Mortgage Foreclosure Recoupment

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

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

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

concerning the "WO 5aces of Be#t, or pu#lications from the 5ederal Reserve$

odern

oney

echanics, or various other

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

0ample Court filing of Counter-Claim #elow=

>

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

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

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

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

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

<

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

(!C3UBE W("6 COP& O5 'O!BEB PRO (00OR& !O"E, CER"(5(C9"E O5 BE59U3", 9!B PROPER (R0 5OR 0 20EE CERO "6E 9CCOU!" 5(3E4 9!B (!0"RUC"(O! 3E""ER "O "RE90UR& "O 3(FU(B9"E "6E 'O!BH 0EE 9""9C6EB "RE90UR& 3(FU(B9"(O! 5(3E$ 5ile all privately with attorneys, court clerk, ;udge, etc after #onding the case$ (!C3UBE copies to CEOHC5O of #ank8 U0E 9 !O"9R& 9" EMER& 0"EP$ 9!B BOCU E!" &OUR 9(3(!?0 9!B "6E(R BE59U3"0$

.+

09 P3E 0"9"E E!" O5 59C"0 E RE E 'ER "6(0 (0 9R?U E!", 9!B &OU 69ME ?(ME! LUR(0B(C"(O!, 0U' (" PR(M9"E3&, U!"(3 95"ER 933 BE59U3"0 9!B "RE90UR& 3(FU(B9"(O!

0"9"E O5 9!&, 00$

9(!E

B(0"R(C" COUR" B(0"R(C" "WO PRE0FUE (03E Civil 9ction, Bocket

!o$SSSSSSSSS '9!T O5 9 ER(C9, !$9$, a corporation with an office and place of #usiness in "ampa, County of 6ills#orough, 0tate of 5lorida, 4 Plaintiff vs$ U!B(0PU"EB 9"ER(93 59C"0 4 4 4 0EP9R9"E 0"9"E E!" O5 4 4 4 4

4 LO6! 6$ BOE, an individual of 9ny "own, County of 9ny, 0tate of aine$ 4 4 Befendant SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS 4 4 4 4 4

..

Lohn 6enry Boe, a live-#orn human #eing, a domiciliary in 9ny "own, 9ny County, aine$ 4 Counterclaiment vs$ 4 4 '9!T O5 9 ER(C9, !$9$, a corporation with an office and place of #usiness in "ampa, County of 6ills#orough, 0tate of 5lorida, 4 Befendant 4 4 4 4

4 4

4 4

.$ y name is Lohn 6enry Boe% ( am a live-#orn human #eing$ ( am not LO6! BOE, and do not serve as fiduciary for this noneAistent ;uristic entity$

/$ "he ;uristic entity, LO6! BOE, was created #y '9!T O5 9 ER(C9, !$9$ at the time of the alleged loan without disclosing the fictional status of that entity to me, there#y resulting in constructive fraud$

*$ (t is a defense to a civil action for monetary damages that the damages arose from the misuse of a form of legal identification and the use of that identification has resulted in the conviction of a person other than the defendant under "itle .D-9, section *,> and <+,-9$ "he defense may #e raised only #y the person whose identification was misused$ 2.D R0 U.,*-94

./

>$ ( am not, and have never presented myself as an officer, employee, or agent of the United 0tates, a political su#division, territory or insular possession of the United 0tates, nor an (ndian tri#e recogni@ed #y the ?overnment of the United 0tates$

,$ aine is one of the several 0tates party to the Constitution of the United 0tates where the Constitution of the United 0tates, and the Constitution of the 0tate of aine, are construed as organic acts and constitute the law of the land$

-$ "he ledger-entry hypothecated VcreditW transaction originally effected with '9!T O5 9 ER(C9, !$9$ is therefore null, void, and unenforcea#le$

