%$+e2 a&/ '4e ?2a)'%)e /%/ s'o? o& 78 L@&e 7=< M &o' 7=<4. No'eB I D@es'%o& '4e s'a'e5e&' '4a' (e/ 2ese2+e &o'es )a&&o' Ce 2e/ee5e/ (o2 s%$+e2 s%&)e 7=<4. T4e Fe/e2a$ Rese2+e A)' o( 7=73 . Le>a$ 'e&/e2.F T4e 2e$e+a&' O((%)%a$ Co55e&' s'a'es '4a' ET4e 'es' a/o?'e/ %s '4a' o( sa&)'%o& o( >o+e2&5e&'.%'4 '4%s /> .(@$ 5o&e1 o( '4e U&%'e/ S'a'es o( A5e2%)a.C.4e'4e2 C1 a@'4o2%Aa'%o& Ce(o2e %ss@e o2 a/o?'%o& a('e2.sB As )o55e2)%a$ Ca&*s a&/ /%s)o@&' 4o@ses 6?2%+a'e Ca&*e2s) Ce)a5e es'aC$%s4e/ %& ?a2's o( E@2o?e 6es?e)%a$$1 G2ea' B2%'a%&) a&/ No2'4 A5e2%)a. Bas%)a$$1. '4e Ces' so@2)es o( %&(o25a'%o& o& '4e o2%>%&s a&/ @se o( )2e/%' as 5o&e1 a2e %& A$(2e/ Ma2s4a$$. See. $e>a$ 'e&/e2 %s . I )o&)$@/e '4a' '4e U.e2e s@s?e&/e/ 6@&'%$ 7= 4).s ?a15e&' %& %&s'2@5e&'s '4a' )a&&o' Ce 2e/ee5e/ (o2 >o$/ o2 s%$+e2 o& /e5a&/.C.& )2e/%' 'o '4e Co22o. a 2e$a'e/ )o&)e?' C@' o&e '4a' %s e)o&o5%)a$$1 %&(e2%o2 'o $a.%'4 '4%2/ ?a2'%es. T4e &a22o.e2s C1 eG'e&/%&> '4e%2 o.

'4e ENo'eF). se)@2%'%es o2 o'4e2 )a?%'a$ eD@%+a$e&' 'o 5o&e1. thereby changing the costs and risks to the $efendants" A' 5os'. It is not an unreasonable argument to state that #laintiff apparently changed the economic substance of the transaction from that contemplated in the credit application form.& %& $a. o2 5o&e1 'o o2 o& Ce4a$( o( De(e&/a&'s.(@$ 5o&e1 o( '4e U&%'e/ S'a'es o( A5e2%)aF %s '4e '1?e o( 5o&e1 eG?$%)%'$1 )a$$e/ (o2 %& '4e No'e).4%)4 %& '@2& )o@$/ Ce . a 5o/e2& Fe/e2a$ Rese2+e /es)2%?'%o& o( a Ca&*Is $e&/%&> ?2o)ess. which creates at least the inference of ine uality of obligations o& '4e '.($I/ A) /0( (12I&A3(N/ *+ 4*N(5 =. o2 so5e'4%&> e$se o( +a$@e %& eG)4a&>e 65o&e1 o( eG)4a&>e. )2e/%' 5o&e1 %s &o' a$%e& 'o '4e )@22e&' o((%)%a$ 5o&e'a21 s1s'e5O %' %s 0@s' 2a2e$1 @se/ as a /e+%)e (o2 '4e )2ea'%o& o( Fe/e2a$ Rese2+e )2e/%' '4a'.4%)4 '4e Fe/e2a$ Rese2+e eG?a&/s '4e 5o&e1 s@??$1. %s )o&s%s'e&' .%&/o. )2e/%'. #$a%&'%(( a??a2e&'$1 asse2's '4a' '4e De(e&/a&'s s%>&e/ a ?2o5%se 'o ?a1. %' %s 4e$?(@$ 'o 2e+%e. MODERN AUTHORITIES ON MONEY 77. '4e Coo**ee?%&> e&'2%es 2eD@%2e/ C1 a??$%)a'%o& o( GAA# a&/ '4e Fe/e2a$ Rese2+eIs o. %s 'o se' Ca&*sI 2ese2+e 2eD@%2e5e&'s 6)@22e&'$1.4a' '4e #$a%&'%(( )$a%5s .(@$ 5o&e1.& )2e/%' 65o&e1 o( a))o@&'). (@&)'%o&s as 5o&e1 %& '4e )@22e&' 5o&e'a21 s1s'e5.'. '4e De(e&/a&'s a$$e>e/$1 .(@$ 5o&e1. %s 'o Ce eG)4a&>e/ (o2 Ca&* )2e/%').To @&/e2s'a&/ .4a' o))@22e/ Ce'.