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MortgageKillerEX-2

MortgageKillerEX-2

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Published by AndyJackson
how to fight the bank over your foreclosure.
how to fight the bank over your foreclosure.

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Published by: AndyJackson on Mar 17, 2011
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03/31/2014

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Mortgage Killer: Another approach to Fight the Bank

Things to do list: All names are case sensitive-John Doe or JOHN DOE The first thing to do is to nderstand !hat is reall" going on !hen a Bank #loans$ mone"% As !itho t the nderstanding "o !ill have a hard time seeing !hat is stated in their letters as the" are sing #code$ !ords developed &" la!"ers called #legalese$ that looks like English & t has different meanings than the spoken !ord English% Ever" thing defends on !here "o are on the timeline in having "o r home taken a!a"% 'f "o have ( st received "o r NOT')E OF DEFA*+T on the fact "o have missed , months of ho se pa"ments then "o are in good shape and sending the #NOT')E OF -E+F-E.E)*T'N/ )OND'T'ONA+ A))E0TAN)E$ sho ld slo! them do!n considera&l"% 1o have plent" of time to st d" the D2D$s and Books and 3ritings &efore proceeding !ith filing paper!ork% 'f "o have a NOT')E OF T4*-TEE -A+E then "o have no time and "o r ho se !ill &e sold5 6 ickl"5 pro&a&l" in ,7 da"s time% 1o need to file Bankr ptc" paper!ork immediatel" or at an" time prior to the sale date to stop the sale% 1o can find an online filing service for less than 8,77 and here$s a hint don$t state "o &orro!ed more than 87 dollars from the &ank or the ( dge !ill state "o have no e6 it" in the home and & mp it o t to &e sold% 1o can call the Bank an #alleged$ creditor as "o do not have an" proof "et% Once filed "o !ill get instant protection from the Bank for at least ,7 da"s and pro&a&l" more like 97 da"s% This !ill &e eno gh time to get a defa lt on "o r paper!ork "o !ill s &mit to the &ank and p t "o in a m ch &etter position% 1o can !ithdra! from the Bankr ptc" later &efore the J dge s!oops do!n to take an" assets% 'f a co ple months have gone &" since "o defa lted on the Banks Notice then start the proced re and st d" the D2D$s and Books !hile "o r in the process% A !ord a&o t attorne"s5 the" can &e sef l and !ork for "o r home & t never !ith the same determination that "o !ill have5 second the" have s!orn an oath to the BA4 association that !ill ca se them to a&andon "o r interests if the J dge re6 ires them to5 as the" are o&edient to the ( dge regardless and !ill lose their livel" hood &" &eing dis&arred if the" don$t pla" along% 1o !ill &e considered a child5 a !ard of the co rt5 incompetent to speak for "o rself if "o hire an attorne" as he !ill have f ll a thorit" to speak for "o even if it$s against "o r !ishes unless you hire him as ‘co-counsel’ meaning he !o ld have to cons lt "o &efore speaking or acting in co rt% 'f "o do not kno! the s &(ect "o cannot arg e the s &(ect and !ill lose% 'f "o are !eak in spirit5 "o !ill co!er !hen the" demean "o and attack "o in co rt% 't is m" hope that no one ever has to appear to defend their rights in co rt as it is a den of vipers !ith a satanic atmosphere there5 ho!ever people have &een victorio s in co rt against Banks !ith a good hearted ( dge% The follo!ing are the steps to follo! to start &ecoming free of the nconsciona&le contract "o have !ith the Bank: :% Find a Notar" !illing to follo! thro gh on a series of presentments "o !ill make to the original5 and assigned: lender5 tr stee5 and &eneficiar" of "o r home #loan$% ;% The Notar" !ill notari<e "o r signat re on vario s de&t validation letters =perfectl" legal for them as that is their normal f nction to verif" signat re>a tographs? and act as the presenter &" doing the @proof of serviceA papers =see an eBample of a proof of service in this disc? and "o !ill re6 ire an" responses from the &ank to &e sent to "o r Notar" for verification as a ,rd part" !itness% The Notar" can do an"thing an"one else can do and does not se their #seal$ or stamp on the proof of service5 it !o ld &e illegal to do so5 the" are ( st acting as a private part"% The &ea t" of this is that the &ank

cannot claim the" !ere ignorant of the notar" &eing a d l" licensed notar" &eca se the" can !itness the notar"s signat re and seal on the doc ments the notar" notari<ed =the DEBT 2A+'DAT'ON letters?% ,% The first set of Notices "o !ill send to the &ank5 tr stee and &eneficiar" are the )OND'T'ONA+ A))E0TAN)E OF DEBT *0ON 04OOF OF )+A'C OF DEBT =see this doc ment in this folder5 and the D34% E% 1o !ill also send a D34 =6 alified !ritten re6 est? demanding more or less the same proof of claim of de&t o!ed5 to !itness the original promissor" !et-ink signat re doc ment5 copies of the loan application doc ments5 and the acco nting for this alleged #loan$% The" !ill &e happ" to s ppl" these doc ments and "o need them% F% The Notar" !ill make a proof of service and sign it sing their address as the ret rn address to send an" response the &ank5 tr stee5 and &eneficiar" !o ld &e sending in response to "o r demands% 9% These notices !ill &e sent &" )ertified Cail !ith green signat re ret rn cards to gather co rt admissi&le evidence% 1o can se *-0- track and confirm http:>>!!!% sps%com>shipping>trackandconfirm%htm to verif" deliver" and ' !o ld print off a cop" from Track and )onfirm a&o t F-G da"s after posting "o r letters to confirm deliver"% Also5 al!a"s name an individ al part" as the recipient5 ie find o t !ho the )FO =chief financial officer? is of the +oan servicer or Bank5 etc% /oogle it5 search it o t5 and if "o can$t find o t !ho it is ( st address it to )FO )>O =care of? the BANH OF ACE4')A or !hoever "o r lender !as% That !a" "o can s &poena the flesh and &lood man or !oman as "o cannot p t a corporation in (ail5 onl" people go to prison% 1o !ant a man>!oman to s!eat going to (ail for not responding to "o r letters% G% The D34$s grant 97 da"s to defa lt & t m st &e ans!ered that the" received it and ackno!ledge it5 !ithin ;7 calendar da"s after receipt% The De&t validation letter is a #co nterclaim$ as the" claim "o o!e a de&t5 so "o have a right to p t in a #co nterclaim$ against them% The response time =in co rts? for a co nterclaim is ;: calendar da"s and fail re to respond in ;: da"s res lts in a defa lt ( dgment% I% After :E da"s from the time "o mailed the de&t validation letter5 mail the first opport nit" to c re letter5 giving them a second chance to c re their #dishonor$ for failing to ans!er "o r demand for proof of claim% 3hen someone sends "o a demand it is a dishonor if "o have a contract !ith them to not respond and ans!er the 6 estions% J% After ;: da"s from the time of their receipt of the De&t validation letter if the" don$t respond or if the" fail to ans!er each point "o !ill send them a NOT')E OF DEFA*+T that &arrs and estoppes them from claiming the" are the creditor and lent "o an" #mone"$% AFTE4 "o send the defa lt "o have the right to state the" &reached "o r original contract for the mortgage% After all the mortgage paper!ork states @for a loan ' have receivedA !hen in fact "o !ere never given a @loanA5 the !ord @loanA !as never defined in the doc ment =promissor" note?5 and the" have failed to prove "o act all" #&orro!ed$ an" @mone"A or even an" @creditA from them% No! "o can la!f ll" @cancelA the deed of tr st for ca se% 3hat ca seK the fact that the" didn$t have the elements of a la!f l contract in place5 ie% there !as no @f ll disclos reA or a @meeting of the mindsA !herein "o !ere told the" deposited "o r #promissor" note$ and credited "o acco nt and created

the f nds from thin air that the" advanced to the #seller$% ;% the" didn$t give an" #val a&le consideration$ 5 !hat did the" give "o of val eK 'n order for them to have given "o val e the" !o ld have to s ffer a #loss$% )o ld the" claim the" !o ld s ffer a loss if "o don$t pa" them mone" if the" created the mone" the" advanced from thin airK and ,% there !as onl" one signat re>a tograph on the contract and an" contract !here "o are the onl" signer "o can cancel it as "o don$t need there approval as the" didn$t sign it% -ee Tom -ha f$s Bankers Can al contained on this disc for a f ll disc ssion on the &anking loan & siness% 'n addition to sending off the F'NA+ DEFA*+T "o send off the )ancelled Deed of Tr st as noted &elo!% :7% -o "o take the )ertified cop" of the Deed of tr st and stamp each page !ith the cancellation stamp and make the doc ment n ll and void thro gh cancellation% -ee the J0 cancellation articles =J0 Foreclos re free? in this folder% 1o have to ask for the +oan application =origination? doc ments "o signed5 for "o r #loan$ from the &ank and the" !ill send "o copies% 1o !ill do the cancellation stamp on these as !ell as "o are canceling "o r loan application doc ments as !ell% ::% No! "o !ill need to file a NOT')E OF 04E-E42AT'ON OF 'NTE4E-T at the co nt" recorders office !ith a cop" of "o r cancelled Deed of Tr st5 and de&t validation letters stating that "o have an interest in the real propert" ="o r home identified !ith the assessors information? for the total amo nt of the loan5 after all it !as "o r promissor" note that created the f nds5 so "o are technicall" the #lender$% :;% 1o !ill also &enefit from proving the &ank sold "o r mortgage to 3all street as a Cortgage &acked sec rit" and have a pooling and serviceing agreement !ith a #tr st$% 1o can get this information in a -ec riti<ation investigation for a&o t 8:F77% An eBample is here http:>>!!!%cons merdefenseprograms%com> % C" friend =mortgage &roker? in )alifornia can do them% 1o !ill get #proof$ the" sold "o r note and once the note and deed are separated the" have no la!f l a thorit" to foreclose on the propert"% Ho!ever in the !orld of evil5 !here the &ankers r n the co ntr"5 o!n the co ntr"5 r n the co rts5 and are ver" arrogant5 don$t &e s rprised if the ( dge ref ses to #see$ an" of "o r #evidence$ and decides to keep it from &eing presented% 1o can have a #smoking g n$ and still not get ( stice% Ho!ever there are plent" of ( dges a!are of the total scam5 are disg sted !ith all the greed and are r ling against the &ankers and their evil machinations% Have conviction5 hope and make "o rself and "o r interests kno!n% :,% 1o can tr" to do a freedom of information act re6 est to the '4- to have them give proof of the &ank getting paid the f ll amo nt of the loan !hen it !as originated in the form of a taB form :7JJO'D =this !ill sho! "o r secret stra!man acco nt paid the O4'/'ANA+ '--*E D'-)O*NT- O'D? and the '4- form !ill sho! the" collected it% and again , "ears after the origination the" =the Bank? !ill appl" for a :7JJA =A L a&andonement of the f nds and ac6 isition of the f nds &" the &ank?5 lovel"5 the" get paid the f ll amo nt !hile claiming "o still o!e themK That is fra d% 4emem&er evidence of their fra d can land them in (ail5 "o can file an FB' complaint for fra d lentl" stating that "o o!e them mone" !hen "o don$t5 "o can file a complaint !ith / " )ottrel the chief investigator for the *- 0ostal -ervice for #mail fr ad$% An"time someone lies and states "o have a de&t thro gh the postal service &" sending to "o in the mail it is mail fra d and 6 ite serio s%

-o the a&ove is m" efforts at getting the &anks to fess p to &eing villains% ' have sent E notices like the ones presented here and each and ever" time the &ank5 title compan" and &eneficiar" have failed to respond !ith an"thing other that ncertified copies of the statements of pa"ments5 loan applications and deed of tr st and promissor" notes & t never an" affidavit that the" #loaned$ an" of their mone" to the alleged #&orro!er$% The" !ill never give "o proof to hang themselves !ith% The" like to state its "o r fa lt that "o co ldn$t pa" them the mone" "o &orro!ed% ' agree5 ho!ever it$s their fa lt that the ho se cost 8,775777 or 8F775777 or !hatever5 &eca se !itho t the eas" mone" offered &" the &anks no one co ld pa" that kind of mone" and ever" seller !o ld have to settle for m ch less% 3o ld that &e nice for "o K - re !o ld5 't !o ld make the pa"ments to the seller =!ho sho ld get the mone" and interest? less and ever"one !o ld &enefit% The seller !o ld have a tr e right to foreclose &eca se he lent his la&or5 not mone" printed p for free and the admonition of the Bi&le @the &orro!er is s &servient to the lenderA !o ld hold tr e% 1o have to act all" #&orro!$ real mone"5 real la&or5 real val e &efore "o can &e a #&orro!er$% The &ankers have ca sed ever" !ar5 ever" famine5 ever" depression5 ever" malad" all in the effort to ac6 ire !ealth% The recorder !ill have the Deed of Tr st and "o need a #certified cop"$% The first n m&er !ill &e the "ear =i%e% ;77E-EJE7I9I !o ld &e the "ear ;77E?% Ask the )lerk for help finding it5 and for a @certified cop"A it costs more & t is proof of &eing an eBact cop" of the original and !ill &e stamped to sho! it is a @certified cop"A % 'f "o have tro &le !ith "o r )o nt" 4ecorder filing doc ments "o can get them filed online in teBas &" sending the #originals$ and the" !ill stamp them and ret rn them to "o and post them in a pdf form for #all$ to see on the !e&% Then "o co ld post "o r legal notice in the ne!spaper 6 alified for r nning legal notices and reference "o r online postingK 3orth a shot% 4ecord online here: !!!%nationalrep &licregistr"%com> the" charge 8I for the :st page and 8; for each additional page5 a lot cheaper than the )o nt" 4ecorder & t the co nt" is the a&lsol te preferred place to give notice%

WHERE DOES THE FR !D "E#$%& F"$ F$'ES This doc ment is meant to take the reader do!n a road the" have likel" never traveled% This is a la"man$s eBplanation of !hat has &een happening in this co ntr" that most have no idea or inkling of% 't is intended to give the reader an overvie! of a s"stemic Fra d in this co ntr" that has reached epic proportions and 0rovoke action to eradicate this sco rge that has descended pon the people of America% Depending on !hat "o r sit ation is5 "o 5 anger or o tright disg st at !hat "o are a&o t to learn% The follo!ing information is s pported !ith facts5 eBhi&its5 and la! and is not mere opinion% +et$s start o r (o rne" of discover" !ith the p rchase of a home and s &se6 ent steps in the financial process thro gh the life of the @mortgage loanA% 't all starts at the @closingA !here !e gather !ith other people that are @involvedA in the process to sign the doc ments to p rchase o r ne! home% Do !e reall" kno! !hat goes on at the closingK Are !e ever told !ho all the participants are in that entire processK Are !e tr l" given @f ll disclos reA of all the vario s aspects of that entire transaction regarding !hat5 for most people5 is the single largest p rchase the" !ill make in their entire lifeK +et$s start !ith the ver" first part of the transaction% 3e have a virt al stack of papers placed in front of s and !e are instr cted !here !e are s pposed to start signing or initialing on those @closing doc mentsA% There seems to &e so man" different doc ments !ith eno gh legal lang age that !e co ld read for ho rs ( st to get thro gh them the first time5 m ch less &egin to f ll" nderstand them% Are !e given a cop" of all these doc ments at least G da"s prior to the closing so !e can read and st d" these doc ments so !e f ll" nderstand !hat it is that !e are signingK And agreeing toK That has never happened for the average cons mer and p rchaser of a propert" in the last ,7 "ears or more if it ever has at all% 3H1K 3e have a stack of doc ments placed &efore s at the @closingA that !e

haven$t ever seen &efore and are instr cted !here to sign or initial to complete the transaction and @get o r ne! homeA% 3e depend on the real estate agent5 in most cases5 to &ring the parties together at the closing after !e have s pplied eno gh financial data and other re6 ested information so that the @lenderA can determine !hether !e can 6 alif" for o r @loanA% O&vio sl" !e have the @three da" right of rescissionA & t do !e reall" stop to read all the doc ments after !e have ( st p rchased o r home and !ant to move inK 's the tho ght that there might &e something !rong !ith !hat !e have ( st signed a primar" tho ght in o r mind at that timeK Did !e tr st the people involved in the transactionK Are !e nat rall" foc sing on getting moved into o r ne! home and getting settled !ith o r famil"K 3ho are the pla"ers involved in the transaction from the perspective of the cons mer p rchasing a propert" and signing a @Cortgage NoteA and @DeedA or similar @-ec rit" 'nstr mentA at the closingK There is5 of co rse5 the seller5 the real estate agent=s?5 title ins rance compan"5 propert" appraiser !ho is s pposed to properl" determine the val e of the propert"5 and the most o&vio s one &eing !ho !e &elieve to &e @the lenderA in the transaction% 3e are led5 &" all involved5 to &elieve that !e are5 in fact5 &orro!ing mone" from the @lenderA !hich is then paid to the c rrent o!ner of the propert" as compensation for them relin6 ishing an" @claim of o!nershipA to the propert" and transferring that @claim of o!nershipA to s as the p rchaser% 't all seems so simple and clear on its face and then the transaction is completed% After the @closingA ever"one is all smiles and "o &elieve "o have a ne! home and have to r epa" the @lenderA5 over a period of "ears5 the mone" !hich "o &elieve "o have @&orro!edA% '- THE4E -OCETH'N/ 3E DON$T HNO3K Ever"thing appears to &e relativel" simple and straightfor!ard & t is that reall" the caseK )o ld it &e that there are other pla"ers involved in this !hole transaction that !e kno! nothing a&o t that have a ver" s &stantial financial interest in !hat has ( st occ rredK )o ld it &e that those pla"ers that !e are totall" that falls into the categor" of criminal cond ctK 't is !ell-esta&lished la! that Fra d vitiates =makes void? an" contract that arises from it% Does this mean that this intentional @lack of disclos reA of the tr e nat re of the contract !e have entered into is Fra d and !o ld make the mortgage contract voidK on its faceK )o ld it &e that the Fra d co ld act all" &e @st died concealment or misrepresentationA that makes those involved in the act responsi&le and acco nta&leK 3hat happens to the @NoteA once it is deposited in the &ank and is converted to @mone"AK Are there different kinds of mone"K There is mone" of eBchange and mone" of acco nt% The" are t!o ver" different things% -ee attached =EBhi&it @BA para ::?5 Affidavit of EBpert 3itness 3alker Todd% 3alker Todd eBplains in his eBpert !itness affidavit that the &anks act all" do convert signat res into mone"% The definition of @mone"A according to the *niform )ommercial )ode: "Money" means a medium of exchange authorized or adopted by a domestic or foreign government and includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more nations% Cone" can act all" &e in different forms other than !hat !e are acc stomed to thinking% 3hen "o sign "o r name on a promissor" note it &ecomes mone" !hether "o are talking a mortgage note or a credit card applicationM Did the &ankers ever @discloseA this to sK 3ere !e ever ta ght an"thing a&o t this in the school s"stem in this co ntr"K )o ld it &e that this !hole idea of &eing a&le to convert o r signat re to mone" is a @st died concealmentA or @misrepresentationA !here those involved &ecome responsi&le if !e are harmed &" their actionsK 3hat "o r home and the" come at a later date and foreclose and take it from "o K 3o ld "o consider "o rself to &e harmed in an" !a"K 3e !ill &ring this p again ver" shortl" & t !e need to look at the other doc ment that is signed at the @closingA that is of great significance%

THE DEED OF TR!ST
3h" do !e need a Deed of Tr stK 3hat eBactl" '- a Deed of Tr st or other similar @-ec rit" 'nstr mentAK 't spells o t all the details of the contract that "o are signing at the @closingA5 incl ding s ch things as ins rance re6 irements5 preservation and maintenance and all of the financial details of ho!5 !hen5 !here and !h" "o are going to make pa"ments to the @lenderA for "ears and "ears% 3ait a min teMMMMM Cake pa"ments to the @lenderAKKKK 3h" do "o have to make pa"ments to the @lenderAKKK Didn$t !e ( st esta&lish the fact that "o r ho se !as paid for &" 1O*5 !ith "o r @Cortgage NoteA that is converted to mone" &" THE BANH DE0O-'T'N/ 'TK 's there something !rong !ith this pict reK 3e have ( st paid for o r @homeA & t no! !e are told !e have to sign a Deed of Tr st or similar @-ec rit" 'nstr mentA that &inds s to pa" the @lenderA &ackK 0a" the @lenderA &ack for !hatK Did the" loan s an" mone"K 4emem&er the part a&o t &anks not &eing a&le to loan @their or their depositors mone"A nder FEDE4A+ +A3K 3hat a&o t: @'n the federal co rts5 it is !ell esta&lished that a national &ank has no po!er to lend its credit to another &" &ecoming s ret"5 indorser5 or g arantor for him%A Farmers and Miners Bank v. Bluefield Nat l Bank5 :: F ;d I,5 ;G: *%-% 99JN @A national &ank has no po!er to lend

its credit to an" person or corporation%A Bowen v. Needles Nat. Bank5 JE F J;F5 ,9 ))A FF,5 certiorari denied in ;7 -%)t :7;E5 :G9 *- 9I;5 EE +ED 9,GK 3hat is happening here !ith this @Deed of Tr stA or similar @-ec rit" 'nstr mentA that sa"s !e have to pa" all this mone" &ack and if !e don$t5 the" can foreclose and take o r homeK 3h" do !e have to have this kind of agreement !hen !e have alread" paid for o r home thro gh o r @Cortgage NoteA !hich !as converted to mone" B1 THE BANHK )o ld this possi&l" &e another eBample of @st died concealment or misrepresentationA !here those involved co ld &e held acco nta&le for their cond ctK 3hat happens to this Deed of Tr st or similar @-ec rit" 'nstr mentA after !e sign itK 3here does it goK Does it go into the va lt for safekeeping like !e might thinkK -ee attached EBhi&it @)A for s &stantiall" more information% 3HO A4E THE OTHE4 0+A1E4-K 3e have alread" fo nd o t that the @NoteA doesn$t go into the va lt for safe keeping & t instead is deposited into an acco nt at the &ank and &ecomes mone"% 3here does the Note go thenK This is !here things get 2E41 interesting &eca se "o r @Cortgage NoteA is then sed to access "o r Treas r" Acco nt =that "o kno! nothing a&o t? and get credit in the amo nt of "o r Cortgage NoteA from "o r @0repaid Treas r" Acco ntA% 'f the" process the @NoteA and get paid for it then the" have received the f nds from 1O*4 acco nt at Treas r" to pa" for 1O*4 home correctK The" then t rn aro nd and & ndle the @NoteA and sell it to investors on 3all -treet and get paid againM No! let$s see !hat happens to the @Deed of Tr stA or similar @-ec rit" 'nstr mentA after "o have signed it% 1o ma" &e 6 ite s rprised to kno! that not onl" does it not go into @safekeepingA it is immediatel" -O+D as an 'N2E-TCENT -E)*4'T1 to one of an" n m&er of investors tied to 3all -treet% There is a read"5 and !aiting5 market for all of the @mortgage paperA that is prod ced &" the &anks% 3hat happens is the @Deed of Tr stA or other similar @-ec rit" 'nstr mentA is & ndled and -O+D to a & "er and the BANH /ET- 0A'D FO4 THE 2A+*E OF THE CO4T/A/E A/A'NMM Haven$t the &ankers ( st transferred an" risk on that mortgage to someone else and the" have their mone"K That is a prett" slick !a" of doing thingsM The" A+3A1- get their mone" right a!a" and ever"one else connected to the transaction has the lia&ilitiesM 's there something !rong !ith TH'- pict reK Ho! can it possi&l" &e that the &ank has no! &een paid three times in the amo nt of "o r @p rportedA mortgageK Ho! is it that "o still have to pa" "ears and "ears on this @p rportedA loanK 3as an" of this disclosed to "o &efore "o signed the @Deed of Tr stA or other similar @-ec rit" 'nstr mentAK 3o ld "o have signed AN1 of those doc ments incl ding the @Cortgage NoteA if "o kne! that this is !hat !as act all" happeningK Do "o think there !ere an" @copiesA of the @Cortgage NoteA and @Deed of Tr stA or other similar @-ec rit" 'nstr mentA made d ring this processK Are those @copiesA ( st for the records to &e p t in a file some!here or is there another p rpose for themK )AN 4E04OD*)'N/ A NOTE O4 DEED OF T4*-T BE '++E/A+K 3e have alread" esta&lished that the @Cortgage NoteA and the @Deed of Tr stA or other similar @-ec rit" 'nstr mentA are @-ec ritiesA &" definition nder the la!% -ec rities are reg lated &" the -ec rities and EBchange )ommission !hich is an agenc" of the Federal /overnment% There are ver" strict reg lations a&o t !hat can and cannot &e done !ith @-ec ritiesA% There are ver" strict reg lations that appl" to the reprod ction or @cop"ingA of @-ec ritiesA: The )o nterfeit Detection Act of :JJ;5 0 &lic +a! :7;‐FF75 in -ection E:: of Title ,: of the )ode of Federal 4eg lations5 permits color ill strations of *%-% c rrenc" provided: • The ill stration is of a si<e less than three‐fo rths or more than one and onehalf5 in linear dimension5 of each part of the item ill strated • The ill stration is one‐sided All negatives5 plates5 positives5 digiti<ed storage medi m5 graphic files5 magnetic medi m5 optical storage devices5 and an" other thing sed in the making of the ill stration that contain an image of the ill stration or an" part thereof are destro"ed and>or deleted or erased after their final se Other O&ligations and -ec rities • 0hotographic or other likenesses of other *nited -tates o&ligations and sec rities and foreign c rrencies are permissi&le for an" non‐fra d lent p rpose5 provided the items are reprod ced in &lack and !hite and are less than three‐6 arters or greater than one‐and‐one‐half times the si<e5 in linear dimension5 of an" part of the original item &eing reprod ced% Negatives and plates sed in making the likenesses m st &e destro"ed after their se for the p rpose for !hich the" !ere made%

Title () !S* + ,-. !ttering counter/eit o0ligations or securities
3hoever5 !ith intent to defra d5 passes5 tters5 p &lishes5 or sells5 or attempts to pass5 tter5 p &lish5 or sell5 or !ith like intent &rings into the *nited -tates or keeps in possession or conceals an" falsel" made5 forged5 co nterfeited5 or altered o&ligation or other sec rit" of the *nited -tates5 shall &e fined nder this title or imprisoned not more than ;7 "ears5 or &oth%

Title () !S* + ,-1 Dealing in counter/eit o0ligations or securities
3hoever & "s5 sells5 eBchanges5 transfers5 receives5 or delivers an" false5 forged5 co nterfeited5 or altered o&ligation or other sec rit" of the *nited -tates5 !ith the intent that the same &e passed5 p &lished5 or sed as tr e and gen ine5 shall &e fined nder this title or imprisoned not more than ;7 "ears5 or &oth%

Title () !S* + ,-, 2lates3 stones3 or analog3 4igital3 or electronic
images for counterfeiting obligations or securities 3hoever5 !ith intent to defra d5 makes5 eBec tes5 ac6 ires5 scans5 capt res5 records5 receives5 transmits5 reprod ces5 sells5 or has in s ch person$s control5 c stod"5 or possession5 an analog5 digital5 or electronic image of an" o&ligation or other sec rit" of the *nited -tates is g ilt" of a class B felon"% Are these reg lations al!a"s adhered to &" the @lenderA !hen the" have possession of these @originalA -E)*4'T'E- and make reprod ctions of them &efore the" are @sold to investorsK Ho! m ch has &een in the media in the past ; "ears a&o t people demanding to see the @!et ink signat re NoteA !hen there is a foreclos re action initiated against themK 1o hear it all the time% 3h" is that s ch a &ig iss eK -ho ldn$t the @lenderA &e a&le to ( st &ring the @NoteA and the @Deed of Tr stA or similar @-ec rit" 'nstr mentA to the )o rt and sho! that the" have the original doc ments and are the @holder in d e co rseA and therefore have a legal right to forecloseK To foreclose the" m st have BOTH the @Cortgage NoteA and @Deed of Tr stA or other similar @-ec rit" 'nstr mentA O4'/'NA+ DO)*CENT- in their possession at the time the foreclos re action is initiated% F rthermore5 '- there a real honest to goodness o&ligation to &e collected onK 3h" is it that there is s ch a pro&lem !ith @lost Cortgage NotesA as is claimed &" n mero s lenders that are tr"ing to foreclose toda"K Ho! co ld it &e that there co ld &e so man" @lostA doc ments all of a s ddenK )o ld it &e that the doc ments !eren$t reall" lost at all5 & t !ere act all" t rned into a so rce of reven e that !as never disclosed as &eing a part of the transactionK To &elieve that so man" @originalA doc ments co ld &e legitimatel" @lostA in s ch a short period of time stretches the credi&ilit" of s ch claims &e"ond &elief% )o ld this &e the reason that CE4- =Cortage Electronic 4egistration -"stems? !as formed in the :JJ7$s as a !a" to s pposedl" @transfer o!nership of a mortgageA !itho t having to have the @original doc mentsA that !o ld &e re6 ired to &e presented to the vario s co nt" recordersK )o ld it &e the" HNE3 THE1 3O*+DN$T HA2E THE O4'/'NA+ DO)*CENT- FO4 4E)O4D'N/ and had to devise a s"stem to get aro nd that re6 irementK 3hen the foreclos re action is filed in the co rt the attorne" for the p rported @part" of interestA5 s all" the @lenderA !ho is foreclosing5 files a @)O01A of the @Deed of Tr stA or similar @'nvestment -ec rit"A !ith the )omplaint to &egin foreclos re proceedings% 's that @)O01A of the @-ec rit" 'nstr mentA !ithin the @reg lationsA of Federal +a! nder :I *%-%)% O EGEK 's it s all" the same si<e or ver" nearl" the same si<e as the original doc mentK 1es it is and !itho t 6 estion it is a )O*NTE4FE'T -E)*4'T1M 3ho !as it that prod ced that )O*NTE4FE'T -E)*4'T1K 3ho !as involved in taking that )O*NTE4FE'T -E)*4'T1 to the )o rt to file the foreclos re actionK 3ho is it that is no! legall" in possession of that )O*NTE4FE'T -E)*4'T1K Has ever"one from the original @lenderA do!n to the )lerk of the )o rt !here the foreclos re is no! &eing litigated &een in possession or is c rrentl" in possession of that )O*NTE4FE'T -E)*4'T1K 3hat a&o t the Tr stees !ho are involved in the process of selling foreclosed properties in non( dicial statesK 3hat a&o t the fact that there is no ( dicial proceeding in those states !here the doc mentation p rported to &e legal and proper to &ring a foreclos re action can &e verified !itho t eBpensive litigation &" the alleged @&orro!erAK All the tr stee has to do is send a letter to the alleged @&orro!erA stating the" are in defa lt and can sell their propert" at p &lic a ction% 't is ( st A--*CED that the" have the @O4'/'NA+A doc ments in their possession as re6 ired &" la!% 'n realit"5 in almost ever" sit ation5 the" do NOTMMM The" are sing a )O*NTE4FE'T -E)*4'T1 as the &asis to foreclose on a propert" that !as paid for &" the person !ho signed the @Cortgage NoteA at the closing ta&le that !as converted to mone" &" the &ank% 3hen it is demanded the" prod ce the act al @original signed doc mentsA the" almost al!a"s ref se to do so and ask the )o rt to @take their !ord for itA that the" have BOTH of the original doc ments !hich are a&sol tel" re6 ired to &e in their possession to &egin foreclos re actions% Almost ever" time the people that are &eing foreclosed on are a&le to convince the )o rt =in ( dicial foreclos res? to demand that those @original doc mentsA &e prod ced in )o rt &" the 0laintiff5 the foreclos re action stops and it is o&vio s !h" that happensM THE1 DON$T HA2E THE @O4'/'NA+A DO)*CENT-% The" have5 instead5 s &mitted a )O*NTE4FE'T -E)*4'T1 to the )o rt as their @proof of claimA to attempt to n( stl" enrich themselves thro gh a &latantl" fra d lent foreclos re action% One often cited eBample of this !as the decision handed do!n &" *% -% Federal District )o rt