D$ 9t 9rticle . U-, the Constitution of the 0tate of aine stipulates that, V"he accused shall not #e compelled to furnish or give evidence against himself or herself, nor #e deprived of life, li#erty, property or privileges, #ut #y ;udgment of that person7s peers or the law of the land$W

1$ Collection initiated #y '!9 9 ER(C9 '9!T, !$9$ presumed authority of the Uniform Commercial Code 2./ U$0$C$ U.>*. 2e42/42c44, which is an 9dopted 9ct of aine and other 0tates of the Union, predicated on the notion that 0tates adopting the UCC are instrumentalities or political su#divisions of the United 0tates su#;ect to sovereignty of the United 0tates under territorial clause authority 29rt$ (M U*$/, Constitution of the United 0tates4$

<$ "he Uniform Commercial Code proceeds in the course of civil law, which is repugnant to the course of the common law$

.+$ (f a so-called civil action against the ;uristic entity, LO6! BOE, is filed #y '9!T O5 9 ER(C9, !$9$ it will #e attempting to deprive me of constitutionally secured due process in the course of the common law$

..$ Under the Conflict of 3aw Boctrine, including the Constitution of the United 0tates and the Constitution of the 0tate of aine, and rights, #enefits and protections

.*

secured therein, are always superior to the adopted acts, including the Uniform Commercial Code 2Constitution of aine 9rticle N U*, Constitution of the United 0tates 9rticle M(, clause /4

./$ 9 person may not, #y force or threat of force, intentionally in;ure, intimidate or interfere with, or intentionally attempt to in;ure, intimidate or interfere with or intentionally oppress or threaten any other person in the free eAercise or en;oyment of any right or privilege, secured to that person #y the Constitution of aine or laws of the 0tate or #y the United 0tates Constitution or laws of the United 0tates$ 2.D R0 U/<*.4

.*$ "he lending institution, '9!T O5 9 ER(C9, !$9$, and any other lending institution involved in succession, did, and in succession, do operate under auspices of a 5ederal grant of authority, in the capacity of 5ederal "aA X 3oan Bepositories, 2*. C5R UU /+/ X /+*4, and there#y function in the role of Vfiscal agentW of the United 0tates$

.>$ 9s fiscal agent of the United 0tates, the financial institutions, respectively, traffic in what is descri#ed as Vpu#lic moneyW, there#y predicating all credit and other financial transactions on credit of the United 0tates 2see definition of VcreditW at ., U$0$C$ U.-+/2e4, Consumer Credit Protection 9ct4$

.,$ "his Vpu#lic moneyW is not authori@ed as a medium for payment of de#t #y the Constitution of the United 0tates, and o#viously, the 0tate of aine is prohi#ited from enforcing contractual o#ligations predicated on such colora#le #ills of credit effected #y mere ledger-entry accounting$

.-$ Whether demand deposits or savings, deposits in the said financial institutions may #e insured only for officers, employees and agents of the United 0tates, officers, employees and agents of the Bistrict of Colum#ia and insular possessions of the United 0tates, and (ndian tri#es, as defined at /, U$0$C$ U.>,/2c4 2see ./ U$0$C$ U.1/.2a42/42944$

.D$ 9s 5ederal taA and loan depositories, the said financial institutions, respectively and collectively, may solicit and do #usiness with only those people

.>

previously listed who are authori@ed to receive and use pu#lic money 2*. C5R UU /+/$.,/+/$* X /+*$*4

.1$ Once )ualified as 5ederal taA and loan depositories, the financial institutions, respectively, had to apply and #ecome 5ederal 6ome 3oan 'anks 2./ U$0$C$ UU .>/., et se)$4, and in said capacity, operate as fiscal agents of the United 0tates to eAtend VcreditW of the United 0tates on all home loan transactions, the said VcreditW #eing hypothecated on credit of the United 0tates$ 2O#viously, no private enterprise has power to unilaterally grant authority to defer payment of de#t, or to create de#t then defer its payment4

