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The UCC Connection:

Free Yourself from Legal Tyranny


September 22, 1991
Foreor!
This is a slightly con!ense!, casually paraphrase!
transcript of tapes of a seminar gi"en in 199# by $oar! Freeman%
&t as prepare! to ma'e a"ailable the 'nole!ge an! e(perience of
)r% Freeman in his search for an accessible an! un!erstan!able
e(planation of the confusing state of the go"ernment an! the
courts% &t shoul! be helpful to those ho may ha"e !ifficulty
learning from such lectures, or those ho ant to !e"elop a
!eeper un!erstan!ing of this information ithout ha"ing to listen
to three or four hours of recor!e! material%
The frustration many *mericans feel about our +u!icial
system can be o"erhelming an! often frightening an!, as most
fear, is base! on lac' of un!erstan!ing or 'nole!ge% Those of
us ho ha"e chosen a path out of bon!age an! into liberty are
face!, e"entually, ith the seemingly tyrannical poer of some
go"ernmental agency an! the mystifying an! aesome poer of the
courts% ,e ha"e been taught that e must -get a goo! layer,-
but that is becoming increasingly !ifficult, if not impossible%
&f e are !efen!ing oursel"es from the go"ernment, e fin! that
the layers .uic'ly ta'e our money an! then tell us, as the ship
is sin'ing, -& can/t help you ith that 00 &/m an officer of
the court%-
Ultimately, the only ay for us to ha"e e"en a -snoball/s
chance- is to un!erstan! the 1UL2S 3F T$2 4*)2 an! to come to an
un!erstan!ing of the true nature of the La% The layers ha"e
establishe! an! secure! a "irtual monopoly o"er this area of
human 'nole!ge by implying that the sub+ect is +ust too
!ifficult for the a"erage person to un!erstan!, an! by creating a
separate "ocabulary out of 2nglish or!s of otherise common
usage% ,hile it may, at times, seem hopelessly complicate!, it
is not that !ifficult to grasp% *re layers really as smart as
they oul! ha"e us belie"e5 6esi!es, anyone ho has been through
a legal battle against the go"ernment ith the ai! of a layer
has come to reali7e that layers learn about proce!ure, not about
la% )r% Freeman a!mits that he is not a layer an!, as such, he
has a ay of e(plaining la to us that puts it ell ithin our
reach% Consi!er also that the framers of the Constitution rote
in language simple enough that the people coul! un!erstan!,
specifically so that it oul! not ha"e to be interprete!%
So, again e fin!, as in many other areas of life, that -T$2
6UC8 ST39S $212:- &t is e ho must ta'e the responsibility for
fin!ing an! putting to goo! use the T1UT$% &t is e ho must
claim an! !efen! our 4o!0gi"en rights an! our free!om from those
ho oul! ta'e them from us% &t is e ho must protect
oursel"es, our families an! our posterity from the ine"itable
intrusion into our li"es by those ho li"e parasitically off the
labor, s'ill an! talents of others%
To these en!s, )r% Freeman offers a simple, hopeful
e(planation of our plight, an! a peaceful metho! of !ealing ith
it% 9lease ta'e note that this lecture represents one chapter in
the boo' of his un!erstan!ing, hich he is alays refining,
e(pan!ing an! impro"ing% &t is, as all bits of is!om are, a
point of !eparture from hich to begin our on +ourney into
un!erstan!ing, that e all might be able to pass on to others
greater 'nole!ge an! hope, an! to 4o!, the gift of li"es li"e!
in peace, free!om an! praise%
UCC Connection
-& sen! you out as sheep in the mi!st of ol"es,
be as ise as a serpent an! harmless as a !o"e%-
&ntro!uction
,hen & beat the &1S, & use! Supreme Court !ecisions% &f &
ha! trie! to use these in court, & oul! ha"e been con"icte!%
& as in"ol"e! ith a 9atriot group an! & stu!ie! supreme
Court cases% & conclu!e! that the Supreme Court ha! !eclare!
that & as not a person re.uire! to file an income ta( 00 that
the ta( as an e(cise ta( on pri"ileges grante! by go"ernment%
So, & .uit filing an! paying income ta(es, an! it as not long
before they came !on on me ith a hea"y han!% They issue! a
notice of !eficiency, hich ha! such a fantastic sum on it that
the biggest temptation as to go in ith their letter an! say,
-,here in the orl! !i! you e"er get that figure5- They claime!
& oe! them some ;<#,###% 6ut, e"en if & ha! been paying ta(es,
& ne"er ha! that much money, so ho coul! & ha"e oe! them that
much5
=e"er *rgue the *mount of >eficiency
Fortunately, & ha! been gi"en +ust a little bit of
information: =2?21 *14U2 T$2 F*CTS &= * T*@ C*S2% &f you/re not
re.uire! to file, hat !o you care hether they say you oe si(ty
!ollars or <#,### !ollars5 &f you are not re.uire! to file, the
amount !oesn/t matter% >on/t argue the amount 00 that is a
fact issue% &n most instances, hen you get a =otice of
>eficiency, it is usually for some fantastic amount% The &1S
ants you to run in an! argue about the amount% The minute you
say, -& !on/t oe that much,- you ha"e agree! that you oe them
something, an! you ha"e gi"en them +uris!iction% Aust !on/t be
shoc'e! at the amount on a =otice of >eficiency, e"en if it is
ten million !ollars: &f the la says that you are not re.uire!
to file or pay ta(, the amount !oesn/t matter%
6y arguing the amount, they ill +ust say that you must go
to ta( court an! !eci!e hat the amount is to be% 6y the time
you get to ta( court, the la issues are all !eci!e!% You are
only there to !eci!e ho much you oe% They ill not listen to
arguments of la%
So, & ent to see the agent an! tol! him that & asn/t
re.uire! to file% $e sai!, -You are re.uire! to file, )r%
Freeman%- 6ut & ha! all these supreme Court cases, an! & starte!
rea!ing them to him% $e sai!, -& !on/t 'no anything about la,
)r% Freeman, but the Co!e says that you are re.uire! to file, an!
you/re going to pay that amount or you/re going to go to ta(
court%- & thought that someone there ought to 'no something
about la, so & as'e! to tal' to his superior% & ent to him an!
got out my Supreme Court cases, an! he oul!n/t listen to them%
-& !on/t 'no anything about la, )r% Freeman %%%%- Finally, &
got to the 9roblems 1esolution 3fficer, an! he sai! the same
thing% $e sai! that the only person abo"e him as the >istrict
>irector% So, & ent to see him% 6y the time & got to his
office, they ha! phone! ahea!, an! his secretary sai! he as out%
6ut, & hear! someone in his office, an! & 'ne he as in there%
& ent !on the ele"ator, aroun! the corner to the Fe!eral
6uil!ing an! into Senator Simpson/s office% There as a girl
sitting there at a !es', an! she as'e! if she coul! help me% &
tol! her my problem% & sai! that & really thought the >istrict
>irector as up there% & as'e! her to call the &1S an! tell them
that it as Senator Simpson/s office calling, an! to as' if the
>istrict >irector as in% & sai!, -&f you get him on the phone,
tell him that you are from the Senator/s office an! you ha"e a
person hom you are sen!ing o"er to spea' to him 00 if he is,
can he ait +ust fi"e minutes% $is secretary met me hen & came
in an! sai!, -)r% Freeman, you/re so luc'y 00 the >irector +ust
arri"e!%-
The >irector as "ery nice an! offere! me coffee an! coo'ies
an! e sat an! tal'e!% So, he as'e! me hat & ante! to tal' to
him about% B&f you e"er ha"e someone say to you, -&/m from the
go"ernment an! &/m here to !o you a fa"or,- atch out: 6ut, e
can turn that aroun! an! approach them the same ay%C So, &
sai!, -& thought you ought to 'no that there are agents or'ing
for you ho are riting letters o"er your name that you oul!n/t
agree ith% >o you rea! all the mail that goes out of this
office o"er your signature5- The >irector sai!, -3h, & coul!n/t
rea! e"erything 00 it goes out of here by the bagful%- That
as hat & thought% & sai!, -There are some of your agents
riting letters hich contra!ict the !ecisions of the supreme
Court of the Unite! States% *n! they/re not !oing it o"er their
nameD they/re !oing it o"er your name%-
$e as "ery intereste! to hear about it, an! as'e! if & ha!
any e(amples% & +ust happene! to ha"e some ith me, so & got
them out an! presente! them to him% $e thought it as "ery
interesting an! as'e! if & coul! lea"e this information ith him,
hich & !i!% $e sai! he oul! loo' it o"er an! contact me in
three !ays% Three !ays later, he calle! me up an! sai!, -&/m
sure, )r% Freeman, that you ill be gla! to 'no that your =otice
of >eficiency has been ith!ran% ,e/"e !etermine! that you/re
not a person re.uire! to file% Your file is close! an! you ill
hear no more from us%- & ha"en/t hear! another or! from them
since% That as in 19E#, an! & ha"en/t file! since 19<9%
The Supreme Court on Trial
& thought sure & ha! the anser, but hen a frien! got
charge! ith ,illful Failure to File an income ta(, he as'e! me
to help him% & tol! him that they ha"e to pro"e that he
illfully faile! to file, an! & suggeste! that he shoul! put me
on the itness stan!% $e shoul! as' me if & spo'e at a certain
time an! place in Scott/s 6luff, an! !i! & see him in the
au!ience% $e shoul! then as' me hat & spo'e of that !ay% ,hen
& got on the stan!, & brought out all of the Supreme Court cases
& ha! use! ith the >istrict >irector% & thought & oul! be
luc'y to get a sentence or to out before the +u!ge cut me off,
but & as rea!ing hole paragraphs 00 an! the +u!ge !i!n/t stop
me% & rea! one an! then another, an! so on% *n! finally, hen &
ha! rea! +ust about as much as & thought & shoul!, the +u!ge
calle! a recess of the court% & tol! 6ob & thought e ha! it
ma!e% There as +ust no ay that they coul! rule against him
after all that testimony% So e rela(e!%
The prosecution presente! its case an! he !eci!e! to rest
his !efense on my testimony, hich shoe! that he as not
re.uire! to file, an! that the Supreme Court ha! uphel! this
position% The prosecution then presente! its closing statements
an! e ere +ust sure that he ha! on% 6ut, at the "ery en!, the
+u!ge spo'e to the +ury an! tol! them, -You ill !eci!e the facts
of this case, an! & ill gi"e you the la% The la re.uire! this
man to file an &ncome Ta( form% You !eci!e hether or not he
file! it%- ,hat a shoc': The +ury con"icte! him% Later, some
members of the +ury sai!, -,hat coul! e !o5 The man ha!