& . )2e/%'. C@' '4e De(e&/a&'s . a&/ $a. )2e/%'.(@$ 5o&e1 a' '4a'). T4e /%s)@ss%o& o( 5o&e1 'a*e& (2o5 Fe/e2a$ Rese2+e a&/ o'4e2 5o/e2& so@2)es %& ?a2a>2a?4s 77 e' seD. %& '4e (o25 o( e%'4e2 Fe/e2a$ Rese2+e &o'es o2 Ca&*sI /e?os%'s a' Fe/e2a$ Rese2+e Ba&*s. )o$$e)'%+e$1 2e(e22e/ 'o 4e2e%& as E5o&e1. agreement.2%'%&>s s4o@$/ '2%>>e2 )$ose s)2@'%&1 o( #$a%&'%((Is a??a2e&' asse2'%o&s '4a' %' $e&' %'s (@&/s.e2s o& '4e%2 o. )2e/%' 'o Co22o. s@)4 as a &o'e6s) o2 )2e/%' a??$%)a'%o& 6)o$$e)'%+e$1. $oose$1 /e(%&e/). '4e #$a%&'%(( eG'e&/e/ %'s o. See. . C2e/%' a' '4e Fe/e2a$ Rese2+e e+e&'@a$$1 Ce)a5e '4e ?2%&)%?a$ (o25 o( 5o&e'a21 2ese2+es o( '4e )o55e2)%a$ Ca&*%&> s1s'e5. Ho.o@$/ 4a+e 'o ?2ese&' 'o '4e sa5e Ca&*s (o2 2e/e5?'%o&.%se /es)2%Ce/ 'o 5e a&/ a??$%)a'%o& o( GAA#.o 5e)4a&%s5s 6'4e /%s)o@&' . %&)$@/%&> $a.o s%/es o( '4e '2a&sa)'%o& 65o&e1. @s@a$$1 'e& ?e2)e&' o( /e5a&/ $%aC%$%'%es) a' $e+e$s '4a' .& o2 o'4e2. (@&/s.4%)4 )e2'a%& '1?es o( Ca&*e2sI )2e/%'s )o@$/ Ce eG)4a&>e/ (o2 Fe/e2a$ Rese2+e )2e/%'s. '4e2eC1 )a@s%&> '4e5 'o o. F2%e/5a&.e2e 2eD@%2e/ 'o 2e?a1 %& 5o&e1 65o&e1 o( eG)4a&>e.e '4e #$a%&'%(( J400. )2e/%'. '4@s $ea/%&> 'o a& eG?a&s%o& o( Ca&*-)2ea'e/ )2e/%' 5o&e1. T4@s. a 5ea&s C1 . I& (a)'.4%)4 a$so )a@ses a& eG?a&s%o& o( '4e a>>2e>a'e D@a&'%'1 o( )2e/%' 5o&e1.%'4 '4e a))o@&' o( '4e o2%>%&s o( '4e @se o( Ca&* )2e/%' as 5o&e1 %& '4%s ?a2a>2a?4.e+e2.AN.& Coo*s '4a' '4%2/ ?a2'%es .5o/e$ o( '4e )o55e2)%a$ e)o&o51 %& 5%&/ a&/ ?2o+%/e/ a' $eas' '. a&/ '4e o?e&-5a2*e' '2a/%&> /es*) C1 . es?e)%a$$1 a('e2 '4e s@s?e&s%o& o( /o5es'%) '2a&sa)'%o&s %& >o$/ %& 7=33.000. A))o2/%&> 'o '4e Coo**ee?%&> e&'2%es s4o.%'4o@' ?2e+%o@s$1 se''%&> as%/e a& eD@%+a$e&' a5o@&' o( 5o&e'a21 2ese2+es 6)2e/%' )a2/ $%&e o( )2e/%' a))ess )4e)*s %ss@e/ C1 &o&-Ca&*s a2e a >oo/ eGa5?$e o( '4%s '1?e o( )2e/%'). or other similar instrument(s! that the $efendants executed. I& '4e 5o/e2& e)o&o51. %& '@2&. note(s!.o@$/ e&)o@2a>e Ca&*s 'o eG'e&/ &e. %& eG)4a&>e (o2 '4e #$a%&'%((Is a/+a&)e o( (@&/ '4e 5o&e1 $e&' 'o '4e De(e&/a&'s. . 5a&1 &o&-Ca&* ?2o+%/e2s o( )2e/%' a$so eG'e&/ Coo* )2e/%' 'o '4e%2 )@s'o5e2s . o2 so5e '1?e o( 5o&e1 'o o2 o& Ce4a$( o( De(e&/a&'. .ee& #$a%&'%(( a&/ De(e&/a&'s )o&)e2&%&> '4e a$$e>e/ $oa& o( 5o&e1 o2. Da+%/ H. /. A$&AN'() *+ .%'4/2a.F 'o 2e?a1 .e2e 'o 'e&/e2 so5e (o25 o( 5o&e1 6E$a. $oose$1 /e(%&e/. 5o2e a))@2a'e$1.