J dge )hristopher A% Bo"ko of Ohio5 !ho on Octo&er ,:5 ;77G dismissed :E foreclos re actions at one time !ith scathing footnote comments a&o t the actions of the 0laintiffs and their attorne"s% -ee =EBhi&it @EA?% Not long after that came the dismissal of ;9 foreclos re cases in Ohio &" *%-% District )o rt J dge Thomas C% 4ose !ho referenced the Bo"ko r ling in his decision% -ee =EBhi&it @FA?% Ho! man" other ( dges have not &een so &rave as to stand on the principles of la! as J dges Bo"ko and 4ose did5 & t need to start doing so TODA1K Has an" of this foreclos re activit" crossed state lines in comm nications or other activitiesK Have there &een at least t!o predicate acts of Fra d &" the parties involvedK Have the people involved sed an" t"pe of electronic comm nication in this Fra d s ch as telephone5 faBing or emailK 't is o&vio s that those 6 estions have to &e ans!ered !ith a reso nding 1E-M 'f that is the case5 then the Fra d that has &een disc ssed here falls nder the 4')O stat tes of Federal +a!% Didn$t the" event all" take do!n the mo& for 4acketeering nder 4')O stat tes "ears agoK 's it time to take do!n the @NE3 COBA !ith 4')O once againK Ho! co ld this kind of sit ation ever occ r in this co ntr"K )o ld it &e that this !hole entire process co ld &e @st died concealment or misrepresentationA !here the parties involved are responsi&le nder the la! for their cond ctK )o ld it &e that it is no @accidentA that so man" @!et ink signat reA Notes cannot &e prod ced to &ack p the foreclos re actions that are devastating this co ntr"K )o ld it &e that the over!helming se of )O*NTE4FE'T -E)*4'T'E-5 as p rported evidence of a de&t in foreclos re cases5 is B1 DE-'/N and @st died concealment or misrepresentationA so as to strip the people of this co ntr" of their propert" and assetsK )o ld it &e that a 2E41 s &stantial n m&er of Banks5 Cortgage )ompanies5 +a! Firms and Attorne"s are g ilt" of o tright massive Fra d5 not onl" against the people of this co ntr"5 & t of massive Fra d on the )o rt as !ell &eca se of this )O*NTE4FE'T'N/K Ho! co ld one possi&l" come to an" other concl sion after learning the facts and nderstanding the la!K Ho! man" other people are implicated in this CA--'2E F4A*D s ch as Tr stees and -heriffs that have sold literall" millions of homes after foreclos re proceedings &ased on these )O*NTE4FE'T -E)*4'T'E- s &mitted as evidence of a p rported o&ligationK Ho! man" ( dges kno! a&o t this Fra d happening right in their o!n co rtrooms and never did an"thingK Ho! man" of them have act all" &een 0A'D for making ( dgments on foreclos resK 3o ldn$t that &e a felon" or at the ver" least5 misprision of felon"5 to kno! !hat is going on and not act to stop it or make it kno!n to a thorities in a position to investigate and stop itK Ho! is it that so man" &anks co ld recover financiall"5 so rapidl"5 from the financial de&acle of ;77I7J5 !ith foreclos res still r nning at record levels5 and "et pa" &ack taBpa"er mone" that !as sho!ered on them and do it so 6 ickl"K )o ld it &e that !hen the" take &ack a propert" in foreclos re !here the" never risked an" mone" and act all" !ere n( stl" enriched in the previo s transaction5 that it is eas" to make h ge s ms &" reselling that propert" and then &eginning the !hole @*nconsciona&leA process all over again !ith a ne! @&orro!erAK Ho! is it that ( st three "ears ago a loan !as availa&le to virt all" almost an"one !ho co ld @fog a mirrorA !ith no doc mentation of income or a&ilit" to repa" a loanK )ommon sense makes "o ask ho! @lendersA co ld possi&l" take those kinds of risks% )o ld it &e that the a&ilit" to @repa" a loanA !as not an iss e at all for the lenders &eca se the" !ere going to get their profits immediatel" and risk a&sol tel" nothing at allK )o ld it &e that5 if an"thing5 the" stood to make even more mone" if a person defa lted on the @alleged loanA in a short period of timeK The" co ld literall" o&tain the propert" for nothing other than some legal fees and co rt filing costs thro gh foreclos re% The" co ld then resell the propert" and reap additional n( st profits once againM One does not need to have &een a finance ma(or in college to fig re o t !hat has &een happening once "o are enlightened to the FA)T-% 3HAT A)T'ON- HA2E 0EO0+E TAHEN TO A2O'D +O-'N/ THE'4 HOCE- 'N FO4E)+O-*4EK There have &een a n m&er of different actions taken &" people to keep from losing their homes in foreclos re% The first and most !idel" sed tactic is to demand that the part" &ringing the foreclos re action does5 in fact5 have the standing to &ring the action% The most important iss e of standing is !hether that part" has act al possession of the @original !et ink signat reA doc ments from the closing sho!ing the" are the @holder in d e co rseA% As previo sl" mentioned5 in almost A++ cases the 0laintiff &ringing the action ref ses to make these doc ments availa&le for inspection &" the Defendant in the foreclos re action so the" can5 in fact5 determine the a thenticit" of those doc ments that are claimed to &e @originalA and p rportedl" giving the legal right to foreclose% The fact that the )o rts allo! this to happen repeatedl" !itho t demanding the 0laintiff &ring the A!et ink signat re doc mentsA into the co rt for inspection &" the Defendant5 &egs the 6 estion of !hether some of the ( diciar" are involved in this Fra d% 3here is d e process nder the la! for the Defendant !hen the 0laintiff is NOT 4ED*'4ED &" the )o rt to meet that & rden of proof

of standing5 !hen demanded5 to &ring their action of foreclos reK One other option that has &een sed more and more fre6 entl" in recent months to deal !ith foreclos re actions is the iss ing of a @Bonded 0romissor" NoteA or @Bill of EBchangeA as pa"ment to the alleged @lenderA as satisfaction of an" amo nts allegedl" o!ed &" the Defendant% As !as earlier descri&ed5 a @NoteA is mone" and as the &anks demonstrated after the closing5 it can &e deposited in the &ank and converted to mone"% -OCE of the @Bonded 0romissor" NotesA and @Bills of EBchangeA are5 in fact5 negotiated and credit is given to the acco nts specified and all t rns o t !ell% -ee =EBhi&it @BA para :;? The pro&lem that has occ rred is that CAN1 of the @lendersA sa" that the @Bonded 0romissor" NotesA and @Bills of EBchangeA are &og s doc ments and are !orthless and fra d lent and the" ref se to give credit for the amo nt of the @NoteA the" receive as pa"ment of an alleged de&t even tho gh the" are given specific instr ctions on ho! to negotiate the @NoteA% 'sn$t it interesting that THE1 can take a @NoteA that THE1 print and p t &efore "o to sign at the closing ta&le and deposit it in the &ank and it is converted to mone" immediatel"5 & t the @NoteA that 1O* iss e is !orthless and fra d lentK The onl" difference is 3HO 04'NT- THE NOTEMMMM The" are &oth signed &" the same @&orro!erA and it is that person$s credit that &acks that @NoteA% The @lendersA don$t !ant the people to kno! the" can se "o r @0repaid Treas r" Acco ntA5 ( st as the &anks do !itho t "o r kno!ledge and consent% -ee =EBhi&it @DA? for more information on@Bills of EBchangeA% The fact that -OCE of the @Bonded 0romissor" NotesA are negotiated and acco nts are settled5 proves &e"ond a shado! of a do &t that the" are legal -E)*4'T'E- ( st like the one that the &ank got from the @&orro!erA at the closing% 3h" then aren$t A++ of the @NotesA processed and credit given to the acco nts and the foreclos re dismissedK Beca se &" doing so "o !o ld &e lo!ering the National De&t and the &ankers !o ld make less mone"MMMM One ver" interesting thing that happens !ith these @Bonded 0romissor" NotesA or @Bills of EBchangeA that are s &mitted as pa"ment5 is that the" are 2E41 4A4E+1 4ET*4NED TO THE '--*E4 "et credit is not given to the intended acco nt% The" are not ret rned5 and the iss er is told the" are @&og s5 fra d lent and !orthlessA & t the" are NOT 4ET*4NEDM 3h" !o ld someone keep something that is allegedl" @&og s5 fra d lent and !orthlessAK )o ld it &e that the" are instances% There co ld &e no other eBplanation for the fail re to ret rn the allegedl" @!orthlessA doc ments 3H')H A4E A)T*A++1 -E)*4'T'E-MMM Does the fact that the" keep the @NoteA that !as s &mitted and ref se to credit the acco nt that it !as !ritten to satisf"5 rise to the level of THEFT OF -E)*4'T'E-K This is ( st one more eBample of the Fra d that is so o&vio s% This is & t one more eBample of the r thless nat re of those !ho !o ld defra d the people of this co ntr"% )ON)+*-'ON- One of the incredi&le aspects of this !hole de&acle is the fact that the ver" people !ho are participants in this Fra d are victims as !ell% Ho! man" &ank emplo"ees5 ( dges5 co rt clerks5 la!"ers5 process servers5 -heriffs and others have mortgagesK Ho! man" of the people !ho !ork in la! offices5 )o rtho ses5 -heriffs Departments and other entities that are directl" involved in this Fra d have &een fra d lentl" foreclosed on themselvesK Ho! NOT 4EA++1 @BO/*-5 F4A*D*+ENT AND 3O4TH+E--A and the @lenderA has5 in fact5 act all" negotiated them for 1ET E2EN CO4E *NJ*-T EN4')HCENTK That is eBactl" !hat happens in man" man" people in o r militar"5 la! enforcement5 firefighting and medical fields have lost their homes to this Fra dK Ho! man" of "o r friends or neigh&ors have lost their homes to these fra d lent foreclos resK Ever"one !ho has a mortgage is a 2')T'C of this fra d & t some of the most honest5 tr sting5 hardest !orking and most dedicated people in this co ntr" have &een the &iggest victims% 3ho are those !ho have &een the ma(or &eneficiaries of this massive Fra dK Those !ith the @s perior kno!ledgeA that ena&les them to take advantage of anotherPs ignorance of the la! to deceive them &" @st died concealment or misrepresentationA% This gro p of &eneficiaries incl des man" on 3all -treet5 large investors5 and most notorio sl"5 the &ankers at the top and the la!"ers !ho !ork so hard to enhance their profits and protect the Fra d &" them from &eing eBposed% The time has no! come to make those having s perior kno!ledge !ho HA2E taken advantage of anotherPs ignorance of the la! to deceive them &" st died concealment or misrepresentation to &e held responsi&le for that cond ct% This isn$t ( st an idea% 't is THE +A3 and it is time to enforce it starting !ith the criminal aspect of the fra dM *nder the doctrine of @4espondeat - periorA the people at the top of these organi<ations are responsi&le for the actions of those in their emplo"% That is !here the investigations and arrests need to start% 3hat is it going to take to p t a stop to the destr ction of this co ntr" and the lives of the people !ho live hereK 't is going to take an prising of the people of this co ntr"5 as a !hole5 to finall" sa" that the" have had eno gh% The information presented here is & t one part of the &eginning of that prising and the &eginning of the end of the Fra d pon the people of America% 't is o&vio s5 as has &een pointed o t here5 !ith s pporting evidence5 that Fra d is rampant% 1o no! kno! the stor" and can no longer sa" "o are totall" ninformed a&o t this s &(ect% This is onl" an o tline of !hat needs to5 and !ill5 &ecome common kno!ledge to the people and la! enforcement

agencies in this co ntr"% 'f "o are in la! enforcement it is 1O*4 D*T1 to take !hat "o have &een given here and move for!ard !ith "o r o!n intense investigation and root o t the Fra d and stop the theft of people$s homes% 1o r fail re to do so !o ld make "o an accessor" to the fra d thro gh "o r inaction no! that "o have &een noticed of !hat is occ rring% 'f "o are an attorne" and receive this information it !o ld do "o !ell to take it to heart5 and nderstand there is no place for "o r participation in this Fra d and if "o participate "o !ill likel" &ecome lia&le for s &stantial damages5 if not more severe conse6 ences s ch as prison% 'f "o are in the ( diciar" "o !o ld do !ell to start follo!ing the letter of the la! if "o haven$t &een5 and start making A++ of those in "o r )o rt do like!ise5 lest "o find "o rself looking for emplo"ment as so man" others are5 if "o are not incarcerated as a res lt of "o r participation in the fra d% 'f "o are part of the la! enforcement comm nit" that enforces legal matters regarding foreclos re "o !o ld do !ell to make s re that A++ things have &een done legall" and properl" rather than ( st taking the position @' am ( st doing m" (o&A and t rn a &lind e"e to !hat "o no! kno!% 'f "o are a &anker5 "o m st kno! that "o are no! going to start &eing held acco nta&le for the destr ction "o have !reaked on this co ntr"% 1o have ever" right to &e5 and sho ld &e5 afraidQQ%ver" afraid% 'f "o are one of the r thless foreclos re la!"ers that has pra"ed on the n mero s people !ho have lost their homes5 "o need to &e afraid also% 2er"5 2E41 afraid% 3hen people learn the tr th a&o t !hat "o have done to them "o can eBpect to see retaliation for !hat "o have done% 0eople are going to !ant to see those !ho defra ded them &ro ght to ( stice% !hese are not threats by any stretch of the imagination% These are ver" simple o&servations and the st d" of h man &ehavior sho!s s that !hen people find o t the" have &een defra ded in s ch a grand manner as this5 the" tend to &ecome rather angr" and search for those !ho perpetrated the fra d pon them% The foreclos re la!"ers and the &ankers !ill &e standing clearl" in their sights% The 6 estion of 3HE4E DOE- THE F4A*D BE/'N has &een ans!ered% 't &egan right at the closing ta&le and !as perpet ated all the !a" to the loss of propert" thro gh foreclos re or the incredi&le pa"ment of ;7 or ,7 "ears of pa"ments and interest &" the alleged @&orro!erA to those !ho !o ld conspire to commit Fra d5 coll sion and co nterfeiting and practice @st died concealment or misrepresentationA for their o!n n( st enrichment% The simplest of analogies: 3hat !o ld happen if "o !ere to make a copy of a 8:77 Federal 4eserve Note and go to 3almart and attempt to se it to fra d lentl" ac6 ire items that "o !antedK 1o more than likel" !o ld &e arrested and charged !ith co nterfeiting nder Title :I *-) O EGE and go to prison% 3hat is the difference5 other than the magnit de of the fra d5 &et!een that scenario and someone !ho makes a copy of a mortgage sec rit"5 and sing it thro gh foreclos re5 attempts to fra d lentl" ac6 ire a propert"K -ho ldn$t the" &e treated eBactl" the same nder the la!K The ans!er is o&vio s and no! it is starting to happen% !itle "# $%& ' ()( 3hoever5 !ith intent to defra d5 makes5 eBec tes5 ac6 ires5 scans5 capt res5 records5 receives5 transmits5 reprod ces5 sells5 or has in s ch person$s control5 c stod"5 or possession5 an analog5 digital5 or electronic image of an" o&ligation or other sec rit" of the *nited -tates is g ilt" of a class B felon"% RFra d vitiates the most solemn )ontracts5 doc ments and even ( dgmentsR S*%-% vs% Throckmorton5 JI *- 9:5 at pg% 9FT% @'t is not necessar" for rescission of a contract that the part" making the misrepresentation sho ld have kno!n that it !as false5 & t recover" is allo!ed even tho gh misrepresentation is innocentl" made5 &eca se it !o ld &e n( st to allo! one !ho made false representations5 even innocentl"5 to retain the fr its of a &argain ind ced &" s ch representations%A S3hipp v% 'verson5 E, 3is ;d :99T% RAn" false representation of material facts made !ith kno!ledge of falsit" and !ith intent that it shall &e acted on &" another in entering into contract5 and !hich is so acted pon5 constit tes Pfra d5P and entitles part" deceived to avoid contract or recover damages%R Barnsdall 4efining )orn% v% Birnam 3ood Oil )o% J; F ;9 I:G% A thoro gh reading of the attached eBhi&its !ill enlighten one even more5 incl ding EBhi&it @/A%+isting of Attached EBhi&its A% Deed of Tr st Template From Freddiemac%com =)alifornia? B% Affidavit of 3alker Todd EBpert 3itness )% Cemorand m of +a! Bank Fra d D% Cemorand m of +a! 0oints of A thorit" Bills of EBchange E% *% -% District )o rt J dge )hristopher A% Bo"ko Decision F% *% -% District )o rt J dge Thomas C% 4ose Decision /% -ec riti<ation is '++E/A+ E5hi0it " //i4a6it o/ Wal7er To44 E58ert Witness NoteN Emphasis added to this affidavit !ith 1ello! HighlightingM -TATE OF C')H'/AN 'N THE )'4)*'T )O*4T FO4 THE )O*NT1 OF OAH+AND ? BANH ONE5 N%A%5 ? )ase No% 7,-7EGEEI-)U ?

0laintiff5 ? Hon% E%% -osnick ? v% ? AFF'DA2'T OF 3A+HE4 F% TODD5 ? E.0E4T 3'TNE-- FO4 DEFENDANTHA4-HA2A4DHAN DA2E and ? 04AT'CA DA2E5 (ointl" and severall"5 ? ? Defendants% ? VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV Harshavardhan Dave and 0ratima H% Dave Cichael )% Hammer =0E:G7F? )>o F:;I Echo 4oad 4"an O% +a!lor =09E9J,? Bloomfield Hills5 C' EI,7; Dickinson 3right 0++) Defendants5 in propria persona Attorne"s for Bank One5 N%A% F77 3ood!ard Aven e5 - ite E777 Detroit5 Cichigan EI;;9 =,:,? ;;,-,F77 No! comes the Affiant5 3alker F% Todd5 a citi<en of the *nited -tates and the -tate of Ohio over the age of ;: "ears5 and declares as follo!s5 nder penalt" of per( r": :% That ' am familiar !ith the 0romissor" Note and Dis& rsement 4e6 est and A thori<ation5 dated Novem&er ;,5 :JJJ5 together sometimes referred to in other doc ments filed &" Defendants in this case as the @alleged agreementA &et!een Defendants and 0laintiff & t called the @NoteA in this Affidavit% 'f called as a !itness5 ' !o ld testif" as stated herein% ' make this Affidavit &ased on m" o!n personal kno!ledge of the legal5 economic5 and historical principles stated herein5 eBcept that ' have relied entirel" on doc ments provided to me5 incl ding the Note5 regarding certain facts at iss e in this case of !hich ' previo sl" had no direct and personal kno!ledge% ' am making this affidavit &ased on m" eBperience and eBpertise as an attorne"5 economist5 research !riter5 and teacher% ' am competent to make the follo!ing statements% 04OFE--'ONA+ BA)H/4O*ND D*A+'F')AT'ON;% C" 6 alifications as an eBpert !itness in monetar" and &anking instr ments are as follo!s% For .9 years3 $ :or7e4 as an attorney an4 legal o//icer /or the legal 4e8artments o/ the Fe4eral Reser6e "an7s o/ %e: ;or7 an4 *le6elan4< Among other things5 ' !as assigned responsi&ilit" for 6 estions involving &oth novel and ro tine notes5 &onds5 &ankers$ acceptances5 sec rities5 and other financial instr ments in connection !ith m" !ork for the 4eserve Banks$ disco nt !indo!s and parts of the open market trading desk f nction in Ne! 1ork% 'n addition5 for nine "ears5 ' !orked as an economic research officer at the Federal 4eserve Bank of )leveland% ' &ecame one of the Federal 4eserve -"stem$s recogni<ed eBperts on the legal histor" of central &anking and the pledging of notes5 &onds5 and other financial instr ments at the disco nt !indo! to ena&le the Federal 4eserve to make advances of credit that &ecame or co ld &ecome mone"% ' also have read eBtensivel" treatises on the legal and financial histor" of mone" and &anking and have p &lished several articles covering all of the s &(ects ( st mentioned% ' have served as an eBpert !itness in several trials involving &anking practices and monetar" instr ments% A s mmar" &iographical sketch and res me incl ding f rther details of m" !ork eBperience5 readings5 p &lications5 and ed cation !ill &e tendered to Defendants and ma" &e made availa&le to the )o rt and to 0laintiff$s co nsel pon re6 est% /ENE4A++1 A))E0TED A))O*NT'N/ 04'N)'0+E- ,% Banks are re6 ired to adhere to /enerall" Accepted Acco nting 0rinciples =/AA0?% /AA0 follo!s an acco nting convention that lies at the heart of the do &le-entr" &ookkeeping s"stem called the Catching 0rinciple% This principle !orks as follo!s: When a 0an7 acce8ts 0ullion3 coin3 currency3 chec7s3 4ra/ts3 8romissory notes3 or any other similar instruments =hereina/ter >instruments?@ /rom customers an4 4e8osits or recor4s the instruments as assets3 it must recor4 o//setting lia0ilities that match the assets that it acce8te4 /rom customers< The lia0ilities re8resent the amounts that the 0an7 o:es the customers3 /un4s acce8te4 /rom customers< 'n a fractional reserve &anking s"stem like the *nited -tates &anking s"stem5 most of the f nds advanced to &orro!ers =assets of the &anks? are create4 0y the 0an7s themsel6es and are not merel" transferred from one set of depositors to another set of &orro!ers% 4E+E2AN)E OF -*BT+E D'-T'N)T'ON- ABO*T T10E- OF CONE1 E% From m" st d" of historical and economic !ritings on the s &(ect5 ' concl de that a common misconception a&o t the nat re of mone" nfort natel" has &een perpet ated in the *%-% monetar" and &anking s"stems5

especiall" since the :J,7s% 'n classical economic theor"5 once economic eBchange has moved &e"ond the &arter stage5 there are t!o t"pes of mone": in &oth E rope and the *nited -tates5 conf sion a&o t the distinctiveness of these t!o concepts has led to persistent attempts to treat mone" of acco nt as the e6 ivalent of mone" of eBchange% 'n realit"5 especiall" in a fractional reserve &anking s"stem5 a comparativel" small amo nt of mone" of eBchange =e%g%5 gold5 silver5 and official c rrenc" notes? ma" s pport a vastl" larger 6 antit" of & siness transactions denominated in mone" of acco nt% The s m of these transactions is the s m of credit eBtensions in the econom"% 3ith the eBception of c stomar" stores of val e like gold and silver5 the monetar" &ase of the econom" largel" consists of credit instr ments% gainst this 0ac7groun43 $ conclu4e that the %ote3 4es8ite some language a0out >la:/ul money? e58laine4 0elo:3 clearly contem8lates 0oth 4is0ursement o/ /un4s an4 e6entual re8ayment or settlement in money o/ account =that is3 money o/ e5change :oul4 0e :elcome 0ut is not reAuire4 to re8ay or settle the %ote@< The fact al &asis of this concl sion is the reference in the Dis& rsement 4e6 est and A thori<ation to repa"ment of 8JF5J7F%:9 to Cichigan National Bank from the proceeds of the Note% That !as an eBchange of the credit of Bank One =0laintiff? for credit apparentl" and previo sl" eBtended to Defendants &" Cichigan National Bank% Also5 there is no reason to &elieve that 0laintiff !o ld ref se a s &stit tion of the credit of another &ank or &anker as complete pa"ment of the Defendants$ repa"ment o&ligation nder the Note% This is a case a&o t eBchanges of mone" of acco nt =credit?5 not a&o t eBchanges of mone" of eBchange =la!f l mone" or even legal tender?% F% 'ronicall"5 the Note eBplicitl" refers to repa"ment in @la!f l mone" of the *nited -tates of AmericaA =see @0romise to 0a"A cla se?% Traditionall" and legall"5 )ongress defines the phrase @la!f l mone"A for the *nited -tates% +a!f l mone" !as the form of mone" of eBchange that the federal government =or an" state? co ld &e re6 ired &" stat te to receive in ; pa"ment of taBes or other de&ts% Traditionall"5 as defined &" )ongress5 la!f l mone" onl" incl ded gold5 silver5 and c rrenc" notes redeema&le for gold or silver on demand% 'n a &anking la! conteBt5 la!f l mone" !as onl" those forms of mone" of eBchange =the forms reserves of a national &ank prior to :J:, =date of creation of the Federal 4eserve Banks?% %ee* +a!f l Cone"5 +ebster,s New -nternational .ictionary =;d ed% :JF7?% $n light o/ these /acts3 $ conclu4e that 2lainti// an4 De/en4ants e5change4 reci8rocal cre4its in6ol6ing money o/ account an4 not money o/ e5changeB no la:/ul money :as or 8ro0a0ly e6er :oul4 0e 4is0urse4 0y either si4e in the co6ere4 transactions< This concl sion also is consistent !ith the &ookkeeping entries that nderlie the loan acco nt in disp te in the present case% Coreover5 it is p <<ling !h" 0laintiff !o ld retain the archaic lang age5 @la!f l mone" of the *nited -tates of America5A in its other!ise modern-seeming Note% 't is possi&le that this lang age is merel" a legac" from the pre-:J,, era% Codern credit agreements might incl de repa"ment lang age s ch as5 @The repa"ment o&ligation nder this agreement shall contin e ntil pa"ment is received in fully and finally collected funds5A !hich avoids the entire 6 estion of @'n !hat form of mone" or cre4it is the repa"ment o&ligation d eKA /. 0egal tender5 a related concept & t one that is economicall" inferior to lawful money &eca se it allo!s pa"ment in instr ments that cannot &e redeemed for gold or silver on demand5 has &een the form of mone" of eBchange commonl" sed in the *nited -tates since :J,,5 !hen domestic private gold transactions !ere s spended = ntil :JGE?%% Basicall"5 legal tender is !hatever the government sa"s that it is% The most common form of legal tender toda" is Federal 4eserve notes5 !hich &" la! cannot &e redeemed for gold since :J,E or5 since :J9E5 for silver% %ee* ,: *%-%)% -ections F:7,5 F::I =&?5 and F::J =a?% Note: ' 6 estion the statement that fed reserve notes cannot &e redeemed for silver since :J9E% 't !as Johnson !ho declared on :F Carc" :J9G that after :F J ne :J9G that Fed 4es Notes !o ld not &e eBchanged for silver and the practice did stop on :F J ne :J9G W not :J9E% ' &elieve this to &e error in the teBt of the a thor$s affidavit% ). 0egal tender under the $niform &ommercial &ode 1$.&.&.25 -ection :-;7: =;E? =Official )omment?5 is a concept that sometimes s rfaces in cases of this nat re%% The referenced Official )omment notes that the definition of money is not limited to legal tender nder the *%)%)% Money is defined in -ection :-;7: =;E? as @a medi m of eBchange a thori<ed or adopted &" a domestic or foreign government and incl des a monetar" nit of acco nt esta&lished &" an intergovernmental organi<ation or &" agreement &et!een t!o or more nations%A The relevant Official )omment states that @The test adopted is that of sanction of government5 !hether &" a thori<ation &efore iss e or adoption after!ard5 !hich recogni<es the circ lating medi m as a part of the official c rrenc" of that government% The narro! vie! that mone" is limited to legal tender is re(ected%A Th s5 ' concl de that the *%)%)% tends to validate the classical theoretical vie! of mone"% HO3 BANH- BE/AN TO +END THE'4 O3N )4ED'T 'N-TEAD OF 4EA+ CONE1 I% 'n m" opinion5 the &est so rces of information on the origins and se of credit as mone" are in Alfred Carshall5 CONE15 )4ED'T X )OCCE4)E ;EJ-;F: =:J;J? and )harles 0% Hindle&erger5 A F'NAN)'A+ H'-TO41 OF 3E-TE4N E*4O0E F7-F, =:JIE?% A s"nthesis of these so rces5 as applied to the facts of the

present case5 is as follo!s: As commercial &anks and disco nt ho ses =private &ankers? &ecame esta&lished in parts of E rope =especiall" /reat Britain? and North America5 &" the mid-nineteenth cent r" the" commonl" made loans to &orro!ers &" eBtending their o!n credit to the &orro!ers or5 at the &orro!ers$ direction5 to third parties% The t"pical form of s ch eBtensions of credit !as drafts or &ills of eBchange dra!n pon themselves =claims on the credit of the dra!ees? instead of , dis& rsements of & llion5 coin5 or other forms of mone"% 'n transactions !ith third parties5 these drafts and &ills came to serve most of the ordinar" f nctions of mone"% The third parties had to determine for themselves !hether s ch @credit mone"A had val e and5 if so5 ho! m ch% The Federal 4eserve Act of :J:, !as drafted !ith this model of the commercial econom" in mind and provided at least t!o mechanisms =the disco nt !indo! and the open market trading desk? &" !hich certain t"pes of &ankers$ credits co ld &e eBchanged for Federal 4eserve credits5 !hich in t rn co ld &e !ithdra!n in la!f l mone"% )redit at the Federal 4eserve event all" &ecame the principal form of monetar" reserves of the commercial &anking s"stem5 especiall" after the s spension of domestic transactions in gold in :J,,% Th s5 credit mone" is not alien to the c rrent official monetar" s"stemN it is ( st rarel" sed as a device for the creation of Federal 4eserve credit that5 in t rn5 in the form of either Federal 4eserve notes or &anks$ deposits at Federal 4eserve Banks5 f nctions as mone" in the c rrent monetar" s"stem% 'n fact5 a means &" !hich the Federal 4eserve eBpands the mone" s ppl"5 loosel" defined5 is to set &anks$ reserve re6 irements =c rrentl"5 s all" ten percent of demand lia&ilities? at levels that !o ld enco rage &anks to eBtend ne! credit to &orro!ers on their o!n &ooks that third parties !o ld have to present to the same &anks for redemption5 th s leading to an eBpansion of &ank-created credit mone"% 'n the modern econom"5 man" non-&ank providers of credit also eBtend &ook credit to their c stomers !itho t previo sl" setting aside an e6 ivalent amo nt of monetar" reserves =credit card line of credit access checks iss ed &" non-&anks are a good eBample of this t"pe of credit?5 !hich also ca ses an eBpansion of the aggregate 6 antit" of credit mone"% The disc ssion of mone" taken from Federal 4eserve and other modern so rces in paragraphs :: et se6% is consistent !ith the acco nt of the origins of the se of &ank credit as mone" in this paragraph% DC %*ES OF " %K *RED$T S THE ED!$C 'E%T OF MO%E; J% 0laintiff apparentl" asserts that the Defendants signed a promise to pa"5 s ch as a note=s? or credit application =collectivel"5 the @NoteA?5 in eBchange for the 0laintiff$s advance of f nds5 credit5 or some t"pe of mone" to or on &ehalf of Defendant% Ho!ever5 the &ookkeeping entries re6 ired &" application of /AA0 and the Federal 4eserve$s o!n !ritings sho ld trigger close scr tin" of 0laintiff$s apparent assertions that it lent its f nds5 credit5 or mone" to or on &ehalf of Defendants5 there&" ca sing them to o!e the 0laintiff 8E775777% According to the &ookkeeping entries sho!n or other!ise descri&ed to me and application of /AA05 the Defendants allegedl" !ere to tender some form of money =@la!f l mone" of the *nited -tates of AmericaA is the t"pe of mone" eBplicitl" called for in the Note?5 sec rities or other capital e6 ivalent to mone"5 f nds5 credit5 or something else of val e in eBchange =mone" of eBchange5 loosel" defined?5 collectivel" referred to herein as @mone"5A to repa" !hat the 0laintiff claims !as the money lent to the Defendants% $t is not an unreasona0le argument to state that 2lainti// a88arently change4 the economic su0stance o/ the transaction /rom that contem8late4 in the cre4it a88lication /orm3 agreement3 note=s@3 or other similar instrument=s@ that the De/en4ants e5ecute43 there0y changing the costs an4 ris7s to the De/en4ants< At most5 the 0laintiff eBtended its o!n credit =mone" of acco nt?5 & t the Defendants !ere re6 ired to repa" in money =mone" of eBchange5 and lawful money at that?5 :hich creates at least the in/erence o/ ineAuality o/ o0ligations on the t!o sides of the transaction =money5 incl ding lawful money5 is to &e eBchanged for bank credit?% CODE4N A*THO4'T'E- ON CONE1 ::%To nderstand !hat occ rred &et!een 0laintiff and Defendants concerning the alleged loan of money or5 more acc ratel"5 credit5 it is helpf l to revie! a modern Federal 4eserve description of a &ank$s lending process% %ee5 David H% Friedman5 CONE1 AND BANH'N/ =Eth ed% :JIE?=apparentl" alread" introd ced into this case?: @The commercial &ank lending process is similar to that of a thrift in that the receipt of cash from depositors increases &oth its assets and its deposit lia&ilities5 !hich ena&les it to make additional loans and investments. E% % % 3hen a commercial &ank makes a & siness loan5 it accepts as an asset the &orro!er$s de&t o&ligation =the promise to repa"? and creates a lia&ilit" on its &ooks in the form of a demand deposit in the amo nt of the loan.A =)ons mer loans are f nded similarl"%? Therefore5 the &ank$s original &ookkeeping entr" sho ld sho! an increase in the amo nt of the asset credited on the asset side of its &ooks and a corresponding increase e6 al to the val e of the asset on the lia&ilit" side of its &ooks% This :oul4 sho: that the 0an7 recei6e4 the customer’s signe4 8romise to re8ay as an asset3 thus monetizing the customer’s signature an4 creating on its 0oo7s a lia0ility in the /orm o/ a 4eman4 4e8osit or other