a!mitte! that he ha! not file! the form, so e ha! to con"ict
him%-
*s soon as the trial as o"er, & ent aroun! to the +u!ge/s
office an! he as +ust coming in through his bac' !oor% & sai!,
-Au!ge, by hat authority !o you o"erturn the stan!ing !ecisions
of the Unite! States supreme Court% You sat on the bench hile &
rea! that case la% =o, ho !o you, a >istrict Court Au!ge,
ha"e the authority to o"erturn !ecisions of the Supreme Court5-
$e says, -3h, those ere ol! !ecisions%- & sai!, -Those are
stan!ing !ecisions% They ha"e ne"er been o"erturne!% & !on/t
care ho ol! they are% You ha"e no right to o"erturn a stan!ing
!ecision of the Unite! States Supreme Court in a >istrict Court%-
9ublic La "s 9ublic 9olicy
$e sai!, -=ame any !ecision of the Supreme Court after 19FE
an! &/ll honor it, but all the !ecisions you rea! ere prior to
19FE, an! & !on/t honor those !ecisions%- & as'e! hat happene!
in 19FE% $e sai!, -9rior to 19FE, the Supreme Court as !ealing
ith 9ublic LaD since 19FE, the Supreme Court has !ealt ith
9ublic 9olicy% The charge that )r% S% as being trie! for is a
9ublic 9olicy Statute, not 9ublic La, an! those Supreme Court
cases !o not apply to 9ublic 9olicy%- & as'e! him hat happene!
in 19FE% $e sai! that he ha! alrea!y tol! me too much 00 he
asn/t going to tell me any more%
19FE an! the 2rie 1ailroa!
,ell, & began to in"estigate% & foun! that 19FE as the
year of the 2rie 1ailroa! "% Tomp'ins case of the Supreme Court%
&t as also the year the courts claim they blen!e! La ith
2.uity% & rea! the 2rie 1ailroa! case% * man ha! sue! the 2rie
railroa! for !amages hen he as struc' by a boar! stic'ing out
of a bo(car as he al'e! along besi!e the trac's% The !istrict
court ha! !eci!e! on the basis of Commercial B=egotiable
&nstrumentsC La that this man as not un!er any contract ith
the 2rie 1ailroa!, an! therefore he ha! no stan!ing to sue the
company% Un!er the Common La, he as !amage! an! he oul! ha"e
ha! the right to sue%
This o"erturne! a stan!ing !ecision of o"er one hun!re!
years% Sift "% Tyson in 1EG# as a similar case an! the
!ecision of the supreme Court as that in any case of this type,
the court oul! +u!ge the case on the Common La of the State
here the inci!ent occurre! 00 in this case, 9ennsyl"ania%
6ut, in the 2rie 1ailroa! case, the supreme Court rule! that all
fe!eral cases ill be +u!ge! un!er the =egotiable &nstruments
La% There oul! be no more !ecisions base! on the Common La at
the fe!eral le"el% So, here e fin! the blen!ing of La ith
2.uity%
This as a pu77le to me% *s & put these ne pieces
together, & !etermine! that all our courts since 19FE ere
)erchant La courts an! not Common La courts% There ere still
some pieces of the pu77le missing%
* Frien! of the Court
Fortunately, & ma!e a frien! of a +u!ge% =o, you on/t
ma'e frien!s ith a +u!ge if you go into court li'e a -olf in
blac' sheep country%- You must approach him as though you are
the sheep an! he is the olf% &f you go into court as a olf,
you ma'e !eman!s an! tell the +u!ge hat the la is 00 ho he
ha! better uphol! the la or else% 1emember the "erse: & sen!
you out as sheep in olf countryD be as ise as a serpent an! as
harmless as a !o"e% ,e ha"e to go into court an! be ise an!
harmless, an! not ma'e !eman!s% ,e must play a little !umb an!
as' a lot of .uestions% ,ell, & as'e! a lot of .uestions an!
bo(e! the +u!ges into a corner here they ha! to gi"e me a
"ictory or a!mit hat they !i!n/t ant to a!mit% & on the case,
an! on the ay out & ha! to stop by the cler'/s office to get
some papers% 3ne of the +u!ges stoppe! an! sai!, -You/re an
interesting man, )r% Freeman% &f you/re e"er in ton, stop by,
an! if &/m not sitting on a case, e ill "isit%-
*merica is 6an'rupt
Later, hen & ent to "isit the +u!ge, & tol! him of my
problem ith the supreme Court cases !ealing ith 9ublic 9olicy
rather than 9ublic La% $e sai!, -&n 19FE, all the higher
+u!ges, the top attorneys an! the U%S% attorneys ere calle! into
a secret meeting an! this is hat e ere tol!:
*merica is a ban'rupt nation 00 it is one! completely by
its cre!itors% The cre!itors on the Congress, they on the
2(ecuti"e, they on the Au!iciary an! they on all the State
go"ernments%
Ta'e silent +u!icial notice of this fact, but ne"er re"eal
it openly% Your court is operating in an *!miralty
Auris!iction 00 call it anything you ant, but !o not call
it *!miralty%
*!miralty Courts
The reason they cannot call it *!miralty Auris!iction is
that your !efense oul! be .uite !ifferent in *!miralty
Auris!iction from your !efense un!er the Common La% &n
*!miralty, there is no court hich has +uris!iction unless there
is a "ali! international contract in !ispute% &f you 'no it is
*!miralty Auris!iction, an! they ha"e a!mitte! on the recor! that
you are in an *!miralty Court, you can !eman! that the
international maritime contract, to hich you are suppose!ly a
party, an! hich you suppose!ly ha"e breache!, be place! into
e"i!ence%
=o court has *!miraltyH)aritime Auris!iction unless there is
a "ali! international maritime contract that has been
breache!%
So, you say, +ust innocently li'e a lamb, -,ell, & ne"er 'ne
that & got in"ol"e! ith an international maritime contract, so &
!eny that such a contract e(ists% &f this court is ta'ing
+uris!iction in *!miralty, then place the contract in e"i!ence,
so that & may challenge the "ali!ity of the contract% ,hat they
oul! ha"e to !o is place the national !ebt into e"i!ence% They
oul! ha"e to a!mit that the international ban'ers on the hole
nation, an! that e are their sla"es%
=o 2(pe!ient
6ut, the ban'ers sai! it is not e(pe!ient at this time to
a!mit that they on e"erything an! coul! foreclose on e"ery
nation of the orl!% The reason they !on/t ant to tell e"eryone
that they on e"erything is that there are still too many
pri"ately one! guns% There are uncooperati"e armies an! other
military forces% So, until they can gra!ually consoli!ate all
armies into a ,31L> *1)Y an! all courts into a single ,31L>
C3U1T, it is not e(pe!ient to a!mit the +uris!iction the courts
are operating un!er% ,hen e un!erstan! these things, e reali7e
that there are certain secrets they !on/t ant to a!mit, an! e
can use this to our benefit%
Auris!iction
The Constitution of the unite! States mentions three areas
of +uris!iction in hich the courts may operate:
Common La:
Common La is base! on 4o!/s La% *ny time someone is
charge! un!er the Common La, there must be a !amage! party%
You are free un!er the Common La to !o anything you please,
as long as you !o not infringe on the life, liberty, or
property of someone else% You ha"e a right to ma'e a fool
of yourself, pro"i!e! you !o not infringe on the life,
liberty, or property of someone else% The Common La !oes
not allo for any go"ernment action hich pre"ents a man
from ma'ing a fool of himself% For instance, hen you cross
o"er State lines in most States, you ill see a sign hich
says, -6UC8L2 Y3U1 S2*T 62LTS 00 &T/S T$2 L*,%- This
cannot be Common La, because ho oul! you in+ure if you
!i! not buc'le up5 =obo!y% This oul! be compelle!
performance% 6ut, Common la cannot compel performance%
*ny "iolation of Common La is a C1&)&=*L *CT, an! is
punishable%
2.uity La:
2.uity La is la hich compels performance% &t compels you
to perform the e(act letter of any contract that you are
un!er% So, if you ha"e compelle! performance, there must be
a contract somehere, an! you are being compelle! to perform
un!er the obligation of the contract% =o, this can only be
a ci"il action 00 not criminal% &n 2.uity Auris!iction,
you cannot be trie! criminally, but you can be compelle! to
perform to the letter of a contract% &f you then refuse to
perform as !irecte! by the court, you can be charge! ith
contempt of court, hich is a criminal action% *re your
seat belt las 2.uity las5 =o, they are not, because you
cannot be penali7e! or punishe! for not 'eeping to the
letter of a contract%
*!miraltyH)aritime La:
This is a ci"il +uris!iction of Compelle! 9erformance hich
also has Criminal 9enalties for not a!hering to the letter
of the contract, but this only applies to &nternational
Contracts% =o, e can see hat +uris!iction the seat belt
las Ban! all traffic las, buil!ing co!es, or!inances, ta(
co!es, etc%C are un!er% ,hene"er there is a penalty for
failure to perform Bsuch as illful failure to fileC, that
is *!miraltyH)aritime La an! there must be a "ali!