a&/ '4e &e. . Go&)A1.o@$/ 4o$/ '4%s /e5a&/ /e?os%' %& a '2a&sa)'%o& a))o@&' o& Ce4a$( o( '4e )@s'o5e2. )4e)*s. EBoo**ee?%&> e&'21 2e?2ese&'%&> a /e?os%' o( (@&/s %&'o a& a))o@&'. T4e1 a??a2e&'$1 s'a'e %& '4e a>2ee5e&' '4a' '4e De(e&/a&'s a2e oC$%>a'e/ 'o 2e?a1 #$a%&'%(( ?2%&)%?a$ a&/ %&'e2es' (o2 '4e E.ank of New 5ork.$1 %ss@e/ )2e/%' o2 5o&e1 %s s%5%$a2 o2 eD@%+a$e&' 'o a ?2o5%sso21 &o'e. .4o /e?os%' 5o&e1. . . a& %&)2ease %& '4e a5o@&' o( '4e asse' )2e/%'e/ o& '4e asse' s%/e o( %'s Coo*s a&/ a )o22es?o&/%&> %&)2ease eD@a$ 'o '4e +a$@e o( '4e asse' o& '4e $%aC%$%'1 s%/e o( %'s Coo*s. . . 89"According to the +ederal . T4e Coo**ee?%&> e&'2%es 'e&/ 'o ?2o+e '4a' Ca&*s a))e?' )as4. )o&'a%&s s'a&/a2/ Coo**ee?%&> e&'2%es /e5o&s'2a'%&> '4a' 5o&e1 o2/%&a2%$1 %s 2e)o2/e/ as a Ca&* asse'. ?2o5%sso21 &o'es.F 3.F T4e $oa& a>2ee5e&' a&/ No'e a??a2e&'$1 s'%$$ /e$e'e a&1 2e(e2e&)e 'o '4e Ca&*Is 2e)e%?' o( a)'@a$ )as4 +a$@e (2o5 '4e De(e&/a&'s a&/ eG)4a&>e o( '4a' 2e)e%?' (o2 a)'@a$ )as4 +a$@e '4a' '4e #$a%&'%(( Ca&*e2 2e'@2&e/. F%')4. e/. EC2e/%' Ca&*%&>. T4e #$a%&'%(( a)'s %& '4e )a?a)%'1 o( a $e&/%&> o2 Ca&*%&> %&s'%'@'%o&. 7: U. and credit or promissory notes (money of account! become money when banks deposit promissory notes with the intent of treating them like deposits of cash" See. o&e 5%>4' 2e(e2 'o T4o5as #. . .a$@aC$e )o&s%/e2a'%o& 65o&e1) '4e Ca&* >a+e '4e )@s'o5e2 6Co22o. . Fe/e2a$ Rese2+e Ba&* o( Ne. '4e Ca&*Is o2%>%&a$ Coo**ee?%&> e&'21 s4o@$/ s4o. o2 Ce %& a&1 s?e)%a$ (o25.e 5o&e1 'o ?e2so&s .C. money is anything that has value that banks and people accept as money% money does not have to be issued by the government" Fo2 eGa5?$e. EMo&e1 /oes&I' 4a+e 'o Ce %&'2%&s%)a$$1 +a$@aC$e. 5ea&. I BET YOU THOUGHT. Ce %ss@e/ C1 >o+e2&5e&'. 7=!4)6a??a2e&'$1 a$2ea/1 %&'2o/@)e/ %&'o '4%s )ase)B ET4e )o55e2)%a$ Ca&* $e&/%&> ?2o)ess %s s%5%$a2 'o '4a' o( a '42%(' %& '4a' '4e 2e)e%?' o( )as4 (2o5 /e?os%'o2s %&)2eases Co'4 %'s asse's a&/ %'s /e?os%' $%aC%$%'%es. Fe/e2a$ Rese2+e Ba&* o( C4%)a>o 62e+. thus moneti7ing the customer6s signature and creating on its books a liability in the form of a demand deposit or other demand liability of the bank" T4e Ca&* '4e& @s@a$$1 . /2a('s. aCse&' a&1 2%>4' o( se'o((. %' a))e?'s as a& asse' '4e Co22o. F2%e/5a&. 