4eman4 lia0ility o/ the 0an7< The &ank then s all" !o ld hold this demand deposit in a transaction acco nt on &ehalf of the c stomer% 'nstead of the &ank lending its money or other assets to the c stomer5 as the c stomer reasona&l" might &elieve from the face of the Note5 the &ank created f nds for the c stomer$s transaction acco nt !itho t the c stomer$s permission5 a thori<ation5 or kno!ledge and delivered the credit on its o!n &ooks representing those f nds to the c stomer5 mean!hile alleging that the &ank lent the c stomer money% 'f 0laintiff$s response to this line of arg ment is to the effect that it ackno!ledges that it lent credit or iss ed credit instead of mone"5 one might refer to Thomas 0% Fitch5 BA44ON$- B*-'NE-/*'DE D')T'ONA41 OF BANH'N/ TE4C-5 @)redit &anking5A ,% @Bookkeeping entr" representing a deposit of f nds into an acco nt%A B t 0laintiff$s loan agreement apparentl" avoids claiming that the &ank act all" lent the Defendants money% The" apparentl" state in the agreement that the Defendants are o&ligated to repa" 0laintiff principal and interest for the @2al a&le consideration =mone"? the &ank gave the c stomer =&orro!er?%A The loan agreement and Note apparentl" still delete an" reference to the &ank$s receipt of act al cash val e from the Defendants and eBchange of that receipt for act al cash val e that the 0laintiff &anker ret rned% (.< ccor4ing to the Fe4eral Reser6e "an7 o/ %e: ;or73 money is anything that has 6alue that 0an7s an4 8eo8le acce8t as moneyB money 4oes not ha6e to 0e issue4 0y the go6ernment< For eBample5 David H% Friedman5 ' BET 1O* THO*/HT% % % % J5 Federal 4eserve Bank of Ne! 1ork =Eth ed% :JIE?=apparentl" alread" introd ced into this case?5 eBplains that &anks create ne! mone" &" depositing 'O*s5 promissor" notes5 offset &" &ank lia&ilities called checking acco nt &alances% 0age F sa"s5 @Cone" doesn$t have to &e intrinsicall" val a&le5 &e iss ed &" government5 or &e in an" special form% % % %A :,%The p &lication5 Anne Carie +% /onc<"5 CODE4N CONE1 CE)HAN')- G-,,5 Federal 4eserve Bank of )hicago =rev% ed% J ne :JJ;?=apparentl" alread" introd ced into this case?5 contains standard &ookkeeping entries demonstrating that money ordinaril" is recorded as a &ank asset5 !hile a &ank liability is evidence of money that a &ank o!es% The &ookkeeping entries tend to prove that &anks accept cash5 checks5 drafts5 and promissor" notes>credit agreements =assets? as money deposited to create credit or check&ook mone" that are &ank liabilities5 !hich sho!s that5 a&sent an" right of setoff5 &anks o!e money to persons !ho deposit money%% *ash =money o/ e5change@ is money3 an4 cre4it or 8romissory notes =money o/ account@ 0ecome money :hen 0an7s 4e8osit 8romissory notes :ith the intent o/ treating them li7e 4e8osits o/ cash< %ee5 :; *%-%)% -ection :I:, =l2=:? =definition of @depositA nder Federal Deposit 'ns rance Act?% The 0laintiff acts in the capacit" of a lending or &anking instit tion5 and the ne!l" iss ed credit or mone" is similar or e6 ivalent to a promissor" note5 !hich ma" &e treated as a deposit of mone" !hen received &" the lending &ank%% Federal 4eserve Bank of Dallas p &lication CONE1 AND BANH'N/5 page ::5 eBplains that !hen &anks grant loans5 the" create ne! mone"% The ne! mone" is created &eca se a ne! @loan &ecomes a deposit5 ( st like a pa"check does%A CODE4N CONE1 CE)HAN')-5 page 95 sa"s5 @3hat the" S&anksT do !hen the" make loans is to accept promissor" notes in eBchange for credits to the &orro!ers$ transaction acco nts%A The neBt sentence on the same page eBplains that the &anks$ assets and lia&ilities increase &" the amo nt of the loans% F )OCCENTA41 AND -*CCA41 OF A4/*CENT :E% 0laintiff apparentl" accepted the Defendants$ Note and credit application =mone" of acco nt? in eBchange for its o!n credit =also mone" of acco nt? and deposited that credit into an acco nt !ith the Defendants$ names on the acco nt5 as !ell as apparentl" iss ing its o!n credit for 8JF5J7F%:9 to Cichigan National Bank for the acco nt of the Defendants% One reasona&l" might arg e that the 0laintiff recorded the Note or credit application as a loan =mone" of acco nt? from the Defendants to the 0laintiff and that the 0laintiff then &ecame the &orro!er of an e6 ivalent amo nt of mone" of acco nt from the Defendants% (E< The 2lainti// in /act ne6er lent any o/ its o:n 8re-e5isting money3 cre4it3 or assets as consi4eration to 8urchase the %ote or cre4it agreement /rom the De/en4ants< =4o&ertson Notes: ' add that !hen the &ank does the forgoing5 then in that event5 there is an tter failure of consideration for the @loan contractA%? 3hen the 0laintiff deposited the Defendants$ 8E775777 of ne!l" iss ed credit into an acco nt5 the 0laintiff created from 8,975777 to 8E775777 of ne! mone" =the nominal principal amo nt less p to ten percent or 8E75777 of reserves that the Federal 4eserve !o ld re6 ire against a demand deposit of this si<e?% The 0laintiff received 8E775777 of credit or mone" of acco nt from the Defendants as an asset% /AA0 ordinaril" !o ld re6 ire that the 0laintiff record a lia&ilit" acco nt5 crediting the Defendants$ deposit acco nt5 sho!ing that the 0laintiff o!es 8E775777 of mone" to the Defendants5 ( st as if the Defendants !ere to deposit cash or a pa"roll check into their acco nt% :9% The follo!ing appears to &e a disp ted fact in this case a&o t !hich ' have ins fficient information on !hich to form a concl sion: ' infer that it is alleged that 0laintiff ref sed to lend the Defendants 0laintiff$s o!n mone" or assets and recorded a 8E775777 loan from the Defendants to the 0laintiff5 !hich arg a&l" !as a 8E775777 deposit of mone" of acco nt &" the Defendants5 and then !hen the 0laintiff

repaid the Defendants &" pa"ing its o!n credit =mone" of acco nt? in the amo nt of 8E775777 to third-part" sellers of goods and services for the acco nt of Defendants5 the Defendants !ere repaid their loan to 0laintiff5 and the transaction !as complete% :G% ' do not have s fficient kno!ledge of the facts in this case to form a concl sion on the follo!ing disp ted points: None of the follo!ing material facts are disclosed in the credit application or Note or !ere advertised &" 0laintiff to prove that the Defendants are the tr e lenders and the 0laintiff is the tr e &orro!er% The 2lainti// is trying to use the cre4it a88lication /orm or the %ote to 8ersua4e an4 4ecei6e the De/en4ants into 0elie6ing that the o88osite occurre4 an4 that the De/en4ants :ere the 0orro:er an4 not the len4er< The follo!ing point is ndisp ted: The Defendants$ loan of their credit to 0laintiff5 !hen iss ed and paid from their deposit or credit acco nt at 0laintiff5 &ecame mone" in the Federal 4eserve -"stem =s &(ect to a red ction of p to ten percent for reserve re6 irements? as the ne!l" iss ed credit !as paid p rs ant to !ritten orders5 incl ding checks and !ire transfers5 to sellers of goods and services for the acco nt of Defendants% )ON)+*-'ON :I% Based on the foregoing5 0laintiff is sing the Defendant$s Note for its o!n p rposes5 and it remains to &e proven !hether 0laintiff has inc rred an" financial loss or act al damages =' do not have s fficient information to form a concl sion on this point?% 'n an" case5 the incl sion of the @la!f l mone"A lang age in the repa"ment cla se of the Note is conf sing at &est and in fact ma" &e misleading in the conteBt descri&ed a&ove% 9 AFF'4CAT'ON :J% ' here&" affirm that ' prepared and have read this Affidavit and that ' &elieve the foregoing statements in this Affidavit to &e tr e% ' here&" f rther affirm that the &asis of these &eliefs is either m" o!n direct kno!ledge of the legal principles and historical facts involved and !ith respect to !hich ' hold m"self o t as an eBpert or statements made or doc ments provided to me &" third parties !hose veracit" ' reasona&l" ass med% F rther the Affiant sa"eth na ght% At )hagrin Falls5 Ohio Decem&er F5 ;77, VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV 3A+HE4 F% TODD =Ohio &ar no% 779EF,J? EBpert !itness for the Defendants 3alker F% Todd5 Attorne" at +a! ::9E -heer&rook Drive )hagrin Falls5 Ohio EE7;; =EE7? ,,I-::9J5 faB =EE7? ,,I-:F,G e-mail: !estoddYadelphia%net Zmailto:!estoddYadelphia%net[ %OT R;’S CER$F$* T$O% At )hagrin Falls5 Ohio Decem&er F5 ;77, On this da" personall" came &efore me the a&ove-named Affiant5 !ho proved his identit" to me to m" satisfaction5 and he ackno!ledged his signat re on this Affidavit in m" presence and stated that he did so !ith f ll nderstanding that he !as s &(ect to the penalties of per( r"% VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV Notar" 0 &lic of the -tate of Ohio G E5hi0it * Memoran4um o/ 'a: "an7 Frau4 MEMOR %D!M OF ' W F " %K FR !D ' have5 thro gh research5 learned the follo!ing to &e tr e and most likel" applies to me5 !hich is the reason ' have re6 ested and demanded @the &ankA to validate their claims and prod ce p rs ant to applica&le la!% This CECO4AND*C serves to s pport m" s spicions and identif" criminal facts% The @&ankA allegedl" @loaned me their mone"A !hen in realit" the" deposited =credited? m" promissor" note and sed that deposit to @pa" m" sellerA% -o rce and reasoning after revie!ing the original file clearl" sho!s this fact5 !hich is the reason for the @&ankA ref sing and failing to validate and to prod ce as stip lated &" la!% Ho!ever5 the tr th is o t and there is plent" of la! &acking p the fact that the &ank is criminal%

FORE*'OS!RE *T$O%S %D * SES ' WF!''; D$SM$SSED =%OT 'ETT$%# " %K FORE*'OSE W$THO!T ' WF!' C '$D T$O% %D 2ROD!*T$O%@ "; THE *O!RTS D!E TO " %KGS F $'!RE TO C '$D TE H 2ROD!*E S ST$2!' TED "; ' W %D *OMM$TTED >" %K FR !D? # $%ST THE "ORROWER FROM THE " R SSO*$ T$O%GS OFF$*$ ' WE" S$TE :... 3this &ourt has the responsibility to assure itself that the foreclosure plaintiffs have standing and that sub4ect matter 4urisdiction re5uirements are met at the time the complaint is filed. 6ven without the concerns raised by the documents the plaintiffs have filed* there is reason to 5uestion the existence of standing and the 4urisdictional amount3. 7ver 89 cases are covered by the B:; at< http:>>!!!%a&anet%org>rpte>p &lications>ereport>;77I>,>Ohioforeclos res%pdf :% @A national &ank has no po!er to lend its credit to an" person or corporation % % %A Bo!en v% Needles Nat% Bank5 JE F J;F ,9 ))A FF,5 certiorari denied in ;7 -%)t :7;E5 :G9 *- 9I;5 EE +ED 9,G% ;% )o ntr"!ide Home +oans5 'nc% v Ta"lor - Ca"er5 J%5 - preme )o rt5 - ffolk )o nt" > J>7G ,% American Brokers )ond it v% UACA++OA - J dge -)HA)H ;IJan;77I A rora +oan -ervices v% CA)0HE4-ON - J dge FA4NET' : :Car;77I E% @A &ank ma" not lend its credit to another even tho gh s ch a transaction t rns o t to have &een of &enefit to the &ank5 and in s pport of this a list of cases might &e cited5 !hich-!o ld look like a catalog of ships%A SEmphasis addedT Norton /rocer" )o% v% 0eoples Nat% Bank5 :EE -E F7F% :F: 2a :JF% F% @'n the federal co rts5 it is !ell esta&lished that a national &ank has not po!er to lend its credit to another &" &ecoming s ret"5 indorser5 or g arantor for him%AP Farmers and Ciners Bank v% Bl efield Nat Pl Bank5 :: F ;d I,5 ;G: *%-% 99J% 9% Bank of Ne! 1ork v% -'N/H - J dge H*4TU :EDec;77G G% Bank of Ne! 1ork v% TO44E- - J dge )O-TE++O ::Car;77I I% Bank of Ne! 1ork v% O4O-)O - J dge -)HA)H :JNov;77G )iti Cortgage 'nc% v% B4O3N - J dge FA4NET' :,Car;77I J% @The doctrine of ltra vires is a most po!erf l !eapon to keep private corporations !ithin their legitimate spheres and to p nish them for violations of their corporate charters5 and it pro&a&l" is not invoked too oftenQ% Uinc )ar&onate )o% v% First National Bank5 :7, 3is :;F5 GJ N3 ;;J% American EBpress )o% v% )iti<ens -tate Bank5 :JE N3 E,7% R't has &een settled &e"ond controvers" that a national &ank5 nder federal +a! &eing limited in its po!ers and capacit"5 cannot lend its credit &" g aranteeing the de&ts of another% All s ch contracts entered into &" its officers are ltra vires % % %R Ho!ard X Foster )o% v% )iti<ens NatPl Bank of *nion5 :,, -) ;7;5 :,7 -E GFJ=:J;9?% :7% @% % % checks5 drafts5 mone" orders5 and &ank notes are not la!f l mone" of the *nited -tates %%%A -tate v% Neilon5 G, 0ac ,;E5 E, Ore :9I% ::% American Brokers )ond it v% UACA++OA - J dge -)HA)H :: -ep;77G )o ntr"!ide Cortgage v% BE4+'*H - J dge )O-TE++O : ,Car;77I :;% De tsche Bank v% Barnes-J dgment Entr" :,% De tsche Bank v% Barnes-3ithdra!al of O&(ections and Cotion to Dismiss De tsche Bank v% A+ECAN1 J dge )O-TE++O 7GJan;77I De tsche Bank v% Ben(amin )4*U W J dge H*4TU ;:Ca";77I De tsche Bank v% 1o&anna )4*U - J dge H*4TU ;:Ca";77I De tsche Bank v% )ABA4O1 - J dge )O-TE++O 7;Apr;77I De tsche Bank v% )A-TE++ANO- > ;77GN1-lipOpF7JGI*>- J dge -)HA)H ::Ca";77G :E% De tsche Bank v% )A-TE++ANO-> ;77IN1-lipOpF77,,*> - J dge -)HA)H :EJan ;77I :F% H-B) v% 2alentin - J dge -)HA)H calls them liars and dismisses 3'TH pre( dice \\ :9% De tsche Bank v% )+O*DEN > ;77GN1-lipOpF : G9G*> J dge -)HA)H : I-ep;77G :G% De tsche Bank v% EUA/*' - J dge -)HA)H ;:Dec;77G De tsche Bank v% /4ANT - J dge -)HA)H ;FApr;77I De tsche Bank v% HA44'- - J dge -)HA)H 7FFe&;77I :I% De tsche Bank v% +a)rosse5 )ede5 DT) )omplaint :J% De tsche Bank v% N')HO++- - J dge H*4TU ;:Ca";77I De tsche Bank v% 41AN - J dge H*4TU ;JJan;77I De tsche Bank v% -AC0-ON - J dge H*4TU :9Jan;77I ;7% De tsche v% Carche - Order to -ho! )a se to 2A)ATE J dgment of Foreclos re W :: J ne;77J ;:% /CA) Cortgage ++) v% CATTHE3- - J dge H*4TU :7Jan;77I /CA) Cortgage ++) v% -E4AF'NE J dge )O-TE++O 7IJan;77I H-B) Bank *-A NA v% )'04'AN' J dge )O-TE++O 7IJan;77I H-B) Bank *-A NA v% JA)H - J dge )O-TE++O 7;Apr;77I 'nd"Cac Bank F-B v% 4ODNE1-4O-- - J dge H*4TU :FJan;77I +a-alleBank NA v% )HA4+E*- - J dge H*4TU 7,Jan;77I +a-alleBank NA v% -CA++- - J dge H*4TU 7,Jan;77I 0HH Cortgage )orp v% BA4BE4 - J dge H*4TU :FJan;77I 0ropert" Asset Canagement v% H*A1TA 7FDec;77G ;;% 4ivera5 'n 4e -ervices ++) v% -ATTA4 > ;77GN1-lipOpF : IJF*> - J dge -)HA)H 7JOct;77G

;,% *-Bank NA v% A*/*-TE - J dge H*4TU ;GNov;77G *-Bank NA v% /4ANT - J dge H*4TU :EDec;77G *-Bank NA v% 4O*NDT4EE - J dge B*4HE ::Oct;77G *-Bank NA v% 2'++A4*E+ - J dge H*4TU 7:Fe&;77I ;E% 3ells Fargo Bank NA v% HAC0TON - J dge H*4TU 7, Jan;77I ;F% 3ells Fargo5 +itton +oan v% Farmer 3'TH 04EJ*D')E J dge -chack J ne;77I ;9% 3ells Fargo v% 4e"es 3'TH 04EJ*D')E5 Fra d on )o rt X -anctions J dge -chack J ne;77I ;G% De tsche Bank v% 0ea&od" J dge Nolan =4eg lation U? 'nd"mac Bank5F-B v% Bo"d - -chack J% Jan ar" ;77J ;I% 'nd"mac Bank5 F-B v% Bethle" - -chack5 J% Fe&r ar" ;77J = The tale of man" hats? ;J% +a-alle Bank Natl% Assn% v Ahearn - Appellate Division5 Third Department =0ro -e? ,7% NE3 JE4-E1 )O*4T D'-C'--E- FO4E)+O-*4E F'+ED B1 DE*T-)HE BANH FO4 FA'+*4E TO 04OD*)E THE NOTE ,:% 3hittiker v% De tsche =CECO4AND*C 'N O00O-'T'ON TO DEFENDANT-$ COT'ON- TO D'-C'-- 2 3hittiker =0+A'NT'FF-$ OBJE)T'ON- TO 4E0O4T AND 4E)OCCENDAT'ON? 3hittiker =DEFENDANT 3E+TCAN5 3E'NBE4/ X 4E'- )O%5 +0A$- 4E-0ON-E TO 0+A'NT'FF-$ OBJE)T'ON- TO 4E0O4T AND 4E)OCCENDAT'ON? 3hittiker =4E-0ON-E TO 0+A'NT'FF-$ OBJE)T'ON- TO CA/'-T4ATE J*D/E 0EA4-ON$- 4E0O4T AND 4E)OCCENDAT'ON TO /4ANT 'T- COT'ON TO D'-C'--? ,;% Novastar v% -n"der \ 1lack of standing2 -n"der 1motion to amend w=pre4udice2 -n"der 1response to amend2 ,,% 3ashington C t al v% )it" of )leveland 1+:M$>s motion to dismiss2 ,E% ;77I-Ohio-::GGN D+J Ctge% )apital5 'nc% v% 0arsons =%? ;eversed for lack of standing? ,F% Everhome v% 4o!land ,9% De tsche - )lass Action =4')O? Bank of Ne! 1ork v% TO44E- W J dge )O-TE++O : :Car;77I ,G% De tsche Bank Ans!er 3hittiker ,I% Canle" Ans!er 3hittiker ,J% J stice Arth r C% -chack E7% J dge Holsch h- -ho! ca se E:% J dge Holsch h- Dismissals E;% J dge Bo"koPs De tsche Bank Foreclos res E,% 4ose )omplaint for Foreclos re ] 4ose Dismissals EE% OPCalle" Dismissals EF% )it" Of )leveland v% Banks E9% Do!d Dismissal EG% EC) canPt find the note EI% Oc!en canPt find the note EJ% *- Bank canPt find the Note F7% *- Bank - No Note F:% He" Bank - No Note F;% 3ells Fargo - Defective pleading F,% )omplaint in Jack v% CE4-5 )iti5 De tsche FE% /CA) v% Carsh FF% Cassach setts : 4o&in Ha"es v% De tsche Bank F9% Florida: De tsche BankPs - mmar" J dgment Denied FG% TeBas: CE4- v% 1o ng > ;nd )irc it )o rt of Appeals - 0ANE+: +'2'N/-TON5 DA*0H'NOT5 and C))O15 JJ% FI% Nevada: CE4- cr shed: 'n re Citchell FJ% RNeither5 as incl ded in its po!ers not incidental to them5 is it a part of a &ankPs & siness to lend its credit% 'f a &ank co ld lend its credit as !ell as its mone"5 it might5 if it received compensation and !as caref l to p t its name onl" to solid paper5 make a great deal more than an" la!f l interest on its mone" !o ld amo nt to% 'f not caref l5 the po!er !o ld &e the mother of panics5 % % % 'ndeed5 lending credit is the eBact opposite of lending mone"5 !hich is the real & siness of a &ank5 for !hile the latter creates a lia&ilit" in favor of the &ank5 the former gives rise to a lia&ilit" of the &ank to another% - Morse. Banks and Banking Fth Ed% -ec 9FN Magee* Banks and Banking5 ,rd Ed% -ec ;EI%R American EBpress )o% v% )iti<ens -tate Bank5 :JE N3 E;J% 97% R't is not !ithin those stat tor" po!ers for a national &ank5 even tho gh solvent5 to lend its credit to another in an" of the vario s !a"s in !hich that might &e done%R Federal 'ntermediate )redit Bank v% + PHerrison5 ,, F ;d IE:5 IE; =:J;J?%

9:% RThere is no do &t & t !hat the la! is that a national &ank cannot lend its credit or &ecome an accommodation endorser%R National Bank of )ommerce v% Atkinson5 FF E EG:% 9;% RA &ank can lend its mone"5 & t not its credit%R First NatPl Bank of Tallapoosa v% Conroe % :,F /a 9:E5 9J -E ::;E5 ,; +4A =N-? FF7% 9,% R%% % the &ank is allo!ed to hold mone" pon personal sec rit"N & t it m st &e mone" that it loans5 not its credit%R -eligman v% )harlottesville Nat% Bank5 , H ghes 9EG5 Fed )ase No%:;5 9E;5 :7,J% 9E% RA loan ma" &e defined as the deliver" &" one part" to5 and the receipt &" another part" of5 a s m of mone" pon an agreement5 eBpress or implied5 to repa" the s m !ith or !itho t interest%R 0arsons v% FoB :GJ /a 97F5 :G9 -E 9EE% Also see Hirklandv% Baile"5 :FF -E ;d G7: and *nited -tates v% Neifert 3hite )o%5 ;EG Fed - pp IGI5 IGJ% 9F% RThe !ord Pmone"P in its s al and ordinar" acceptation means gold5 silver5 or paper mone" sed as a circ lating medi m of eBchange % % %R +ane v% 4aile" ;I7 H" ,:J5 :,, -3 ;d GF% 99% RA promise to pa" cannot5 &" arg ment5 ho!ever ingenio s5 &e made the e6 ivalent of act al pa"ment %%%R )hristensen v% Bee&e5 J: 0 :,,5 ,; *tah E79% 9G% @A &ank is not the holder in d e co rse pon merel" crediting the depositors acco nt%A Bankers Tr st v% Nagler5 ;;J N1- ;d :E;5 :E,% 9I% RA check is merel" an order on a &ank to pa" mone"%R 1o ng v% Hem&ree5 G, 0;d ,J, 9J% RAn" false representation of material facts made !ith kno!ledge of falsit" and !ith intent that it shall &e acted on &" another in entering into contract5 and !hich is so acted pon5 constit tes Pfra d5P and entitles part" deceived to avoid contract or recover damages%R Barnsdall 4efining )orn% v% Birnam 3ood Oil )o% J; F ;9 I:G% G7% RAn" cond ct capa&le of &eing t rned into a statement of fact is representation% There is no distinction &et!een misrepresentations effected &" !ords and misrepresentations effected &" other acts%R +eonard v% -pringer :JG 'll F,;% 9E NE ,7:% G:% @'f an" part of the consideration for a promise &e illegal5 or if there are several considerations for an nsevera&le promise one of !hich is illegal5 the promise5 !hether !ritten or oral5 is !holl" void5 as it is impossi&le to sa" !hat part or !hich one of the considerations ind ced the promise%A Cenominee 4iver )o% v% A g st s -pies + X ) )o%5:EG 3is FFJ-FG;N :,; N3 ::;;% G;% @The contract is void if it is onl" in part connected !ith the illegal transaction and the promise single or entire%A / ardian Agenc" v% / ardian C t% -avings Bank5 ;;G 3is FF75 ;GJ N3 I,% G,% @'t is not necessar" for recision of a contract that the part" making the misrepresentation sho ld have kno!n that it !as false5 & t recover" is allo!ed even tho gh misrepresentation is innocentl" made5 &eca se it !o ld &e n( st to allo! one !ho made false representations5 even innocentl"5 to retain the fr its of a &argain ind ced &" s ch representations%A 3hipp v% 'verson5 E, 3is ;d :99% GE% REach Federal 4eserve &ank is a separate corporation o!ned &" commercial &anks in its region %%%R +e!is v% *nited -tates5 9I7 F ;7 :;,J =:JI;?% HOW %D WH; THE " %KS SE*RET'; %D D!$*K'; >SW$T*H *!RRE%*;? NOT FULFILL THE “LOAN AGREE ENT “!THE "ONTRA"T# O$TAIN %OUR ORTGAGE NOTE &ITHOUT IN'E(TING ONE "ENT TO FOR"E %OU TO LA$OR TO )A% INTERE(T ON “THE "ONTRA"T “ TO REFU(E TO FULFILL “THE "ONTRA"T “ TO A*E %OU A +E)O(ITOR !NOT A $ORRO&ER# The oldest scheme thro gho t Histor" is the changing of c rrenc"% 4emem&er the mone"changers in the temple =B'B+E?K ,If -ou lend mone- to - .eo.le/ to t0e .oor among -ou/ -ou are not to act as a creditor to 0im1 -ou s0all not c0arge 0im interest2 E3odus 44546. The" changed c rrenc" as a & siness% 1o !o ld have to convert to Temple c rrenc" in order to & " an animal for sacrifice% The Temple Cerchants made mone" &" the eBchange% The Bi&le calls it n( st !eights and meas res5 and ( dges it to &e an a&omination% Jes s cleared the Temple of these a&ominations% O r )hristian Fo nding Fathers did the same% Ben Franklin said in his a to&iograph"5 R%%% the ina&ilit" of the colonists to get the po!er to iss e their o!n mone" permanentl" o t of the hands of Hing /eorge ''' and the international &ankers !as the prime reason for the revol tionar" !ar%A The "ear :J:, !as the third attempt &" the E ropean &ankers to get their s"stem &ack in place !ithin the *nited -tates of America% 0resident Andre! Jackson ended the second attempt in :I,9% 3hat the" co ld not !in militaril" in the 4evol tionar" 3ar the" attempted to accomplish &" a &anking mone" scheme !hich allo!ed the E ropean Banks to o!n the mortgages on nearl" ever" home5 car5 farm5 ranch5 and & siness at no cost to the &ank% 4e6 iring @3e the 0eopleA to pa" interest on the e6 it" !e lost and the &ank got free% Toda" people &elieve that cash and coins &ack p the all checks% 'f "o deposit 8:77 of cash5 the &ank records the cash as a &ank asset =de&it? and credits a Demand Deposit Acco nt =DDA?5 sa"ing that the &ank o!es "o 8:77% For the 8:77 lia&ilit" the &ank

o!es "o 5 "o ma" receive cash or !rite a check% 'f "o !rite a 8:77 check5 the 8:77 lia&ilit" "o r &ank o!es "o is transferred to another &ank and that &ank o!es 8:77 to the person "o !rote the check to% That person can !rite a 8:77 check or receive cash% -o far there is no pro&lem% 4emem&er one thing ho!ever5 for the check to &e valid there m st first &e a deposit of mone" to the &anks SSETS5 to make the check =lia&ilit"? good% The lia&ilit" is like a HO'D$%# **O!%T claiming that mone" !as deposited to make the check good% Here then3 is ho: the s:itch in currency ta7es 8lace The &ank advertises it loans$ mone"% The &ank sa"s5 Rsign hereR% Ho!ever the &ank never signs &eca se the" kno! the" are not going to lend "o theirs5 or other depositorPs mone"% *nder the la! of &ankr ptc" of a nation5 the mortgage note acts like mone"% The &ank makes it look like a loan & t it is not% $t is an e5change< The 0an7 recei6es the eAuity in the home you are 0uying3 /or /ree3 in e5change /or an un8ai4 0an7 lia0ility that the 0an7 cannot 8ay3 :ithout returning the mortgage note< $/ the 0an7 ha4 /ul/ille4 its en4 o/ the contract3 the 0an7 coul4 not ha6e recei6e4 the eAuity in your home /or /ree< The 0an7 recei6es your mortgage note :ithout in6esting or ris7ing onecent< The 0an7 sells the mortgage note3 recei6es cash or an asset that can then 0e con6erte4 to cash an4 still re/uses to loan you their or other 4e8ositorsG money or 8ay the lia0ility it o:es you< On a 8:775777 loan the &ank does not give p 8:775777% The &ank receives 8:775777 in cash or an asset and iss es a 8:775777 lia&ilit" =check? the &ank has no intention of pa"ing% The 8:775777 the &ank received in the alleged loan is the e6 it" =lien on propert"? the &ank received !itho t investment5 and it is the 8:775777 the individ al lost in e6 it" to the &ank% The 8:775777 e6 it" the individ al lost to the &ank5 !hich demands he>she repa" pl s interest% The loan agreement the &ank told "o to sign said +OAN% The &ank &roke that agreement% The &ank no! o!ns the mortgage note !itho t loaning an"thing% The &ank then deposited the mortgage note in an acco nt the" opened nder "o r name !itho t "o r a thori<ation or kno!ledge% The &ank !ithdre! the mone" !itho t "o r a thori<ation or kno!ledge sing a forged signat re% The &ank then claimed the mone" !as the &anks$ propert"5 !hich is a fra d lent conversion% The mortgage note !as deposited or de&ited =asset? and credited to a Direct Deposit Acco nt5 =DDA? =lia&ilit"?% The credit to Direct Deposit Acco nt =lia&ilit"? !as sed from !hich to iss e the check% The &ank ( st s!itched the c rrenc"% The &ank demands that "o cannot se the same c rrenc"5 !hich the &ank deposited =promissor" notes or mortgage notes? to discharge "o r mortgage note% The &ank ref ses to loan "o other depositorsP mone"5 or pa" the lia&ilit" it o!es "o for having deposited "o r mortgage note% To pa" this lia&ilit" the &ank m st ret rn the mortgage note to "o % Ho!ever instead of the &ank pa"ing the lia&ilit" it o!es "o 5 the &ank demands "o se these npaid &anklia&ilities5 created in the alleged loan process5 as the ne! c rrenc"% No! "o m st la&or to earn the &ank c rrenc" = npaid lia&ilities created in the alleged loan process? to pa" &ack the &ank% 3hat the &ank received for free5 the individ al lost in e6 it"% 'f "o tried to repa" the &ank in like kind c rrenc"5 =!hich the &ank deposited !itho t "o r a thori<ation to create the check the" iss ed "o ?5 then the &ank claims the promissor" note is not mone"% The" !ant pa"ment to &e in legal tender =check &ook mone"?% The mortgage note is the mone" the &ank ses to & " "o r propert" in the foreclos re% The" get "o r real propert" at no cost% 'f the" accept "o r promissor" note to discharge the mortgage note5 the &ank can se the promissor" note to & " "o r home if "o sell it% Their pro&lem is5 the promissor" note stops the interest and there is no lien on the propert"% 'f "o sell the home &efore the &ank can find o t and se the promissor" note to & " the home5 the &ank lost% The &ank claims the" have not &o ght the home at no cost% D estion is5 !hat right does the &ank have to receive the mortgage note at no cost in direct violation of the contract the" !rote and ref sed to sign or f lfill% B" demanding that the &ank f lfill the contract and not change the c rrenc"5 the &ank m st deposit "o r second promissor" note to create check &ook mone" to end the fra d5 p tting ever"one &ack in the same position the" !here5 prior to the fra d5 in the first place% Then all the homes5 farms5 ranches5 cars and & sinesses in this co ntr" !o ld &e redeemed and the e6 it" ret rned to the rightf l o!ners =the people?% 'f not5 ever" time the homes are refinanced the &anks get the e6 it" for free% 1o and ' m st la&or ;7 to ,7 "ears f ll time as the &ankers sit &ehind their desks5 la ghing at s &eca se !e are too st pid to fig re it o t or to force them to f lfill their contract% The 8:775777 created inflation and this increases the e6 it" val e of the homes% On an average homes are refinanced ever" G :>; "ears% 3hen the home is refinanced the &ank again receives the e6 it" for free% 3hat the &ank receives for free the alleged &orro!er loses to the &ank% According to the Federal 4eserve Banks$ o!n &ook of 4ichmond5 2a% titled @1O*4 CONE1A page seven5 ><<<4eman4 4e8osit accounts are not legal ten4er<<<? 'f a promissor" note is legal tender5 the &ank m st accept it to discharge the mortgage note% The &ank changed the c rrenc" from the mone" deposited5 =mortgage note? to check &ook mone" =lia&ilit" the &ank o!es for the mortgage note deposited? forcing s to la&or to pa" interest on the e6 it"5 in real propert" =real estate? the &ank received for free% This cost !as not disclosed in %OT$*E TO *!STOMER RED!$RED "; FEDER '