international contract in force%
$oe"er, the courts !on/t ant to a!mit that they are operating
un!er *!miraltyH)aritime Auris!iction, so they too' the
international la or La )erchant an! a!opte! it into our co!es%
That is hat the supreme Court !eci!e! in the 2rie 1ailroa! case
00 that the !ecisions ill be base! on commercial la or
business la an! that it ill ha"e criminal penalties associate!
ith it% Since they ere instructe! not to call it *!miralty
Auris!iction, they call it Statutory Auris!iction%
Courts of Contract
You may as' ho e got into this situation here e can be
charge! ith failure to ear seat belts an! be fine! for it%
&sn/t the +u!ge sorn to uphol! the Constitution5 Yes, he is%
6ut, you must un!erstan! that the Constitution, in *rticle 1,
Section 1#, gi"es us the unlimite! right to contract, as long as
e !o not infringe on the life, liberty, or property of someone
else% Contracts are enforceable, an! the Constitution gi"es to
+uris!ictions here contracts can be enforce! 00 2.uity an!
*!miralty% 6ut, e fin! them being enforce! in Statutory
Auris!iction% This is the embarrassing part for the courts, but
e can use this to bo( the +u!ges into a corner in their on
courts% ,e ill co"er this more later%
Contracts )ust 6e ?oluntary
Un!er the Common La, e"ery contract must be entere! into
'noingly, "oluntarily, an! intentionally by both parties, or it
is "oi! an! unenforceable% These are characteristics of a Common
La contract% There is another characteristic 00 it must be
base! on substance% For e(ample, contracts use! to rea!, -For
one !ollar an! other "aluable consi!erations, & ill paint your
house, etc%- That as a "ali! contract 00 the !ollar as a
genuine sil"er !ollar% =o, suppose you rote a contract that
sai!, -For one Fe!eral 1eser"e =ote an! other consi!erations, &
ill paint your house %%%%- *n! suppose, for e(ample, & painte!
your house the rong color% Coul! you go into a Common La court
an! get +ustice5 =o, you coul! not% You see, a Fe!eral 1eser"e
=ote is a -colorable-1 !ollar, as it has no substance, an! in a
Common La +uris!iction, that contract oul! be unenforceable%
Colorable )oney 00 Colorable Courts
The or! -colorable- means something that appears to be
genuine, but is not% )aybe it loo's li'e a !ollar, an! maybe it
spen!s li'e a !ollar, but if it is not re!eemable for laful
money Bsil"er or gol!C it is -colorable%- &f a Fe!eral 1eser"e
=ote is use! in a contract, then the contract becomes a
-colorable- contract% *n! -colorable- contracts must be enforce!
un!er a -colorable- +uris!iction% So, by creating Fe!eral
1eser"e =otes, the go"ernment ha! to create a +uris!iction to
co"er the 'in!s of contracts hich use them% ,e no ha"e hat is
calle! Statutory Auris!iction, hich is not a genuine *!miralty
+uris!iction% &t is -colorable- *!miralty Auris!iction the
+u!ges are enforcing because e are using -colorable money%-
Colorable *!miralty is no 'non as Statutory Auris!iction%
Let/s see ho e got un!er this Statutory Auris!iction%
Uniform Commercial Co!e
The go"ernment set up a -colorable- la system to fit the
-colorable- currency% &t use! to be calle! the La )erchant or
the La of 1e!eemable &nstruments, because it !ealt ith paper
hich as re!eemable in something of substance% 6ut, once
Fe!eral 1eser"e =otes ha! become unre!eemable, there ha! to be a
system of la hich as completely -colorable- from start to
finish% This system of la as co!ifie! as the Uniform
Commercial Co!e, an! has been a!opte! in e"ery State% This is
-colorable- la, an! it is use! in all the courts%
& e(plaine! one of the 'eys earlier, hich is that the
country is ban'rupt an! e ha"e no rights% &f the master says
-Aump:- then the sla"e ha! better +ump, because the master has
the right to cut his hea! off% *s sla"es, e ha"e no rights%
6ut, the cre!itorsHmasters ha! to co"er that up, so they create!
a system of la calle! the Uniform Commercial Co!e% This
-colorable- +uris!iction un!er the Uniform Commercial Co!e is the
ne(t 'ey to un!erstan!ing hat has happene!%
Contract or *greement
3ne !ifference beteen Common La an! the Uniform Commercial
Co!e is that in Common La, contracts must be entere! into: B1C
'noingly B2C "oluntarily an! BFC intentionally%
Un!er the UCC, this is not so% First of all, contracts are
unnecessary% Un!er this ne la, -agreements- can be bin!ing,
an! if you only e(ercise the benefits of an -agreement,- it is
presume! or implie! that you inten! to meet the obligations
associate! ith those benefits% &f you accept a benefit offere!
by go"ernment, then you are obligate! to follo, to the letter,
each an! e"ery statute in"ol"e! ith that benefit% The metho!
has been to get e"erybo!y e(ercising a benefit, an! they !on/t
e"en ha"e to tell the people hat the benefit is% Some people
thin' it is the !ri"er/s license, the marriage license or the
birth certificate, etc% & belie"e it is none of these%
Compelle! 6enefit
& belie"e the benefit being use! is that e ha"e been gi"en
the pri"ilege of !ischarging !ebt ith limite! liability, instea!
of paying !ebt% ,hen e pay a !ebt, e gi"e substance for
substance% &f & buy a .uart of mil' ith a sil"er !ollar, that
!ollar bought the mil', an! the mil' bought the !ollar 00
substance for substance% 6ut, if & use a Fe!eral 1eser"e =ote to
buy the mil', & ha"e not pai! for it% There is no substance in
the Fe!eral 1eser"e =ote% &t is orthless paper gi"en in
e(change for something of substanti"e "alue% Congress offers us
this benefit:
>ebt money, create! by the fe!eral Unite! States, can be
spent all o"er the continental unite! StatesD it ill be
legal ten!er for all !ebts, public an! pri"ate, an! the
limite! liability is that you cannot be sue! for not paying
your !ebts%
So, no they ha"e sai!, -,e/re going to help you out, an! you can
+ust !ischarge your !ebts instea! of paying your !ebts%- ,hen e
use this -colorable- money to !ischarge our !ebts, e cannot use
a Common La court% ,e can only use a -colorable- court% ,e are
completely un!er the +uris!iction of the Uniform Commercial Co!e
00 e are using non0re!eemable negotiable instruments an! e are
!ischarging !ebt rather than paying !ebt%
1eme!y an! 1ecourse
2"ery system of ci"ili7e! la must ha"e to characteristics:
1eme!y an! 1ecourse% 1eme!y is a ay to get out from un!er that
la% The 1ecourse is if you ha"e been !amage! un!er the la, you
can reco"er your loss% The Common La, the La of )erchants, an!
e"en the Uniform Commercial Co!e all ha"e reme!y an! recourse,
but for a long time e coul! not fin! it% &f you go to a la
library an! as' to see the Uniform Commercial Co!e, they ill
sho you a shelf of boo's completely fille! ith the Uniform
Commercial Co!e% ,hen you pic' up one "olume an! start to rea!
it, it ill seem to ha"e been intentionally ritten to be
confusing% &t too' us a long time to !isco"er here the 1eme!y
an! 1ecourse are foun! in the UCC% They are foun! right in the
first "olume, at 102#I an! 101#F%
1eme!y
The ma'ing of a "ali! 1eser"ation of 1ights preser"es
hate"er rights the person then possesses, an! pre"ents the
loss of such rights by application of concepts of ai"er or
estoppel% BUCC 102#I%IC
&t is important to remember hen e go into a court, that e
are in a commercial, international +uris!iction% &f e go into
court an! say, -& >2)*=> )Y C3=ST&TUT&3=*L 1&4$TS,- the +u!ge
ill most li'ely say, -You mention the Constitution again, an!