.<$ 9uthority of the 5ederal 6ome 3oan 'ank is predicated on the presumption that loans are made in 5ederal 0tates su#;ect to sovereignty of the United 0tates under the territorial clause at 9rticle (M U*$/ of the Constitution of the United 0tates 2see definition of the term V0tateW at ./ U$0$C$ U .>//2*4% also, the definition of the term VdwellingW in regulations governing the 6ome ortgage Bisclosure 9ct, Regulation C at ./ C5R U /+*$/2d4

/+$ Even though 0tate officials participate in the Cooperative 5ederalism fraud via uniform acts and various intergovernmental compacts and agreements, this colora#le authority has no application or compelling force of law in the face of fundamental law 29rticle N U*, aine Constitution4

/.$ Prior to initiating a civil action to collect an o#ligation to the United 0tates, the said fiscal agent of the United 0tates must secure a determination of lia#ility from the ?eneral 9ccounting Office as general agent of the "reasury of the United 0tates 2*. U$0$C$ U*D+/4

//$ '9!T O5 9 ER(C9, !$9$ has not secured the re)uired ?9O determination of lia#ility 2see procedural regulations in "itle >, Code of 5ederal Regulations4$

/*$ 9s fiscal agent of the United 0tates, '9!T O5 9 ER(C9, !$9$, and its predecessors of interest, are su#;ect to all applica#le 5ederal statutory and regulatory mandates, including, #ut not limited to, the Privacy 9ct 2, U$0$C$ U,,/2a44, the 5ederal

.,

Register 9ct 2>> U$0$C$ UU.,+. et se)$4, the Consumer Protection 9ct, including Regulation C 2./ C5R U//-4, and the Paperwork Reduction 9ct 2, C5R U .*/+4

/>$ "he Privacy 9ct re)uires specific disclosure on all information-gathering forms, the re)uirement #eing notice that any given form is 2.4 voluntary, 2/4 mandatory, or 2*4 necessary to secure or retain a #enefit$

/,$ !o information-gathering form provided #y '9!T O5 9 ER(C9, !$9$, including the original application form, included the re)uired Privacy 9ct notice either in instructions or on its face$

/-$ "he Paperwork Reduction 9ct re)uires each information-gathering form to display a currently valid O ' num#er and give notice that if it does not display a currently valid O ' num#er then whomever the form is given to is not re)uired to complete the form$

/D$ !o form provided #y the originating financial institution, '9!T O5 9 ER(C9, !$9$, including the original credit application, displayed the re)uisite O ' num#er and notice$

/1$ Paperwork Reduction 9ct regulations, specifically at , C5R U.*/+$-, prohi#it the interested agent or agency from securing administrative or ;udicial remedies if and when information-gathering forms fail to display the re)uired O ' num#er and notice, and the regulation can #e employed as a complete defense at any time$

/<$ (t appears that the loan originator, '9!T O5 9 ER(C9, !$9$, operated under color of authority of the United 0tates #y altering the re)uisite credit card loan application #y making unauthori@ed alterations, specifically #y not displaying re)uired information 2/> C5R UU *,++$<2a4 X 2c44$

*+$ Regulation C preserves the right to effect rescission in the event of ina#ility to pay even for officers, employees, and agents of the ?overnment of the United 0tates, et

.-

al, who may #y law receive pu#lic money for their own use, and who are lawfully vested with the privilege of using VcreditW of the United 0tates for deferred payment purchases via fiscal agents of the United 0tates such as '!9 9 ER(C9 '9!T, !$9$ *.$ ( was never informed of the right of rescission secured #y Regulation C$

*/$ '9!T O5 9 ER(C9, !$9$, as trustee in interest, has operated under color of authority of the United 0tates, without lawful authority for said solicitation and eAecution, to counterfeit a security of the United 0tates$