7=!4)6a??a2e&'$1 a$2ea/1 %&'2o/@)e/ %&'o '4%s )ase).F 73. Yo2* 64 '4 e/. . I( #$a%&'%((Is 2es?o&se 'o '4%s $%&e o( a2>@5e&' %s 'o '4e e((e)' '4a' %' a)*&o.4e& 2e)e%+e/ C1 '4e $e&/%&> Ca&*. BARRONIS BUSINESS GUIDE DICTIONARY OF BANKING TERMS.4%$e a Ca&* $%aC%$%'1 %s e+%/e&)e o( 5o&e1 '4a' a Ca&* o. a@'4o2%Aa'%o&. Da+%/ H.e2Is /eC' oC$%>a'%o& 6'4e ?2o5%se 'o 2e?a1) a&/ )2ea'es a $%aC%$%'1 o& %'s Coo*s %& '4e (o25 o( a /e5a&/ /e?os%' %& '4e a5o@&' o( '4e $oa&"F 6Co&s@5e2 $oa&s a2e (@&/e/ s%5%$a2$1.eserve .MONEY AND BANKING 64'4 e/.) T4e2e(o2e. 5o&e1 C1 /e?os%'%&> IOUs. A&&e Ma2%e L.4%)4 s4o. I&s'ea/ o( '4e Ca&* $e&/%&> %'s 5o&e1 o2 o'4e2 asse's 'o '4e )@s'o5e2. '4e Ca&* )2ea'e/ (@&/s (o2 '4e )@s'o5e2Is '2a&sa)'%o& a))o@&' .T4e ?@C$%)a'%o&.F B@' #$a%&'%((Is $oa& a>2ee5e&' a??a2e&'$1 a+o%/s )$a%5%&> '4a' '4e Ca&* a)'@a$$1 $e&' '4e De(e&/a&'s 5o&e1. eG?$a%&s '4a' Ca&*s )2ea'e &e.S.& Coo*s 2e?2ese&'%&> '4ose (@&/s 'o '4e )@s'o5e2. 'ash (money of exchange! is money. . L@&e 7==:)6a??a2e&'$1 a$2ea/1 %&'2o/@)e/ %&'o '4%s )ase). -4e& a )o55e2)%a$ Ca&* 5a*es a C@s%&ess $oa& e&aC$es %' 'o 5a*e a//%'%o&a$ $oa&s a&/ %&+es'5e&'s" 4 . a&/ ?2o5%sso21 &o'es9)2e/%' a>2ee5e&'s 6asse's) as 5o&e1 /e?os%'e/ 'o )2ea'e )2e/%' o2 )4e)*Coo* 5o&e1 '4a' a2e Ca&* $%aC%$%'%es. =. /his would show that the bank received the customer6s signed promise to repay as an asset.$e/>e a&/ /e$%+e2e/ '4e )2e/%' o& %'s o.e2).4%$e a$$e>%&> '4a' '4e Ca&* $e&' '4e )@s'o5e2 5o&e1. o((se' C1 Ca&* $%aC%$%'%es )a$$e/ )4e)*%&> a))o@&' Ca$a&)es. /- . MODERN MONEY MECHANICS -33.4%)4 5a1 Ce '2ea'e/ as a /e?os%' o( 5o&e1 . o2 *&o. Se)'%o& 7!73 6$)67) 6/e(%&%'%o& o( E/e?os%'F @&/e2 Fe/e2a$ De?os%' I&s@2a&)e A)').$e/>es '4a' %' $e&' )2e/%' o2 %ss@e/ )2e/%' %&s'ea/ o( 5o&e1.%'4o@' '4e )@s'o5e2Is ?e25%ss%o&. . as '4e )@s'o5e2 2easo&aC$1 5%>4' Ce$%e+e (2o5 '4e (a)e o( '4e No'e. #a>e 8 sa1s. Ca&*s o.s '4a'.