&/ll fin! you in contempt of court:- Then, e !on/t un!erstan!
ho he can !o that% $asn/t he sorn to uphol! the Constitution5
The rule here is: you cannot be charge! un!er one +uris!iction,
an! !efen! un!er another% For e(ample, if the French go"ernment
came to you an! as'e! here you file! your French income ta( in a
certain year, !o you go to the French go"ernment an! say, -&
!eman! my Constitutional 1ights5- =o% The proper anser is:
T$2 L*, >32S=/T *99LY T3 )2 00 &/) =3T * F12=C$)*=% You must
ma'e your reser"ation of rights un!er the +uris!iction in hich
you are charge! 00 not un!er some other +uris!iction% So, in a
UCC court, you must claim your reser"ation of rights un!er the
UCC 102#I%
UCC 102#I goes on to say:
,hen a ai"able right or claim is in"ol"e!, the failure to
ma'e a reser"ation thereof, causes a loss of the right, an!
bars its assertion at a later !ate% BUCC 102#I%9C
You ha"e to ma'e your claim 'non early% Further, it says:
The Sufficiency of the 1eser"ation 00 *ny e(pression
in!icating an intention to reser"e rights, is sufficient,
such as -ithout pre+u!ice-% BUCC 102#I%GC
,hene"er you sign any legal paper that !eals ith Fe!eral 1eser"e
=otes 00 in any ay, shape or manner 00 un!er your signature
rite: ,ithout 9re+u!ice UCC 102#I%2 This reser"es your rights%
You can sho, at 102#I%G, that you ha"e sufficiently reser"e!
your rights%
&t is "ery important to un!erstan! +ust hat this means%
For e(ample, one man ho use! this in regar! to a traffic tic'et
as as'e! by the +u!ge +ust hat he meant by riting -ithout
pre+u!ice UCC 102#I- on his statement to the court% $e ha! not
trie! to un!erstan! the concepts in"ol"e!% $e only ante! to use
it to get out of the tic'et% $e !i! not 'no hat it meant%
,hen the +u!ge as'e! him hat he meant by signing in that ay, he
tol! the +u!ge that he as not pre+u!ice! against anyone %%%%
The +u!ge 'ne that the man ha! no i!ea hat it meant, an! he
lost the case% You must 'no hat it means%
,ithout 9re+u!ice UCC 102#I
,hen you use -,ithout 9re+u!ice UCC 102#I- in connection
ith your signature, you are saying:
& reser"e my right not to be compelle! to perform un!er any
contract or commercial agreement that & !i! not enter
'noingly, "oluntarily, an! intentionally% *n!,
furthermore, & !o not accept the liability of the compelle!
benefit of any unre"eale! contract or commercial agreement%
,hat is the compelle! performance of an unre"eale!
commercial agreement5 ,hen you use Fe!eral 1eser"e =otes instea!
of sil"er !ollars, is it "oluntary5 =o% There is no laful
money, so you ha"e to use Fe!eral 1eser"e =otes 00 you ha"e to
accept the benefit% The go"ernment has gi"en you the benefit to
!ischarge your !ebts ith limite! liability, an! you !on/t ha"e
to pay your !ebts% $o nice they are: 6ut, if you !i! not
reser"e your rights un!er 102#I%I, you are compelle! to accept
the benefit, an! therefore obligate! to obey e"ery statute,
or!inance an! regulation of the go"ernment, at all le"els of
go"ernment 00 fe!eral, State an! local%
&f you un!erstan! this, you ill be able to e(plain it to
the +u!ge hen he as's% *n! he ill as', so be prepare! to
e(plain it to the court% You ill also nee! to un!erstan! UCC
101#F 00 the argument an! recourse%
&f you ant to un!erstan! this fully, go to a la library
an! photocopy these to sections from the UCC% &t is important
to get the *n!ersonF e!ition% Some of the la libraries ill
only ha"e the ,est 9ublishing "ersion, an! it is "ery !ifficult
to un!erstan!% &n *n!erson, it is bro'en !on ith !ecimals into
ten parts an!, most importantly, it is ritten in plain 2nglish%
1ecourse
The 1ecourse appears in the Uniform Commercial Co!e at
101#F%<, hich says,
The Co!e is complementary to the Common La, hich remains
in force, e(cept here !isplace! by the Co!e% * statute
shoul! be construe! in harmony ith the Common La, unless
there is a clear legislati"e intent to abrogate the Common
La%
This is the argument e use in court%
The Co!e recogni7es the Common La% &f it !i! not recogni7e
the Common La, the go"ernment oul! ha"e ha! to a!mit that the
Unite! States is ban'rupt, an! is completely one! by its
cre!itors% 6ut, it is not e(pe!ient to a!mit this, so the Co!e
as ritten so as not to abolish the Common La entirely%
Therefore, if you ha"e ma!e a sufficient, timely, an! e(plicit
reser"ation of your rights at 102#I, you may then insist that the
statutes be construe! in harmony ith the Common La%
&f the charge is a traffic tic'et, you may !eman! that the
court pro!uce the in+ure! person ho has file! a "erifie!
complaint% &f, for e(ample, you ere charge! ith failure to
buc'le your seat belt, you may as' the court ho as in+ure! as a
result of your failure to -buc'le up%-
$oe"er, if the +u!ge on/t listen to you an! +ust mo"es
ahea! ith the case, then you ill ant to rea! to him the last
sentence of 101#F%<, hich states:
The Co!e cannot be rea! to preclu!e a Common La action%
Tell the +u!ge:
Your $onor, & can sue you un!er the Common La, for
"iolating my right un!er the Uniform Commercial Co!e% &
ha"e a reme!y, un!er the UCC, to reser"e my rights un!er the
Common La% & ha"e e(ercise! the reme!y, an! no you must
construe this statute in harmony ith the Common La% To be
in harmony ith the Common La, you must come forth ith a
!amage! party%
&f the +u!ge insists on procee!ing ith the case, +ust act
confuse! an! as' this .uestion:
Let me see if & un!erstan!, Your $onor: $as this court ma!e
a legal !etermination that sections 102#I an! 101#F of the
Uniform Commercial Co!e, hich is the system of la you are
operating un!er, are not "ali! la before this court5
=o, the +u!ge is in a +amb: $o can the court thro out one
part of the Co!e an! uphol! another5 &f he ansers -yes,- then
you say:
& put this court on notice that & am appealing your legal
!etermination%
3f course, the higher court ill uphol! the Co!e on appeal% The
+u!ge 'nos this, so once again you ha"e bo(e! him into a corner%
9ractical *pplication 00 Traffic Court
Aust so e can un!erstan! ho this hole process or's, let
us loo' at a court situation such as a traffic "iolation% *ssume
you ran through a yello light an! a policeman ga"e you a traffic
tic'et:
1% The first thing you ant to !o is to !elay the action at
least three ee's% This you can !o by being pleasant an!
cooperati"e ith the officer% 2(plain to him that you are
"ery busy an! as' if he coul! please set your court
appearance for about three ee's aay%
B*t this point, e nee! to remember the go"ernment/s tric': -&/m
from the go"ernment% &/m here to help you%- =o, e ant to use
this approach ith them%C
2% The ne(t step is to go to the cler' of the traffic court an!
to say:
-& belie"e it oul! be helpful if & tal' to you, because &
ant to sa"e the go"ernment some money Bthis ill get his
attentionC% & am un!oubte!ly going to appeal this case% *s
you 'no, in an appeal, & ha"e to ha"e a transcript, but the
traffic court !oesn/t ha"e a court reporter% &t oul! be a
aste of ta(payer/s money to run me through this court an!
then to ha"e to gi"e me a trial !e no"o in a court of
recor!% & !o nee! a transcript for appealing, an! to sa"e
the go"ernment some money, maybe you coul! sche!ule me to
appear in a court of recor!%-
You can sho the !ate on the tic'et an! the cler' ill usually
agree that there is plenty of time to sche!ule your trial for a
court of recor!% =o, your first appearance is in a court of
recor! an! not in a traffic court, here there is no recor!%
,hen you get into court, there ill be a court reporter
there ho recor!s e"ery or! the +u!ge spea's, so the +u!ge is
much more careful in a court of recor!% You ill be in a much
better situation there than in a traffic court% &f there is no
recor!, the +u!ge can say hate"er he ants 00 he can call you
all sorts of names an! tell you that you ha"e no rights, an! so
on 00 an! !eny it all later%
F% ,hen you get into court, the +u!ge ill rea! the charges:
!ri"ing through a yello light, or hate"er, an! this is a
"iolation of or!inance @YJ% $e ill as', ->o you un!erstan!
the charge against you5-G
G% -,ell, Your $onor, there is a .uestion & oul! li'e to as'
before & can ma'e a plea of innocent or guilty% & thin' it
coul! be ansere! if & coul! put the officer on the stan!
for a moment an! as' him a fe short .uestions%-
Au!ge: -& !on/t see hy not% Let/s sear the officer in
an! ha"e him ta'e the stan!%-
K% -&s this the instrument that you ga"e me5- Bhan!ing him the
traffic citationC
3fficer: -Yes, this is a copy of it% The +u!ge has the
other portion of it%-
-,here !i! you get my a!!ress that you rote on that
citation%-
3fficer: -,ell, & got it from your !ri"er/s license%-
B$an!ing the officer your !ri"er/s licenseC -&s this the
!ocument you copie! my name an! a!!ress from5-
3fficer: -Yes, this is here & got it%-
-,hile you/"e got that in your han!, oul! you rea! the
signature that/s on that license5- BThe officer rea!s the
signatureC -,hile you/re there, oul! you rea! into the
recor! hat it says un!er the signature5-
3fficer: -&t says, /,ithout 9re+u!ice UCC 102#I/%-
Au!ge: -Let me see that license: B$e loo's at it an! turns
to the officer%C -You !i!n/t notice this printing un!er the
signature on this license, hen you copie! his name an!
a!!ress onto the tic'et5-
3fficer: -3h, no% & as +ust getting the a!!ress 00 &
!i!n/t loo' !on there%-
Au!ge: -You/re not "ery obser"ant as an officer%
Therefore, & am afrai! & cannot accept your testimony in
regar!s to the facts of this case% This case is !ismisse!%-
<% &n this case, the Au!ge foun! a con"enient ay out 00 he
coul! say that the officer as not obser"ant enough to be a
reliable itness% $e !i! not ant to a!mit the real nature
of the +uris!iction of his court% 3nce it as in the recor!
that you ha! ritten -,ithout 9re+u!ice UCC 102#I- on your
license, the +u!ge 'ne he oul! ha"e to a!mit that:
a% you ha! reser"e! your Common La rights un!er the UCCD
b% you ha! one it sufficiently by riting -,ithout
9re+u!ice UCC 102#I- on your !ri"er/s licenseD
c% the statute oul! no ha"e to be rea! in harmony ith
the Common La, an! the Common La says the statute
e(ists, but there is no in+ure! partyD an!