' W3 Fe4eral Reser6e Regulation I< 3hen a &ank sa"s the" gave "o credit5 the" mean the" credited "o r transaction acco nt5 leaving "o !ith the pres mption that the" deposited other depositors mone" in the acco nt% The fact is the" deposited "o r mone" =mortgage note?% The &ank cannot mone"5 the" are to credit a Demand Deposit Acco nt nder "o r name5 so "o can !rite checks and spend "o r mone"% 'n this case the" claim "o r mone" is their mone"% Ask a criminal attorne" !hat happens in a fra d lent conversion of "o r f nds to the &ankPs se and &enefit5 !itho t "o r signat re or a thori<ation% 3hat the &anks co ld not !in vol ntaril"5 thro gh deception the" received for free% -everal presidents5 John Adams5 Thomas Jefferson5 and A&raham +incoln &elieved that &anker capitalism !as more dangero s to o r li&erties than standing armies% *%-% 0resident James A% /arfield said5 @3hoever controls the mone" in an" co ntr" is a&sol te master of ind str" and commerce%R The )hicago Federal 4eserve BankPs &ook5ACodern Cone" CechanicsA5 eBplains eBactl" ho! the &anks eBpand and contract the check&ook mone" s ppl" forcing people into foreclos re% This co ld never happen if contracts !ere not violated and if !e receivede6 al protection nder the la! of )ontract% HOW THE " %K SW$T*HES THE *!RRE%*; This is a repeat !orded differentl" to &e s re "o nderstand it% %ou must understand t0e currenc- s7itc0< The &ank does not loan mone"% The &ank merel" s!itches the c rrenc"% The alleged &orro!er created mone" or c rrenc" &" simpl" signing the mortgage note% The &ank does not sign the mortgage note &eca se the" kno! the" !ill not loan "o their mone"% The mortgage note acts like mone"% To make it look like the &ank loaned "o mone" the &ank deposits "o r mortgage note =lien on propert"? as mone" from !hich to iss e a check% No mone" !as loaned to legall" f lfill the contract for the &ank to o!n the mortgage note% B" doing this5 the &ank received the lien on the propert" !itho t risking or sing one cent% The people lost the e6 it" in their homes and farms to the &ank and no! the" m st la&or to pa" interest on the propert"5 !hich the &ank got for free and the" lost% The check is not mone"5 the check merel" transfers mone" and &" transferring mone" the check acts +'HE mone"% The mone" deposited is the mortgage note% -f the bank never fulfills the contract to loan money* then the bank does not own the mortgage note. The deposited mortgage note is still "o r mone" and the checking acco nt the" set p in "o r name5 !hich the" credited5 from !hich to iss e the check5 is still "o r mone"% The" onl" ret rned "o r mone" in the form of a check% 3h" do "o have to f lfill "o r end of the agreement if the &ank ref ses to f lfill their end of the agreementK 'f the &ank does not loan "o their mone" the" have not f lfilled the agreement5 the contract is void% ;ou create4 currency 0y sim8ly signing the mortgage note< The mortgage note has val e &eca se of the lien on the propert" and &eca se of the fact that "o are to repa" the loan% The &ank deposits the mortgage note =c rrenc"? to create a check =c rrenc"5 &ank mone"?% Both c rrencies cost nothing to create% B" la! the &ank cannot create c rrenc" =&ank mone"5 a check? !itho t first depositing c rrenc"5 =mortgage note? or legal tender% For the check to &e valid there m st &e mortgage note or &ank mone" as legal ten4er5 & t the &ank accepted c rrenc" =mortgage note? as a deposit !itho t telling "o and !itho t "o r a thori<ation% The &ank !ithdre! "o r mone"5 !hich the" deposited !itho t telling "o and !ithdre! it !itho t "o r signat re5 in a fra d lent conversion scheme5 !hich can land the &ankers in (ail & t is pla"ed o t in ever" )it" and To!n in this nation on a dail" &asis% Without loaning you money3 the 0an7 4e8osits your money =mortgage note@3 :ith4ra:s it an4 claims it is the 0an7Gs money an4 that it is their money they loane4 you< 't is not a loan5 it is merel" an eBchange of one c rrenc" for another5 the"Pll o!e "o the mone"5 !hich the" claimed the" !ere to loan "o % 'f the" do not loan the mone" and merel" eBchange one c rrenc" for another5 the &ank receives the lien on "o r propert" for free% 3hat the" get for free "o lost and m st la&or to pa" &ack at interest% 'f the &anks loaned "o legal tender5 the" co ld not receive the liens on nearl" ever" home5 car5 farm5 and & siness for free% The people !o ld still o!n the val e of their homes% The &ank m st sell "o r c rrenc" =mortgage note? for legal tender so if "o se the &ankPs c rrenc" =&ank mone"?5 and !ant to convert c rrenc" =&ank mone"? to legal tender the" !ill &e a&le to make it appear that the c rrenc" =&ank mone"? is &acked &" legal tender% The &ankPs c rrenc" =&ank mone"? has no val e !itho t "o r c rrenc" =mortgage note?% The &ank cannot sell "o r c rrenc" =mortgage note? !itho t f lfilling the contract &" loaning "o their mone"% The" never loaned mone"5 the" merel" eBchanged one c rrenc" for another% The &ank received "o r c rrenc" for free5 !itho t making an" loan or f lfilling the contract5 changing the cost and the risk of the contract !herein the" ref sed to sign5 kno!ing that it is a change of c rrenc" and not a loan% 'f "o se c rrenc" =mortgage note?5 the same c rrenc" the &ank deposited to create c rrenc" =&ank mone"?5 to pa" the loan5 the &ank re(ects it and sa"s "o m st se c rrenc" =&ank mone"? or legal tender% The &ank received "o r c rrenc" =mortgage note? and the &ankPs c rrenc" =&ank mone"? for free !itho t sing legal tender and !itho t loaning mone" there&" ref sing to f lfill the contract% No! the &ank s!itches the c rrenc" !itho t loaning mone" and demands to receive "o r la&or to pa"

!hat !as not loaned or the &ank !ill se "o r c rrenc" =mortgage note? to & " "o r home in foreclos re5 The 4evol tionar" !ar !as fo ght to stop these &ank schemes% The &ank has a !ritten polic" to eBpand and contract the c rrenc" =&ank mone"?5 creating recessions5 forcing people o t of !ork5 allo!ing the &anks to o&tain "o r propert" for free% 'f the &anks loaned legal tender5 this !o ld never happen and the home !o ld cost m ch less% 'f "o allo! someone to o&tain liens for free and create a ne! c rrenc"5 !hich is not legal tender and "o m st se legal tender to repa"% This changes the cost and the risk% *nder this &ank scheme5 even if ever"one in the nation o!ned their homes and farms de&t free5 the &anks !o ld soon receive the liens on the propert" in the loan process% The liens the &anks receive for free5 are !hat the people lost in propert"5 and no! m st la&or to pa" interest on% The interest !o ld not &e paid if the &anks f lfilled the contract the" !rote% 'f there is e6 al protection nder the la! and contract5 "o co ld get the mortgage note &ack !itho t f rther la&or% 3h" sho ld the &ank get "o r mortgage note and "o r la&or for free !hen the" ref se to f lfill the contract the" !rote and told "o to signK -orr" for the red ndanc"5 & t it is important for "o to kno! &" heart their @shell gameA5 ' !ill contin e in that red ndanc" as it is imperative that "o nderstand the principle% The follo!ing material is case la! on the s &(ect and other related legal iss es as !ell as a s mmar"% 'O#$* S EC$DE%*E The check !as !ritten !itho t ded cting f nds from -avings Acco nt or )ertificate of Deposit allo!ing the mortgage note to &ecome the ne! pool of mone" o!ed to Demand Deposit Acco nt5 -avings Acco nt5 )ertificate of Deposit !ith Demand Deposit5 -avings Acco nt5 and>or )ertificate of Deposit increasing &" the amo nt of the mortgage note% 'n this case the &ankers sell the mortgage note for Federal 4eserve Bank Notes or other assets !hile still o!ing the lia&ilit" for the mortgage note sold and !itho t the &ank giving p an"- Federal 4eserve Bank Notes% 'f the &ank had to part !ith Federal 4eserve Bank Notes5 and !itho t the &enefit of checks to hide the fra d lent conversion of the mortgage note from !hich it iss es the check5 the &ank fra d !o ld &e eBposed% Federal 4eserve Bank Notes are the onl" mone" called legal tender% 'f onl" Federal 4eserve Bank Notes are deposited for the credit to Demand Deposit Acco nt- -avings Acco nt5 )ertificate of Deposit5 and if the &ank !rote a check for the mortgage note5 the check then transfers Federal 4eserve Bank Notes and the &ank gives the &orro!er a &ank asset% There is no increase in the check &ook mone" s ppl" that eBists in the loan process% The &ank polic" is to increase &ank lia&ilitiesN Demand Deposit Acco nt5 -avings Acco nt5 )ertificate of Deposit5 &" the mortgage note% 'f the mortgage note is mone"5 then the &ank never gave p a &ank asset% The &ank simpl" sed fra d lent conversion of o!nership of the mortgage note% The &ank cannot o!n the mortgage note ntil the &ank f lfills the contract% The check is not the mone"N the mone" is the deposit that makes the check good% 'n this case5 the mortgage note is the mone" from !hich the check is iss ed% 3ho o!ns the mortgage note !hen the mortgage note is depositedK The &orro!er o!ns the mortgage note &eca se the &ank never paid mone" for the mortgage note and never loaned mone" =&ank asset?% The &ank simpl" claimed the &ank o!ned the mortgage note !itho t pa"ing for it and deposited the mortgage note from !hich the check !as iss ed% This is fra d lent conversion% The &ank risked nothingM Not even one penn" !as invested% The" never took mone" o t of an" acco nt5 in order to o!n the mortgage note5 as proven &" the &ookkeeping entries5 financial ratios5 the &alance sheet5 and of co rse the &ankPs literat re% The &ank simpl" never complied !ith the contract% 'f the mortgage note is not mone"5 then the check is check kiting and the &ank is insolvent and the &ank still never paid% 'f the mortgage note is mone"5 the &ank took o r mone" !itho t sho!ing the deposit5 and !itho t pa"ing for it5 !hich is fra d lent conversion% The &ank claimed it o!ned the mortgage note !itho t pa"ing for it5 then sold the mortgage note5 took the cash and never sed the cash to pa" the lia&ilit" it o!ed for the check the &ank iss ed% The lia&ilit" means that the &ank still o!es the mone"% The &ank m st ret rn the mortgage note or the cash it received in the sale5 in order to pa" the lia&ilit"% Even if the &ank did this5 the &ank still never loaned s the &ankPs mone"5 !hich is !hat PloanP means% The check is not mone" & t merel" an order to pa" mone"% 'f the mortgage note is mone" then the &ank m st pa" the check &" ret rning the mortgage note% The onl" !a" the &ank can pa" Federal 4eserve Bank Notes for the check iss ed is to sell the mortgage note for Federal 4eserve Bank Notes% Federal 4eserve Bank Notes are non-redeema&le in violation of the *))% The &ank forces s to trade in non-redeema&le private &ank notes of !hich the &ank ref ses to pa" the lia&ilit" o!ed% 3hen !e present the Federal 4eserve Bank Notes for pa"ment the &ank ( st gives s &ack another Federal 4eserve Bank Note !hich the &ank paid ; :>; cents for per &ill regardless of denomination% What a 8ro/it /or the 0an7J The check iss ed can onl" &e redeemed in Federal 4eserve Bank Notes5 !hich the &ank o&tained &" selling the mortgage note that the" paid nothing for% The &ank forces s to trade in &ank lia&ilities5 !hich the" never redeem in an asset% 3e the people are forced to give p o r assets to the &ank for free5 and !itho t cost to the &ank% This is fra d lent conversion making the contract5 !hich the &ank created !ith their polic" of &ookkeeping entries5 illegal and the alleged contract n ll and void% The &ank has no right to the mortgage note or to a lien on the propert"5 ntil the

&ank performs nder the contract% The &ank had less than ten percent of Federal 4eserve Bank Notes to &ack p the &ank lia&ilities in Demand Deposit Acco nt5 -avings Acco nt5 or )ertificate of DepositPs% A &ank lia&ilit" to pa" mone" is not mone"% 3hen !e tr" and repa" the &ank in like f nds =s ch as is the &anks polic" to deposit from !hich to iss e checks? the" claim it is not mone"% The &ankPs conf sing and deceptive trade practices and their alleged contracts are nconsciona&le% S!MM R; OF D M #ES The &ank made the alleged &orro!er a depositor &" depositing a 8:775777 negotia&le instr ment5 !hich the &ank sold or had availa&le to sell for approBimatel" 8:775777 in legal tender% The &ank did not credit the &orro!erPs transaction acco nt sho!ing that the &ank o!ed the &orro!er the 8:775777% 4ather the &ank claimed that the alleged &orro!er o!ed the &ank the 8:7757775 then placed a lien on the &orro!erPs real propert" for 8:775777 and demanded loan pa"ments or the &ank !o ld foreclose% The &ank deposited a non-legal tender negotia&le instr ment and eBchanged it for another non legal tender check5 !hich traded like mone"5 sing the deposited negotia&le instr ment as the mone" deposited% The &ank changed the c rrenc" !itho t the &orro!erPs a thori<ation% First &" depositing non legal tender from !hich to iss e a check =!hich is non-legal tender? and sing the negotia&le instr ment ="o r mortgage note?5 to eBchange for legal tender5 the &ank needed to make the check appear to &e &acked &" legal tender% No loan ever took place% Which shell hi4es the little 8ea& The transaction that took place !as merel" a change of c rrenc" =!itho t a thori<ation?5 a negotia&le instr ment for a check% The negotia&le instr ment is the mone"5 !hich can &e eBchanged for legal tender to make the check good% An eBchange is not a loan% The &ank eBchanged 8:775777 for 8:775777% There !as no need to go to the &ank for an" mone"% The c stomer =alleged &orro!er? did not receive a loan5 the alleged &orro!er lost 8:775777 in val e to the &ank5 !hich the &ank kept and recorded as a &ank asset and never loaned an" of the &ankPs mone"% 'n this eBample5 the damages are 8:775777 pl s interest pa"ments5 !hich the &ank demanded &" mail% The &ank illegall" placed a lien on the propert" and then threatened to foreclose5 f rther damaging the alleged &orro!er5 if the pa"ments !ere not made% A depositor is o!ed mone" for the deposit and the alleged &orro!er is o!ed mone" for the loan the &ank never made and "et placed a lien on the real propert" demanding pa"ment% Damages e5ist in that the 0an7 re/uses to loan their money< The &ank denies the alleged &orro!er e6 al protection nder the la! and contract5 &" merel" eBchanging one c rrenc" for another and ref sing repa"ment in the same t"pe of c rrenc" deposited% The &ank ref sed to f lfill the contract &" not loaning the mone"5 and &" the &ank ref sing to &e repaid in the same c rrenc"5 !hich the" deposited as an eBchange for another c rrenc"% A de&t tender offered and ref sed is a de&t paid to the eBtent of the offer% The &ank has no a thori<ation to alter the alleged contract and to ref se to perform &" not loaning mone"5 &" changing the c rrenc" and then ref sing repa"ment in !hat the &ank has a !ritten polic" to deposit% The seller of the home received a check% The mone" deposited for the check iss ed came from the &orro!er not the &ank% The &ank has no right to the mortgage note ntil the &ank performs &" loaning the mone"% 'n the transaction the &ank !as to loan legal tender to the &orro!er5 in order for the &ank to sec re a lien% The &ank never made the loan5 & t kept the mortgage note the alleged &orro!er signed% This allo!ed the &ank to o&tain the e6 it" in the propert" =&" a lien? and transfer the !ealth of the propert" to the &ank !itho t the &ankPs investment5 loan5 or risk of mone"% Then the &ank receives the alleged &orro!erPs la&or to pa" principal and *s r" interest% 3hat the people o!ned or sho ld have o!ned de&t free5 the &ank o&tained o!nership in5 and for free5 in eBchange for the people receiving a de&t5 pa"ing interest to the &ank5 all &eca se the &ank ref sed to loan mone" and merel" eBchanged one c rrenc" for another% This places "o in perpet al slaver" to the &ank &eca se the &ank ref ses to perform nder the contract% The lien forces pa"ment &" threat of foreclos re% The mail is sed to eBtort pa"ment on a contract the &ank never f lfilled% 'f the &ank ref ses to perform5 then the" m st ret rn the mortgage note% 'f the &ank !ishes to perform5 then the" m st make the loan% The past pa"ments m st &e ret rned &eca se the &ank had no right to lien the propert" and eBtort interest pa"ments% The &ank note for t!o reasons% The mortgage note !as deposited and the mone" !ithdra!n !itho t a thori<ation &" sing a forged signat re andN t!o5 the contract !as never f lfilled% The &ank acted !itho t a thori<ation and is involved in a fra d there&" damaging the alleged &orro!er% E5cer8ts From >Mo4em Money Mechanics? 2ages 1 H K +hat Makes Money @aluableA -n the $nited %tates neither paper currency nor deposits have value as commodities. -ntrinsically* a dollar bill is 4ust a piece of paper* deposits merely book entries. &oins do have some intrinsic value as metal* but generally far less than face value. !hen* bankers discovered that they could make loans merely by giving their promises to pay* or bank notes* to borrowers* in this way* banks began to create money. More notes could be issued than the gold and coin on hand because only a portion of the notes outstanding would be presented for payment at any one time. 6nough metallic money had to be kept on hand* of course* to redeem whatever volume of notes was presented for payment. !ransaction deposits are the modem

counterpart of bank notes. -t was a small step from printing notes to making book entries crediting deposits of borrowers* which the borrowers in turn could "spend" by writing checks* thereby "printing" their own money. Notes/ e3c0ange 8ust li9e c0ec9s. Bow do open market purchases add to bank reserves and depositsA %uppose the Federal ;eserve %ystem* through its trading desk at the Federal ;eserve Bank of New Cork* buys D"9*999 of !reasury bills from a dealer in $.%. government securities. -n today>s world of &omputer financial transactions* the Federal ;eserve Bank pays for the securities with an "electronic" check drawn on itself. @ia its "Fedwire" transfer network* the Federal ;eserve notifies the dealer>s designated bank 1Bank :2 that payment for the securities should be credited to 1deposited in2 the dealer>s account at Bank :. :t the same time* Bank :>s reserve account at the Federal ;eserve is credited for the amount of the securities purchased. !he Federal ;eserve %ystem has added D"9*999 of securities to its assets* which it has paid for* in effect* by creating a liability on itself in the form of bank reserve balances. !hese reserves on Bank :>s books are matched by D"9*999 of the dealer>s deposits that did not exist before. -f business is active* the banks with excess reserves probably will have opportunities to loan the DE*999. 7f course* they do not really pay out loans from money they receive as deposits. -f they did this* no additional money would be created. +hat they do when they make loans is to accept promissory notes in exchange for credits to tile borrower>s transaction accounts. 0oans 1assets2 and deposits 1liabilities2 both rise by DE*999. ;eserves are unchanged by the loan transactions. But the deposit credits constitute new additions to the total deposits of the banking system. 04OOF BANH- DE0O-'T NOTE- AND '--*E BANH )HE)H-% THE )HE)H- A4E ON+1 A- /OOD A- THE 04OC'--O41 NOTE% NEA4+1 A++ BANH )HE)H- A4E )4EATED F4OC 04'2ATE NOTE-% FEDE4A+ 4E-E42E BANH NOTE- A4E A 04'2ATE )O40O4ATE NOTE =)hapter EI5 EI -tat ::;? 3E *-E NOTE- TO D'-)HA4/E NOTE-% 6xcerpt from booklet Cour Money* page )< 7ther M" Money +hile demand deposits* traveler,s checks* and interestFbearing accounts with unlimited checking authority are not legal tender* they are usually acceptable in payment for purchases of goods and services. The &ooklet5 @1o r Cone"A5 is distri& ted free of charge% Additional copies ma" &e o&tained &" !riting to: Fe4eral Reser6e "an7 o/ Richmon4 2u0lic Ser6ices De8artment 2<O< "o5 .-K.. Richmon43 Cirginia .1.K( *RED$T 'O %S %D CO$D *O%TR *TS: * SE ' W GF% @'n the federal co rts5 it is !ell esta&lished that a national &ank has not po!er to lend its credit to another &" &ecoming s ret"5 indorser5 or g arantor for him%AP Farmers and Ciners Bank v% Bl efield Nat Pl Bank5 :: F ;d I,5 ;G: *%-% 99J% G9% RA national &ank has no po!er to lend its credit to an" person or corporation % % % Bo!en v% Needles Nat% Bank5 JE F J;F ,9 ))A FF,5 certiorari denied in ;7 -%)t :7;E5 :G9 *- 9I;5 EE +ED 9,G% GG% @The doctrine of ltra vires is a most po!erf l !eapon to keep private corporations !ithin their legitimate spheres and to p nish them for violations of their corporate charters5 and it pro&a&l" is not invoked too often %% %A Uinc )ar&onate )o% v% First National Bank5 :7, 3is :;F5 GJ N3 ;;J% American EBpress )o% v% )iti<ens -tate Bank5 :JE N3 E,7% GI% @A &ank ma" not lend its credit to another even tho gh s ch a transaction t rns o t to have &een of &enefit to the &ank5 and in s pport of this a list of cases might &e cited5 !hich-!o ld look like a catalog of ships%A SEmphasis addedT Norton /rocer" )o% v% 0eoples Nat% Bank5 :EE -E F7F% :F: 2a :JF% GJ% R't has &een settled &e"ond controvers" that a national &ank5 nder federal +a! &eing limited in its po!ers and capacit"5 cannot lend its credit &" g aranteeing the de&ts of another% All s ch contracts entered into &" its officers are ltra vires % % %R Ho!ard X Foster )o% v% )iti<ens NatPl Bank of *nion5 :,, -) ;7;5 :,7 -E GFJ=:J;9?% I7% @% % % checks5 drafts5 mone" orders5 and &ank notes are not la!f l mone" of the *nited -tates %%%A -tate v% Neilon5 G, 0ac ,;E5 E, Ore :9I% I:% RNeither5 as incl ded in its po!ers not incidental to them5 is it a part of a &ankPs & siness to lend its credit% 'f a &ank co ld lend its credit as !ell as its mone"5 it might5 if it received compensation and !as caref l to p t its name onl" to solid paper5 make a great deal more than an" la!f l interest on its mone" !o ld amo nt to% 'f not caref l5 the po!er !o ld &e the mother of panics % % % 'ndeed5 lending credit is the eBact opposite of lending mone"5 !hich is the real & siness of a &ank5 for !hile the latter creates a lia&ilit" in favor of the &ank5 the former gives rise to a lia&ilit" of the &ank to another% - Morse. Banks and Banking Fth Ed% -ec 9FN Magee* Banks and Banking5 ,rd Ed% -ec ;EI%R American EBpress )o% v% )iti<ens -tate Bank5 :JE N3 E;J% I;% R't is not !ithin those stat tor" po!ers for a national &ank5 even tho gh solvent5 to lend its credit to another in an" of the vario s !a"s in !hich that might &e done%R Federal 'ntermediate )redit Bank v% + PHerrison5 ,, F ;d IE:5 IE; =:J;J?%

I,% RThere is no do &t & t !hat the la! is that a national &ank cannot lend its credit or &ecome an accommodation endorser%R National Bank of )ommerce v% Atkinson5 FF E EG:% IE% RA &ank can lend its mone"5 & t not its credit%R First NatPl Bank of Tallapoosa v% Conroe % :,F /a 9:E5 9J -E ::;E5 ,; +4A =N-? FF7% IF% R%% % the &ank is allo!ed to hold mone" pon personal sec rit"N & t it m st &e mone" that it loans5 not its credit%R -eligman v% )harlottesville Nat% Bank5 , H ghes 9EG5 Fed )ase No%:;5 9E;5 :7,J% I9% RA loan ma" &e defined as the deliver" &" one part" to5 and the receipt &" another part" of5 a s m of mone" pon an agreement5 eBpress or implied5 to repa" the s m !ith or !itho t interest%R 0arsons v% FoB :GJ /a 97F5 :G9 -E 9EE% Also see Hirkland v% Baile"5 :FF -E ;d G7: and *nited -tates v% Neifert 3hite )o%5 ;EG Fed - pp IGI5 IGJ% IG% RThe !ord Pmone"P in its s al and ordinar" acceptation means gold5 silver5 or paper mone" sed as a circ lating medi m of eBchange % % %R +ane v% 4aile" ;I7 H" ,:J5 :,, -3 ;d GF% II% RA promise to pa" cannot5 &" arg ment5 ho!ever ingenio s5 &e made the e6 ivalent of act al pa"ment %%%R )hristensen v% Bee&e5 J: 0 :,,5 ,; *tah E79% IJ% @A &ank is not the holder in d e co rse pon merel" crediting the depositors acco nt%A Bankers Tr st v% Nagler5 ;;J N1- ;d :E;5 :E,% J7% RA check is merel" an order on a &ank to pa" mone"%R 1o ng v% Hem&ree5 G, 0;d ,J,% J:% RAn" false representation of material facts made !ith kno!ledge of falsit" and !ith intent that it shall &e acted on &" another in entering into contract5 and !hich is so acted pon5 constit tes Pfra d5P and entitles part" deceived to avoid contract or recover damages%R Barnsdall 4efining )orn% v% Birnam 3ood Oil )o%% J; F ;9 I:G% J;% RAn" cond ct capa&le of &eing t rned into a statement of fact is representation% There is no distinction &et!een misrepresentations effected &" !ords and misrepresentations effected &" other acts%R +eonard v% -pringer :JG 'll F,;% 9E NE ,7:% J,% @'f an" part of the consideration for a promise &e illegal5 or if there are several considerations for an nsevera&le promise one of !hich is illegal5 the promise5 !hether !ritten or oral5 is !holl" void5 as it is impossi&le to sa" !hat part or !hich one of the considerations ind ced the promise%A Cenominee 4iver )o% v% A g st s -pies + X ) )o%5 :EG 3is FFJ% FG;N :,; N3 ::;;% JE% @The contract is void if it is onl" in part connected !ith the illegal transaction and the promise single or entire%A / ardian Agenc" v% / ardian C t% -avings Bank5 ;;G 3is FF75 ;GJ N3 I,% JF% @'t is not necessar" for rescission of a contract that the part" making the misrepresentation sho ld have kno!n that it !as false5 & t recover" is allo!ed even tho gh misrepresentation is innocentl" made5 &eca se it !o ld &e n( st to allo! one !ho made false representations5 even innocentl"5 to retain the fr its of a &argain ind ced &" s ch representations%A 3hipp v% 'verson5 E, 3is ;d :99% J9% REach Federal 4eserve &ank is a separate corporation o!ned &" commercial &anks in its region %%%R +e!is v% *nited -tates5 9I7 F ;7 :;,J =:JI;?% JG% 'n a De&torPs 4')O action against its creditor5 alleging that the creditor had collected an nla!f l de&t5 an interest rate =!here all loan charges !ere added together? that eBceeded5 in the lang age of the 4')O -tat te5 Rt!ice the enforcea&le rate%R The )o rt fo nd no reason to impose a re6 irement that the 0laintiff sho! that the Defendant had &een convicted of collecting an nla!f l de&t5 r nning a Rloan sharkingR operation% The de&t incl ded the fact that eBaction of a s rio s interest rate rendered the de&t nla!f l and that is all that is necessar" to s pport the )ivil 4')O action% D rante Bros% X -ons5 'nc% v% Fl shing Nat Pl Bank% GFF F;d ;,J5 )ert% denied5 EG, *- J79 =:JIF?% JI% The - preme )o rt fo nd that the 0laintiff in a civil 4')O action need esta&lish onl" a criminal RviolationR and not a criminal conviction% F rther5 the )o rt held that the Defendant need onl" have ca sed harm to the 0laintiff &" the commission of a predicate offense in s ch a !a" as to constit te a Rpattern of 4acketeering activit"%R That is5 the 0laintiff need not demonstrate that the Defendant is an organi<ed crime fig re5 a mo&ster in the pop lar sense5 or that the 0laintiff has s ffered some t"pe of special 4acketeering in( r"N all that the 0laintiff m st sho! is !hat the -tat te specificall" re6 ires% The 4')O -tat te and the civil remedies for its violation are to &e li&erall" constr ed to effect the congressional p rpose as &roadl" form lated in the -tat te% -edima5 -04+ v% 'mreB )o%5 EG, *- EGJ =:JIF?% DEF$%$T$O%S TO K%OW WHE% EL M$%$%# " %K *O%TR *T " %K **O!%T: A s m of mone" placed !ith a &ank or &anker5 on deposit5 &" a c stomer5 and s &(ect to &e dra!n o t on the latterPs check% " %K: !hose & siness it is to receive mone" on deposit5 cash checks or drafts5 disco nt commercial paper5 make loans and iss e promissor" notes pa"a&le to &earer5 kno!n as &ank notes%

" %K *RED$T: A credit !ith a &ank &" !hich5 on proper credit rating or proper sec rit" given to the &ank5 a person receives li&ert" to dra! to a certain eBtent agreed pon% " %K DE2OS$T: )ash5 checks or drafts placed !ith the &ank for credit to depositorPs acco nt% 0lacement of mone" in &ank5 there&"5 creating contract &et!een &ank and depositors% DEM %D DE2OS$T: The right to !ithdra! deposit at an" time% " %K DE2OS$TOR: One !ho delivers to5 or leaves !ith a &ank a s m of mone" s &(ect to his order% " %K DR FT: A check5 draft or other form of pa"ment% %K OF $SS!E: Bank !ith the a thorit" to iss e notes !hich are intended to circ late as c rrenc"% 'O %: Deliver" &" one part" to5 and receipt &" another part"5 a s m of mone" pon agreement5 eBpress or implied5 to repa" it !ith or !itho t interest% *O%S$DER T$O%: The ind cement to a contract% The ca se5 motive5 price or impelling infl ences5 !hich ind ces a contracting5 part" to enter into a contract% The reason5 or material ca se of a contract% *HE*K: A draft dra!n pon a &ank and pa"a&le on demand5 signed &" the maker or dra!er5 containing an nconditional promise to pa" a certain s m in mone" to the order of the pa"ee% The Federal 4eserve Board defines a check as5 "...a draft or order upon a bank or banking house purporting to be drawn upon a deposit of funds for the payment at all events of* a certain sum of money to a certain person therein named* or to him or his order* or to bearer and payable instantly on demand of." D!EST$O%S O%E M$#HT SK THE " %K $% % $%TERRO# TOR; Did the &ank loan gold or silver to the alleged &orro!erK Did the &ank loan credit to the alleged &orro!erK Did the &orro!er sign an" agreement !ith the &ank5 !hich prevents the &orro!er from repa"ing the &ank in creditK 's it tr e that "o r &ank creates check &ook mone" !hen the &ank grants loans5 simpl" &" adding deposit dollars to acco nts on the &ankPs &ooks5 in eBchange5 for the &orro!erPs mortgage noteK Has "o r &ank5 at an" time5 sed the &orro!erPs mortgage note5 Rpromise to pa"R5 as a deposit on the &ankPs &ooks from !hich to iss e &ank checks to the &orro!erK At the time of the loan to the alleged &orro!er5 !as there one dollar of Federal 4eserve Bank Notes in the &ankPs possession for ever" dollar o!ed in -avings Acco nts5 )ertificates of Deposits and check Acco nts =Demand Deposit Acco nts? for ever" dollar of the loanK According to the &ankPs polic"5 is a promise to pa" mone" the e6 ivalent of mone"K Does the &ank have a polic" to prevent the &orro!er from discharging the mortgage note in Rlike kind f ndsR !hich the &ank deposited from !hich to iss e the checkK Does the &ank have a polic" of violating the Deceptive Trade 0ractices ActK 3hen the &ank loan officer talks to the &orro!er5 does the &ank inform the &orro!er that the &ank ses the &orro!ers mortgage note to create the ver" mone" the &ank loans o t to the &orro!erK Does the &ank have a polic" to sho! the same mone" in t!o separate places at the same timeK Does the &ank claim to loan o t mone" or credit from savings and certificates of deposits !hile never red cing the amo nt of mone" or credit from savings acco nts or certificates of deposits5 !hich c stomers can !ithdra! fromK *sing the &anking practice in place at the time the loan !as made5 is it theoreticall" possi&le for the &ank to have loaned o t a percentage of the -avings Acco nts and )ertificates of DepositsK 'f the ans!er is RnoR to 6 estion ^:,5 eBplain !h" the ans!er is no% 'n regards to 6 estion ^:,5 at the time the loan !as made5 !ere there eno gh Federal 4eserve Bank Notes on hand at the &ank to match the fig res represented &" ever" -avings Acco nt and )ertificate of Deposit and checking Acco nt =Demand Deposit Acco nt?K Does the &ank have to o&e"5 the la!s concerning5 )ommercial 0aperN )ommercial Transactions5 )ommercial 'nstr ments5 and Negotia&le 'nstr mentsK Did the &ank lend the &orro!er the &ankPs assets5 or the &ankPs lia&ilitiesK 3hat is the complete name of the &anking entit"5 !hich emplo"s "o 5 and in !hat ( risdiction is the &ank charteredK 3hat is the &ankPs definition of R+oan )reditRK Did the &ank se the &orro!ers ass med mortgage note to create ne! &ank mone"5 !hich did not eBist &efore the ass med mortgage note !as signedK Did the &ank take mone" from an" Demand Deposit Acco nt =DDA?5 -avings Acco nt =-A?5 or a )ertificate of Deposit =)D?5 or an" com&ination of an" Demand Deposit Acco nt5 -avings Acco nt or )ertificate of Deposit5 and loan this mone" to the &orro!erK Did the &ank replace the mone" or credit5 !hich it loaned to the &orro!er !ith the &orro!erPs ass med mortgage noteK