000 o( 5o&e1 'o '4e De(e&/a&'s.F MODERN MONEY MECHANICS.4e& Ca&*s >2a&' $oa&s.e2sI '2a&sa)'%o& a))o@&'s. 5o&e1. 5o&e1 6'4e &o5%&a$ ?2%&)%?a$ a5o@&' $ess @? 'o 'e& ?e2)e&' o2 J40. T4e #$a%&'%(( 2e)e%+e/ )o5?$e'e.4e& '4e #$a%&'%(( 2e?a%/ '4e De(e&/a&'s C1 ?a1%&> %'s o.4e& '4e Ca&* /oes '4e (o2>o%&>. #$a%&'%(( a??a2e&'$1 a))e?'e/ '4e De(e&/a&'sI No'e a&/ )2e/%' a??$%)a'%o& 65o&e1 o( a))o@&') %& eG)4a&>e (o2 %'s o.e2e a/+e2'%se/ C1 #$a%&'%(( 'o ?2o+e '4a' '4e De(e&/a&'s a2e '4e '2@e $e&/e2s a&/ '4e #$a%&'%(( %s '4e '2@e Co22o.& )2e/%' (o2 J=8. E-4a' '4e1 PCa&*sQ /o . 0@s' $%*e a ?a1)4e)* /oes. 0@s' as %( '4e De(e&/a&'s . ?a>e <. T4e (o$$o.4%)4 I 4a+e %&s@((%)%e&' %&(o25a'%o& o& .o@$/ 2eD@%2e a>a%&s' a /e5a&/ /e?os%' o( '4%s s%Ae).%&> '4a' '4e #$a%&'%(( o. as .) -4e& '4e #$a%&'%(( /e?os%'e/ '4e De(e&/a&'sI J400.%&> ?o%&' %s @&/%s?@'e/B T4e De(e&/a&'sI $oa& o( '4e%2 )2e/%' 'o #$a%&'%((.as ?a%/ ?@2s@a&' 'o .4%)4 'o (o25 a )o&)$@s%o&B I %&(e2 '4a' %' %s a$$e>e/ '4a' #$a%&'%(( 2e(@se/ 'o $e&/ '4e De(e&/a&'s #$a%&'%((Is o.000 $oa& (2o5 '4e De(e&/a&'s 'o '4e #$a%&'%((. 5o&e1 %s )2ea'e/ Ce)a@se a &e. . '4e1 )2ea'e &e.000 o( )2e/%' o2 5o&e1 o( a))o@&' (2o5 '4e De(e&/a&'s as a& asse'.000 'o J400.e2e 'o /e?os%' )as4 o2 a ?a12o$$ )4e)* %&'o '4e%2 a))o@&'.o@$/ 2eD@%2e '4a' '4e #$a%&'%(( 2e)o2/ a $%aC%$%'1 a))o@&'.e2e 2e?a%/ '4e%2 $oa& 'o #$a%&'%((. a&/ '4e '2a&sa)'%o& . T4e &e. eG?$a%&s '4a' . 7<.=08. GAA# o2/%&a2%$1 .as a J400.existing money. %&)$@/%&> )4e)*s a&/ . '4e2e %s a& @''e2 failure of consideration (o2 '4e E$oa& )o&'2a)'F.Fe/e2a$ Rese2+e Ba&* o( Da$$as ?@C$%)a'%o& MONEY AND BANKING.e$$ as a??a2e&'$1 %ss@%&> %'s o.e2. credit. /D .000 'o '4%2/-?a2'1 se$$e2s o( >oo/s a&/ se2+%)es (o2 '4e a))o@&' o( De(e&/a&'s. 7 . )2e/%'%&> '4e De(e&/a&'sI /e?os%' a))o@&'.& )2e/%' 65o&e1 o( a))o@&') %& '4e a5o@&' o( J400.%&> a??ea2s 'o Ce a /%s?