!% since there is no in+ure! party or complaining itness,
the court has no +uris!iction un!er the Common La%
I% &f the +u!ge tries to mo"e ahea! an! try the facts of the
case, then you ill ant to as' him the folloing .uestion:
Your $onor, let me un!erstan! this correctly% $as this
court ma!e a legal !etermination that it has authority un!er
the +uris!iction that it is operating un!er, to ignore to
sections of the Uniform Commercial Co!e hich ha"e been
calle! to its attention5
&f he says -yes,- tell him that you put the court on notice that
you ill appeal that legal !etermination, an! that if you are
!amage! by his actions, you ill sue him in a common la action
00 un!er the +uris!iction of the UCC% This ill or' +ust as
ell ith the &nternal 1e"enue Ser"ice% &n fact, e can use the
UCC ith the &1S before e get to court%
Using the Co!e ith the &1S
&f the &1S sen!s you a =otice of >eficiency, this is calle!
a -presentment- in the Uniform Commercial Co!e% * -presentment-
in the UCC is "ery similar to the Common La% First, e must
un!erstan! +ust ho this or's in the Common La%
Suppose & get a man/s name from a phone boo' 00 someone &
ha"e ne"er met% *n! & sen! him a bill or in"oice on nice
letterhea! hich says, -For ser"ices ren!ere!: ;1#,###%##%- &
sen! this by Certifie! )ail to him at the a!!ress ta'en from the
phone boo'% The man has to sign for it before he can open it, so
& get a receipt that he recei"e! it% ,hen he opens it, he fin!s
an in"oice for ;1#,### an! the folloing statement: -&f you ha"e
any .uestions concerning this bill or the ser"ices ren!ere!, you
ha"e thirty !ays to ma'e your .uestions or ob+ections 'non%-
3f course, he has ne"er hear! of me, so he +ust thros the
bill aay an! assumes that &/m confuse! or cra7y% *t the en! of
thirty !ays, & go to court an! get a !efault +u!gment against
him% $e recei"e! a bill for ;1#,###, as gi"en thirty !ays to
respon!% $e faile! to ob+ect to it or as' any .uestions about
it% =o, he has !efaulte! on the bill an! & can lafully collect
the ;1#,###%
That/s Common La% The UCC or's on the same principle%
The minute you get a =otice of >eficiency from the &1S, you
return it imme!iately ith a letter that says:
The presentment abo"e is !ishonore!% LYour nameM has
reser"e! all of hisHher rights un!er the Uniform Commercial
Co!e at UCC 102#I%
This shoul! be all that is necessary, as there is nothing more
that they can !o% &n fact, & recently helpe! someone in *ri7ona
ho recei"e! a =otice of >eficiency% The man sent a letter such
as this, !ishonoring the -presentment%- The &1S rote bac' that
they coul! not ma'e a !etermination at that office, but ere
turning it o"er to the Collections >epartment% * letter as
attache! from the Collections >epartment hich sai! they ere
sorry for the incon"enience they ha! cause! him an! that the
=otice of >eficiency ha! been ith!ran% So, you can see that,
if it is han!le! properly, these things are easily resol"e!%
&mpen!ing 6an'ruptcy
3n my ay here, & ha! a chance to "isit ith the 4o"ernor of
,yoming% $e is "ery concerne! that if he runs for office this
=o"ember, that there on/t be a State of ,yoming at the en! of
four years% $e belie"es that the &nternational 6an'ers might
foreclose on the nation an! officially a!mit that they on the
hole orl!% They coul! roun! up e"erybo!y in the State Capitol
buil!ing, put them in an internment camp an! hol! them
in!efinitely% They may gi"e them a trial, or they may not% They
ill !o hate"er they ant% *s & e(plaine! earlier, it has not
been e(pe!ient to foreclose on the nation until they coul! get
e"erything rea!y% This is here the Fe!eral 2mergency )anagement
*gency comes in% &t has been put in place ithout anyone really
noticing it%
F2)*
F 2 ) *, or the Fe!eral 2mergency )anagement *gency has been
!esigne! for hen *merica is officially !eclare! ban'rupt, hich
oul! be a national emergency% &n a national emergency, all
Constitutional 1ights an! all la that pre"iously e(iste!, oul!
be suspen!e!% F2)* has create! large concentration camps here
they oul! put anyone ho might cause trouble for the or!erly
plan an! process of the ne regime to ta'e o"er the nation%
2"en a go"ernor coul! be thron into one of these internment
camps, an! 'ept there in!efinitely% This is all in place no,
an! they are +ust aiting to !eclare a national emergency% Then,
e"en State go"ernments coul! be !issol"e!% *nybo!y ho might
oppose the ne regime coul! be imprisone! until a ne set of las
coul! be ritten an! a ne go"ernment set up% The 4o"ernor 'nos
all this, an! he is "ery concerne!% $e !oesn/t ant to be in
office hen all this happens%
& "isite! ith him an! tol! him that there are certain
actions e shoul! ta'e right no% & thin' e shoul! consi!er the
fact that, accor!ing to the Uniform Commercial Co!e, ,yoming is
an accommo!ation partyK to the national !ebt% To un!erstan!
this, e must reali7e that there are to separate entities 'non
as the Unite! States%
The 1othschil! &nfluence
,hen *merica as foun!e!, the 1othschil!s ere "ery unhappy
because it as foun!e! on the Common La% The Common La is
base! on substance, an! this substance is mentione! in the
Constitution as gol! or sil"er% *merica is a Constitutional
1epublic 00 that is, a union of the States un!er the
Constitution% ,hen Congress as or'ing for the 1epublic, the
only thing it coul! borro as gol! or sil"er, an! the 1othschil!
ban's !i! not loan gol! or sil"er% =aturally, they !i! not li'e
this ne go"ernment%
The 1othschil!s ha! a !eal ith the 8ing of 2nglan!% $e
oul! borro paper an! agree to repay in gol!% 6ut, these unite!
States, ith their Constitution, ere an obstacle to them, an! it
as much to the 1othschil!/s a!"antage to get the colonies bac'
un!er the 8ing% So, the 1othschil!s finance! the ,ar of 1E12 to
bring *merica bac' un!er 2nglan!% 3f course, that !i!n/t or',
so they ha! to fin! another ay%
The Fla in the Constitution:
To =ations in 3ne
&t as aroun! the time of the *merican Ci"il ,ar that they
!isco"ere! a fla in the Constitution% The fla as *rticle 1,
Section E, Clause 1I%
1emember that there are to nations calle! -Unite! States%-
,hat is a nation5 See if you oul! agree to this !efinition:
,hene"er you ha"e a go"erning bo!y, ha"ing a prescribe!
territory containing a bo!y of people%
&s that a nation5 Yes% ,e ha"e a go"erning bo!y in the 1epublic
00 the three0branch go"ernment% They are the legislati"e, the
e(ecuti"e, an! the +u!icial branches, ith a constitution% There
is a prescribe! territory containing a bo!y of people% This is a
Constitutional 1epublic%
6ut, *rticle 1, Section E, Clause 1I ga"e Congress, hich is
the legislati"e branch of the three0branch go"ernment, e(clusi"e
rule o"er a gi"en territory 'non as the >istrict of Columbia,
containing a bo!y of people% $ere e ha"e a nation ithin a
nation% This is a Legislati"e >emocracy ithin a Constitutional
1epublic%
,hen Congress as a part of the Constitutional 1epublic, it
ha! the obligation of pro"i!ing a me!ium of e(change for us% &ts
!uty as to coin gol! or sil"er% *nyone ho ha! a piece of gol!
or sil"er coul! bring it in an! ha"e it freely minte! into coin%
This as the me!ium of e(change for the 1epublic%
6ut, in the Legislati"e >emocracy Bo"er ,ashington, >%C%C,
Congress is not limite! by the Constitution% Congress has
e(clusi"e rule o"er the >istrict of Columbia% The legislators
can ma'e the la by a ma+ority "ote 00 that ma'es it a
!emocracyD they ha"e the authority to ha"e a!ministrati"e agents
to enforce their on laD an! they ha"e courts in the
legislati"e branch of go"ernment, to try their on la% $ere, e
ha"e the legislature ma'ing the la, enforcing the la an! trying
the la, all ithin the one branch of go"ernment% This is a one0
branch go"ernment ithin a three0branch go"ernment%
Un!er the three0branch go"ernment, the Congress passes la
hich has to be in harmony ith the Constitution, the e(ecuti"e
enforces the la passe! by the Congress, an! the +u!iciary tries
the la, pursuant to the Constitution%
T$2 T$122061*=C$ C3=ST&TUT&3=*L 129U6L&C an! the 3=2061*=C$
L24&SL*T&?2 >2)3C1*CY are both calle! T$2 U=&T2> ST*T2S% 3ne is
the fe!eral Unite! States, an! the other is the continental
unite! States%
*re You a Unite! States Citi7en5
&f you say that you are a Unite! States citi7en, hich
Unite! States are you referring to5 *nyone ho li"es in the
>istrict of Columbia is a Unite! States citi7en% The remaining
population in the fifty States is the national citi7enry of the
nation% ,e are !omicile! in "arious so"ereign States, protecte!
by the constitutions of those States from any !irect rule of
Congress o"er us% &n the !emocracy, anyone ho li"es in those
states 'non as ,ashington, >%C%, 4uam, 9uerto 1ico, or any of
the other fe!erally hel! territories is a citi7en of the Unite!