**$ 'lack7s 3aw, Dth ed$, defines Vactual fraudW - 9 concealment or false representation through a statement or conduct that in;ures another who relies on it in acting$

*>$ "he "ruth in 3ending 9ct, as codified in Regulation C, states that a lender must give #orrowers written disclosure on essential credit terms$

*,$ "he money to fund the alleged loan was created from nothing #ased upon my, the live #orn human7s, moneti@ed signature, under the #anking procedure known as a Vcreated depositW, deposited into a transaction account hypothecated VcreditW and allegedly loaned to the ;uristic entity$ "he so-called VmoneyW used to fund the alleged loan did not eAist in any previous account with any #ank and, #ecause it never eAisted prior to the alleged loan, was and still is owned #y no#ody, eAcept the one who7s signature allowed it to #e created$ "hat signature #elongs to me and was stolen #y '9!T O5 9 ER(C9, !$9$ using deception and misrepresentation$ 9ll #anks, in effect, never loan their money, they loan you your money$

*-$ "he a#ove stated procedure of created deposits, which actually takes something of value from the live #orn human #eing, is an essential credit term that was not disclosed, either ver#ally or in writing, at the time of the credit agreement% there#y resulting in actual fraud and a violation of Regulation C$

*D$ "he a#ove stated procedure of created deposits is not a frivolous claim$ Created deposits are descri#ed at length in the following pu#lications=

.D

oney, Be#t, and Economic 9ctivity, 9l#ert 6art, Y.<>1, pp -*--,$ .-< Fuestions and 9nswers on oney, 0enate Bocument 1D-/>+, )ueries **, >,, >D, and -D$ Economics% "he 0cience of Common 0ense, E$M$ 'owden, Y.<</, pp$ ./,-.*<$ "ragedy and 6ope, Carroll Fuigley, Y.<--, p$>1$ ECO!O (C0 - "heory and Practice, Y.<-, elville Ulmer, pp$ />--/,+$

*1$ 'lack7s 3aw, Dth ed$, defines Vconstructive fraudW - Unintentional deception or misrepresentation that causes in;ury to another$

*<$ '9!T O5 9 ER(C9, !$9$ intentionally deceived me and misrepresented themselves in relation to the accepting of the signature for value$ "his has caused '9!T O5 9 ER(C9, !$9$ to #e un;ustly enriched at the eApense and in;ury to me% thus resulting in Vconstructive fraud$W

>+$ 'lack7s 3aw, Dth ed$, defines Vfraud in the inducementW - 5raud occurring when a misrepresentation leads another to enter into a transaction with a false impression of the risks, duties, or o#ligations involved% an intentional misrepresentation of a material risk or duty reasona#ly relied on, there#y in;uring the other party without vitiating the contract itself, esp$ a#out a fact relating to value$

>.$ '9!T O5 9 ER(C9, !$9$, or any of its successors, did not inform me they were going to accept my signature for value, moneti@e it, deposit it and then create money with it$ ( was not aware the money used to fund the alleged loan was coming from me, to #egin with, created as a ledger entry #ased upon my moneti@ed signature$ "his was not disclosed in writing or ver#ally$ (f ( am re)uired to pay #ack that fictional money, '9!T O5 9 ER(C9, !$9$ will #e un;ustly enriched since the money entered into that ledger account was never theirs to #egin with$ "his act #y the #ank has resulted in fraud in the inducement$

.1

>/$ 'lack7s 3aw, Dth ed$, defines Vfraud in the factumW - 5raud occurring when a legal instrument as actually eAecuted differs from the one intended for eAecution #y the person who eAecutes it, or when the instrument may have had no legal eAistence$

>*$ '9!T O5 9 ER(C9, !$9$ does not possess a contract disclosing all pertinent information re the creation of a deposit #ased upon the moneti@ed acceptance for value of plaintiff7s signature$ "his has resulted in Vfraud in the factumW