@'e/ (a)' %& '4%s )ase aCo@' .000 o( &e. or assets as consideration to purchase the Note or credit agreement from the $efendants" 6RoCe2'so& No'esB I a// '4a' .F T4e &eG' se&'e&)e o& '4e sa5e ?a>e eG?$a%&s '4a' '4e Ca&*sI asse's a&/ $%aC%$%'%es %&)2ease C1 '4e a5o@&' o( '4e $oa&s.%&> 5a'e2%a$ (a)'s a2e /%s)$ose/ %& '4e )2e/%' a??$%)a'%o& o2 No'e o2 .$e/>e o( '4e (a)'s %& '4%s )ase 'o (o25 a )o&)$@s%o& o& '4e (o$$o.$1 %ss@e/ )2e/%' .%'4 '4e De(e&/a&'sI &a5es o& '4e a))o@&'. O&e 2easo&aC$1 5%>4' a2>@e '4a' '4e #$a%&'%(( 2e)o2/e/ '4e No'e o2 )2e/%' a??$%)a'%o& as a $oa& 65o&e1 o( a))o@&') (2o5 '4e De(e&/a&'s 'o '4e #$a%&'%(( a&/ '4a' '4e #$a%&'%(( '4e& Ce)a5e '4e Co22o.000 /e?os%' o( 5o&e1 o( a))o@&' C1 '4e De(e&/a&'s.7< 'o M%)4%>a& Na'%o&a$ Ba&* (o2 '4e a))o@&' o( '4e De(e&/a&'s.4e& '4e1 5a*e $oa&s %s 'o a))e?' ?2o5%sso21 &o'es %& eG)4a&>e (o2 )2e/%'s 'o '4e Co22o. I /o &o' 4a+e s@((%)%e&' *&o.4e& %ss@e/ a&/ ?a%/ (2o5 '4e%2 /e?os%' o2 )2e/%' a))o@&' a' #$a%&'%((.e2 o( a& eD@%+a$e&' a5o@&' o( 5o&e1 o( a))o@&' (2o5 '4e De(e&/a&'s. 8 COMMENTARY AND SUMMARY OF ARGUMENT 74.%2e '2a&s(e2s. '4e& %& '4a' e+e&'. E$oa& Ce)o5es a /e?os%'. 'o se$$e2s o( >oo/s a&/ se2+%)es (o2 '4e a))o@&' o( De(e&/a&'s.000 o( & J400. .4%)4 a2>@aC$1 .& 5o&e1 o2 asse's a&/ 2e)o2/e/ a J400. s4o.%&> /%s?@'e/ ?o%&'sB No&e o( '4e (o$$o. a&/ '4e& . '4e De(e&/a&'s .000 o( 2ese2+es '4a' '4e Fe/e2a$ Rese2+e . '4e #$a%&'%(( )2ea'e/ (2o5 J3<0. 8:" /he #laintiff in fact never lent any of its own pre.$1 %ss@e/ )2e/%' %&'o a& a))o@&'. sa1s. ?a>e 77.& )2e/%' 6a$so 5o&e1 o( a))o@&') a&/ /e?os%'e/ '4a' )2e/%' %&'o a& a))o@&' .2%''e& o2/e2s. /he #laintiff is trying to use the credit application form or the Note to persuade and deceive the $efendants into believing that the opposite occurred and that the $efendants were the borrower and not the lender" T4e (o$$o. Ce)a5e 5o&e1 %& '4e Fe/e2a$ Rese2+e S1s'e5 6s@C0e)' 'o a 2e/@)'%o& o( @? 'o 'e& ?e2)e&' (o2 2ese2+e 2eD@%2e5e&'s) as '4e &e.