States B>%C%C%
,e must be careful ith our choice of or!s 00 e are not
citi7ens of the Unite! States% ,e are not sub+ect to Congress%
Congress has e(clusi"e rule o"er a gi"en territory, an! e are
not part of that territory%
,hen !i! Congress get the authority to rite the &nternal
1e"enue Co!e5 &t is foun! in *rticle 1, Section E, Clause 1I of
the Constitution% To pass that la, they only nee!e! a ma+ority
"ote% There is no other ay that they coul! pass las !irectly
affecting in!i"i!uals% Title 2<, the &nternal 1e"enue Co!e, as
passe! as la for another nation Bremember our !efinition of
-nation-C, but Title 2< is not consistent ith the 6ill of
1ights% &f you try to fight the &1S, you ha"e no rights 00 the
Co!e !oes not gi"e you any of your constitutional rights% &t
simply says, -You faile! to file an income ta( form% You faile!
to perform in some specific manner%-
1emember, un!er the Common La, you are free to !o hate"er
you ant as long as you !o not infringe upon the life, liberty,
or property of anyone else% &f you !o not ant to perform, you
!on/t ha"e to% The only ay you can be compelle! to perform
un!er the Constitution in the continental Unite! States, is if
you ha"e entere! a contract% 6ut, if you are not un!er a
contract, you cannot be compelle! to perform% $o can you be
compelle! to file an income ta( form, or any form5
,hen Congress or's for the 1epublic, e"ery la it passes
must be in harmony ith the Constitution an! the 6ill of 1ights,
but hen Congress or's for the Legislati"e >emocracy, any la it
passes becomes the la of the lan!% B1emember, Congress has
e(clusi"e legislati"e control o"er fe!eral territory%C
&f you are charge! ith illful failure to file an income
ta( 1#G# form, that is a la for a !ifferent nation% You are a
nonresi!ent alien to that nation% &t is a foreign corporation to
you% &t is not the 1epublic of the continental unite! States
coming after youD it is a foreign nation 00 the legislati"e
!emocracy of a foreign nation coming after you%
&f you get a =otice of >eficiency from the &1S, it is a
presentment from the fe!eral Unite! States, so then you can use
the UCC to !ishonor it, an! you can also mention that you are
among the national citi7enry of the continental unite! States,
an! you are a nonresi!ent alien to the fe!eral Unite! States%
You ne"er li"e! in a fe!eral territory an! ne"er ha! an income
from the fe!eral Unite! States%
Furthermore, you cannot be re.uire! to file or pay ta(es
un!er the compelle! benefit of using the Fe!eral 1eser"e =otes,
because you ha"e reser"e! your rights un!er the Common La
through the Uniform Commercial Co!e at 102#I%
3riginal &ntent of the Foun!ers
The Foun!ing Fathers oul! ne"er ha"e create! a go"ernment
that as going to boss them aroun!: There ere 1F so"ereign
States% They ere nations, an! they +oine! together for
protection from foreign enemies% They pro"i!e! a means by hich
the union of the so"ereign States coul! fen! off foreign enemies%
6ut, they ne"er ga"e the Congress of the fe!eral Unite! States
!irect rule o"er any Citi7en of any State% They ere not going
to be or!ere! aroun! by that go"ernment they set up%
Fe!eral 1egions
The supreme Court has !eclare! that Congress can rule hat
Congress creates% Congress !i! not create the States, but
Congress !i! create fe!eral regions% So, Congress can rule the
fe!eral regions, but Congress cannot rule the States% $o ha"e
e been tric'e! into fe!eral regions5
The J&9 Co!e Tric'
1emember ho the go"ernment alays come to us an! says, -&/m
from the go"ernment an! &/m here to help you%- The go"ernment
ent out into the "arious States an! sai!, -,e !on/t ant you to
go to all that trouble of riting three or four letters to
abbre"iate the name of the State 00 such as /*ri7%/ for
*ri7ona% Aust rite /*J/ instea! of /*ri7%/ 3r, you can +ust
rite /,Y/ for ,yoming, instea! of /,yo%/- So, all of the States
of the union ha"e got a ne to0letter abbre"iation% 2"en a
State such as 1ho!e &slan! has a ne abbre"iation% &t is -1&-
instea! of -1%&%- They ha"e +ust left off the perio!s% ,hen you
use a to0letter State abbre"iation, you are compelle! to use a
J&9 co!e, because there are so many States, for e(ample, hich
start ith )% )2 is )aine% )& is )ichigan% $o many people !ot
e"ery -i- or ma'e an -i- that loo's li'e an -e-5 ,ith )*, )3,
)=, )S, etc%, an! some sloppy riting, you coul! not tell one
from another% So, e ha"e to use the J&9 co!e in or!er to tell
them apart% 6ut, if you rote -)ich%- or -)inn%- or -)iss%-,
there oul! be no real problem telling hich State it as%
There is no harm in using the J&9 co!e, if you lafully
i!entify your State% & foun! out that no State legislature has
met to lafully change the abbre"iation of the State from the ol!
abbre"iation to the ne% Therefore, if you !o not use the laful
abbre"iation for your State, but use the shorter ne
abbre"iation, you ha"e to use the J&9 co!e%
Loo' on page 11 of the J&9 Co!e >irectory an! it ill tell
you that the first !igit of your J&9 co!e is the fe!eral region
in hich you resi!e% &f you use /*J/ for *ri7ona, you cannot use
the State Constitution to protect you, because you !i! not
i!entify your State% You use! the J&9 co!e, hich i!entifies
hich fe!eral region you li"e in% *n! Congress may rule fe!eral
regions !irectly, but it cannot rule the Citi7ens of any State%
*ccommo!ation 9arty
Let/s loo' at ho the States ha"e become the accommo!ation
party to the national !ebt% There are many people & ha"e tal'e!
to, inclu!ing the 4o"ernor, ho are "ery concerne! about this,
an! ho 'no that it coul! happen "ery soon%
&f *merica is !eclare! a ban'rupt nation, it ill be a
national emergency% The Fe!eral 2mergency )anagement *gency ill
ta'e o"er, an! anyone ho opposes the ne go"ernment of the
cre!itors can be sent to a !etention camp in *las'a% ,e ill
ha"e no rights hatsoe"er% They ha"e alrea!y set up prison camps
ith or' camps nearby so the people can be use! for sla"e labor%
&t coul! be the go"ernors, legislators, an! other lea!ers ho
oul! be haule! aay to *las'a, hile the people no
!isenfranchise! from poer oul! li'ely be chosen to run the ne
go"ernment% This coul! all happen "ery soon, as the national
!ebt is so large as to be unpayable% 2"en the interest on the
!ebt is "irtually unpayable%
*s & e(plaine!, the national !ebt 00 more than three
trillion !ollars 00 is not oe! by the continental unite!
States% &t is the fe!eral Unite! States that ha! authority to
borro ban' cre!it% ,hen Congress or'e! for the continental
unite! States, it coul! only borro gol! or sil"er, so the
national !ebt as borroe! in the name of the fe!eral Unite!
States% The fe!eral Unite! States has been ban'rupt since 19FE,
but the fe!eral Unite! States ha! to trap the States into
assuming the !ebt obligation of the fe!eral !ebt%
&n the Uniform Commercial Co!e, e fin! the term
-accommo!ation party%-< $o !i! the States become the
-accommo!ation party- to the fe!eral !ebt5 The fe!eral
go"ernment, through our money system, ma!e the States !eal in
Fe!eral 1eser"e =otes, hich means that e"erything the States !o
is -colorable%- Un!er the -colorable- +uris!iction of the
Uniform Commercial Co!e, all of the States are the accommo!ation
party to the fe!eral !ebt%
=o, the concern is to fin! ho e can get out of this
situation% & tol! the 4o"ernor that, in the Common La an! the
La of )erchants 00 that/s the &nternational La )erchant 00
there is a term calle! no0interest contract% * no0interest
contract is "oi! an! unenforceable% ,hat is a no0interest
contract5
=o0&nterest Contract
&f & ere to insure a house that !i! not belong to me, that
oul! be a no0interest contract% & oul! +ust ant the house to
burn !on% & oul! pay a small premium, perhaps a fe hun!re!
!ollars, an! insure it for E#,### !ollars against fire% Then, &
oul! be aiting for it to burn so & coul! tra!e my small premium
for ;E#,###% Un!er the Common La an! un!er international la of
the La )erchant, that is calle! a no0interest contract, an! it
is "oi! an! unenforceable in any court%
Unconscionable Contracts
&n the Uniform Commercial Co!e, no0interest contracts are
calle! unconscionable contracts% The section on unconscionable
contracts co"ers more than forty pages in the *n!erson Co!e% The
fe!eral Unite! States has in"ol"e! the States as the
accommo!ation party to the fe!eral !ebt, an! & belie"e e coul!
pro"e this to be an unconscionable contract% ,e shoul! get some
litigation into the courts before the go"ernment !eclares a
national emergency, claiming that this State has no laful
responsibility for the national !ebt Bof the fe!eral Unite!