>>$ "he right to enforce the o#ligation of a party to pay an instrument is su#;ect to a defense of the o#ligor #ased on$$$5raud that induced the o#ligor to sign the instrument with neither knowledge nor reasona#le opportunity to learn of its character or its essential terms 2.. R0 U *-.*+, 2.42a42iii44$

>,$ LOE '3OW X LOE '3OW, 9""OR!E&0 9" 39W, ./* 9!& 0"REE", 9!& "OW!, 9(!E <<<<<, hereinafter known as LOE '3OW 9!B LOE '3OW, mailed an original presentment in the form of a dunning letter to LO6! BOE, P$O$ 'oA NNN, 9ny "own, aine <<<<<, hereinafter, Respondent, regarding an alleged de#t of Q/,+++$++ with '9!T O5 9 ER(C9, !$9$, on SSSSSSSSSSSS, /++*,

>-$ Respondent mailed a counter-presentment, hereinafter known as Be#t Collector Bisclosure 0tatement, to LOE '3OW 9!B LOE '3OW via Certified ail, Return 0ignature Re)uested, receipt num#er D++, +</+ ++.* -,+< /*-,, on Lanuary .D, /++*, containing siA 2pages4 and D+Z )uestions in order to verify the validity of the de#t, pursuant to the 5air Be#t Collection Practices 9ct$ 2EAhi#it 94

>D$ "he Be#t Collector Bisclosure 0tatement was received #y= T$ Boe of LOE '3OW 9!B LOE '3OW on SSSSSSSSSSSSS, /++*$

>1$ "he Be#t Collector Bisclosure 0tatement, offered as a counter-presentment, stipulated all )uestions must #e answered truthfully and honestly under penalties of per;ury within thirty 2*+4 days of receipt, or referenced alleged de#t will #e considered to #e invalid$

.<

><$ LOE '3OW 9!B LOE '3OW failed to respond within the plainly stipulated thirty 2*+4 day time period,

,+$ Loe 'low, Es)$ of LOE '3OW 9!B LOE '3OW did respond nearly .,+ days late with copies of statements 2EAhi#it '4 showing merely an alleged de#t #etween '9!T O5 9 ER(C9, !$9$ and Respondent, and a copy of an alleged credit agreement 2EAhi#it C4,

,.$ 9 monthly #illing statement is only prima facie evidence of a de#t, and not evidence of a legal, #ona fide contract,

,/$ "he copy of the alleged credit agreement was not a certified copy, not reada#le due to copier distortion, and did not appear as a promissory note, or other de#t instrument,

,*$ "he original Be#t Collector Bisclosure 0tatement has not #een answered in full,

,>$ Pursuant to the terms of the counter-presentment LOE '3OW 9!B LOE '3OW tacitly agrees, #y non-response to Be#t Collector Bisclosure 0tatement, that there is no verifia#le, #ona fide de#t #etween LOE '3OW 9!B LOE '3OW and Respondent, or '9!T O5 9 ER(C9, !$9$ and Respondent% LOE '3OW 9!B LOE '3OW also waives all claims against Respondent and indemnifies and holds Respondent harmless against any and all costs and fees heretofore and hereafter incurred and related re any and all collection attempts involving the hereina#ove-referenced alleged account$ 9ny attempt to collect an unverified de#t is in violation of the 5air Be#t Collection Practices 9ct and LOE '3OW 9!B LOE '3OW may #e lia#le for damages for any continued collection efforts, as well as any other in;ury sustained #y Respondent$

,,$ 'ecause '9!T O5 9 ER(C9, !$9$ continued to pursue a collection activity after refusing to verify the alleged de#t, they are in violation of "he 5air Be#t Collection Practices 9ct #y using interstate communications in a scheme of fraud #y

/+

using threat, intimidation, deception, and enticement to coerce me to commit some act creating a legal disa#ility where none eAists$