Did the &ank take a &ank asset called mone"5 or the credit sed as collateral for c stomersP &ank deposits5 to loan this mone" to the &orro!er5 and>or did the &ank se the &orro!erPs note to replace the asset it loaned to the &orro!erK Did the mone" or credit5 !hich the &ank claims to have loaned to the &orro!er5 come from deposits of mone" or credit made &" the &ankPs c stomers5 eBcl ding the &orro!erPs ass med mortgage noteK )onsidering the &alance sheet entries of the &ankPs loan of mone" or credit to the &orro!er5 did the &ank directl" decrease the c stomer deposit acco nts =i%e% Demand Deposit Acco nt5 -avings Acco nt5 and )ertificate of Deposit? for the amo nt of the loanK Descri&e the &ookkeeping entries referred to in 6 estion ^:,% Did the &ankPs &ookkeeping entries to record the loan and the &orro!erPs ass med mortgage note ever5 at an" time5 directl" decrease the amo nt of mone" or credit from an" specific &ank c stomerPs deposit acco ntK Does the &ank have a polic" or practice to !ork in cooperation !ith other &anks or financial instit tions se &orro!erPs mortgage note as collateral to create an offsetting amo nt of ne! &ank mone" or credit or check &ook mone" or Demand Deposit Acco nt generall" to e6 al the amo nt of the alleged loanK 4egarding the &orro!ers ass med mortgage loan5 give the name of the acco nt !hich !as de&ited to record the mortgage% 4egarding the &ookkeeping entr" referred to in 'nterrogator" ^:G5 state the name and p rpose of the acco nt5 !hich !as credited% 3hen the &orro!erPs ass med mortgage note !as de&ited as a &ookkeeping entr"5 !as the offsetting entr" a credit acco ntK 4egarding the initial &ookkeeping entr" to record the &orro!erPs ass med mortgage note and the ass med loan to the &orro!er5 !as the &ookkeeping entr" credited for the mone" loaned to the &orro!er5 and !as this credit offset &" a de&it to record the &orro!erPs ass med mortgage noteK Does the &ank c rrentl" or has it ever at an"time sed the &orro!erPs ass med mortgage note as mone" to cover the &ankPs lia&ilities referred to a&ove5 i%e% Demand Deposit Acco nt5 -avings Acco nt and )ertificate of DepositK 3hen the ass med loan !as made to the &orro!er5 did the &ank have ever" Demand Deposit Acco nt5 -avings Acco nt5 and )ertificate of Deposit &acked p &" Federal 4eserve Bank Notes on hand at the &ankK Does the &ank have an esta&lished polic" and practice to emit &ills of credit !hich it creates pon its &ooks at the time of making a loan agreement and iss ing mone" or socalled mone" of credit5 to its &orro!ersK S!MM R; The &ank advertised it !o ld loan mone"5 !hich is &acked &" legal tender% 's not that !hat the s"m&ol 8 meansK 's that not !hat the contract saidK Do "o not kno! there is no agreement or contract in the a&sence of m t al consentK The &ank ma" sa" that the" gave "o a check5 "o o!e the &ank mone"% This information sho!s "o that the check came from the mone" the alleged &orro!er provided and the &ank never loaned an" mone" from other depositors% $’6e sho:n you the la: an4 the 0an7’s o:n literature to 8ro6e my case< All the &ank did !as trick "o % The" get "o r mortgage note !itho t investing one cent5 &" making"o a depositor and not a &orro!er% The 7ey to the 8uMMle is3 the 0an7 4i4 not sign the contract% $/ they 4i4 they must loan you the money< $/ they 4i4 not sign it3 chances are3 they 4e8osite4 the mortgage note in a chec7ing account an4 use4 it to issue a chec7 :ithout e6er loaning you money or the 0an7 in6esting one cent< O r Nation5 along !ith ever" -tate of the *nion5 entered into Bankr ptc"5 in :J,,% This changes the la! from Rgold and silverA legal mone" and @common la!A to the la! of &ankr ptc"% *nder Bankr ptc" la! the mortgage note acts like mone"% Once "o sign the mortgage note it acts like mone"% The &ankers no! trick "o into thinking the" loaned "o legal tender5 !hen the" never loaned "o an" of their mone"% The trick is the" made "o a depositor instead of a &orro!er% The" deposited "o r mortgage note and iss ed a &ank check% %either the mortgage note nor the chec7 is legal ten4er% The mortgage note and the check are no! mone" created that never eBisted5 prior% The &ank got "o r mortgage note for free !itho t loaning "o mone"5 and sold the mortgage note to make the &ank check appear legal% The &orro!er provided the legal tender5 !hich the &ank gave &ack in the form of a check< 'f the &ank loaned legal tender5 as the contract says3 for the &ank to legall" o!n the mortgage note5 then the people !o ld still o!n the homes5 farms5 & sinesses and cars5 nearl" de&t free and pa" little5 if an" interest% "y the 0an7s not /ul/illing the contract 0y loaning legal ten4er3 they ma7e the allege4 0orro:er3 a 4e8ositor< This is a /rau4ulent con6ersion o/ the mortgage note< Frau4 is a /elony< The &ank had no intent to loan5 making it promissor" fra d5 mail fra d5 !ire fra d5 and a list of other crimes a mile long% Ho! can the" make a felon"5 legalK The" cannotM Fra d is fra dM The &anks deposit "o r mortgage note in a checking acco nt% The deposit &ecomes the &ank$s propert"% The" !ithdra! mone" !itho t "o r signat re5 and call the mone"5 the &anks mone" that the" loaned to "o % The &ank forgot one thing% 'f the &ank deposits "o r mortgage note5 then the &ank m st credit "o r checking acco nt claiming the &ank o!es "o

8:775777 for the 8:775777 mortgage note deposited% The credit of 8:775777 the &ank o!es "o for the deposit allo!s "o to !rite a check or receive cash% The" did not tell "o the" deposited the mone"5 and the" forget to tell "o that the 8:775777 is mone" the &anks o!e "o 5 not !hat "o o!e the &ank% 1o lost 8:775777 and the &ank gained 8:775777% For the 8:775777 the &ank gained5 the &ank received government &onds or cash of 8:775777 &" selling the mortgage note% For the loan5 the &ank received 8:775777 cash5 the &ank did not give p 8:775777% An"time the &ank receives a deposit5 the &ank o!es "o the mone"% 1o do not o!e the &ank the mone"% 'f "o or ' deposit an"onePs negotia&le instr ment !itho t a contract a thori<ing it5 and !ithdra! the mone" claiming it is o r mone"5 !e !o ld go to (ail% 'f it !as o r polic" to violate a contract5 !e co ld go to (ail for a ver" long time% 1o agreed to receive a loan5 not to &e a depositor and have the &ank receive the deposit for free% 3hat the &ank got for free =lien on real propert"? "o lost and no! m st pa" !ith interest%'f the &ank loaned s legal tender =other depositors$ mone"? to o&tain the mortgage note the &ank co ld never o&tain the lien on the propert" for free% B" not loaning their mone"5 & t instead depositing the mortgage note the &ank creates inflation5 !hich costs the cons mer mone"% 0l s the economic loss of the asset5 !hich the &ank received for free5 in direct violation of an" signed agreement% 3e !ant e6 al protection nder the la! and contract5 and to have the &ank f lfill the contract or ret rn the mortgage note% We :ant the Nu4ges3 sheri//s3 an4 la:ma7ers to u8hol4 their oath o/ o//ice an4 to honor an4 u8hol4 the /oun4ing /athers !<S< *onstitution< $s this too much to as7& 3hat is the mortgage noteK The mortgage note represents "o r f t re loan pa"ments% A promise to pa" the mone" the &ank loaned "o % 3hat is a lienK The lien is a sec rit" on the propert" for the mone" loaned% Ho! can the &ank promise to pa" mone" and then not pa"K Ho! can the" take a promise to pa" and call it mone" and then se it as mone" to p rchase the f t re pa"ments of mone" at interest% 'nterest is the compensation allo!ed &" la! or fiBed &" the parties for in6este4 any money to receive your mortgage note% 3hat is it the" are charging interest onK The &ank received an asset% The" never gave p an asset% Did the" pa" interest on the mone" the" received as a depositK A check iss ed on a deposit received from the &orro!er cost the &ank nothingK 3here did the mone" come from that the &ank invested to charge interest onK The &ank ma" sa" !e received a &enefit% 3hat &enefitK 3itho t their &enefit !e !o ld receive e6 al protection nder the la!5 !hich !o ld mean !e did not need to give p an asset or pa" interest on o r o!n mone"M 3itho t their &enefit !e !o ld &e free and not enslaved% 3e !o ld have little de&t and interest instead of &eing enslaved in de&t and interest% The &anks &roke the contract5 !hich the" never intended to f lfill in the first place% 3e got a check and a ho se5 !hile the" received a lien and interest for free5 thro gh a &roken contract5 !hile !e got a de&t and lost o r assets and o r co ntr"% The &enefit is the &anks5 !ho have placed liens on nearl" ever" asset in the nation5 !itho t costing the &ank one cent% 'nflation and !orking to pa" the &ank interest on o r o!n mone" is the &enefit% -ome &enefitM What a Shell #ame< The Follo:ing case :as an actual trial concerning the issues :e ha6e co6ere4< The Ou4ge :as e5traor4inary in-that he ha4 a gras8 o/ the *onstitution that $ ha6en’t seen o/ten enough in our courts< This is the real thing3 a0solutely true< This case :as re6ie:e4 0y the Minnesota Su8reme *ourt on their o:n motion< The last thing in the :orl4 that the "an7ers an4 the Ou4ges :ante4 :as case la: against the "an7ers< Ho:e6er3 this case la: is real< VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV ST TE OF M$%%ESOT $% O!ST$*E *O!RT *O!%T; OF S*OTT TOW%SH$2 OF *RED$T R$CER @M RT$% C< M HO%E;3 O!ST$*E F$RST " %K OF MO%T#OMER;3 2lainti//3 @ * SE %O: (P(,, Cs< @ O!D#ME%T %D DE*REE Oerome Daly3 De/en4ant< @ The a&ove entitled action came on &efore the co rt and a ( r" of :; on Decem&er G5 :J9I at :7:77 a%m% 0laintiff appeared &" its 0resident +a!rence 2% Corgan and !as represented &" its )o nsel Theodore 4% Cell&"5 Defendant appeared on his o!n &ehalf% A ( r" of Talesmen !ere called5 impaneled and s!orn to tr" the iss es in this case% +a!rence 2% Corgan !as the onl" !itness called for plaintiff and defendant testified as the onl" !itness in his o!n &ehalf% 0laintiff &ro ght this as a )ommon +a! action for the recover" of the possession of lot :J5 Fairvie! Beach5 -cott )o nt"5 Cinn% 0laintiff claimed titled to the 4eal 0ropert" in 6 estion &" foreclos re of a Note and Cortgage Deed dated Ca" I5 :J9E !hich plaintiff claimed !as in defa lt at the time foreclos re proceedings !ere started% Defendant appeared and ans!ered that the plaintiff created the mone" and credit pon its o!n &ooks &" &ookkeeping entr" as the legal fail re of consideration for the Cortgage Deed and alleged that the -heriff$s sale passed no title to plaintiff% The iss es tried to the ( r" !ere !hether there !as a la!f l consideration and !hether Defendant had !aived his rights to complain a&o t the consideration having paid on the note for almost , "ears% Cr% Corgan

admitted that all of the mone" or credit !hich !as sed as a consideration !as created pon their &ooks that this !as standard &anking practice eBercised &" their &ank in com&ination !ith the Federal 4eserve Bank of Cinneapolis5 another private &ank5 f rther that he kne! of no *nited -tates -tat te of +a! that gave the 0laintiff the a thorit" to do this% 0laintiff f rther claimed that Defendant &" sing the ledger &ook created credit and &" pa"ing on the Note and Cortgage !aived an" right to complain a&o t the consideration and that Defendant !as estopped from doing so% At :;::F on Decem&er G5 :J9I the J r" ret rned a nanimo s verdict for the Defendant% No! therefore &" virt e of the a thorit" vested in me p rs ant to the Declaration of 'ndependence5 the North!est Ordinance of :GIG5 the )onstit tion of the *nited -tates and the )onstit tion and la!s of the -tate Cinnesota not inconsistent there!ith% $T $S HERE"; ORDERED3 DO!D#ED %D DE*REED That 0laintiff is not entitled to recover the possession of lot :J5 Fairvie! Beach5 -cott )o nt"5 Cinnesota according to the plat thereof on file in the 4egister of Deeds office% That &eca se of fail re of a la!f l consideration the note and Cortgage dated Ca" I5 :J9E are n ll and void% That the -heriffs sale of the a&ove descri&ed premises held on J ne ;95 :J9G is n ll and void5 of no effect% That 0laintiff has no right5 title or interest in said premises or lien thereon5 as is a&ove descri&ed%That an" provision in the Cinnesota )onstit tion and an" Cinnesota -tat te limiting the J risdiction of this )o rt is rep gnant to the )onstit tion of the *nited -tates and to the Bill of 4ights of the Cinnesota )onstit tion and is n ll and void and that this )o rt has J risdiction to render complete J stice in this ca se% That Defendant is a!arded costs in the s m of 8GF%77 and eBec tion is here&" iss ed therefore% A :7 da" sta" is granted% The follo!ing memorand m and an" s pplemental memorand m made and filed &" this )o rt in s pport of this ( dgment is here&" made a part hereof &" reference% B1 THE )O*4T Dated Decem&er J5 :J9J CA4T'N 2% CAHONE1 J stice of the 0eace )redit 4iver To!nship -cott )o nt"5 Cinnesota MEMOR %D!M The iss es in this case !ere simple% There !as no material disp te on the facts for the ( r" to resolve% 0laintiff admitted that it5 in com&ination !ith the Federal 4eserve Bank of Cinneapolis5 !hich are for all practical p rposes &eca se of their interlocking activit" and practices5 and &oth &eing Banking 'nstit tions 'ncorporated nder the la!s of the *nited -tates5 are in the +a! to &e treated as one and the same Bank5 did create the entire 8:E5777%77 in mone" or credit pon its o!n &ooks &" &ookkeeping entr"% That this !as the )onsideration sed to s pport the Note dated Ca" I5 :J9E and the Cortgage of the same date% The Cone" and credit first came into eBistence !hen the" credited it% Cr% Corgan admitted that no *nited -tates +a! of -tat te eBisted !hich gave him the right to do this% A la!f l consideration m st eBist and &e tendered to s pport the note% =-ee Anhe ser B sch Bre!ing )o% v% Emma Cason5 EE Cinn% ,:I% E9 N3 FFI%? The J r" fo nd there !as no la!f l consideration and ' agree Onl" /od can create something of val e o t of nothing% Even if defendant co ld &e charged !ith !aiver or estoppel as a matter of la! this is no defense to the plaintiff% The la! leaves !rongdoers !here it finds them% =-ee sections F75 F :5 and F; of Am J r ;d RActionsR on page FIE%R? No action !ill lie to recover on a claim &ased pon5 or in an" manner depending pon5 a fra d lent5 illegal5 or immoral transaction or contract to !hich plaintiff !as a part"% 0laintiffs act of creating is not a thori<ed &" the )onstit tion and +a!s of the *nited -tates5 is nconstit tional and void5 and is not la!f l consideration in the e"es of the la! to s pport an" thing or pon !hich an" la!f l rights can &e & ilt% Nothing in the )onstit tion of the *nited -tates limits the ( risdiction of this )o rt5 !hich is one of original ( risdiction !ith right of trial &" ( r" g aranteed% This is a )ommon +a! Action% Cinnesota cannot limit or impair the po!er of this )o rt to render complete ( stice &et!een the parties% An" provisions in the )onstit tion and la!s of Cinnesota !hich attempt to do so is rep gnant to the )onstit tion of the *nited -tates and void% No 6 estion as to the J risdiction of this )o rt !as raised &" either part" at the trial% Both parties !ere given complete li&ert" to s &mit an" and all facts and la! to the ( r"5 at least in so far as the" sa! it% No complaint !as made &" 0laintiff that 0laintiff did not receive a fair trial% From the admissions made &" Cr% Corgan the path of d t" !as made direct and clear for the ( r"% Their verdict co ld not reasona&l" have &een other!ise% J stice !as rendered completel" and !itho t p rchase5 conforma&le to the la! in this )o rt on Decem&er G5 :J9I% "; THE *O!RT M RT$% C< M HO%E; Oustice o/ the 2eace *re4it Ri6er To:nshi8 Scott *ounty3 Minnesota %ote: 't has never &een do &ted that a note given on a consideration5 !hich is prohi&ited &" la! is void% 't has &een determined independent of Acts of )ongress5 that sailing nder the license of an enem" is illegal% The emission of Bills of )redit pon the &ooks of these private )orporations for the p rposes of private gain is not

!arranted &" the )onstit tion of the *nited -tates and is nla!f l% -ee )raig v% Y E peters reports J:;5 This )o rt can tread onl" that path !hich is marked o t &" d t"% C%2%C% :U+GE ARTIN AHONE% +E"I(ION A( FOLLO&( RFor the J sticePs fees5 the First National Bank deposited Y the )lerk of the District )o rt the t!o Federal 4eserve Bank Notes% The )lerk tendered the Notes to me =the J dge?% As J dge m" s!orn d t" compelled me to ref se the tender% This is contrar" to the )onstit tion of the *nited -tates% The -tates have no po!er to make &ank notes a legal tender% Onl" gold and silver coin is a la!f l tender%R =-ee American J rist on Cone" ,9 sec%:,%? @Bank Notes are a good tender as mone" nless specificall" o&(ected to% Their consent and sage is &ased pon the converti&ilit" of s ch notes to coin at the pleas re of the holder pon presentation to the &ank for redemption% 3hen the ina&ilit" of a &ank to redeem its notes is openl" avo!ed the" instantl" lose their character as mone" and their circ lation as c rrenc" ceases%R =-ee American J rist ,9-section J?% RThere is no la!f l consideration for these Federal 4eserve Bank Notes to circ late as mone"% The &anks act all" o&tained these notes for cost of printing - A la!f l consideration m st eBist for a Note% As a matter of fact5 the RNotesR are not Notes at all5 as the" contain no promise to pa"%R =-ee :G American J rist section IF5 ;:F? RThe activit" of the Federal 4eserve Banks of Cinnesota5 -an Francisco and the First National Bank of Contgomer" is contrar" to p &lic polic" and contrar" to the )onstit tion of the *nited -tates5 and constit tes an nla!f l creation of mone"5 credit and the o&taining of mone" and credit for no val a&le consideration% Activit" of said &anks in creating mone" and credit is not !arranted &" the )onstit tion of the *nited -tates%R RThe Federal 4eserve Banks and National Banks eBercise an eBcl sive monopol" and privilege of creating credit and iss ing Notes at the eBpense of the p &lic !hich does not receive a fair e6 ivalent% This scheme is o&li6 el" designed for the &enefit of an idle monopol" to ro&5 &lackmail5 and oppress the prod cers of !ealth% RThe Federal 4eserve Act and the National Bank Act are5 in their operation and effect5 contrar" to the !hole letter and spirit of the )onstit tion of the *nited -tates5 for the" confer an nla!f l and nnecessar" po!er on private partiesN the" hold all of o r fello! citi<ens in dependenceN the" are s &versive to the rights and li&eration of the people%A RThese Acts have defiled the la!f ll" constit ted /overnment of the *nited -tates% The Federal 4eserve Act and the National Banking Act are not necessar" and proper for carr"ing into eBec tion the legislative po!ers granted to )ongress or an" other po!ers vested in the /overnment of the *nited -tates5 & t on the contrar"5 are s &versive to the rights of the 0eople in their rights to life5 li&ert"5 and propert"%R =-ee -ection E9; of Title ,: *% -% )ode?% RThe meaning of the )onstit tional provision5 PNO -TATE -HA++ make an"thing & t /old and -ilver )oin a legal tender P pa"ment of de&tsP is direct5 clear5 nam&ig o s and !itho t an" 6 alification% This )o rt is !itho t a thorit" to interpolate an" eBception% C" d t" is simpl" to eBec te it5 as and to prono nce the legal res lt% From an eBamination of the case of Ed!ards v% Hearse"5 Federal 4eserve Bank Notes =fiat mone"? !hich are attempted to &e made a legal tender5 are eBactl" !hat the a thors of the )onstit tion of the *nited -tates intend to prohi&it% No -tate can make these Notes a legal tender% )ongress is incompetent to a thori<e a -tate to make the Notes a legal tender% For the effect of &inding )onstit tion provisions see )ooke v% 'verson% This fra d lent Federal 4eserve -"stem and National Banking -"stem has impaired the o&ligation of )ontract promoted disrespect for the )onstit tion and +a! and has shaken societ" to its fo ndation%R =-ee J9 *%-% )ode FJF and :7I C ,II and 9, C :EG? RTitle ,:5 *%-% )ode5 -ection E,;5 is in direct conflict !ith the )onstit tion insofar5 at least5 that it attempts to make Federal 4eserve Bank Notes a legal tender% The )onstit tion is the - preme +a! of the +and% -ection E9; of Title ,: is not a la!5 !hich is made in p rs ance of the )onstit tion% 't is nconstit tional and void5 and ' so hold% Therefore5 the t!o Federal 4eserve Bank Notes are N ll and 2oid for an" la!f l p rpose in so far as this case is concerned and are not a valid deposit of 8;%77 !ith the )lerk of the District )o rt for the p rpose of effecting an Appeal from this )o rt to the District )o rt%R RHo!ever5 of these Federal 4eserve Bank Notes5 previo sl" disc ssed 5 and that is that the Notes are invalid5 &eca se of a theor" that the" are &ased pon a valid5 ade6 ate or la!f l consideration% At the hearing sched led for Jan ar" ;;5 :J9J5 at G:77 0%C%5 Cr% Corgan appeared at the trialN he appeared as a !itness to &e candid5 open5 direct5 eBperienced and tr thf l% He testified to "ears of eBperience !ith the Bank of America in +os Angeles5 the Car6 ette National Bank of Cinnesota and the First National Bank of Cinnesota% He seemed to &e familiar !ith the operation of the Federal 4eserve -"stem% He freel" admitted that his Bank created all of the mone" and credit pon its &ooks !ith !hich it ac6 ired the Note and Cortgage of Ca" I5 :J9E% The credit first came into eBistence !hen the Bank created it pon its &ooks% F rther5 he freel" admitted that no *nited -tates +a! gave the Bank the a thorit" to do this% This !as o&vio sl" no la!f l consideration for the Note% The Bank parted !ith a&sol tel" nothing eBcept a little ink% 'n this case5 the evidence !as

on Jan ar" ;;5 :J9J that the Federal 4eserve Bank o&tained the Notes for this seems to &e conferred &" Title :; *-) -ection E;7% The cost is a&o t J>:7th of a cent per Note regardless of the amo nt of the Note% The Federal 4eserve Banks create all of the mone" and credit pon their &ooks &" &ookkeeping entries &" !hich the" ac6 ire *nited -tates -ec rities% The collateral re6 ired to o&tain the Note is5 &" section E:; *-)5 Title :;5 a deposit of a like amo nt of &onds% Bonds !hich the Banks ac6 ire &" creating mone" and credit &" &ookkeeping entr"%R RNo rights can &e ac6 ired &" fra d% The Federal 4eserve Bank Notes are ac6 ired thro gh the se of nconstit tional stat tes and fra d%R RThe )ommon +a! re6 ires a la!f l consideration for an" contract or Note% These Notes are void for fail re at a la!f l consideration at )ommon +a!5 entirel" apart from an" )onstit tional consideration% *pon this gro nd5 the Notes are ineffect al for an" p rpose% This seems to &e the principal o&(ection to paper fiat mone" and the ca se of its depreciation and fail re do!n thro gh the ages% 'f allo!ed to contin e5 Federal 4eserve Bank Notes !ill meet the same fate% From the evidence introd ced on Jan ar" ;;5 :J9J5 this )o rt finds that as of Carch :I5 :J9J5 all /old and -ilver &acking is removed from Federal 4eserve Bank Notes%R RThe la! leaves !rongdoers !here it finds them% =-ee ' Cer% J r ;nd on Actions -ection FF7?%R-laver" and all its incidents5 incl ding 0eonage5 thralldom5 and de&t created &" fra d is niversall" prohi&ited in the *nited -tates% This case represents & t another refined form of -laver" &" the Bankers% Their position is not s pported &" the )onstit tion of the *nited -tates% The 0eople have spoken their !ill in terms5 !hich cannot &e mis nderstood% 't is indispensa&le to the preservation of the *nion and independence and li&erties of the people that this )o rt5 adhere onl" to the mandate of the )onstit tion and administer it as it is !ritten% '5 therefore5 hold these Notes in 6 estion void and not effect al for an" p rpose%R =E? Jan ar" ,75 :J9J J dge Cartin 2% Cahone" J stice of the 0eace )redit 4iver To!nship QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ *RED$T 'O %S %D CO$D *O%TR *TS 2ERFE*T O"'$# T$O% S TO H!M % "E$%# S TO " %K F rthermore5 this Cemorand m of la! is offered in order to advance nderstanding of the compleB legal iss es5 present and em&odied in the )ommon +a!5 !ith a thorities5 la! and cases in s pport of5 !hich !ill constit te the follo!ing facts: 0rivatel" o!ned &anks are making loans of RcreditR !ith the intended p rpose of circ lating RcreditR as Rmone"R% Other financial instit tions and individ als ma" Rla nderR &ank credit that the" receive directl" or indirectl" from privatel" o!ned &anks% This collective activit" is nconstit tional5 nla!f l5 in violation of )ommon +a!5 *%-% )ode and the principles of e6 it"% - ch activit" and nderl"ing contracts have long &een held void5 &" -tate )o rts5 Federal )o rts and the *%-% - preme )o rt% This Cemorand m !ill demonstrate thro gh a thorities and esta&lished common la!5 that credit Rmone" creationR &" privatel" o!ned &ank corporations is not reall" Rmone" creationR at all% 't is the trade specialt" and artf l ill sion of la! merchants5 !hich se old-time trade secrets of the /oldsmiths5 to entrap the &orro!er and n( stl" enrich the lender thro gh s r" and other nla!f l techni6 es% 'ss es &ased on la! and the principles of e6 it"5 !hich are !ithin the ( risdiction of this )o rt5 !ill &e addressed% THE #O'DSM$THS 'n his &ook5 Money and Banking =Ith Edition5 :JIE?5 0rofessor David 4% Hamerschen !rites on pages F9 -9,: RThe first &ankers in the modern sense !ere the goldsmiths5 !ho fre6 entl" accepted & llion and coins for storage %%% One res lt !as that the goldsmiths temporaril" co ld lend part of the gold left !ith them % % % These loans of their c stomersP gold !ere soon replaced &" a revol tionar" techni6 e% 3hen people &ro ght in gold5 the goldsmiths gave them notes promising to pa" that amo nt of gold on demand% The notes5 first made pa"a&le to the order of the individ al5 !ere later changed to &earer o&ligations% 'n the previo s form5 a note pa"a&le to the order of Je&idiah Johnson !o ld &e paid to no one else nless Johnson had first endorsed the note %%% B t notes !ere soon &eing sed in an nforeseen !a"% The note holders fo nd that5 !hen the" !anted to & " something5 the" co ld se the note itself in pa"ment more convenientl" and let the other person go after the gold5 !hich the person rarel" did % % %The specie5 then tended to remain in the goldsmithsP va lts% % % % The goldsmiths &egan to reali<e that the" might profit handsomel" &" iss ing some!hat more notes than the amo nt of specie the" held% % % These additional notes !o ld cost the goldsmiths nothing eBcept the negligi&le cost of printing them5 "et the notes provided the goldsmiths !ith f nds to lend at interest % % % %And the" !ere to find that the profita&ilit" of their lending operations !o ld eBceed the profit from their original trade% The goldsmiths &ecame &ankers as their interest in man fact re of gold items to sell !as replaced &" their concern !ith credit policies and lending activities % % %The" discovered earl" that5 altho gh an nlimited note iss e !o ld &e n!ise5 the" co ld

iss e notes p to several times the amo nt of specie the" held% The ke" to the !hole operation la" in the p &licPs !illingness to leave gold and silver in the &ankPs va lts and se the &ankPs notes% This discover" is the &asis of modern &anking: On page GE5 0rofessor Hamerschen f rther eBplains the evol tion of the credit s"stem: R+ater the goldsmiths learned a more efficient !a" to p t their credit mone" into circ lation% The" lent &" iss ing additional notes5 rather than &" pa"ing o t in gold% 'n eBchange for the interest-&earing note received from their c stomer =in effect5 the loan contract?5 the" gave their o!n non-interest &earing note% Each !as act all" &orro!ing from the other %%% The advantage of the later proced re ofP lending notes rather than gold !as that % % % more notes co ld &e iss ed if the gold remained in the va lts %%% Th s5 thro gh the principle of &ank note iss ance5 banks learned to create money in the form of their own liability%R SEmphasis AddedT MODER% MO%E; ME*H %$*S Another p &lication !hich eBplains modern &anking as learned from the /old smiths is Modern Money Mechanics =Fth edition :JJ;?5 p &lished &" the Federal 4eserve Bank of )hicago !hich states &eginning on page ,: R't started !ith the goldsmiths %%%R At one time5 &ankers !ere merel" middlemen% The" made a profit &" accepting gold and coins &ro ght to them for safekeeping and lending the gold and coins to &orro!ers% B t the goldsmiths soon fo nd that the receipts the" iss ed to depositors !ere &eing sed as a means of pa"ment% PThen5 &ankers discovered that the" co ld make loans merel" &" giving &orro!ers their promises to pa"5 or &ank notes%%% 'n this !a"5 &anks &egan to create mone" %%% Demand deposits are the modern co nterpart of &ank notes % % % 't !as a small step from printing notes to making &ook entries to the credit of &orro!ers !hich the &orro!ers5 in t rn5 co ld PspendP &" !riting checks5 there&" printing their own mone"%R SEmphasis addedT HOW " %KS *RE TE MO%E; 'n the modern sense5 &anks create mone" &" creating Rdemand deposits%R Demand deposits are merel" R&ook entriesR that reflect ho! m ch la!f l mone" the &ank o!es its c stomers% Th s5 all deposits are called demand deposits and are the &ankPs lia&ilities% The &ankPs assets are the va lt cash pl s all the R'O*sR or promissor" notes that the &orro!er signs !hen the" &orro! either mone" or credit% 3hen a &ank lends its cash =legal mone"?5 it loans its assets5 & t !hen a &ank lends its @creditA it lends its lia&ilities% The lending of credit is5 therefore5 the eBact opposite of the lending of cash =legal mone"?% At this point5 !e need to define the meaning of certain !ords like Rla!f l mone"A5 @legal tenderA5 @other mone"A and @dollarsA% The terms RCone"R and RTenderR had their origins in Article :5 -ec% I and Article :5 -ec% :7 of the &onstitution of the $nited %tates% :; *%-%)% O:F; refers to Rgold and silver coin as la!f l mone" of the *nited -tatesR and !as nconstit tionall" repealed in :JJE in-that )ongress can not 4elegate an" portion of their constit tional responsi&ilit" !itho t Amendment% The term Rlegal tenderR !as originall" cited in ,: *%-%)%A% O,J; and is no! re-codified in ,: *%-%)%A% OF:7, !hich states: R*nited -tates coins and c rrenc" % % % are legal tender for all de&ts5 p &lic charges5 taBes5 and d es%R The common denominator in &oth Rla!f l mone"R and Rlegal tender mone"R is that the *nited -tates /overnment iss es &oth% 3ith Bankers5 ho!ever5 !e find that there are t!o forms of mone" - one is governmentiss ed5 and privatel" o!ned &anks s ch as 3A-H'N/TON C*T*A+5 and J0 CO4/AN )HA-E5 iss e the other% As !e have alread" disc ssed government iss ed forms of mone"5 !e m st no! scr tini<e privatel" iss ed forms of mone"% All privatel" iss ed forms of mone" toda" are &ased pon the lia&ilities of the iss er% There are three common terms sed to descri&e this privatel" created mone"% The" are @creditA5 @demand depositsA and @check&ook mone"A% 'n the -iBth edition of Blacks +a! Dictionar"5 p%,9G nder the term @)reditA the term @Bank creditA is descri&ed as: @Cone" &ank o!es or !ill lend a individ al or personA% 't is clear from this definition that @Bank creditA !hich is the @mone" &ank o!esA is the &ankPs lia&ilit"% The term @check&ook mone"A is descri&ed in the &ook @- Bet Cou !hought35 p &lished &" the privatel" o!ned Federal 4eserve Bank of Ne! 1ork5 as follo!s: R)ommercial &anks create check&ook mone" !henever the" grant a loan5 simpl" &" adding deposit dollars to acco nts on their &ooks to eBchange for the &orro!ers 'O* % % % %R The !ord RdepositR and Rdemand depositR &oth mean the same thing in &ank terminolog" and refer to the &ankPs lia&ilities% For eBample5 the )hicago Federal 4eserves p &lication5 @ Modern Money Mechanics3 states: RDeposits are merel" &ook entries %%% Banks can & ild p deposits &" increasing loans %%% Demand deposits are the modern co nterpart of &ank notes% 't !as a small step from printing notes to making &ook entries to the credit of &orro!ers !hich the &orro!ers5 in t rn5 co ld PspendP &" !riting checks% Th s5 it is demonstrated in @Codern Cone" CechanicsA ho!5 nder the practice of fractional reserve &anking5 a deposit of 8F5777 in cash co ld res lt in a loan of credit>check&ook mone">demand deposits of% 8:775777 if reserve ratios set &" the Federal 4eserve are F_ =instead of :7_?%