StatesC, because it became an accommo!ation party to this !ebt
through an unconscionable contract% &f e ha"e this litigation
before the courts un!er &nternational La hen the nation is
!eclare! ban'rupt, the cre!itors oul! ha"e to settle this matter
first, an! it oul! !elay them% They oul! ant the ne
go"ernment to appear to be legitimate, so they coul! not +ust
mo"e right in an! ta'e o"er the State, because it oul! be in an
&nternational Court% This is "ery important at this time%
Nuestions an! 1e"ie
=ote: These are some of the .uestions as'e! after the main
lecture% Some are re0statements of material presente! earlier,
but they contain "ery "aluable information hich is orth
repeating%
Courtroom Techni.ues
Nuestion: $o !i! you -bo( in- the Au!ge5
This is easy to !o if you !on/t 'no too much% & !i!n/t
'no too much, but & bo(e! them in% You must play a little !umb%
&f you are arreste! an! you go into court, +ust remember
that in a criminal action, you ha"e to un!erstan! the la, or it
is a re"ersible error for the court to try you% &f you !on/t
un!erstan! the la, they can/t try you%
&n any traffic case or ta( case, you are calle! into court
an! the +u!ge rea!s the la an! then as's, ->o you un!erstan! the
charges5-

>efen!ant: =o, Your $onor% & !o not%
Au!ge: ,ell, hat/s so !ifficult about that charge5
2ither you !ro"e the rong ay on a one0ay street or
you !i!n/t% You can only go one ay on that street,
an! if you go the other ay, it/s a fifty !ollar fine%
,hat/s so !ifficult about this that you !on/t
un!erstan!5
>: ,ell, Your $onor, it/s not the letter of the la, but
rather the nature of the la that & !on/t un!erstan!%
The Si(th *men!ment of the Constitution gi"es me the
right to re.uest the court to e(plain the nature of any
action against me, an! upon my re.uest, the court has
the !uty to anser% & ha"e a .uestion about the nature
of this action%
A: ,ell, hat is that 00 hat !o you ant to 'no5
*lays as' them some easy .uestions first, as this establishes
that they are ansering% You as':
>: ,ell, Your $onor, is this a Ci"il or a Criminal *ction5
A: &t is criminal% B&f it ere a ci"il action, there
coul! be no fine, so it has to be criminal%C
>: Than' you, Your $onor, for telling me that% Then the
recor! ill sho that this action against Lyour nameM
is a criminal action, is that right5
A: Yes%
>: & oul! li'e to as' another .uestion about this
criminal action% There are to criminal +uris!ictions
mentione! in the Constitution: one is un!er the Common
La, an! the other !eals ith &nternational )aritime
Contracts, un!er an *!miralty Auris!iction% 2.uity is
ci"il, an! you sai! this is a Criminal action, so it
seems it oul! ha"e to be un!er either the Common La,
or )aritime La% 6ut hat pu77les me, Your $onor, is
that there is no corpus !electi here that gi"es this
court a +uris!iction o"er my person an! property un!er
the Common La% Therefore, it !oesn/t appear to me
that this court is mo"ing un!er the Common La%
A: =o, & can assure you this court is not mo"ing un!er the
Common La%
>: ,ell, than' you, Your $onor, but no you ma'e the
charge against me e"en more !ifficult to un!erstan!%
The only other criminal +uris!iction oul! apply only
if there ere an &nternational )aritime Contract
in"ol"e!, & as a party to it, it ha! been breache!,
an! the court as operating in an *!miralty
Auris!iction%
& !on/t belie"e & ha"e e"er been un!er any
&nternational )aritime contract, so & oul! !eny that
one e(ists% & oul! ha"e to !eman! that such a
contract, if it !oes e(ist, be place! into e"i!ence, so
that & may contest it% 6ut surely, this court is not
operating un!er an *!miralty Auris!iction%
You +ust put the or!s in the +u!ge/s mouth%
A: =o% & can assure you, e/re not operating un!er an
*!miralty Auris!iction% ,e/re not out in the ocean
somehere 00 e/re right here in the mi!!le of the
State of Lany StateM% =o, this is not an *!miralty
Auris!iction%
>: Than' you, Your $onor, but no & am more pu77le! than
e"er% &f this charge is not un!er the Common La, or
un!er *!miralty 00 an! those are the only to
criminal +uris!ictions mentione! in the Constitution
00 hat 'in! of +uris!iction coul! this court be
operating un!er5
A: &t/s Statutory Auris!iction%
>: 3h, than' you, Your $onor% &/m gla! you tol! me that%
6ut & ha"e ne"er hear! of that +uris!iction% So, if &
ha"e to !efen! un!er that, & oul! nee! to ha"e the
1ules of Criminal 9roce!ure for Statutory Auris!iction%
Can you tell me here & might fin! those rules5
There are no rules for Statutory Auris!iction, so the +u!ge ill
get "ery angry at this point an! say:
A: &f you ant ansers to .uestions li'e that, you get
yourself a license! attorney% &/m not alloe! to
practice la from the bench%
>: 3h, Your $onor, & !on/t thin' anyone oul! accuse you
of practicing la from the bench if you +ust anser a
fe .uestions to e(plain to me the nature of this
action, so that & may !efen! myself%
A: & tol! you before, & am not going to anser any more
.uestions% >o you un!erstan! that5 &f you as' any
more .uestions in regar!s to this, & am going to fin!
you in contempt of court: =o, if you can/t affor! a
license! attorney, the court ill pro"i!e you ith one%
6ut, if you ant those .uestions ansere!, you must get
yourself a license! attorney%
>: Than' you, Your $onor, but let me +ust see if & got
this straight%
$as this court ma!e a legal !etermination that it has
authority to con!uct a criminal action against me, the
accuse!, un!er a secret +uris!iction, the rules of
hich are 'non only to this court an! license!
attorneys, thereby !enying me the right to !efen! my
on person5
$e has no anser for that% The +u!ge ill probably postpone the
case an! e"entually +ust let it go% &n this ay, you can be as
ise as a serpent an! as harmless as a !o"e, but you must not go
into court ith a chip on your shoul!er an! as a olf in -blac'
sheep- country% 1emember Aesus/ or!s, -& sen! you out as sheep
in olf country% 6e as ise as a serpent, an! as harmless as a
!o"e%- Sheep !o not attac' ol"es !irectly% Aust be an innocent
little lamb ho +ust can/t un!erstan! the charge, an! remember
00 they can/t try you criminally if you !on/t un!erstan! the
charge% That oul! be automatically a re"ersible error on
appeal%
The Social Security 9roblem
&f & ere a young man, 1E or 2# years ol! an! +ust starting
out in my first +ob, & oul! not ant Social Security% ,ith my
signature on the application & oul! rite, -,ithout 9re+u!ice
UCC 102#I,- an! & oul! reser"e my Common La rights% 6ut, hy
oul!n/t & ant Social Security to!ay5
& got into the Social Security system in the 19F#/s, an! &
pai! into it !ollars that ha! goo! purchasing poer% =o, &/m
getting a promise! return in Fe!eral 1eser"e =otes hich ha"e
consi!erably less "alue% For e(ample, in 19G#, you coul! buy a
!elu(e Che"rolet for E## !ollars% ,ith to!ay/s Fe!eral 1eser"e
=otes, that on/t buy the rear fen!ers an! trun' on a ne
Che"rolet% &f & ere a young man, & oul! not ant to put
Fe!eral 1eser"e =otes into Social Security no, an! get bac'
something later li'e the 4erman mar' after ,orl! ,ar & 00 hen
it too' a billion to buy a loaf of brea!% They ill gi"e you
e"ery Fe!eral 1eser"e =ote bac' that they promise! you, but it
might not buy anything%
*ssurance
Un!er the Uniform Commercial Co!e, you ha"e the right, in
any agreement, to !eman! a guarantee of performance% So, !on/t
go to them an! say, -& ant to rescin! my Social Security
number,- or -& refuse to ta'e it%- Aust ta'e it easy an! say, -&
oul! be happy to get a Social Security number an! enter into
this contract, but & ha"e a little problem% $o can & ha"e
assurance before & enter into this contract that the purchasing
poer of the Fe!eral 1eser"e =otes & get bac' at the en! of the
contract ill be as goo! as the ones that & pay in at the
beginning5 They can/t guarantee that, an! you ha"e a right un!er
the UCC to assurance of performance un!er the contract%
So, tell them, -,ell, & cannot enter this contract unless
the go"ernment ill guarantee to pay me at the en! of the
contract ith the same "alue Fe!eral 1eser"e =otes that &/m
paying in% 6oth may be calle! Fe!eral 1eser"e =otes, but you
'no that these Fe!eral 1eser"e =otes !on/t hol! their "alue% &
ant assurance on this contract that the Fe!eral 1eser"e =otes
that & get in my retirement ill buy as much as the ones that &/m
gi"ing to you no in my or'ing years%- They can/t ma'e that
guarantee% &f they on/t gi"e you that guarantee, +ust say, -&/!
be gla! to sign this, but if you can/t guarantee performance
un!er the contract, &/m afrai! & cannot enter the contract%
=o, !i! you refuse or !i! they refuse5 You can get the
sections of the Uniform Commercial Co!e hich grant the right to
ha"e assurance that the contract you ha"e entere! ill be
fulfille! properly 00 that the return ill e.ual the
in"estment, an! you can re+ect the contract using the Co!e%
Using their on system of la, you can sho that they cannot ma'e
you get into a contract of that nature% Aust approach them
innocently li'e a lamb%
&t is "ery important to be gentle an! humble in all !ealings
ith the go"ernment an! the courts 00 ne"er raise your "oice or
sho anger% &n the courtroom, alays be polite an! buil! the
+u!ge up 00 call him -Your $onor%- 4i"e him all the -honor- he
ants% &t !oes no goo! to be !ifficult, but rather be
cooperati"e an! as' .uestions in a ay that lea!s the +u!ge to
say the things hich you nee! to ha"e in the recor!%
The Court 1eporter
&n many courts, there ill be a regular court reporter% $e
gets his +ob at the +u!ge/s pleasure, so he !oesn/t ant to
!isplease the +u!ge% The court reporter is sorn to gi"e an
accurate transcript of e"ery or! that is spo'en in the
courtroom% 6ut, if the +u!ge ma'es a slip of the tongue, he
turns to his court reporter an! says, -& thin' you ha! better
lea"e that out of the transcriptD +ust say & got a little too
far ahea! of you, an! you coul!n/t .uite get e"erything in%- So,
this ill be missing from the transcript%
&n one case, e brought a license! court reporter ith us
an! the +u!ge got "ery angry an! sai!, -This court has a license!