Bated Lanuary ., /++*, at 9ny "own,

aine

SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS Lohn 6enry Boe (n propria persona cHo P$O$ 'oA NNN 9ny "own, CER"(5(C9"E O5 0ERM(CE aine 2<<<<<4

( here#y certify that ( have mailed a copy of the foregoing 9nswerHLudicial !otice and Counterclaim, this SSSSSSSSSS day of SSSSSSSSSS, /++*, #y U$0$ Certified ail Return Receipt Re)uested, to LOE '3OW 9!B LOE '3OW, 9""OR!E&0 9" 39W, ./* 9ny 0treet, 9ny "own, aine <<<<< Receipt no$ SSSSSSSSSSSSSSSSSSSSSSSSS and Clerk of Bistrict Court, P$O$ 'oA AAA, 9ny "own, aine <<<<<<Receipt no$SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS

SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS Lack 9$ Boe

'ack to 9nswerHCounterclaim
STATE OF MICHIGAN

/.

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

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;o2* eG?e2%e&)e, 2ea/%&>s, ?@C$%)a'%o&s, a&/ e/@)a'%o& ;%$$ Ce 'e&/e2e/ 'o De(e&/a&'s a&/ 5a1 Ce 5a/e a+a%$aC$e 'o '4e Co@2' a&/ 'o #$a%&'%((Is )o@&se$ @?o& 2eD@es'. GENERALLY ACCE#TED ACCOUNTING #RINCI#LES 3. Ba&*s a2e 2eD@%2e/ 'o a/4e2e 'o Ge&e2a$$1 A))e?'e/ A))o@&'%&> #2%&)%?$es 6GAA#). GAA# (o$$o;s a& a))o@&'%&> )o&+e&'%o& '4a' $%es a' '4e 4ea2' o( '4e /o@C$e-e&'21 Coo**ee?%&> s1s'e5 )a$$e/ '4e Ma')4%&> #2%&)%?$e. T4%s ?2%&)%?$e ;o2*s as (o$$o;sB -4e& a Ca&* a))e?'s C@$$%o&, )o%&, )@22e&)1, )4e)*s, /2a('s, ?2o5%sso21 &o'es, o2 a&1 o'4e2 s%5%$a2 %&s'2@5e&'s 64e2e%&a('e2 E%&s'2@5e&'sF) (2o5 )@s'o5e2s a&/ /e?os%'s o2 2e)o2/s '4e %&s'2@5e&'s as asse's, %' 5@s' 2e)o2/ o((se''%&> $%aC%$%'%es '4a' 5a')4 '4e asse's '4a' %' a))e?'e/ (2o5 )@s'o5e2s. T4e $%aC%$%'%es 2e?2ese&' '4e a5o@&'s '4a' '4e Ca&* o;es '4e )@s'o5e2s, (@&/s a))e?'e/ (2o5 )@s'o5e2s. I& a (2a)'%o&a$ 2ese2+e Ca&*%&> s1s'e5 $%*e '4e U&%'e/ S'a'es Ca&*%&> s1s'e5, 5os' o( '4e (@&/s a/+a&)e/ 'o Co22o;e2s 6asse's o( '4e Ca&*s) are created by the banks themselves a&/ a2e &o' 5e2e$1 '2a&s(e22e/ (2o5 o&e se' o( /e?os%'o2s 'o a&o'4e2 se' o( Co22o;e2s. RELE,ANCE OF SUBTLE DISTINCTIONS ABOUT TY#ES OF MONEY 4. F2o5 51 s'@/1 o( 4%s'o2%)a$ a&/ e)o&o5%) ;2%'%&>s o& '4e s@C0e)', I )o&)$@/e '4a' a )o55o& 5%s)o&)e?'%o& aCo@' '4e &a'@2e o( 5o&e1 @&(o2'@&a'e$1 4as Cee& ?e2?e'@a'e/ %& '4e U.S. 5o&e'a21 a&/ Ca&*%&> s1s'e5s, es?e)%a$$1 s%&)e '4e 7=30s. I& )$ass%)a$ e)o&o5%) '4eo21, o&)e e)o&o5%) eG)4a&>e 4as 5o+e/ Ce1o&/ '4e Ca2'e2 s'a>e, '4e2e a2e ';o '1?es o( 5o&e1B 5o&e1 o( eG)4a&>e a&/ 5o&e1 o( a))o@&'.. Fo2 &ea2$1 300 1ea2s %& Co'4 E@2o?e a&/ '4e U&%'e/ S'a'es, )o&(@s%o& aCo@' '4e /%s'%&)'%+e&ess o( '4ese ';o )o&)e?'s 4as $e/ 'o ?e2s%s'e&' a''e5?'s 'o '2ea' 5o&e1 o( a))o@&' as '4e eD@%+a$e&' o( 5o&e1 o( eG)4a&>e. I& 2ea$%'1, es?e)%a$$1 %& a (2a)'%o&a$ 2ese2+e Ca&*%&> s1s'e5, a )o5?a2a'%+e$1 s5a$$ a5o@&' o( 5o&e1 o( eG)4a&>e 6e.