'n a practical application5 here is ho! it !orks% 'f a &ank has ten people !ho each deposit 8F5777 =totaling 8F75777? in cash =legal mone"? and the &ankPs reserve ratio is F_5 then the &ank !ill lend t!ent" times this amo nt5 or 8:57775777 in RcreditR mone"% 3hat the &ank has act all" done5 ho!ever5 is to !rite a check or loan its credit !ith the intended p rpose of circ lating credit as Rmone"%R Banks kno! that if all the people !ho receive a check or credit loan come to the &ank and demand cash5 the &ank !ill have to close its doors &eca se it doesnPt have the cash to &ack p its check or loan% The &ankPs check or loan !ill5 ho!ever5 pass as mone" as long as people have confidence in the ill sion and donPt demand cash% 0anics are created !hen people line p at the &ank and demand cash =legal mone"?5 ca sing &anks to fold as histor" records in several time periods5 the most recent in this co ntr" !as the panic of :J,,% THE 2RO*ESS OF 2 SS$%# *HE*KS OR *RED$T S MO%E; $S DO%E D!$TE S$M2'; A deposit of 8F5777 in cash &" one person res lts in a loan of 8:775777 to another person at F_ reserves% The person receiving the check or loan of credit for 8:775777 s all" deposits it in the same &ank or another &ank in the Federal 4eserve -"stem% The check or loan is sent to the &ookkeeping department of the lending &ank !here a &ook entr" of 8:775777 is credited to the &orro!erPs acco nt% The lending &ankPs check that created the &orro!erPs loan is then stamped R0aidR !hen the acco nt of the &orro!er is credited a RdollarR amo nt% The &orro!er ma" then RspendR these &ook entries =demand deposits? &" !riting checks to others5 !ho in t rn deposit their checks and have &ook entries transferred to their acco nt from the &orro!erPs checking acco nt% Ho!ever5 t!o highl" 6 estiona&le and nla!f l acts have no! occ rred% The first !as !hen t he &ank !rote the check or made the loan !ith ins fficient f nds to &ack them p% The second is !hen the &ank stamps its o!n @Not - fficient F ndsA check RpaidR or posts a loan &" merel" crediting the &orro!erPs acco nt !ith &ook entries the &ank calls Rdollars%R 'ronicall"5 the check or loan seems good and passes as mone" -- nless an emergenc" occ rs via demands for cash - or a )o rt challenge -- and the artf l5 ill sion & &&le5 & rsts% D$FFERE%T K$%DS OF MO%E; The &ook5 @- Bet Cou !hought35 p &lished &" the Federal 4eserve Bank of Ne! 1ork5 states: RCone" is an" generall" accepted medi m of eBchange5 not simpl" coin and c rrenc"% Cone" doesn>t have to &e intrinsicall" val a&le* be issued by a government or &e in an" special form%R SEmphasis addedT Th s !e see that privatel" iss ed forms of mone" onl" re6 ire p &lic confidence in order to pass as mone"% )o nterfeit mone" also passes as mone" as long as no&od" discovers itPs co nterfeit% +ike !ise5 R&adR checks and RcreditR loans pass as mone" so long as no one finds o t the" are nla!f l% 1et5 once the fra d is discovered5 the val es of s ch @&ank mone"A like &ad check$s ceases to eBist% There are5 therefore5 t!o kinds of mone" -government iss ed legal mone" and privatel" iss ed nla!f l mone"% D$FFERE%T K$%DS OF DO'' RS The dollar once represented something intrinsicall" val a&le made from gold or silver% For eBample5 in :GJ;5 )ongress defined the silver dollar as a silver coin containing ,G:%;F grains of p re silver% The legal dollar is no! kno!n as R*nited -tates coins and c rrenc"%R Ho!ever5 the BankerPs dollar has &ecome a nit of meas re of a different kind of mone"% Therefore5 !ith Bankers there is a RdollarR of coins and a dollar of cash =legal mone"?5 a RdollarR of de&t5 a RdollarR of credit5 a RdollarR of check&ook mone" or a RdollarR of checks% 3hen one refers to a dollar spent or a dollar loaned5 he sho ld no! indicate !hat kind of RdollarR he is talking a&o t5 since Bankers have created so man" different kinds% A dollar of &ank Rcredit mone"R is the eBact opposite of a dollar of Rlegal mone"R% The former is a lia&ilit" !hile the latter is an asset% Th s5 it can &e seen from the earlier statement 6 oted from - Bet Cou !hought5 that mone" can &e privatel" iss ed as: RCone" doesnPt have to %%% &e iss ed &" a government or &e in an" special form%R 't sho ld &e caref ll" noted that &anks that iss e and lend privatel" created mone" demand to &e paid !ith government iss ed mone"% Ho!ever5 pa"ment in like kind nder nat ral e6 it" !o ld seem to indicate that a de&t created &" a loan of privatel" created mone" can &e paid !ith other privatel" created mone"5 !itho t regard for @an" special formA as there are no stat tor" la!s to dictate ho! either private citi<ens or &anks ma" create mone"% "; WH T !THOR$T;& B" !hat a thorit" do state and national &anks5 as privatel" o!ned corporations5 create mone" &" lending their credit --or more simpl" p t - &" !riting and passing R&adR checks and RcreditR loans as Rmone"RK No!here can a la! &e fo nd that gives &anks the a thorit" to create mone" &" lending their lia&ilities% Therefore5 the neBt 6 estion is5 if &anks are creating mone" &" passing &ad checks and lending their credit5 !here is their a thorit" to do soK From their literat re5 &anks claim these techni6 es !ere learned from the trade secrets of the /oldsmiths% 't is evident5 ho!ever5 that mone" creation &" private &anks is not the res lt of po!ers conferred pon them &" government5 & t rather the artf l se of long held Rtrade secrets%R Th s5 nla!f l mone" creation is not &eing done &" &anks as corporations5 & t nla!f ll" &" &ankers%

rticle $3 Section (93 8ara< ( o/ the "onstitution of t0e United (tates of America s8eci/ically states that no state shall R<<< coin money3 emit 0ills o/ cre4it3 ma7e any thing 0ut gol4 an4 sil6er coin a Ten4er in 2ayment o/ De0ts5 pass an" Bill of Attainder5 eB post facto +a!5 or +a! impairing the O&ligations of )ontracts % % RSEmphasis addedT The states3 :hich grant the *harters o/ state 0an7s also3 8rohi0it the emitting o/ "ills o/ cre4it 0y not granting such authority in 0an7 charters< 't is o&vio s that R3e the peopleR never delegated to )ongress5 state government5 or agencies of the state5 the po!er to create and iss e mone" in the form of checks5 credit5 or other R&ills of credit%R The Federal /overnment toda" does not a thori<e &anks to emit5 !rite5 create5 iss e and pass checks and credit as mone"% B t &anks do5 and get a!a" !ith itM Banks call their privatel" created mone" nice so nding names5 like @creditA5 @demand depositsA5 or @check&ook mone"A% Ho!ever5 the tr e nat re of Rcredit mone"R and RchecksR does not change regardless of the poetic terminolog" sed to descri&e them% - ch mone" in common se &" privatel" o!ned &anks is illegal nder Art% :5 -ec%:75 para% : of the )onstit tion of the *nited -tates of America5 as !ell as nla!f l nder the la!s of the *nited -tates and of this -tate% CO$D R!'TR C$RESR *O%TR *TS The co rts have long held that !hen a corporation eBec tes a contract &e"ond the scope of its charter or granted corporate po!ers5 the contract is void or R ltra viresR% 'n &entral !ransp. &o. v. Gullman5 :,J *%-% 975 :: -% )t% EGI5 ,F +% Ed% FF5 the co rt said: RA contract ultra vires &eing nla!f l and void5 not &eca se it is in itself immoral5 & t &eca se the corporation5 &" the la! of its creation5 is incapa&le of making it5 the co rts5 !hile ref sing to maintain an" action pon the nla!f l contract5 have al!a"s striven to do ( stice &et!een the parties5 so far as co ld &e done consistentl" !ith adherence to la!5 &" permitting propert" or mone"5 parted !ith on the faith of the nla!f l contract5 to &e recovered &ack5 or compensation to &e made for it% 'n s ch case5 ho!ever5 the action is not maintained pon the nla!f l contract5 nor according to its termsN & t on an implied contract of the defendant to ret rn5 or5 failing to do that5 to make compensation for5 propert" or mone" !hich it has no right to retain% To maintain s ch an action is not to affirm5 & t to disaffirm5 the nla!f l contract%R R3hen a contract is once declared ltra vires5 the fact that it is eBec ted ` does not validate it5 nor can it &e ratified5 so as to make it the &asis of s itor action5 nor does the doctrine of estoppel appl"%R FH G; v. ;ichmond5 :,, -E IJIN :F: 2a :JF% RA national &ank %%% cannot lend its credit to another &" &ecoming s ret"5 indorser5 or g arantor for him5 s ch an act N is ltra vires % % %R Merchants> Bank v. Baird :97 F 9E;% THE D!EST$O% OF ' WF!' *O%S$DER T$O% The iss e of !hether the lender !ho !rites and passes a R&adR check or makes a RcreditR loan has a claim for relief against the &orro!er is eas" to ans!er5 providing the lender can prove that he gave a la!f l consideration5 &ased pon la!f l acts% B t did the lender give a la!f l considerationK To gi6e a la:/ul consi4eration3 the len4er must 8ro6e that he ga6e the 0orro:er la:/ul money such as coins or currency< Failing that3 he can ha6e no claim /or relie/ in a court at la: against the 0orro:er as the len4erGs actions :ere ultra 6ires or 6oi4 /rom the 0eginning o/ the transaction< 't can &e arg ed that @&adA checks or @creditA loans that pass as mone" are val a&leN & t so are co nterfeit coins and c rrenc" that pass as mone"% 't seems nconsciona&le that a &ank !o ld ask homeo!ners to p t p a homestead as collateral for a Rcredit loanR that the &ank created o t of thin air% 3o ld this co rt of la! or e6 it" allo! a co nterfeiter to foreclose against a personPs home &eca se the &orro!er !as late in pa"ments on an nla!f l loan of co nterfeit mone"K 3ere the co rt to do so5 it !o ld &e contrar" to all principles of la!% The 6 estion of val a&le consideration in the case at &ar5 does not depend on an" val e imparted &" the lender5 & t the false confidence instilled in the R&adR check or RcreditR loan &" the lender% 'n a co rt at la! or e6 it"5 the lender has no claim for relief% The arg ment that &eca se the &orro!er received propert" for the lenderPs R&adR check or RcreditR loan gives the lender a claim for relief is not valid5 nless the lender can prove that he gave la!f l val e% The seller in some cases !ho ma" &e holding the @&adA check or @)reditA loan has a claim for relief against the lender or the &orro!er or &oth5 & t the lender has no s ch claim% "ORROWER RE'$EF -ince !e have esta&lished that the lender of nla!f l or co nterfeit mone" has no claim for relief nder a void contract5 the last 6 estion sho ld &e5 does the &orro!er have a claim for relief against the lenderK First5 if it is esta&lished that the &orro!er has made no pa"ments to the lender5 then the &orro!er has no claim for relief #against the lender for mone" damages% B t the &orro!er has a claim for relief to void the de&t he o!es the lender for notes or o&ligations nla!f ll" created &" an ltra vires contract for lending RcreditR mone"% The 0orro:er3 the *ourts ha6e long hel43 has a claim /or relie/ against the len4er to ha6e the note3 security agreement3 or mortgage note the 0orro:er signe4 4eclare4 null an4 6oi4<

The &orro!er ma" also have claims for relief for &reach of contract &" the lender for not lending Rla!f l mone"R and for @ s r"A for charging an interest rate several times greater than the amo nt agreed to in the contract for an" la!f l mone" act all" risked &" the lender% For eBample5 if on a 8:775777 loan it can &e esta&lished that the lender act all" risked onl" 8F5777 =F_ Federal 4eserve ratio? !ith a contract interest rate of :7_5 the lender has then loaned 8JF5777 of RcreditR and 8F5777 of Rla!f l mone"R% Ho!ever5 !hile charging :7_ interest =8:75777? on the entire 8:775777% The tr e interest rate on the 8F5777 of Rla!f l mone"R act all" risked &" the lender is ;77_ !hich 6iolates !sury la:s o/ this state< $/ no Rla:/ul moneyR :as loane43 then the interest rate is an in/inite 8ercentage< Such techniAues the 0an7ers say :ere learne4 /rom the tra4e secrets o/ the #ol4smiths< The *ourts ha6e re8eate4ly rule4 that such contracts :ith 0orro:ers are :holly 6oi4 /rom the 0eginning o/ the transaction3 0ecause 0an7s are not grante4 8o:ers to enter into such contracts 0y either state or national charters< DD$T$O% ' "ORROWER RE'$EF 'n Federal District )o rt the &orro!er ma" have additional claims for relief nder R)ivil 4')OR Federal 4acketeering la!s =:I *%-%)% O :J9E?% The lender ma" have esta&lished a Rpattern of racketeering activit"R &" sing the *%-% Cail more than t!ice to collect an nla!f l de&t and the lender ma" &e in violation of :I *%-%)% O:,E:5 :,E,5 :J9: and :J9;% The &orro!er has other claims for relief if he can prove there !as or is a conspirac" to deprive him of propert" !itho t d e process of la! nder% =E; *%-%)% O:JI, =)onstit tional 'n( r"?5 :JIF =)onspirac"? and :JI9 =RHno!ledgeR and RNeglect to 0reventR a *%-% )onstit tional 3rong?5 *nder :I *%-%)%A%O ;E: =)onspirac"? violators5 Rshall &e fined not more than 8:75777 or imprisoned not more than ten =:7? "ears or &oth%R 'n a De&torPs 4')O action against its creditor5 alleging that the creditor had collected an nla!f l de&t5 an interest rate =!here all loan charges !ere added together? that eBceeded5 in the lang age of the 4')O -tat te5 Rt!ice the enforcea&le rateR% The )o rt fo nd no reason to impose a re6 irement that the 0laintiff sho! that the D efendant had &een convicted of collecting an nla!f l de&t5 r nning a Rloan sharkingR operation% The de&t incl ded the fact that eBaction of a s rio s interest rate rendered the de&t nla!f l and that is all that is necessar" to s pport the )ivil 4')O action% D rante Bros% X -ons5 'nc% v% Fl shing Nat Pl Bank% GFF F;d ;,J5 )ert% denied5 EG, *- J79 =:JIF?% The - preme )o rt fo nd that the 0laintiff in a civil 4')O action5 need esta&lish onl" a criminal RviolationR and not a criminal conviction% F rther5 the )o rt held that the Defendant need onl" have ca sed harm to the 0laintiff &" the commission of a predicate offense in s ch a !a" as to constit te a Rpattern of 4acketeering activit"%R That is5 the 0laintiff need not demonstrate that the Defendant is an organi<ed crime fig re5 a mo&ster in the pop lar sense5 or that the 0laintiff has s ffered some t"pe of special 4acketeering in( r"N all that the 0laintiff m st sho! is !hat the -tat te specificall" re6 ires% The 4')O -tat te and the civil remedies for its violation are to &e li&erall" constr ed to effect the congressional p rpose as &roadl" form lated in the -tat te% -edima5 -04+ v% 'mreB )o%5 EG, *- EGJ =:JIF?% Aside from an" legal o&ligation5 there eBists a societal and moral o&ligation en re to &oth the 0laintiff and the Defendant in that if "o !ere to def se a Bom&5 and "o completed the task JJ_ correct5 "o are still dead% /rantor &elieves that his position on the la! is so nd5 & t fears grievo s reperc ssions thro gho t the financial comm nit" if he sho ld prevail% The credit for mone" scheme is endemic thro gho t o r societ" and co ld have devastating effects on the national econom"% /rantor &elieves that another approach ma" &e eBplored as follo!s: 2ERFE*T O"'$# T$O% S TO H!M % "E$%# That !hich is &orro!ed is !ealth% +a&or created that !ealth5 so it is mone" not!ithstanding its form% )onsideration is promised in advance &" the 0romissor of the Note5 in the nat re of principal and interest pa"ments for the consideration provided &" the lender5 !hich is his personal !ealth created &" his la&or% A Cortgage Note or 0romissor" Note sec res the position of the lender and if there is defa lt on the promise to pa" then the &orro!er has agreed to accept the strict foreclos re remed" provided &" state stat tes% Then the &orro!er o&ligated themselves to pa" &ack the principal and pa" for the se of it5 in the form of interest for the "ears over !hich the principal is to &e paid &ack% When 8ayments sto8 there is a 8rima /acie inNury to the len4er% 3hen pa"ments stop the lender has strict foreclos re proced re in state co rt to remed" the pa" &ack of the &alance of the principal% J dgment to foreclose on the propert" is granted pon the mere proof that pa"ments have ceased as promised% The propert" is sold to cover the npaid &alanceN deficienc" ( dgment ma" &e needed% All is right !ith the !orld% Here the lender !o ld &e pre( diced if complete and s!ift remed" !ere not availa&le% A&sent s ch remed" the government !o ld &e part" to placing the lender into a condition of invol ntar" servit de to the &orro!er% 2ERFE*T O"'$# T$O% S TO " %K 'n "ears past &anks and savings and loans instit tions en(o"ed the remed" o tlined a&ove% The reason !as the" !ere lending o t mone" &elonging to their depositors and there !as prima facie in( r" to the depositors pon the mere proof that pa"ments had ceased% There&" the &ank as !ell as the government !o ld &e part" to creating a

condition of invol ntar" servit de pon the depositors if strict foreclos re remed" !ere not availa&le% Toda" depositors are not in (eopard" of &eing in( red !hen a person &orro!s mone" from a &ank% The &ank does not lend their mone"5 onl" their credit in the amo nt of the loan =paper acco nting?% Hence no prima facie in( r" eBists to either the depositors or the &ank pon the mere proof that pa"ments cease% 'n( r" is &ased pon the pa"ments made as to the credit line% 2ERFE*T OR $M2ERFE*T O"'$# T$O% A perfect o&ligation is one recogni<ed and sanctioned &" positive la!N one of !hich the f lfillment can &e enforced &" the aid of the la!% B t if the d t" created &" the o&ligation operates onl" on the moral sense5 !itho t &eing enforced &" an" positive la!5 it is called an Rimperfect o&ligation5R and creates no right of action5 nor has it an" legal operation% The d t" of eBercising gratit de5 charit"5 and the other merel" moral d ties are eBamples of this kind of o&ligation% Ed!ards v% Heane"5 J9 *%-% FJF5 9775 ;E +%Ed% GJ,% /overnment approved the Federal 4eserve Bank5 'nc%5 as the )entral Banking s"stem for the *nited -tates5 and it$s polic" is revie!ed &" )ongress al&eit5 in a hapha<ard manner% The Federal 4eserve a thori<es its @private mone"A @Federal 4eserve Bank NotesA to &e sed &" lending instit tions s ch as mem&er &anks5 to operate pon a s"stem of fractionali<ing% The nat re of !hich is that the" do not lend either their mone" or the mone" of the depositors5 the mone" is created o t of thin air5 &" the mere stroke of a pen% 3hen there is no consideration in (eopard" of &eing ret rned5 then the o&ligation is to make the &ank in( r" proof5 to the eBtent of the o&ligation5 !hich !o ld &e to make them !hole% The onl" legal o&ligation is &ased pon the moral iss e5 !hich nder the la! is an 'mperfect O&ligation5 to ret rn to them their propert"5 !hich isn$t !ealth5 & t credit% A 0romissor" Note is signed nder Reconomic comp lsionR !hen5 the RloanR !ill not &e cons mmated nless and ntil the &orro!er signs it% Th s5 performing the act of signing a 0romissor" Note cannot &e considered vol ntar"% The discharging of the credit is &ased pon social5 economic5 and moral standards to make the &ank !hole5 if in( r" is claimed5 in an" co rt action !here defa lt on the 0romissor" Note is on record and !here the &ank fails to verif" an in( r"5 the &ank cannot enforce a promise to pa" consideration !here the" provided no consideration% For the &ank to &e a&le to force pon the defendant an amo nt over and a&ove the credit5 is to force pon the defendants a de&t that goes to the control of their la&or against their !ill% This condition !o ld &e 0eonage5 !hich has &een a&olished in this co ntr"% =E; *%-%)% O :JJE5 and :I *%-%)% O:FI:%? The 6 estion then arises as to !hen is the o&ligation discharged5 to p t the &ank in a position5 !here there is no record of in( r" to itK THE * SE $S *'E R *ons8iracy against rights: 'f t!o or more persons conspire to in( re5 oppress5 threaten5 or intimidate an" person in an" -tate5 Territor"5 )ommon!ealth5 0ossession5 or District in the free eBercise or en(o"ment of an" right or privilege sec red to him &" the )onstit tion or la!s of the *nited -tates5 or &eca se of his having so eBercised the same N or 'f t!o or more persons go in disg ise on the high!a"5 or on the premises of another5 !ith intent to prevent or hinder his free eBercise or en(o"ment of an" right or privilege so sec red - The" shall &e fined nder this title or imprisoned not more than ten "ears5 or &othN and if death res lts from the acts committed in violation of this section or if s ch acts incl de kidnapping or an attempt to kidnap5 aggravated seB al a& se or an attempt to commit aggravated seB al a& se5 or an attempt to kill5 the" shall &e fined nder this title or imprisoned for an" term of "ears or for life5 or &oth5 or ma" &e sentenced to death% S:I5 *-) ;E:T De8ri6ation o/ rights un4er color o/ la:: 3hoever5 nder color of an" la!5 stat te5 ordinance5 reg lation5 or c stom5 !illf ll" s &(ects an" person in an" -tate5 Territor"5 )ommon!ealth5 0ossession5 or District to the deprivation of an" rights5 privileges5 or imm nities sec red or protected &" the )onstit tion or la!s of the *nited -tates5 or to different p nishments5 pains5 or penalties5 on acco nt of s ch person &eing an alien5 or &" reason of his color5 or race5 than are prescri&ed for the p nishment of citi<ens5 shall &e fined nder this title or imprisoned not more than one "ear5 or &othN and if &odil" in( r" res lts from the acts committed in violation of this section or if s ch acts incl de the se5 attempted se5 or threatened se of a dangero s !eapon5 eBplosives5 or fire5 shall &e fined nder this title or imprisoned not more than ten "ears5 or &othN and if death res lts from the acts committed in violation of this section or if s ch acts incl de kidnapping or an attempt to kidnap5 aggravated seB al a& se5 or an attempt to commit aggravated seB al a& se5 or an attempt to kill5 shall &e fined nder this title5 or imprisoned for an" term of "ears or for life5 or &oth5 or ma" &e sentenced to death% S:I5 *-) ;E;T 2ro8erty rights o/ citiMens: All citi<ens of the *nited -tates shall have the same right5 in ever" -tate and Territor"5 as is en(o"ed &" !hite citi<ens thereof to inherit5 p rchase5 lease5 sell5 hold5 and conve" real and personal propert"% SE; *-) :JI;T *i6il action /or 4e8ri6ation o/ rights: Ever" person !ho5 nder color of an" stat te5 ordinance5 reg lation5 c stom5 or sage5 of an" -tate or Territor" or the District of )ol m&ia5 s &(ects5 or ca ses to &e s &(ected5 an"

citi<en of the *nited -tates or other person !ithin the ( risdiction thereof to the deprivation of an" rights5 privileges5 or imm nities sec red &" the )onstit tion and la!s5 shall &e lia&le to the part" in( red in an action at la!5 s it in e6 it"5 or other proper proceeding for redress5 eBcept that in an" action &ro ght against a ( dicial officer for an act or omission taken in s ch officerPs ( dicial capacit"5 in( nctive relief shall not &e granted nless a declarator" decree !as violated or declarator" relief !as navaila&le% For the p rposes of this section5 an" Act of )ongress applica&le eBcl sivel" to the District of )ol m&ia shall &e considered to &e a stat te of the District of )ol m&ia% SE; *-) :JI,T *ons8iracy to inter/ere :ith ci6il rights: Depriving persons of rights or privileges: 'f t!o or more persons in an" -tate or Territor" conspire or go in disg ise on the high!a" or on the premises of another5 for the p rpose of depriving5 either directl" or indirectl"5 an" person or class of persons of the e6 al protection of the la!s5 or of e6 al privileges and imm nities nder the la!sN or for the p rpose of preventing or hindering the constit ted a thorities of an" -tate or Territor" from giving or sec ring to all persons !ithin s ch -tate or Territor" the e6 al protection of the la!sN or if t!o or more persons conspire to prevent &" force5 intimidation5 or threat5 an" citi<en !ho is la!f ll" entitled to vote5 from giving his s pport or advocac" in a legal manner5 to!ard or in favor of the election of an" la!f ll" 6 alified person as an elector for 0resident or 2ice 0resident5 or as a Cem&er of )ongress of the *nited -tatesN or to in( re an" citi<en in person or propert" on acco nt of s ch s pport or advocac"N in an" case of conspirac" set forth in this section5 if one or more persons engaged therein do5 or ca se to &e done5 an" act in f rtherance of the o&(ect of s ch conspirac"5 !here&" another is in( red in his person or propert"5 or deprived of having and eBercising an" right or privilege of a citi<en of the *nited -tates5 the part" so in( red or deprived ma" have an action for the recover" of damages occasioned &" s ch in( r" or deprivation5 against an" one or more of the conspirators% SE; *-) :JIF=,?T ction /or neglect to 8re6ent: Ever" person !ho5 having kno!ledge that an" of the !rongs conspired to &e done5 and mentioned in section :JIF of this title5 are a&o t to &e committed5 and having po!er to prevent or aid in preventing the commission of the same5 neglects or ref ses so to do5 if s ch !rongf l act &e committed5 shall &e lia&le to the part" in( red5 or his legal representatives5 for all damages ca sed &" s ch !rongf l act5 !hich s ch person &" reasona&le diligence co ld have preventedN and s ch damages ma" &e recovered in an action on the caseN and an" n m&er of persons g ilt" of s ch !rongf l neglect or ref sal ma" &e (oined as defendants in the actionN and if the death of an" part" &e ca sed &" an" s ch !rongf l act and neglect5 the legal representatives of the deceased shall have s ch action therefore5 and ma" recover not eBceeding 8F5777 damages therein5 for the &enefit of the !ido! of the deceased5 if there &e one5 and if there &e no !ido!5 then for the &enefit of the neBt of kin of the deceased% B t no action nder the provisions of this section shall &e s stained !hich is not commenced !ithin one "ear after the ca se of action has accr ed% SE; *-) :JI9T *O!RT: The person and s it of the sovereignN the place !here the sovereign so(o rns !ith his regal retin e5 !herever that ma" &e% SBlackPs +a! Dictionar"5 Fth Edition5 page ,:I%T *O!RT: An agenc" of the sovereign created &" it directl" or indirectl" nder its a thorit"5 consisting of one or more officers5 esta&lished and maintained for the p rpose of hearing and determining iss es of la! and fact regarding legal rights and alleged violations thereof5 and of appl"ing the sanctions of the la!5 a thori<ed to eBercise its po!ers in the co rse of la! at times and places previo sl" determined &" la!f l a thorit"% S's&ill v% -tovall5 TeB%)iv%App%5 J; -%3%;d :79G5 :7G7N BlackPs +a! Dictionar"5 Eth Edition5 page E;FT *O!RT OF RE*ORD: To &e a co rt of record a co rt m st have fo r characteristics5 and ma" have a fifth% The" are: a% A ( dicial tri& nal having attri& tes and eBercising f nctions independentl" of the person of the magistrate designated generall" to hold it SJones v% Jones5 :II Co%App% ;;75 :GF -%3% ;;G5 ;;JN EB parte /ladhill5 I Cetc% Cass%5 :G:5 per -ha!5 )%J% -ee5 also5 +ed!ith v% 4osalsk"5 ;EE N%1% E795 :FF N%E% 9II5 9IJT SBlackPs +a! Dictionar"5 Eth Ed%5 E;F5 E;9T &% 0roceeding according to the co rse of common la! SJones v% Jones5 :II Co%App% ;;75 :GF -%3% ;;G5 ;;JN EB parte /ladhill5 I Cetc% Cass%5 :G:5 per -ha!5 )%J% -ee5 also5 +ed!ith v% 4osalsk"5 ;EE N%1% E795 :FF N%E% 9II5 9IJT SBlackPs +a! Dictionar"5 Eth Ed%5 E;F5 E;9T c% 'ts acts and ( dicial proceedings are enrolled5 or recorded5 for a perpet al memor" and testimon"% S, Bl% )omm% ;EN , -teph% )omm% ,I,N The Thomas Fletcher5 )%)%/a%5 ;E F% EI:N EB parte Thistleton5 F; )al ;;FN Er!in v% *%-%5 D%)%/a%5 ,G F% EII5 ; +%4%A% ;;JN Heininger v% Davis5 J9 Ohio -t% ;7F5 ::G N%E% ;;J5 ;,:T d% Has po!er to fine or imprison for contempt% S, Bl% )omm% ;EN , -teph% )omm% ,I,N The Thomas Fletcher5 )%)%/a%5 ;E F% EI:N EB parte Thistleton5 F; )al ;;FN Er!in v% *%-%5 D%)%/a%5 ,G F% EII5 ; +%4%A% ;;JN Heininger v% Davis5 J9 Ohio -t% ;7F5 ::G N%E% ;;J5 ;,:%T SBlackPs +a! Dictionar"5 Eth Ed%5 E;F5 E;9T

e% /enerall" possesses a seal% S, Bl% )omm% ;EN , -teph% )omm% ,I,N The Thomas Fletcher5 )%)%/a%5 ;E F% EI:N EB parte Thistleton5 F; )al ;;FN Er!in v% *%-%5 D%)%/a%5 ,G EII5 ; +%4%A% ;;JN Heininger v% Davis5 J9 Ohio -t% ;7F5 ::G N%E% ;;J5 ;,:%T SBlackPs +a! Dictionar"5 Eth Ed%5 E;F5 E;9T Ta7ing into consi4eration all o/ the 4ocumentation containe4 herein it is a0un4antly clear that no /oreclosure action is :arrante43 Nusti/ie4 or la:/ul< There is no inNury to the 8ur8orte4 len4er< court o/ recor4 shoul4 4eci4e :hat actions shoul4 an4 must 0e ta7en as a result o/ the unla:/ul actions o/ the 2lainti//< E5hi0it D Memoran4um o/ 'a: 2oints o/ uthority "ills o/ E5change %OT$*E %OT$*E OF MEMOR %D!M OF ' W-2oints an4 uthorities in Su88ort o/ $nternational "ill o/ E5change RThose !ho constit te an association nation!ide of private5 nincorporated persons engaged in the siness of &anking to iss e notes against these o&ligations of the *nited -tates d e themN !hose 8ri6ate propert" is at risk to collaterali<e the government$s de&t and c rrenc"5 &" legal definitions5 a Rnational 0an7ing associationRN s ch notes5 iss ed against these o0ligations o/ the !nite4 States to that 8art o/ the 8u0lic 4e0t 4ue its 2rinci8als an4 Sureties are re;uired <- la7 to <e acce.ted as ,legal tender, of .a-ment for all de<ts .u<lic and .ri=ate 5 and are defined in la! as Ro0ligations o/ the !nite4 StatesR5 on the same par and categor" !ith Federal reserve notes and other c rrenc" and legal tender o&ligations%R RE: $tem ten4ere4 /or Discharge o/ De0t% The instrument ten4ere4 to the 0an7 an4 negotiate4 to the !nite4 States Treasury /or settlement is an >O0ligation o/ THE !%$TED ST TES5A nder Title ()!S* Sect<)3 representing as the definition provides a @certificate of inde&tedness Q%4ra:n u8on an authoriMe4 o//icer o/ the !nite4 States5A =in this case the -ecretar" of the Treas r"?A issue4 un4er an ct o/ *ongressA =in this case 8u0lic la: -1-(93 HOR-(P. o/ (P11 and Title 1( !S* 1(.13 an4 1( !S* E(91@ an4 0y treaty =in this case the !%$TED % T$O%S *O%CE%T$O% O% $%TER% T$O% ' "$''S OF EL*H %#E %D $%TER% T$O% ' 2ROM$SSOR; %OTES =!%*$TR '? and the !ni6ersal 2ostal !nion hea4Auartere4 in "ern3 S:itMerlan4?% T$T'E () S 2 RT $ S *H 2TER ( S Sec< (< S Sec< )% Sec< )< - O0ligation or other security o/ the !nite4 States 4e/ine4 The term GGo0ligation or other security o/ the !nite4 StatesGG inclu4es all 0on4s3 certi/icates o/ in4e0te4ness3 national 0an7 currency 5 Federal 4eserve notes5 Federal 4eserve &ank notes5 co pons5 *nited -tates notes5 Treas r" notes5 gold certificates5 silver certificates5 fractional notes5 certificates of deposit5 &ills5 checks5 or drafts for mone"5 4ra:n 0y or u8on authoriMe4 o//icers o/ the !nite4 States5 stamps and other representatives of val e5 of !hatever denomination5 issue4 un4er any ct o/ *ongress5 and canceled *nited -tates stamps% The 'nternational Bill of EBchange is legal tender as a national &ank note5 or note of a National Banking Association5 &" legal and>or stat tor" definition =!** ,-(9E3 (.*FRSec< ..P<.3 .(9<.3 (. !S* ()(1@5 iss ed nder A thorit" of the *nited -tates )ode 1( !S* 1P.3 E(915 !hich officiall" defines this as a stat tor" legal tender o&ligation of THE *NT'ED -TATE-5 and is iss ed in accordance !ith 1( !S* 1(.1 an4 HOR-(P. =(P11@ !hich esta&lish and provide for its iss ance as @0 &lic 0olic"A in remed" for discharge of e6 it" interest recover" on that portion of the p &lic de&t to its 0rincipals5 and - reties &earing the O&ligation of THE *N'TED -TATE-% This is a stat tor" remed" for e6 it" interest recover" d e the principles and s reties of the *nited -tates for 4ischarge o/ la:/ul 4e0ts in commerce in conNunction :ith !S o0ligations to that 8ortion o/ the 8u0lic 4e0t it is inten4e4 to re4uce%D ring the financial crisis of the depression5 in :J,, s &stance of gold5 silver and real mone" !as remo6e4 as a fo ndation for o r financial s"stem% 'n it s place the su0stance of the American citi<enr": their real propert"5 !ealth5 assets and prod ctivit" that 0elongs to them !as5 in effect5 #8le4ge4$ &" the government and 8lace4 at ris7 as the collateral for !S 4e0t3 cre4it an4 currency for commerce to f nction% This is !ell doc mented in the actions of )ongress and the 0resident at that time and in the )ongressional de&ates that preceded the adoption of the reorgani<ational meas res: Senate Document %o< ,13 -1r4 *ongress3 (st Session5 stated5 R*nder the ne! la! the mone" is iss ed to the &anks in return for #o6ernment o0ligations3 0ills o/ e5change3 4ra/ts3 notes3 tra4e acce8tances3 an4 0an7er’s acce8tances< The money :ill 0e :orth (99 cents on the 4ollar3 0ecause it is 0ac7e4 0y the cre4it o/ the nation< $t :ill re8resent a mortgage on all the homes an4 other 8ro8erty o/ all the 8eo8le in the %ation%R =3hich la:/ully 0elongs to these private citi<ens%? The National De&t is defined as @mortgages on the :ealth an4 income o/ the 8eo8le o/ a country%A =Enc"clopedia Britannica5 :JFJ%? Their !ealth5 Q% their income% The reorgani<ation is evidenced &": The Emergenc" Banking Act5 Carch J5 :J,,5 Ho se Joint 4esol tion :J;5 J ne F5 :J,, =p &lic la! G,-:7? And the -eries of EBec tive Orders that s rro nded them: 97G,- 4eopening of Banks% Em&argo on /old 0a"ments and EBports5 and +imitations on Foreign EBchange Transactions% Carch :75 :J,, 9:::-Transactions in foreign eBchange are permitted nder /overnmental - pervision% April ;75 :J,, 9:7; - For&idding the hoarding of gold