court reporter right here, an! the recor! of this court is this
court reporter/s recor!% =o other court reporter/s recor! means
anything to this court%-
,e respon!e! ith, -3f course, Your $onor, e/re certainly
gla! to use your regular court reporter% 6ut, you 'no, Your
$onor, sometimes things mo"e so fast that a court reporter gets a
little behin!, an! !oesn/t .uite 'eep up ith it all% ,oul!n/t
it be nice if e ha! another license! court reporter in the
courtroom, +ust in case your court reporter got a little behin!,
so that e coul! fill in from this other court reporter/s !ata%
&/m sure, Your $onor, that you ant an accurate transcript% B&
li'e to use the saying: gi"e a ba! !og a goo! name, an! he/ll
li"e up to it:C The +u!ge ent along ith it, an! from that
moment on, he as "ery careful of hat he sai!%
These are little tric's to getting aroun! in court% This is
ho to be as ise as a serpent an! as harmless as a !o"e hen e
enter into a courtroom% There are others using the same
information presente! here ho en! up in +ail, han!cuffe! an! hit
o"er the hea!, because they approach the situation ith a chip on
their shoul!er% They try to tell the +u!ge hat the la is an!
that he is a no0goo! scoun!rel an! so on% Aust be ise an!
harmless%
UCC 102#I 1e"ie
&t is so important to 'no an! un!erstan! the meaning of
-,ithout 9re+u!ice UCC 102#I- in connection ith your signature,
that e shoul! go o"er this once more% &t is "ery li'ely that a
+u!ge ill as' you hat it means% So, please learn an!
un!erstan! this carefully:
The use of -,ithout 9re+u!ice UCC 102#I- in connection ith
my signature in!icates that & ha"e reser"e! my Common La
right not to be compelle! to perform un!er any contract that
& !i! not enter into 'noingly, "oluntarily, an!
intentionally%
*n!, furthermore, & !o not accept the liability associate!
ith the compelle! benefit of any unre"eale! contract or
commercial agreement%
3nce you state that, it is all the +u!ge nee!s to hear% Un!er
the Common La, a contract must be entere! into 'noingly,
"oluntarily an! intentionally by both parties, or it can be
!eclare! "oi! an! unenforceable% You are claiming the right not
to be compelle! to perform un!er any contract that you !i! not
enter into 'noingly, "oluntarily, an! intentionally% *n! you !o
not accept the liability associate! ith the compelle! benefit of
any unre"eale! contract or agreement%
The compelle! benefit is the pri"ilege to use Fe!eral
1eser"e =otes to !ischarge your !ebts ith limite! liability,
rather than to pay your !ebts ith sil"er coins% &t is a
compelle! benefit, because there are no sil"er coins in
circulation% You ha"e to eat an! you can only buy foo! ith the
me!ium of e(change pro"i!e! by the go"ernment% You are not
alloe! to print your on money, so you are compelle! to use
theirs% This is the compelle! benefit of an unre"eale!
commercial agreement% &f you ha"e not ma!e a "ali!, timely an!
e(plicit reser"ation of your rights un!er UCC 102#I, an! you
simply e(ercise this benefit ren!ere! by go"ernment, you ill be
obligate!, un!er an implie! agreementI, to obey e"ery statute,
or!inance an! regulation passe! by go"ernment at all le"els 00
fe!eral, State an! local%
&n Conclusion
The e!itor of this transcript has ta'en great liberties in
putting it to paper, in an effort to ma'e it rea!able an!
somehat compact% $e ishes to offer his gratitu!e to $oar!
Freeman for the opportunity to or' ith information so
absolutely "ital to our sur"i"al as !ignifie!, unensla"e! human
beings% $e must also as' )r% Freeman/s forgi"eness for any
errors committe! in getting this in print%
The purpose of this transcript, as state! in the Foreor!,
is to ma'e this 'nole!ge an! is!om a"ailable to as many people
as ill ta'e the time an! trouble to rea! it% &t is meant to be
supplemental to )r% Freeman/s recor!e! lectures, not a
substitute% &n!ee!, there is no substitute for hearing him
present this material in his on or!s% &t is not +ust the la
an! the facts that are important here, but the ay they are use!%
$is numerous remin!ers of Aesus/ commission to be -%%% li'e sheep
among ol"es %%%- cannot be o"erstate!, an! is certainly goo!
a!"ice to us in all !ealings 00 not +ust in court or ith the
go"ernment% $earing him e(plain this in his on or!s brings to
life the practical application an! usefulness of being -ise- an!
-harmless%- &n fact, after being intro!uce! to this approach, it
becomes !ifficult to imagine that any other ay of !efen!ing
oneself from the go"ernment oul! be effecti"e%
&t goes ithout saying that none of this information
presente! here is in any ay, shape or form offere! as legal
a!"ice% For that, as you 'no, you must -get yourself a license!
attorney%-
$a"ing sai! that, & feel obligate! to point out that one of
the most !ifficult aspects of !ealing ith a license! attorney
00 e"en a goo! one 00 may be 'noing +ust hose si!e he is on%
B$e is, after all, an officer of the court:C So, for those of us
ho ha"e conclu!e! that ha"ing an attorney means that you ill
soon be chaine!, gagge! an! le! to the gallos, this information
may be in!ispensable% For the e(traor!inary challenges of
appearing in court in one/s on person 00 in propria persona
00 there are fe reliable sources of information% Learning to
!efen! oursel"es, that is, being responsible instea! of turning
o"er one more area of our li"es to -professionals,- may be the
only ay to ha"e any chance of !igging oursel"es out of this pit
of legal tyranny% 9erhaps the greatest problem e face in
e!ucation to!ay is the matter of i!esprea! legal illiteracy%
=aturally, there ill alays be a number of people ho +ust
!on/t care about these issues ho either:
B1C ha"e a soft life hich is supporte! an! maintaine! by
this secret system of la an! the institutions hich
ha"e gron up aroun! it B-& can ma'e a bun!le buying
these &1S0sei7e! homes cheap an! reselling them%-C, or
B2C !on/t belie"e that anything can be !one about it B-You
can/t fight city hall%-C, or
BFC simply !on/t ha"e the energy or inclination to !o
anything about it B-That/s nice, but let/s see hat/s
on T?%-C%
For those goo! -citi7ens,- this hole effort may seem useless, or
e"en threatening% 6ut, it is this riter/s "ie that 4o! !i! not
inten! for us to spen! our li"es in statutory sla"ery for the
benefit of a han!ful of secret orl! manipulators, e"en if the
-masters- grant us some to'en pleasures an! !i"ersions% $uman
!ignity re.uires much more than entertainment% The !oor is there
an! the 'ey e(ists% ,e must fin! it an! e must use it to return
to free!om:
Let us !isco"er the mista'es e ha"e ma!e% Let us fin!
truth% Let us apply it ith mee'ness an! is!om, an! let us
gently but firmly reclaim the precious free!om hich e ha"e so
foolishly gi"en up%
September 22, 1991
For )ore &nformation
& encourage anyone ho is intereste! enough to rea! this far
to obtain a set of tapes of $oar! Freeman an! listen to them
carefully% * !onation of ;G%## per tape oul! be appropriate%
This information as ta'en from tapes numbere! 9#0F#, 9#0F1,
9#0F2 an! 9#0FF, hich may be or!ere! from:
*merica/s 9romise )inistries
cHo 9% 3% 6o( 1KI
San!point, &!aho
9ostal Jone EFE<GHT>C
B2#EC 2<K0KG#K
The ne(t set of tapes Bfrom 1991C are numbere! 1##G, 1##K
an! 1##<, an! contain "ital material not foun! in this
transcript%
Footnotes:
1% Colorable% That hich is in appearance only, an! not in
reality, hat it purports to be, hence counterfeit, feigne!,
ha"ing the appearance of truth% 6lac'/s La >ictionary,
Fifth 2!ition%
2% *ctually, it is better to use a rubber stamp, because this
!emonstrates that you ha! pre"iously reser"e! your rights%
The simple fact that it ta'es se"eral !ays or a ee' to
or!er an! get a stamp, shos that you ha! reser"e! your
rights before signing the !ocument%
F% *n!erson, Uniform Commercial Co!e, Layers Cooperati"e
9ublishing Company%
G% &t is "ery important to get it into the recor! that you !o
not un!erstan! the charges% ,ith that in the recor!, the
court cannot mo"e forar! to +u!ge the facts% This ill be
co"ere! later on page 19%
K% For more about this, see page 1E%
<% UCC F0G1K% -*ccommo!ation 9arty%- 3ne ho signs commercial
paper in any capacity for the purpose of len!ing his name to
another party to the instrument% Such a party is a surety%-
BSurety: -3ne ho un!erta'es to pay money or to !o some
other act in the e"ent that his principal fails therein%-C
I% See UCC 102#1% 4eneral >efinitions BFC: -*greement means
the bargain of the parties in fact as foun! in their
language or by implication from other circumstances
inclu!ing courses, !ealing or usage of tra!e or course of
performance%-
O O O

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Howard Freeman