3333333333333333333333333333333333333 No'a21 #@C$%) o( '4e S'a'e o( O4%o /1 .$e/>e o( '4e $e>a$ ?2%&)%?$es a&/ 4%s'o2%)a$ (a)'s %&+o$+e/ a&/ . a&/ 4e a)*&o.56) &(.CONCLUSION 7!.$e/>e/ 4%s s%>&a'@2e o& '4%s A((%/a+%' %& 51 ?2ese&)e a&/ s'a'e/ '4a' 4e /%/ so .%'&ess (o2 '4e De(e&/a&'s -a$*e2 F. To//. < AFFIRMATION 7=.4o ?2o+e/ 4%s %/e&'%'1 'o 5e 'o 51 sa'%s(a)'%o&.& ?@2?oses. O4%o De)e5Ce2 8.(@$ 5o&e1F $a&>@a>e %& '4e 2e?a15e&' )$a@se o( '4e No'e %s )o&(@s%&> a' Ces' a&/ %& (a)' 5a1 Ce 5%s$ea/%&> %& '4e )o&'eG' /es)2%Ce/ aCo+e. Base/ o& '4e (o2e>o%&>. (aG 6440) 33!-783 e-5a%$B .4e'4e2 #$a%&'%(( 4as %&)@22e/ a&1 (%&a&)%a$ $oss o2 a)'@a$ /a5a>es 6I /o &o' 4a+e s@((%)%e&' %&(o25a'%o& 'o (o25 a )o&)$@s%o& o& '4%s ?o%&'). .as s@C0e)' 'o '4e ?e&a$'%es o( ?e20@21. O4%o 440:: 6440) 33!-77<=.%'4 2es?e)' 'o .4%)4 I 4o$/ 51se$( o@' as a& eG?e2' o2 s'a'e5e&'s 5a/e o2 /o)@5e&'s ?2o+%/e/ 'o 5e C1 '4%2/ ?a2'%es .%'4 (@$$ @&/e2s'a&/%&> '4a' 4e .&e' S5a%$'oB. 00<483=) EG?e2' . I 4e2eC1 (@2'4e2 a((%25 '4a' '4e Cas%s o( '4ese Ce$%e(s %s e%'4e2 51 o. F@2'4e2 '4e A((%a&' sa1e'4 &a@>4'.es'o//Ra/e$?4%a. A''o2&e1 a' La. A' C4a>2%& Fa$$s.4ose +e2a)%'1 I 2easo&aC$1 ass@5e/. #$a%&'%(( %s @s%&> '4e De(e&/a&'Is No'e (o2 %'s o. '4e %&)$@s%o& o( '4e E$a. :003 3333333333333333333333333333333333333 -ALKER F.&e'T N*/A.& /%2e)' *&o. TODD 6O4%o Ca2 &o. :003 O& '4%s /a1 ?e2so&a$$1 )a5e Ce(o2e 5e '4e aCo+e-&a5e/ A((%a&'.I+I'A/I*N A' C4a>2%& Fa$$s. I 4e2eC1 a((%25 '4a' I ?2e?a2e/ a&/ 4a+e 2ea/ '4%s A((%/a+%' a&/ '4a' I Ce$%e+e '4e (o2e>o%&> s'a'e5e&'s %& '4%s A((%/a+%' 'o Ce '2@e. 77<4 S4ee2C2oo* D2%+e C4a>2%& Fa$$s. O4%o De)e5Ce2 8. a&/ %' 2e5a%&s 'o Ce ?2o+e& .es'o//Ra/e$?4%a. I& a&1 )ase.

Ohio December 5.a conclusion on this point).net <mailto:westodd@adelphia. I hereby further affirm that the basis of these beliefs is either my own direct knowledge of the legal principles and historical facts involved and with respect to which I hold myself out as an expert or statements made or documents provided to me by third parties whose veracity I reasonably assumed. fax (440) 338-1537 e-mail: westodd@adelphia. Ohio December> NOTARY’S VERIFICATION At Chagrin Falls. 6 AFFIRMATION 19. In any case. Attorney at Law 1164 Sheerbrook Drive Chagrin Falls. I hereby affirm that I prepared and have read this Affidavit and that I believe the foregoing statements in this Affidavit to be true. 0064539) Expert witness for the Defendants Walker F. Further the Affiant sayeth naught. Todd. the inclusion of the “lawful money” language in the repayment clause of the Note is confusing at best and in fact may be misleading in the context described above. At Chagrin Falls. 2003 On this day personally came before me the above-named Affiant. 2003 _____________________________________ WALKER F. Ohio 44022 (440) 338-1169. TODD (Ohio bar no. and he acknowledged his signature on this Affidavit in my presence and stated that he did so with full understanding that he was subject to the penalties of perjury. _____________________________________ Notary Public of the State of Ohio 29 . who proved his identity to me to my satisfaction.

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