coin5 gold & llion and gold certificates% April F5 On Decem&er ;,5 :J:,5 )ongress had passed RAn Act to provide for the esta&lishment of Federal reserve &anks5 to f rnish an elastic c rrenc"5 to afford a means of redisco nting commercial paper5 to esta&lish a more effective s pervision of &anking in the *nited -tates5 and /or other 8ur8osesR% The Act is commonl" kno!n as the RFe4eral Reser6e ctR% One fo the p rposes for enacting the Federal 4eserve Act !as: =,? to authoriMe Rhy8othecationR o/ o0ligations inclu4ing R!nite4 States 0on4s or other securities :hich Fe4eral reser6e "an7s are authoriMe4 to hol4R nder -ection :E=a?N (. !S*B ch< K3 1) Stat< .E( Sect (,=a@ The term Rhy8othecationR as stated in -ection :E=a? of the Act is defined: R:% Banking% O//er o/ stocks5 &onds5 or other assets o!ned &" a part" other than the 0orro:er as collateral /or a loan3 :ithout trans/erring title % 'f the &orro!er t rns the propert" over to the lender !ho holds it for safekeeping5 the action is referred to as a pledge% 'f the &orro!er retains possession5 & t gi6es the len4er the right to sell the 8ro8erty in e6ent o/ 4e/ault5 it is a tr e h"pothecation% ;% -ec rities% The pledging of negotia&le sec rities to collaterali<e a &rokerPs margin loan% The &roker pledges the same sec rities to a &ank as collateral for a &rokerPs loan5 the process is referred to as rehy8othecation%R TDictionary O/ "an7ing Terms3 Fitch3 8g< ..) =(PP-?T As seen from the definitions5 in h"pothecation there is eAuita0le risk to the actual o!ner% -ection :9 of the c rrent Federal 4eserve Act5 !hich is codified at :; *-) E::5 declares that RFe4eral Reser6e %otesR are Ro0ligations o/ the !nite4 StatesR< -o !e see the R/ull /aith an4 cre4itR of the !nite4 States: !hich is the su0stance of the American citi<enr": their real propert"5 !ealth5 assets and prod ctivit" that 0elongs to them5 is there&" hy8othecate4 an4 rehy8othecate4 &" the *nited -tates to its o&ligations as !ell as to the Federal 4eserve /or the issuance an4 0ac7ing o/ Fe4eral Reser6e %otes as legal ten4er Rfor all taBes5 c stoms5 and other p &lic d esR% T$T'E (. S *H 2TER 1 S S!"*H 2TER L$$ S Sec< ,((< Sec< ,((< - $ssuance to reser6e 0an7sB nature o/ o0ligationB redemption Federal 4eserve notes5 to &e iss ed at the discretion of the Board of /overnors of the Federal 4eserve -"stem for the p rpose of making advances to Federal reserve &anks thro gh the Federal reserve agents as hereinafter set forth and for no other p rpose5 are a thori<ed% The sai4 notes shall 0e o0ligations o/ the !nite4 States an4 shall 0e recei6a0le 0y all national an4 mem0er 0an7s an4 Fe4eral reser6e 0an7s an4 /or all ta5es3 customs3 an4 other 8u0lic 4ues% The commerce and credit of the nation contin es on toda" nder financial reorgani<ation =Bankr ptc"? as it has since :J,,5 still &acked &" the assets and !ealth of the American citi<enr": at ris7 for the go6ernment’s o&ligations and c rrenc"% *nder the :Eth amendment and n mero s - preme )o rt precedents5 as !ell as in e6 it"5 2ri6ate 8ro8erty can not 0e ta7en or 8le4ge4 /or 8u0lic use :ithout Nust com8ensation3 or 4ue 8rocess o/ la: % The *nited -tates can not 8le4ge or ris7 the 8ro8erty an4 :ealth o/ its 8ri6ate citiMens3 /or any go6ernment 8ur8ose :ithout legally 8ro6i4ing them reme4y to reco6er :hat is 4ue them on their ris7% This principle is so !ell esta&lished in English common la! and in the histor" of American ( rispr dence% The :Eth amendment provides: @no 8erson shall 0e 4e8ri6e4 o/U 8ro8erty :ithout 4ue 8rocess o/ la:A% And )o rts have long r led to have one$s propert" legall" held as collateral or s ret" for a de&t even !hen he still o!ns it and still has it is to deprive him of it since it is at risk and co ld &e lost for the de&t at an" time% The *nited -tates - preme )o rt said5 in *nited -tates v% 4 ssell S:, 3all5 9;,5 9;GT R2ri6ate 8ro8erty3 the *onstitution 8ro6i4es3 shall not 0e ta7en /or 8u0lic use :ithout Nust com8ensation %A RThe right o/ su0rogation is not fo nded on contract% 't is a creature o/ eAuityN is enforced solel" for the p rpose of accomplishing the ends of s &stantial ( sticeN an4 is in4e8en4ent o/ any contractual relations 0et:een the 8arties<R Mem8his H '< R< R< *o< 6< Do:3 (.9 !<S< .)-3 19(-19. =())-@% The rights o/ a surety to reco6ery on his ris7 or loss :hen stan4ing /or the 4e0ts o/ another !as reaffirmed again as late as :J9; in 0earlman v% 4eliance 'ns%)o%5 ,G: *%-%:,; !hen the )o rt said: U?sureties com8elle4 to 8ay 4e0ts /or their 8rinci8al ha6e 0een 4eeme4 entitle4 to reim0ursement3 e6en :ithout a contractual 8romise U n4 8ro0a0ly there are /e: 4octrines 0etter esta0lishe4U<<<? "lac7’s 'a: Dictionary 3 Eth e4ition3 4e/ines >surety?: @One !ho ndertakes to pa" or to 4o any other act in e6ent that his 8rinci8al /ails therein % Ever"one !ho inc rs a lia0ility in 8erson or estate /or the 0ene/it o/ another5 !itho t sharing in the consideration5 stan4s in the 8osition o/ a >surety%A )onstit tionall" and in the la!s of e6 it"5 the *nited -tates coul4 not 0orro: or 8le4ge the 8ro8erty an4 :ealth o/ its 8ri6ate citiMens3 8ut at ris7 as collateral /or its currency an4 cre4it :ithout legally 8ro6i4ing them eAuita0le reme4y /or reco6ery o/ :hat is 4ue them< The *nited -tates government5 of co rse5 did not violate the la! or the )onstit tion in this !a"5 in order to collaterali<e its financial reorgani<ation5 & t did5 in /act5 provide s ch a legal remed" so that it has &een a&le to contin e on since :J,, to h"pothecate the 8ri6ate !ealth and assets of those classes of persons &" !hom it is o!ned5 at ris7 0ac7ing the go6ernment’s

o&ligations and c rrenc"5 0y their im8lie4 consent5 thro gh the government having provided s ch reme4y5 as defined and codified a&ove5 for recover" of !hat is d e them on their assets and !ealth at risk% The provisions for this are fo nd in the same act of @0 &lic 0olic"A HOR-(P.3 8u0lic la: -1-(9 that s spended the gold standard for o r c rrenc"5 a&rogated the right to demand pa"ment in gold5 and made Federal 4eserve notes for the first time legal tender5 @ 0ac7e4 0y the su0stance or >cre4it o/ the nationA% ll *- c rrenc" since that time is onl" cre4it against the real propert"5 !ealth and assets &elonging to the private soverign American people5 ta7en and>or #8le4ge4$ &" THE *N'TED -TATE- to its secon4ary creditors as security for its o&ligations% )onse6 entl"5 those 0ac7ing the nation$s credit and c rrenc" co ld not recover !hat !as d e them 0y anything 4ra:n on Fe4eral Reser6e notes :ithout e58an4ing their ris7 an4 o0ligation to themsel6es % An" recover" pa"ments &acked &" this c rrenc" !o ld onl" increase the 8u0lic 4e0t its citiMens :ere collateral /or3 :hich an eAuita0le reme4y :as inten4e4 to re4uce5 and in e6 it" !o ld not satisf" an"thing% And there !as no longer actual money o/ su0stance to 8ay any0o4y% There are other serio s limitations on o r present s"stem% Since the institution o/ these e6ents3 /or 8ractical 8ur8oses o/ commercial e5change3 there has 0een no actual money in circulation 0y :hich 4e0t o:e4 /rom one 8arty to another can actually 0e re8ai4% Federal 4eserve Notes5 altho gh made legal tender for all de&ts p &lic and private in the reorgani<ation5 can onl" 4ischarge a de&t% De&t m st &e @8ai4A !ith 6alue or s &stance =i%e% gold5 silver5 &arter5 la&or5 or a commodit"?% For this reason HJ4-:J; =:J,,?5 !hich esta&lished the @p &lic polic"A of o r c rrent monetar" s"stem5 repeatedl" ses the technical term of @dischargeA in con( nction !ith @pa"mentA in la"ing o t p &lic polic" for the ne! s"stem% A de&t c rrenc" s"stem cannot pa" de&t% -o from that time to the present5 commerce in the corporate *N'TED -TATE- and among s &-corporate s &(ect entities has had onl" de&t note instr ments &" !hich de&t can &e discharged and transferred in different forms% The npaid de&t5 created and>or eBpanded &" the plan no! carries a 8u0lic lia0ility for collection in that !hen de&t is discharged !ith de&t instr ments5 =i%e% Federal 4eserve Notes incl ded?5 &" o r commerce5 de&t is inadvertentl" &eing e58an4e4 instead of &eing cancelle45 th s increasing the 8u0lic 4e0t% situation 8otentially /atal to any economy% )ongress and government officials !ho orchestrated the p &lic la!s and reg lations that made the /inancial reorganiMation anticipated the long term effect of a de&t &ased financial s"stem !hich man" in government feared5 and !hich !e face toda" in servicing the interest on trillions pon trillions of dollars in *- )orporate p &lic de&t and in this same act made provision not onl" for the reco6ery reme4y to satis/y eAuity to its - reties5 & t to simultaneously resol6e this 8ro0lem as :ell% -ince it is5 in fact5 the real propert"5 !ealth and assets of that class of persons that is the s &stance &acking all the other o&ligations5 c rrenc" and credit of THE *N'TED -TATE- and s ch c rrencies co ld not &e sed to red ce its o&ligations for e6 it" interest recover" to its 0rincipals and - reties5 HJ4-:J; f rther made the @notes of national &anks @and @national &anking associationsA on a par !ith its other c rrenc" and legal tender o&ligations% %o: T'T+E ,: 5 -*BT'T+E '2 5 )HA0TE4 F: 5 -*B)HA0TE4 ' 5 -ec% F:7,% says5 0egal tender -*nited -tates coins and c rrenc" =incl ding Federal reserve notes and circ lating notes of Federal reserve &anks and national 0an7s? are legal tender for all de&ts5 p &lic charges5 taBes5 and d es% =emphasis added? B t this official definition for #legal tender$ !as first esta&lished in HJ4-:J; =:J,,? in the same act that made federal reserve notes and notes of national &anking associations legal tender% 0 &lic 0olic" HJ4-:J; JO'NT 4E-O+*T'ON TO -*-0END THE /O+D -TANDA4D AND AB4O/ATE THE /O+D )+A*-E5 J*NE F5 :J,, H%J% 4es% :J;5 G,rd )ong%5 :st -ession Joint resol tion to ass re niform val e to the coins and c rrencies of the *nited -tates% As sed in this resol tion5 the term >o0ligation? means an o0ligation =inclu4ing e6ery o0ligation o/ an4 to the !nite4 States3 e5ce8ting currency? pa"a&le in mone" of the *nited -tatesN and the term >coin or currency? means coin or currency o/ the !nite4 States3 inclu4ing Federal 4eserve notes and circ lating notes of Federal 4eserve &anks and national 0an7ing associations% @ ll coins an4 currencies o/ the !nite4 States =inclu4ing Federal 4eserve notes and circ lating notes o/ Federal 4eserve &anks and national 0an7ing associations? heretofore or hereafter coined or iss ed5 shall 0e legal ten4er for all de&ts5 for p &lic and private5 p &lic charges5 taBes5 d ties5 and d es5A T!S* Title (.<..( De/initions W @The terms @national 0an7A and @national 0an7ing associationAQ%shall &e held to &e synonymous an4 interchangea0le%AT >notes o/ national 0an7s? or >national 0an7ing associations? ha6e continuously 0een maintaine4 in the o//icial 4e/inition o/ legal ten4er since Oune E3 (P11 to the 8resent 4ay3 :hen the term ha4 ne6er 0een use4 to 4e/ine >currency ?or >legal ten4er? 0e/ore that% 0rior to :J,, the forms of c rrenc" in se that !ere legal tender !ere man" and varied: -*nited -tates /old )ertificates W *nited -tates Notes W Treas r" Notes W 'nterest &earing notes W/old )oins of

*nited -tates W -tandard silver dollars W - &sidiar" silver coins W minor coins - )ommemorative coins W 0ut the list 4i4 not inclu4e /e4eral reser6e notes or notes o/ national 0an7s or national 0an7ing associations despite the fact national &ank notes !ere a common medi m of eBchange or @c rrenc"A and had &een5 almost since the fo nding of o r &anking s"stem and !ere &acked &" *nited -tates &onds or other sec rities on deposit for the &ank !ith the *- Treas r"% F rther5 /rom the time o/ their inclusion in the 4e/inition they ha6e 0een 8hase4 out ntil presentl" all provision in the *nited -tates )ode pertaining to incor8orate4 /e4erally chartere4 %ational "an7ing institutions issuing3 re4eeming3 re8lacing an4 circulating notes have all &een re8eale4% !S* T$T'E (. S *H 2TER . - NAT'ONA+ BANH- -*B)HA0TE4 2 - OBTA'N'N/ AND '--*'N/ )'4)*+AT'N/ NOTE- -ec%:7: to ::7% ;epealed% 0 &% +% :7,-,;F5 title 2'5 -ec% 97;eF-::5 f;-EA5 gJ5 -ept% ;,5 :JJE5 :7I -tat% ;;J;5 ;;JE -*B)HA0TE4 2' - 4EDEC0T'ON AND 4E0+A)ECENT OF )'4)*+AT'N/ NOTE-ec%:;:% ;epealed% 0 &% +% :7,-,;F5 title 2'5 -ec% 97;fEB5 -ept% ;,5 :JJE5 :7I -tat% ;;J; -ec%:;:a% 4edemption of notes nidentifia&le as to &ank of iss e -ec%:;;% ;epealed% 0 &% +% JG-;FI5 -ec% F&5 -ept% :,5 :JI;5 J9 -tat% :79I -ec%:;;a% 4edeemed notes of nidentifia&le iss eN f nds charged against -ec :;, to :;9% ;epealed% 0 &% +% :7,-,;F5 title 2'5 -ec% 97;e:;5 :,5 fE)5 95 -ept% ;,5 :JJE5 :7I -tat% ;;J;5 ;;J, -ec:;G% ;epealed% 0 &% +% IJ-FFE5 -ec% Ia5 -ept% 95 :J995 I7 -tat% 9,, s state4 in ‘Money an4 "an7ing?3 ,th e4ition3 0y Da6i4 H< Frie4man3 8u0l< 0y the merican "an7ers ssociation5 page GI5 @To4ay commercial 0an7s no longer issue currency3 U<> 't is clear5 federall" incorporated &anking instit tions s &(ect to the restrictions and repealed provisions of Title :;5 are not those 8rimarily re/erre4 to maintaine4 in the current 4e/inition o/ >legal ten4er A% The legal stat tor" and professional definitions of @0an7A5 @0an7ingA5 an4 >0an7erA sed in the *nited -tates )ode and )ode of Federal 4eg lations are not those commonl" nderstood for these terms and have made the stat tor" definition of @"an7A accordingl": !** ,-(9E 0A4T : R"an7R means a 8erson engage4 in the 0usiness o/ 0an7ing3? (.*FR Sec< ..P<. Definitions =e? "an7 meansa@the term &ank also incl des any 8erson engage4 in the 0usiness o/ 0an7ing5A (.*FR Sec< .(9<. Definitions% =d?A "an7 means any 8erson engage4 in the 0usiness o/ 0an7ing%A !S* Title (. Sec< ()(1% WDe/initions o/ "an7 an4 Relate4 Terms % W =:? Bank% W The term PP0an7PP W =A? @means an" national &ank5 -tate &ank5 and District &ank5 and an" Federal &ranch and ins red &ranchNA "lac7’s 'a: Dictionary3 Eth E4ition5 page :,,5 defines a @"an7erA as5 >$n general sense3 8erson that engages in 0usiness o/ 0an7ing< $n narro:er meaning3 a 8ri6ate 8ersonUUUB :ho is engage4 in the 0usiness o/ 0an7ing :ithout 0eing incor8orate4< !n4er some statutes3 an in4i6i4ual 0an7er3 as 4istinguishe4 /rom a >8ri6ate 0an7er?3 is a 8erson :ho3 ha6ing com8lie4 :ith the statutory reAuirements3 has recei6e4 authority /rom the state to engage in the 0usiness o/ 0an7ing3 :hile a 8ri6ate 0an7er is a 8erson engage4 in 0an7ing :ithout ha6ing any s8ecial 8ri6ileges or authority /rom the state< @ >"an7ing? 's partl" and optionall" defined as @The 0usiness o/ issuing notes /or circulationUU3 negotiating 0ills%A "lac7’s 'a: Dictionary3 Eth E4ition5 page :,,5 defines @"an7ingA: >The 0usiness o/ 0an7ing3 as 4e/ine4 0y la: an4 custom3 consists in the issue o/ notes UUinten4e4 to circulate as moneyUU<< And defines a @"an7er’s %oteA as: @ commercial instrument resem&ling a &ank note in ever" partic lar eBcept that it is gi6en 0y a 8ri6ate 0an7er or unincor8orate4 0an7ing institution%A Federal -tat te does not specificall" define @national 0an7? an4 >national 0an7ing associationA in those sections :here these uses are legislate4 on to e5clu4e a 8ri6ate 0an7er or unincor8orate4 0an7ing institution% 't 4oes define these terms to the e5clusion of s ch persons in the chapters and sections !here the iss e and circ lation of notes &" national &anks has &een repealed or /or0i44en% R$n the a0sence o/ a statutory 4e/inition3 courts gi6e terms their or4inary meaning % RBass5 Terri +% v% -tolper5 Horit<insk"5 ::: F%,d :,;F5Gth)ir% Apps% =:JJ9?% As the *%-% - preme )o rt noted5 RWe ha6e state4 time an4 again that courts must 8resume that a legislature says in a statute :hat it means an4 means in a statute :hat it says there%A -ee5 e%g%5 *nited -tates v% 4on 0air Enterprises5 'nc%5 EIJ *%-% ;,F5 ;E: -;E; =:JIJ?N *nited -tates v% /olden&erg5:9I *%-% JF5 :7; -:7, =:IJG?N RThe legislati6e 8ur8ose is e58resse4 0y the or4inary meaning o/ the :or4s use4% @4ichards v% *nited -tates5 ,9J *%-%: =:J9;?% Therefore5 as noted a&ove5 the legal definitions relating to #legal ten4er’ have &een !ritten &" )ongress and maintained as s ch to &e &oth e5clusi6e5 !here necessar"5 and inclusi6e5 !here appropriate5 to provide in its stat tor" definitions of legal ten4er for the

inclusion of all those5 !ho &" definition of private5 nincorporated persons engaged in the & siness of &anking to iss e notes against the o&ligation of the *nited -tates for recover" on their risk5 !hose 8ri6ate assets and propert" are &eing sed to collaterali<e the o&ligations of the *nited -tates since :J,,5 as collectivel" and nationall" constit ting a legal class of persons &eing a @national 0an7? or >national 0an7ing association? :ith the right to issue such notes against The O0ligation o/ THE !%$TED ST TES /or eAuity interest reco6ery 4ue an4 accrue4 to these 2rinci8als an4 Sureties o/ the !nite4 States 0ac7ing the o0ligations o/ !S currency an4 cre4itB as a means /or the legal ten4er 4ischarge o/ la:/ul 4e0ts in commerce as reme4y 4ue them in conNunction :ith !S o0ligations to the 4ischarge o/ that 8ortion o/ the 8u0lic 4e0t3 :hich is 8ro6i4e4 /or in the 8resent /inancial reorganiMation still in e//ect an4 ongoing since (P11% S:; *-) E::5 :I *-) I5 :; *-)N ch% 95 ,I -tat% ;F: -ect :E=a?5 ,: *-) F::I5 ,:;,% !ith rights protected nder the :Eth Amendment of the *nited -tates )onstit tion5 &" the *%-% - preme )o rt in *nited -tates v% 4 ssell =:, 3all5 9;,5 9;G?5 0earlman v% 4eliance 'ns% )o%5 ,G: *%-% :,;5:,95:,G =:J9;?5 The *nited -tates v% Hooe5 , )ranch =*%-%?G,=:I7F?5 and in conformit" !ith the *%-% - preme )o rt GJ *%-% ;IG =:IG7?5 :G; *%-%EI = :IJI?5 and as confirmed at ,7G *%-% ;EG=:J,J?%T HJ4-:J; f rther declared QQ%?e6ery 8ro6isionU<:hich 8ur8orts to gi6e the o0lige a right to reAuire 8ayment in gol4 or a 8articular 7in4 o/ coin or currencyU<is 4eclare4 to 0e against 2u0lic 2olicyB an4 no such 8ro6ision shall 0eU<ma4e :ith res8ect to any o0ligation herea/ter incurre4 %A Caking !a" for discharge and recover" on *- )orporate p &lic de&t d e the 0rincipals and - reties of THE *N'TED -TATE- providing as @8u0lic 8olicyA for the discharge of @e6ery o0ligation?3 >inclu4ing e6ery o0ligation OF an4 TO THE !%$TED ST TES?3 >4ollar /or 4ollarA5 allo!ing those &acking the *- financial reorgani<ation to recover on it &" 4ischarging an o&ligation the" o!ed TO THE !%$TED ST TES or its s &-corporate entities5 against that same amount o/ o0ligation OF THE !%$TED ST TES o:e4 to themB thus 8ro6i4ing the reme4y /or the 4ischarge and or4erly reco6ery of e6 it" interest on *- )orporate p &lic de&t d e the - reties5 0rincipals5 and Holders of THE *N'TED -TATE-5 discharging that portion of the p &lic de&t :ithout e58ansion o/ cre4it3 4e0t or o0ligation on THE !%$TED ST TES or these its 8rime-cre4itors it !as intended to satisf" e6 ita&le remed" to5 & t gaining for each &earer of s ch note5 discharge of o&ligation e6 ivalent in val e #dollar for dollar$ to an" and all @la:/ul money o/ the !nite4 StatesA%Those !ho constit te an association nation!ide of private5 nincorporated persons engaged in the & siness of &anking to iss e notes against these o&ligations of the *nited -tates d e themN !hose 8ri6ate propert" is at risk to collaterali<e the government$s de&t and c rrenc"5 &" legal definitions5 a Rnational 0an7ing associationRN s ch notes5 iss ed against these o0ligations o/ the !nite4 States to that 8art o/ the 8u0lic 4e0t 4ue its 2rinci8als an4 Sureties are re6 ired &" la! to &e accepted as Rlegal tenderR of pa"ment for all de&ts p &lic and private5 and5 as !e have seen5 are defined in la! as Ro&ligations of the *nited -tatesR5 on the same par and categor" !ith Federal reserve notes and other c rrenc" and legal tender o&ligations% This is !hat is asserted in the tender presented to the &ank for deposit and the government has said nothing to the contrar"% 3o ld !e 6 estion that this is eBactl" !hat )ongress has provided for in these stat tes and codes on the p &lic de&t and o&ligations of the *nited -tates and that this is the remed" codified in stat tor" la! and definition !e have cited hereK Even tho gh it is never disc ssed% *nder this remed" for 4ischarge of the p &lic de&t an4 recover" to its 0rincipals and - reties5 TWO 4e0ts that !o ld have &een discharged in Federal 4eserve de&t note or checks dra!n on the same5 e6 all" e58an4ing the p &lic de&t &" those transactions5 are discharged against a S$%#'E 8u0lic 4e0t o/ the *or8orate !%$TED ST TES an4 its su0-cor8orate entities to its prime-creditor :ithout the e58ansion an4 use o/ Fe4eral Reser6e 4e0t note instruments as currency an4 cre4it5 and so5 :ithout the eBpansion of de&t and de&t instr ments in the monetar" s"stem and the e58ansion o/ the 8u0lic de&t as & rden pon the entire financial s"stem and its 0rincipals5 and - reties the recover" remed" !as intended to relieve% Apparentl" their se is for the discharge and non-cash accrual re4uction of *- )orporate p &lic de&t to the 0rincipals5 0rime )reditors and Holders of it as provided in la! and the instr ments !ill ltimatel" &e settled &" ad( stment and set-off in discharge of a &earer$s o&ligation TO THE *N'TED -TATE- against the o&ligation OF THE *N'TED -TATE- for the amo nt of the instr ment to the original creditor it !as tendered to or !homever or !hatever instit tion ma" &e the final &earer and holder in d e co rse of it5 again5 th s discharging that portion of the p &lic de&t :ithout e58ansion o/ cre4it3 4e0t or note on the 8rime-cre4itors o/ THE !%$TED ST TES it !as intended to satisf" e6 ita&le remed" to5 & t gaining for each endorsed &earer of it discharge of o&ligation e6 ivalent in val e #dollar for dollar$ of c rrenc"5 meas ra&le in @la:/ul money o/ the !nite4 StatesA% Altho gh this has &een p &lic polic" as a remed" for the discharge of de&t in con( nction !ith removal of gold5 silver and real mone" as legal tender c rrenc" &" the same act of p &lic polic" in :J,,5 it has &een a 4i//icult concept to comm nicate for others to accept and to kno! !hat to do !ith it5 so its never

gained common se and for o&vio s reasons the government has 4iscourage4 p &lic nderstanding of the remed" and recover" nder it and therefore it is little 7no:n and not generall" accessed &" the p &lic% B t it is still an o&ligation the *nited -tates has 0oun4 itself to and has provided for in stat tor" la! and the *nited -tates still accepts these non-cash accr al eBchanges toda" as a matter of la! and e6 it"% -o is the eBperience of man" !ho have attempted to access the remed"% That the @p &lic policiesA of Ho se Joint 4esol tion :J; of :J,, are still in effect is evidenced &" the other provisions of @p &lic polic"A it esta&lished that !e can see along !ith these disc ssed% No one !o ld attempt to demand pa"ment in gold or a partic lar kind of coin or c rrenc" in se or think to !rite s ch an o&ligation into a contract5 0ecause the gol4 stan4ar4 /or currency is still sus8en4e4 an4 the right to a ‘gol4 clause’ to reAuire 8ayment in gol4 is still a0rogate4< "oth are also 8art o/ >8u0lic 8olicy? esta0lishe4 in HOR-(P.% The practical evidence and fact of the *nited -tates$ financial reorgani<ation =&ankr ptc"? is still ongoing toda"5 visi&le all aro nd s to see and nderstand% 3hen Treas r" notes come d e5 the"$re not paid% The" are re/inance4 0y ne: T-Bills and notes to &ack the c rrenc" and cover the de&ts% %%something that cannot &e done !ith de&t UUunless3U< the 4e0tor is 8rotecte4 /rom cre4itors in a 0an7ru8tcy reorganiMation that is reg larl" &eing restr ct red to keep it going% Ever" time the Federal de&t ceiling is raised &" )ongress they are restructuring the 0an7ru8tcy reorganiMation o/ the go6ernment’s 4e0t so commerce can continue on% For o&vio s reasons the *nited -tates government does not like having to recogni<e all this% 't is a ver" sensitive and delicate matter% And fe! can speak or !ill speak a thoritativel" a&o t it5 as the &ank has fo nd o t% The recover" remed" is maintained in la! &eca se it has to &e to satisf" e6 it" to its prime creditors% At this late time5 the *nited -tates is neither eBpecting nor intending it to &e generall" accessed &" the p &lic% 4egarding s ch instr ments tendered to the -ecretar"5 !hen p &lic officials are p t in a position to legall" ackno!ledge or den" the a thorit" or validit" of the instr ments5 those in responsi&ilit" :ill not 4eny or 4ishonor it3 or an instrument o/ 4ischarge 8ro8erly su0mitte4 /or that 8ur8ose% The iss e is !hat has the government said a&o t it no!K3hat is its polic" in 8racticeK And ho! does it finall" respond to s ch claims of !hich it receives tho sands ever" da"K $t is a /act: Title ,: *-) ,:;, makes a stat tor" pledge of the *nited -tates government to pa"ment of o&ligations and interest on the p &lic de&t% T'T+E ,: 5 -*BT'T+E ''' 5 )HA0TE4 ,: 5 -*B)HA0TE4 '' 5 -ec% ,:;,% W 2ayment o/ o0ligations an4 interest on the 8u0lic 4e0t=a@ The faith of the *nited -tates /overnment is pledged to pa"5 in legal tender5 principal and interest on the o&ligations of the /overnment iss ed nder this chapter% =0@ @The Secretary o/ the Treasury shall pa" interest d e or accr ed on the p &lic de&t%A $t is a /act: Title ,: -ection ,:,7 f rther delineates in its definitions a portion of the total p &lic de&t !hich is hel4 0y the 8u0lic as the @Net p &lic de&tA T$T'E 1( [ S!"T$T'E $$$ [ *H 2TER 1( [ S!"*H 2TER $$ [ Sec< 1(19% Sec< 1(19< - nnual 8u0lic 4e0t re8ort =e@ Definitions% =.@ Total 8u0lic 4e0t% - The term PPtotal p &lic de&tPP means the total amo nt of the o&ligations s &(ect to the p &lic de&t limit esta&lished in section ,:7: of this title% =,? %et 8u0lic 4e0t% - The term GGnet 8u0lic 4e0tGG means the 8ortion o/ the total 8u0lic 4e0t :hich is hel4 0y the 8u0lic% $t is a /act: -ection ,:7: references guarantee4 o0ligations hel4 0y the Secretary o/ the Treasury !hich are e5ce8te4 and e5em8te4 from @the face amo nt of o&ligations !hose principal and interest are g aranteed &" the *nited -tates /overnmentA Sec< 1(9(< - 2u0lic 4e0t limit =0@ The face amo nt of o&ligations iss ed nder this chapter and the face amo nt of o&ligations !hose principal and interest are g aranteed &" the *nited -tates /overnment =e5ce8t guarantee4 o0ligations hel4 0y the Secretary o/ the Treasury? ma" not &e more than 8F5JF75777577757775 o tstanding at one time5 s &(ect to changes periodicall" made in that amo nt as provided &" la! $t is a /act: Ever" da" the *nited -tates Treas r" department receives do<ens or h ndreds of s ch instr ments making claims of this t"pe% O&vio sl" some are valid and some are not% $t is a /act: There are onl" , official government directives or alerts that address sp rio s5 fra d lent5 fictitio s5 or other!ise invalid5 instr ments sent to the *- Treas r" for pa"ment5 and only one that officiall" states !hat is to &e o//icial !S go6ernment 8olicy and treatment of them if the" are received5 this is A+E4T JJ-:7: !hich is also p &lished on the government !e&site for the *nited -tates Treas r": !!!%p &licde&t%treas%gov nder Fra ds and 0honies5 The Office of the )omptroller of the ) rrenc"5 Enforcement X )ompliance Division in A+E4T JJ-:7 states: T"pe: - spicio s Transactions TO: )hief EBec tive Officers of all National BanksN all -tateBanking A thoritiesN )hairman5 Board of /overnors of the Federal 4eserve -"stemN )hairman5 Federal