>., >o$/, s%$+e2, a&/ o((%)%a$ )@22e&)1 &o'es) 5a1 s@??o2' a +as'$1 $a2>e2 D@a&'%'1 o( C@s%&ess '2a&sa)'%o&s /e&o5%&a'e/ %& 5o&e1 o( a))o@&'. T4e s@5 o( '4ese '2a&sa)'%o&s %s '4e s@5 o( )2e/%' eG'e&s%o&s %& '4e e)o&o51. -%'4 '4e eG)e?'%o& o( )@s'o5a21 s'o2es o( +a$@e $%*e >o$/ a&/ s%$+e2, '4e 5o&e'a21 Case o( '4e e)o&o51 $a2>e$1 )o&s%s's o( )2e/%' %&s'2@5e&'s. Against this background, I conclude that the Note, despite some language about lawful money explained below, clearly contemplates both disbursement of funds and eventual repayment or settlement in money of account (that is, money of exchange would be welcome but is not re uired to repay or settle the Note!" T4e (a)'@a$ Cas%s o( '4%s )o&)$@s%o& %s '4e 2e(e2e&)e %& '4e D%sC@2se5e&' ReD@es' a&/ A@'4o2%Aa'%o& 'o 2e?a15e&' o( J=8,=08.7< 'o M%)4%>a& Na'%o&a$ Ba&* (2o5 '4e ?2o)ee/s o( '4e No'e. T4a' ;as a& eG)4a&>e o( '4e )2e/%' o( Ba&* O&e 6#$a%&'%(() (o2 )2e/%' a??a2e&'$1 a&/ ?2e+%o@s$1 eG'e&/e/ 'o De(e&/a&'s C1 M%)4%>a& Na'%o&a$ Ba&*. A$so, '4e2e %s &o 2easo& 'o Ce$%e+e '4a' #$a%&'%(( ;o@$/ 2e(@se a s@Cs'%'@'%o& o( '4e )2e/%' o( a&o'4e2 Ca&* o2 Ca&*e2 as )o5?$e'e ?a15e&' o( '4e De(e&/a&'sI 2e?a15e&' oC$%>a'%o& @&/e2 '4e No'e. T4%s %s a )ase aCo@' eG)4a&>es o( 5o&e1 o( a))o@&' 6)2e/%'), &o' aCo@' eG)4a&>es o( 5o&e1 o( eG)4a&>e 6$a;(@$ 5o&e1 o2 e+e& $e>a$ 'e&/e2). 8. I2o&%)a$$1, '4e No'e eG?$%)%'$1 2e(e2s 'o 2e?a15e&' %& E$a;(@$ 5o&e1 o( '4e U&%'e/ S'a'es o( A5e2%)aF 6see E#2o5%se 'o #a1F )$a@se). T2a/%'%o&a$$1 a&/ $e>a$$1, Co&>2ess /e(%&es '4e ?42ase E$a;(@$ 5o&e1F (o2 '4e U&%'e/ S'a'es. La;(@$ 5o&e1 ;as '4e (o25 o( 5o&e1 o( eG)4a&>e '4a' '4e (e/e2a$ >o+e2&5e&' 6o2 a&1 s'a'e) )o@$/ Ce 2eD@%2e/ C1 s'a'@'e 'o 2e)e%+e %& ?a15e&' o( 'aGes o2 o'4e2 /eC's. T2a/%'%o&a$$1, as /e(%&e/ C1 Co&>2ess, $a;(@$ 5o&e1 o&$1 %&)$@/e/ >o$/, s%$+e2, a&/ )@22e&)1 &o'es 2e/ee5aC$e (o2 >o$/ o2 s%$+e2 o& /e5a&/. I& a Ca&*%&> $a; )o&'eG', $a;(@$ 5o&e1 ;as o&$1 '4ose (o25s o( 5o&e1 o( eG)4a&>e 6'4e (o25s 0@s' 5e&'%o&e/, ?$@s U.S. Co&/s a&/ &o'es 2e/ee5aC$e (o2 >o$/) '4a' )o&s'%'@'e/ '4e 2ese2+es o( a &a'%o&a$ Ca&* ?2%o2 'o 7=73 6/a'e o( )2ea'%o& o( '4e Fe/e2a$ Rese2+e Ba&*s). See, La;(@$ Mo&e1, -eCs'e2Is Ne; I&'e2&a'%o&a$ D%)'%o&a21 6:/ e/. 7=80). In light of these facts, I conclude that #laintiff and $efendants