Deposit 'ns rance )orporationN )onference of -tate Bank - pervisorsN Dep t" )omptrollers =Districts?N Assistant Dep t" )omptrollersN District )o nsel and EBamining 0ersonnel% 4E: Fictitio s -ight Drafts pa"a&le thro gh the *%-% Treas r" 't has &een &ro ght to o r attention that certain individ als have &een making and eBec ting !orthless paper doc ments !hich are titled R-ight DraftR These items state that the" are pa"a&le thro gh the *% -% Treas r"5 :F77 0enns"lvania Aven e5 N35 3ashington5 D) ;7;;7% These instr ments are &eing presented for pa"ment at &anks and other & sinesses thro gho t the *nited -tates% ny o/ these instruments that are 8resente4 to the !< S< Treasury /or 8ayment :ill 0e returne4 to the sen4er and copies !ill &e provided to the appropriate la! enforcement agencies%A Dishonore4% This is in conformit" !ith the *niform )ommercial )ode that parties ma" rel" on their presentment of o&ligations as settled nless given a Notice of Dishonor5 !hether directl" applica&le to Treas r" Dept% officers or not% !**1-E91< %OT$*E OF D$SHO%OR U=0@ %otice o/ 4ishonor may 0e gi6en &" an" person: may 0e given &" an" commerciall" reasona&le means5 incl ding an oral5 !ritten5 or electronic comm nicationN an4 is su//icient i/ it reasona0ly identified the instrument an4 indicates that the instr ment has &een dishonored or has not &een 8ai4 or accepted% 4et rn of an instr ment gi6en to a 0an7 /or collection is s fficient notice of dishonor% Qc? - &(ect to -ection ,-F7E=c?5 :ith res8ect to an instrument ta7en /or collection notice of dishonor m st &e givenQ% :ithin 19 4ays /ollo:ing the 4ay on :hich the 8erson recei6es notice o/ 4ishonor< With res8ect to any other instrument3 notice o/ 4ishonor must 0e gi6en :ithin 19 4ays /ollo:ing the 4ay on :hich 4ishonor occurs< These instruments are ne6er returne4 /rom the Treasury 4ishonore4< $t is a /act: There is no &asis or reason or pla si&le eBplanation for s ch une58laine4 silence !ith regard to these partic lar instr ments% Ever" other &ranch of the Federal government incl ding the Dept% of the Treas r" has developed ela&orate li&raries of comp ter generated form letters of statements and replies dealing !ith almost ever" possi&le 6 estion or claim that co ld &e made of an" agenc" or department of the Federal government% The *nited -tates Treas r" has an Office of 0 &lic )orrespondence !hose sole (o& it is to respond to comm nications from the general p &lic% THERE $S %O *OMM!%$* T$O% SE%T TO THE !%$TED ST TES TRE S!R; TH T * % %OT "E RES2O%DED TO S $T M ; RED!$RE< Can" s ch categories of re6 ests calling for response are far greater in n m&er than claims in e6 it" for recover" to a 0rime-creditor over the *nited -tates and some categories are far fe!er in n m&er5 and "et &e the re6 ests greater or smaller in n m&er or in compleBit" of response re6 ired5 all these o/ a commercial nature are regularly an4 timely res8on4e4 to< There is 6irtually no :ritten res8onse 0y the Fe4eral go6ernment to this issue o/ reco6ery to the 8rimecre4itors an4 hol4ers in eAuity o6er the !nite4 States< The /actually o0ser6a0le 8osition o/ the Secretary o/ the Treasury an4 his 4e8artment in res8onse to TH$S ty8e o/ claim has 0een "SO'!TE S$'E%*E 0e they /rom 0an73 0usiness or 8ri6ate 8erson: Not denial5 disavo!al5 dishonor5 or rep diation of s ch claims O4 their &asis in la! and fact if the" are not tr e5 !hich in ever" other case of correspondence to the Federal government or the Department of Treas r" dealing !ith an" 6 estion5 re6 est or claim: AN1 -*)H FA+-E )+A'C5 C'-)ON)E0T'ON O4 C'-TAHEN *NDE4-TAND'N/ ON THE 0A4T OF THE /ENE4A+ 0*B+') '- T'CE+1 DEA+T 3'TH 'N E2E41 )A-E B1 -*)H FO4C +ETTE4-% 't is the d t" of the *nited -tates Treas r" to the commerce of the nation and in the interests of the general p &lic !hom it serves to Auic7ly and conclusi6ely Auash an4 re8u4iate any such /alse un4erstan4ings or claims o/ reme4y in eAuity on reco6ery o/ the 8u0lic 4e0t in the commercial realm an4 it is easily :ithin their 8o:er to 4o so% This 4es8ite the /act the onl" official *- government directive from the Department of the Treas r" dealing !ith polic" of the government to!ard fictitio s or other!ise invalid instr ments sent to the Treasr" for collection states clearl" @they :ill 0e returne4 to the sen4er%A There is5 therefore5 no &asis or reason or pla si&le eBplanation for s ch une58laine4 silence !ith regard to this partic lar class of instr ment e5ce8t that a reme4y in eAuity /or reco6ery to the 8rime-cre4itors o6er the !nite4 States $S true an4 /actual an4 * %%OT "E DE%$ED or D$SHO%ORED in eAuity3 an4 that such "ills o/ cce8tance in 4ischarge o/ mutually o//setting o0ligations 0et:een the !nite4 States an4 its hol4ers in eAuity as secure4 8arties RE3 in /act3 0eing 7e8t3 hel43 an4 :ithout return or 4ishonor3 acce8te4 as o0ligations o/ the !nite4 States in the 4ischarge an4 reco6ery o/ the 8u0lic 4e0t as they ma7e claim on their /ace to the Secretary o/ the Treasury to 0e% Ho: the" are to &e recovered on is p to the parties involved holding s ch o&ligations and is provided for in la! and reg lation and administrative proced re a holder or its &anking instit tion ma" se% $n *onclusion: When a *ommercial "an7 sen4s the instrument to the Secretary /or 4ischarge o/ its o:n o0ligations an4 a 8ro0lem arises concerning the instrument3 a commercial res8onse o/ some 7in4 is reAuire4< There is a legal lia0ility o/ the go6ernment to a negotia0le legal ten4er o0ligation u8on the !nite4 States go6ernment sent to them

/or acce8tance 0y a mem0er Fe4eral Reser6e "an7 a/ter they recei6e4 it an4 0ecame res8onsi0le /or it< The Treas r" has an o&ligation as a department of government serving the p &lic interest to the &ank !hich as a mem&er of the Federal 4eserve -"stem that has a commercial o&ligation to an acco nt holder and a ,rd part" !ho tendered the item in pa"ment to tell them that its not an" good or its not going to &e honored5 even if the" !anted to keep it for prosec tion or investigation% This is in effect !hat the directive sa"s the government !ill do if its no good% What 4oes statutory la:3 regulation3 or case la: tells us a0out :hat that o0ligation is K The" do not dishonor it in an" !a" &" ret rn of the item or the sending of an" notice to that effect5 or make re6 est for additional information or time for eBamination of the instr ment5 or given a statement of eBplanation indicating the time frame for its revie! and settlement if it !o ld &e an inordinatel" length" time as longer than 97 da"s to finish !ith it% The instr ments are &eing kept5 held5 and !itho t ret rn or dishonor5 are accepted as an o&ligation of the *nited -tates in the discharge and recover" of the p &lic de&t as it makes claim on its face to &e%0 t another !a": 'f the &ank had had to pa" the item to honor its c stomer agreement as if it had &een a check5 :hat :oul4 or coul4 the 0an7 0e trying to 4o :ith it to /inally settle the account& The 0an7 nee4s to treat the $nstrument ten4ere4 as an o0ligation o/ the !nite4 States to the 0an7< The ten4er o/ these $nstruments 4ischarge the o0ligation o/ the 4e0t /or :hich they are 4eli6ere4 an4 the 8ayee 0ecomes the ne: hol4er in 4ue course an4 collection agent on the $nstruments % E5hi0it E !< S< District *ourt Ou4ge *hristo8her < "oy7o Decision !%$TED ST TES D$STR$*T *O!RT %ORTHER% D$STR$*T OF OH$O E STER% D$C$S$O% $% RE FORE*'OS!RE * SES @ * SE %O< %O<(:9-*C..). @ 9-*C.E1. @ 9-*C.EK9@ 9-*C.K9.@ 9-*C.K1(@ 9-*C.K1)@ 9-*C.K)(@ 9-*C.KPE@ 9-*C.P.9@ 9-*C.P19 @ 9-*C.P,P@ 9-*C.PE9@ 9-*C1999@ 9-*C19.P@@ O!D#E *HR$STO2HER < "O;KO@@@@O2$%$O% %D ORDER@@ *HR$STO2HER < "O;KO3 O%: On Octo&er :75 ;77G5 this )o rt iss ed an Order re6 iring 0laintiff-+enders in a n m&er of pending foreclos re cases to file a cop" of the eBec ted Assignment demonstrating 0laintiff !as the holder and o!ner of the Note and Cortgage as of t0e date t0e "om.laint 7as filed5 or the )o rt !o ld enter a dismissal% After considering the s &missions5 along !ith all the doc ments filed of record5 the )o rt dismisses the captioned cases !itho t pre( dice% The )o rt has reached toda"$s determination after a thoro gh revie! of all the relevant la! and the &riefs and arg ments recentl" presented &" the parties5 incl ding oral )ase ::7G-cv-7;;I;-)AB Doc ment :: Filed :7>,:>;77G 0age : of 9-;arg ments heard on 0laintiff De tsche Bank$s Cotion for 4econsideration% The decision5 therefore5 is applica&le from this date for!ard5 and shall not have retroactive effect% ' W %D % ';S$S A part" seeking to &ring a case into federal co rt on gro nds of diversit" carries the & rden of esta&lishing diversit" ( risdiction% &oyne v. :merican !obacco &ompany5 :I, F% ,d EII =9th )ir% :JJJ?% F rther5 the plaintiff @&ears the & rden of demonstrating standing and m st plead its components !ith specificit"%A &oyne5 :I, F% ,d at EJEN @alley Forge &hristian &ollege v. :mericans $nited for %eparation of &hurch H %tate* -nc. 5 EFE *%-% E9E =:JI;?% The minim m constit tional re6 irements for standing are: proof of in( r" in fact5 ca sation5 and redressa&ilit"% @alley Forge5 EFE *%-% at EG;% 'n addition5 @the plaintiff m st &e a proper proponent5 and the action a proper vehicle5 to vindicate the rights asserted%A &oyne5 :I, F% ,d at EJE =6 oting Gestrak v. 7hio 6lections &omm,n5 J;9 F% ;d FG,5 FG9 =9th )ir% :JJ:??% To satisf" the re6 irements of Article ''' of the *nited -tates )onstit tion5 the plaintiff m st sho! he has .ersonall- suffered some actual in8ur- as a res lt of the illegal cond ct of the defendant% =Emphasis added?% &oyne5 :I, F% ,d at EJEN @alley Forge5 EFE *%-% at EG;% 'n each of the a&ove-captioned )omplaints5 the named 0laintiff alleges it is the holder and o!ner of the Note and Cortgage% Ho!ever5 the attached Note and Cortgage identif" the mortgagee and promisee as the original lending instit tion a one other than the named 0laintiff% F rther5 the 0reliminar" J dicial 4eport attached as an eBhi&it to the )omplaint makes no reference to the named 0laintiff in the recorded chain of title>interest% The )o rt$s Amended /eneral Order No% ;779-:9 re6 ires 0laintiff to s &mit an affidavit along !ith the )omplaint5 !hich identifies 0laintiff either as the original mortgage holder5 or as an assignee5 )ase ::7G-cv-7;;I;-)AB Doc ment :: Filed :7>,:>;77G 0age ; of 9 -,tr stee or s ccessor-in-interest% Once again5 the affidavits s &mitted in all these cases recite the averment that 0laintiff is the o!ner of the Note and Cortgage5 !itho t an" mention of an assignment or tr st or s ccessor interest% )onse6 entl"5 the ver" filings and s &missions of the 0laintiff create a conflict% 'n ever" instance5 then5

0laintiff has not satisfied its & rden of demonstrating standing at the time of the filing of the )omplaint% *nderstanda&l"5 the )o rt re6 ested clarification &" re6 iring each 0laintiff to s &mit a cop" of the Assignment of the Note and Cortgage5 eBec ted as of the date of the Foreclos re )omplaint% 'n the a&ove-captioned cases5 none of the Assignments sho! the named 0laintiff to &e the o!ner of the rights5 title and interest nder the Cortgage at iss e as of the date of the Foreclos re )omplaint% The Assignments5 in ever" instance5 eBpress a present intent to conve" all rights5 title and interest in the Cortgage and the accompan"ing Note to the 0laintiff named in the caption of the Foreclos re )omplaint pon receipt of s fficient consideration on the date the Assignment !as signed and notari<ed% F rther5 the Assignment doc ments are all prepared &" co nsel for the named 0laintiffs% These proffered doc ments &elie 0laintiffs$ assertion the" o!n the Note and Cortgage &" means of a p rchase !hich pre-dated the )omplaint &" da"s5 months or "ears% 0laintiff-+enders shall take note5 f rthermore5 that prior to the iss ance of its Octo&er :75 ;77G Order5 the )o rt considered the principles of @real part" in interest5A and eBamined Fed% 4% )iv% 0% :G a @0arties 0laintiff and DefendantN )apacit"A and its associated )ommentar"% The 4 le is not apropos to the sit ation raised &" these Foreclos re )omplaints% The 4 le$s )ommentar" offers this eBplanation: @The provision sho ld not &e mis nderstood or distorted% 't is intended to prevent forfeit re !hen determination of the )ase ::7Gcv-7;;I;-)AB Doc ment :: Filed :7>,:>;77G 0age , of 9 : Asto ndingl"5 co nsel at oral arg ment stated that his client5 the p rchaser from the original mortgagee5 ac6 ired complete legal and e6 ita&le interest in land !hen mone" changed hands5 even &efore the p rchase agreement5 let alone a proper assignment5 made its !a" into his client$s possession%-Eproper part" to s e is diffic lt or !hen an nderstanda&le mistake has &een made% %%% 't is5 in cases of this sort5 intended to ins re against forfeit re and in( stice %%%A 0laintiff-+enders do not allege mistake or that a part" cannot &e identified% Nor !ill 0laintiff-+enders s ffer forfeit re or in( stice &" the dismissal of these defective complaints other!ise than on the merits% Coreover5 this )o rt is o&ligated to caref ll" scr tini<e all filings and pleadings in foreclos re actions5 since the ni6 e nat re of real propert" re6 ires contracts and transactions concerning real propert" to &e in !riting% 4%)% O :,,F%7E% Ohio la! holds that !hen a mortgage is assigned5 moreover5 the assignment is s &(ect to the recording re6 irements of 4%)% O F,7:%;F% &reager v. :nderson =:J,E?5 :9 Ohio +a! A&s% E77 =interpreting the former stat te5 /%)% O IFE,?% @Th s5 !ith regards to real propert"5 &efore an entit" assigned an interest in that propert" !o ld &e entitled to receive a distri& tion from the sale of the propert"5 their interest therein m st have &een recorded in accordance !ith Ohio la!%A -n re 7chmanek5 ;99 B%4% ::E5 :;7 =Bkrtc"%N%D% Ohio ;777? =citing Ginney v. Merchants, National Bank of .efiance5 G: Ohio -t% :G,5 :GG =:J7E?%: This )o rt ackno!ledges the right of &anks5 holding valid mortgages5 to receive timel" pa"ments% And5 if the" do not receive timel" pa"ments5 &anks have the right to properl" file actions on the defa lted notes a seeking foreclos re on the propert" sec ring the notes% 1et5 this )o rt possesses the independent o&ligations to preserve the ( dicial integrit" of the federal co rt and to (ealo sl" g ard federal ( risdiction% Neither the fl idit" of )ase ::7G-cv7;;I;-)AB Doc ment :: Filed :7>,:>;77G 0age E of 9 ; 0laintiff$s reliance on Ohio$s @real part" in interest r leA =O4)0 :G? and on an" Ohio case citations is misplaced% Altho gh Ohio la! g ides federal co rts on s &stantive iss es5 state proced ral la! cannot &e sed to eBplain5 modif" or contradict a federal r le of proced re5 !hich p rpose is clearl" spelled o t in the )ommentar"% @'n federal diversit" actions5 state la! governs s &stantive iss es and federal la! governs proced ral iss es%A 6rie ;.;. &o. v. !ompkins5 ,7E *%-% 9, =:J,I?N 0egg v. &hopra5 ;I9 F% ,d ;I95 ;IJ =9th )ir% ;77;?N Iafford v. Ieneral 6lectric &ompany5 JJG F% ;d :F75 :9F-9 =9th )ir% :JJ,?% , 0laintiff$s5 @J dge5 "o ( st don$t nderstand ho! things !ork5A arg ment reveals a condescending mindset and 6 asi-monopolistic s"stem !here financial instit tions have traditionall" controlled5 and still control5 the foreclos re process% T"picall"5 the homeo!ner !ho finds himself>herself in financial straits5 fails to make the re6 ired mortgage pa"ments and faces a foreclos re s it5 is not interested in testing state or federal ( risdictional re6 irements5 either pro se or thro gh co nsel% Their foc s is either5 @ho! do ' save m" home5A or @if ' have to give it p5 '$ll simpl" leave and find some!here else to live%A 'n the meantime5 the financial instit tions or s ccessors>assignees r sh to foreclose5 o&tain a defa lt ( dgment and then sit on the deed5 avoiding responsi&ilit" for maintaining the propert" !hile reaping the financial &enefits of interest r nning on a ( dgment% The financial instit tions kno! the la! charges the one !ith title =still the homeo!ner? !ith maintaining the propert"% There is no do &t ever" decision made &" a financial instit tion in the foreclos re process is driven &" mone"% And the legal !ork !hich flo!s from !inning the financial instit tion$s favor is highl" l crative% There is nothing improper or !rong !ith financial instit tions or la! firms making a profit a

to the contrar" 5 the" sho ld &e re!arded for so nd & siness and legal practices% Ho!ever5 nchallenged &" nderfinanced opponents5 the instit tions !orr" less a&o t ( risdictional re6 irements and more a&o t maBimi<ing ret rns% *nlike the foc s of financial instit tions5 the federal co rts m st act as gatekeepers5 ass ring that onl" those !ho meet diversit" and standing re6 irements are allo!ed to pass thro gh% )o nsel for the instit tions are not !itho t legal arg ment to s pport their position5 & t their arg ments fall !oef ll" short of ( stif"ing their premat re filings5 and tterl" fail to satisf" their standing -Fthe secondar" mortgage market5 nor monetar" or economic considerations of the parties5 nor the convenience of the litigants s persede those o&ligations% Despite 0laintiffs$ co nsel$s &elief that @there appears to &e some level of disagreement and>or mis nderstanding amongst professionals5 &orro!ers5 attorne"s and mem&ers of the ( diciar"5A the )o rt does not re6 ire instr ction and is not operating nder an" misapprehension% The @real part" in interestA r le5 to !hich the 0laintiff-+enders contin all" refer in their responses or motions5 is clearl" comprehended &" the )o rt and is not intended to assist &anks in avoiding traditional federal diversit" re6 irements%; *nlike Ohio -tate la! and proced re5 as 0laintiffs perceive it5 the federal ( dicial s"stem need not5 and !ill not5 &e @forgiving in this regard%A, )ase ::7G-cv-7;;I;-)AB Doc ment :: Filed :7>,:>;77G 0age F of 9 and ( risdictional & rdens% The instit tions seem to adopt the attit de that since the" have &een doing this for so long5 nchallenged5 this practice e6 ates !ith legal compliance% Finall" p t to the test5 their !eak legal arg ments compel the )o rt to stop them at the gate% The )o rt !ill ill strate in simple terms its decision: @Fl idit" of the marketA a @.A dollars5 @contract al arrangements &et!een instit tions and co nselA a @.A dollars5 @p rchasing mortgages in & lk and sec riti<ingA a @.A dollars5 @r sh to file5 slo! to record after ( dgmentA a @.A dollars5 @the ( risdictional integrit" of *nited -tates District )o rtA a @0riceless%A -9*O%*'!S$O% For all the foregoing reasons5 the a&ove-captioned Foreclos re )omplaints are dismissed !itho t pre( dice% $T $S SO ORDERED< D TE: Octo0er 1(3 .99- SV*hristo8her < "oy7o *HR$STO2HER < "O;KO !nite4 States District Ou4ge )ase ::7G-cv-7;;I;-)AB Doc ment :: Filed :7>,:>;77G 0age 9 of 9 E5hi0it F !< S< District *ourt Ou4ge Thomas M< Rose Decision !%$TED ST TES D$STR$*T *O!RT SO!THER% D$STR$*T OF OH$O WESTER% D$C$S$O% T D ;TO% $% RE FORE*'OS!RE * SES * SE %O< 1:9-*C9,1 9-*C9,P 9-*C9)E 9-*C(1) 9-*C.1- 9-*C.,9 9-*C.,K 9-*C.,) 9-*C.E- 9-*C.)K 9-*C19, 9-*C1(. 9-*C1(- 9-*C1,1 9-*C1E1 9-*C1K9 9-*C1)K 9-*C1)P 9-*C1P9 9-*C,11 O!D#E THOM S M< ROSE QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ O2$%$O% %D ORDER QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ The first private foreclos re action &ased pon federal diversit" ( risdiction !as filed in this )o rt on Fe&r ar" J5 ;77G% -ince then5 t!ent"-siB =;9? additional complaints for foreclos re &ased pon federal diversit" ( risdiction have &een filed% ST %D$%# %D S!"OE*T M TTER O!R$SD$*T$O% 3hile each of the complaints for foreclos re pleads standing and ( risdiction5 evidence s &mitted either !ith the complaint or later in the case indicates that standing and>or s &(ect matter ( risdiction ma" not have eBisted at the time certain of the foreclos re complaints !ere )ase ,:7G-cv-77;I9-TC4-C4C Doc ment ;E Filed ::>:F>;77G 0age : of G -;filed% F rther5 onl" one of these foreclos re complaints th s far !as filed in compliance !ith this )o rt$s /eneral Order 7G-7, captioned @0roced res for Foreclos re Actions Based On Diversit" J risdiction% -tanding Federal co rts have onl" the po!er a thori<ed &" Article ''' of the *nited -tates )onstit tion and the stat tes enacted &" )ongress p rs ant thereto% Bender v. +illiamsport :rea %chool .istrict5 EGF *%-% F,E5 FE: =:JI9?% As a res lt5 a plaintiff m st have constit tional standing in order for a federal co rt to have ( risdiction% -d.0laintiffs have the & rden of esta&lishing standing% 0oren v. Blue &ross H Blue %hield of

Michigan5 No% 79-;7J75 ;77G 3+ ;G;9G7E at \G =9th )ir% -ept% ;75 ;77G?. 'f the" cannot do so5 their claims m st &e dismissed for lack of s &(ect matter ( risdiction% -d. =citing &entral %tates %outheast H %ou hwest :reas Bealth and +elfare Fund v. MerckFMedco Managed &are5 E,, F%,d :I:5 :JJ =;d )ir% ;77F??% Beca se standing involves the federal co rt$s s &(ect matter ( risdiction5 it can &e raised s a sponte% -d. =citing &entral %tates5 E,, F%,d at :JI?% F rther5 standing is determined as of the time the complaint is filed% &leveland Branch* N::&G v. &ity of Garma* 7hio5 ;9, F%,d F:,5 F;E =9th )ir% ;77:?5 cert. denied5 F,F *%-% JG: =;77;?% Finall"5 !hile a determination of standing is generall" &ased pon allegations in the complaint5 !hen standing is 6 estioned5 co rts ma" consider evidence thereof% %ee N::&G* ;9, F%,d at F;,-,7N %enter v. Ieneral Motors5 F,; F%;d F:: =9th )ir% :JG9?5 cert. denied5 E;J *%-% IG7 =:JG9? To satisf" Article '''$s standing re6 irements5 a plaintiff m st sho!: =:? it has s ffered an in( r" in fact that is concrete and partic lari<ed and act al or imminent5 not con(ect ral or )ase ,:7G-cv-77;I9TC4-C4C Doc ment ;E Filed ::>:F>;77G 0age ; of G -,h"potheticalN =;? the in( r" is fairl" tracea&le to the challenged action of the defendantN and =,? it is likel"5 as opposed to merel" spec lative5 that the in( r" !ill &e redressed &" a favora&le decision% 0oren5 ;77G 3+ ;G;9G7E at \G%To sho! standing5 then5 in a foreclos re action5 the plaintiff m st sho! that it is the holder of the note and the mortgage at the time the complaint !as filed% The foreclos re plaintiff m st also sho!5 at the time the foreclos re action is filed5 that the holder of the note and mortgage is harmed5 s all" &" not having received pa"ments on the note% Diversit" J risdiction 'n addition to standing5 a co rt ma" address the iss e of s &(ect matter ( risdiction at an" time5 !ith or !itho t the iss e &eing raised &" a part" to the action% &ommunity Bealth Glan of 7hio v. Mosser5 ,EG F%,d 9:J5 9;; =9th )ir% ;77,?% F rther5 as !ith standing5 the plaintiff m st sho! that the federal co rt has s &(ect matter ( risdiction over the foreclos re action at the time the foreclos re action !as filed% &oyne v. :merican !obacco &ompany5 :I, F%,d EII5 EJ;-J, =9th )ir% :JJJ?% Also as !ith standing5 a federal co rt is re6 ired to ass re itself that it has s &(ect matter ( risdiction and the & rden is on the plaintiff to sho! that s &(ect matter ( risdiction eBisted at the time the complaint !as filed% -d. Finall"5 if s &(ect matter ( risdiction is 6 estioned &" the co rt5 the plaintiff cannot rel" solel" pon the allegations in the complaint and m st &ring for!ard relevant5 ade6 ate proof that esta&lishes s &(ect matter ( risdiction% Nelson &onstruction &o. v. $.%.5 No% 7F-:;7F)5 ;77G 3+ ,;JJ:9: at \, =Fed% )l%5 Oct% ;J5 ;77G? =citing McNutt v. Ieneral Motors :cceptance &orp. of -ndiana5 ;JI *%-% :GI =:J,9??N see also Nichols v. Muskingum &ollege5 ,:I F%,d 9GE5 =9th )ir% ;77,? =@in revie!ing a :;=&?=:? motion5 the co rt ma" consider evidence o tside the pleadings to resolve fact al disp tes )ase ,:7G-cv-77;I9-TC4-C4C Doc ment ;E Filed ::>:F>;77G 0age , of G -Econcerning ( risdictionQA?% The foreclos re actions are &ro ght to federal co rt &ased pon the federal co rt having ( risdiction p rs ant to ;I *%-%)% O :,,;5 termed diversit" ( risdiction% To invoke diversit" ( risdiction5 the plaintiff m st sho! that there is complete diversit" of citi<enship of the parties and that the amo nt in controvers" eBceeds 8GF5777% ;I *%-%)% O :,,;% )oncl sion 3hile the plaintiffs in each of the a&ovecaptioned cases have pled that the" have standing and that this )o rt has s &(ect matter ( risdiction5 the" have s &mitted evidence that indicates that the" ma" not have had standing at the time the foreclos re complaint !as filed and that s &(ect matter ( risdiction ma" not have eBisted !hen the foreclos re complaint !as filed%F rther5 this )o rt has the responsi&ilit" to ass re itself that the foreclos re plaintiffs have standing and that s &(ectmatter-( risdiction re6 irements are met at the time the complaint is filed% Even !itho t the concerns raised &" the doc ments the plaintiffs have filed5 there is reason to 6 estion the eBistence of standing and the ( risdictional amo nt% %ee Hatherine C% 0orter5 Misbehavior and Mistake in Bankruptcy Mortgage &laims ,-E =Novem&er 95 ;77G?5 *niversit" of 'o!a )ollege of +a! +egal -t dies 4esearch 0aper -eries Availa&le at --4N: http:>>ssrn%com>a&stract-:7;GJ9: =@SHTome mortgage lenders often diso&e" the la! and overreach in calc lating the mortgage o&ligations of cons mers% Q Can" of the overcharges and nrelia&le calc lationsQ raise the specter of poor recordkeeping5 fail re to compl" !ith cons mer protection la!s5 and massive5 consistent overcharging%A? Therefore5 plaintiffs are given ntil not later than thirt" da"s follo!ing entr" of this order to s &mit evidence sho!ing that the" had standing in the a&ovecaptioned cases :hen the )ase ,:7G-cv-77;I9-TC4-C4C Doc ment ;E Filed ::>:F>;77G 0age E of G :The )o rt vie!s the statement @the complaint m st &e accompanied &" the follo!ingA to mean that the items listed m st &e filed !ith the complaint and not at some time later that is more convenient for the plaintiff% -F- com8laint :as /ile4 and that this )o rt had diversit" ( risdiction :hen the com8laint :as /ile4% Fail re to do so !ill res lt in dismissal !itho t pre( dice to refiling if and !hen the plaintiff ac6 ires standing and the diversit" ( risdiction re6 irements are met% %ee -n re Foreclosure &ases5 No% ::7G)2;;I;5 et al%5 slip op% =N%D% Ohio Oct% ,:5 ;77G? =Bo"ko5 J%?*OM2'$ %*E W$TH #E%ER ' ORDER 9--91 Federal 4 le of )ivil 0roced re I,=a?=;? provides that a @local r le imposing a re6 irement of form shall not &e enforced in a manner

that ca ses a part" to lose rights &eca se of a non!illf l fail re to compl" !ith the re6 irement%A Fed% 4% )iv% 0% I,=a?=;?% The )o rt recogni<es that a local r le concerning !hat doc ments are to &e filed !ith a certain t"pe of complaint is a r le of form% Bicks v. Miller Brewing &ompany5 ;77; 3+ 99,G7, =Fth )ir% ;77;?% Ho!ever5 a part" ma" &e denied rights as a sanction if fail re to compl" !ith s ch a local r le is !illf l% -d. /eneral Order 7G7, provides proced res for foreclos re actions that are &ased pon diversit" ( risdiction% 'ncl ded in this /eneral Order is a list of items that m st accompan" the )omplaint%: Among the items listed are: a 0reliminar" J dicial 4eportN a !ritten pa"ment histor" verified &" the plaintiff$s affidavit that the amo nt in controvers" eBceeds 8GF5777N a legi&le cop" of the promissor" note and an" loan modifications5 a recorded cop" of the mortgageN an" applica&le assignments of the mortgage5 an affidavit doc menting that the named plaintiff is the o!ner and holder of the note and mortgageN and a corporate disclos re statement% 'n general5 it is from these items and the foreclos re complaint that the )o rt can confirm standing and the )ase ,:7G-cv-77;I9-TC4-C4C Doc ment ;E Filed ::>:F>;77G 0age F of G ;The -iBth )irc it ma" look to an attorne"$s actions in other cases to determine the eBtent of his or her good faith in a partic lar action% %ee &apital -ndemnity &orp. v. ?ellinick5 GF F% App$B JJJ5 :77; =9th )ir% ;77,?% F rther5 the la! holds a plaintiff @acco nta&le for the acts and omissions of SitsT chosen co nsel%A Gioneer -nv. %ervices &o. v. Brunswick :ssociates 0td.Gartnership5 F7G *%-% ,I75 ,JG =:JJ,?% -9- eBistence of diversit" ( risdiction at the time the foreclos re complaint is filed% )oncl sion To date5 t!ent"siB =;9? of the t!ent"-seven =;G? foreclos re actions &ased pon diversit" ( risdiction pending &efore this )o rt !ere filed &" the same attorne"% One of the t!ent"-siB =;9? foreclos re actions !as filed in compliance !ith /eneral Order 7G-7,% The remainder !ere not%; Also5 man" of these foreclos re complaints are notated on the docket to indicate that the" are not in compliance% Finall"5 the attorne" !ho has filed the t!ent"-siB =;9? foreclos re complaints has informed the )o rt on the record that he kno!s and can compl" !ith the filing re6 irements fo nd in /eneral Order 7G-7,% Therefore5 since the attorne" !ho has filed t!ent"-siB =;9? of the t!ent"-seven =;G? foreclos re actions &ased pon diversit" ( risdiction that are c rrentl" &efore this )o rt is !ell a!are of the re6 irements of /eneral Order 7G-7, and can compl" !ith the /eneral Order$s filing re6 irements5 fail re in the f t re &" this attorne" to compl" !ith the filing re6 irements of /eneral Order 7G-7, ma" onl" &e considered to &e !illf l% Also5 d e to the eBtensive disc ssions and arg ment that has taken place5 fail re to compl" !ith the re6 irements of the /eneral Order &e"ond the filing re6 irements &" this attorne" ma" also &e considered to &e !illf l% A !illf l fail re to compl" !ith /eneral Order 7G-7, in the f t re &" the attorne" !ho filed the t!ent"-siB foreclos re actions no! pending ma" res lt in immediate dismissal of the )ase ,:7G-cv77;I9-TC4-C4C Doc ment ;E Filed ::>:F>;77G 0age 9 of G -G- foreclos re action% F rther5 the attorne" !ho filed the t!ent"-seventh foreclos re action is here&" p t on notice that fail re to compl" !ith /eneral Order 7G7, in the f t re ma" res lt in This )o rt is !ell a!are that entities !ho hold valid notes are entitled to receive timel" pa"ments in accordance !ith the notes% And5 if the" do not receive timel" pa"ments5 the entities have the right to seek foreclos re on the accompan"ing mortgages% Ho!ever5 !ith regard the enforcement of standing and other ( risdictional re6 irements pertaining to foreclos re actions5 J dge )hristopher A Bo"ko of the *nited -tates District )o rt for the Northern District of Ohio !ho recentl" stressed that the ( dicial integrit" of the *nited -tates District )o rt is @2riceless%A DO%E and ORDERED in Da"ton5 Ohio5 this Fifteenth da" of Novem&er5 ;77G% sVThomas M< Rose VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV THOCA- C% 4O-E *N'TED -TATE- D'-T4')T J*D/E )opies provided: )o nsel of 4ecord )ase ,:7G-cv-77;I9-TC4-C4C Doc ment ;E Filed ::>:F>;77G 0age G of G E5hi0it # SecuritiMation is $''E# ' Title: SE*!R$T$I T$O% $S $''E# '< !THOR: C')HAE+ N3O/*/*5 )ertified 0 &lic Acco ntant =Car"land5 *-A?N B%Arch% =)it" )ollege Of Ne! 1ork?% CBA =)ol m&ia *niversit"?% Attended - ffolk +a! -chool =Boston5 *-A?% Address: 0% O% BoB :G777;5 Brookl"n5 N1 ::;:G5 *-A% 0hone>FaB: :-G:I-9,I9;G7% Email: 4ataghW8eo8le8c<comN mcn:::Y( no%com% theres more "o can search for FB' files on: http:>>gro ps%"ahoo%com>gro p>4edemptionB"Cethod>

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