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exchanged reciprocal credits involving money of account and not money of exchange% no lawful money was or probably ever would be disbursed by either side in the covered transactions" T4%s )o&)$@s%o& a$so %s )o&s%s'e&' ;%'4 '4e Coo**ee?%&> e&'2%es '4a' @&/e2$%e '4e $oa& a))o@&' %& /%s?@'e %& '4e ?2ese&' )ase. Mo2eo+e2, %' %s ?@AA$%&> ;41 #$a%&'%(( ;o@$/ 2e'a%& '4e a2)4a%) $a&>@a>e, E$a;(@$ 5o&e1 o( '4e U&%'e/ S'a'es o( A5e2%)a,F %& %'s o'4e2;%se 5o/e2&-see5%&> No'e. I' %s ?oss%C$e '4a' '4%s $a&>@a>e %s 5e2e$1 a $e>a)1 (2o5 '4e ?2e-7=33 e2a. Mo/e2& )2e/%' a>2ee5e&'s 5%>4' %&)$@/e 2e?a15e&' $a&>@a>e s@)4 as, ET4e 2e?a15e&' oC$%>a'%o& @&/e2 '4%s a>2ee5e&' s4a$$ )o&'%&@e @&'%$ ?a15e&' %s 2e)e%+e/ %& (@$$1 a&/ (%&a$$1 )o$$e)'e/ (@&/s,F ;4%)4 a+o%/s '4e e&'%2e D@es'%o& o( EI& ;4a' (o25 o( 5o&e1 or credit %s '4e 2e?a15e&' oC$%>a'%o& /@eKF <. Le>a$ 'e&/e2, a 2e$a'e/ )o&)e?' C@' o&e '4a' %s e)o&o5%)a$$1 %&(e2%o2 'o $a;(@$ 5o&e1 Ce)a@se %' a$$o;s ?a15e&' %& %&s'2@5e&'s '4a' )a&&o' Ce 2e/ee5e/ (o2 >o$/ o2 s%$+e2 o& /e5a&/, 4as Cee& '4e (o25 o( 5o&e1 o( eG)4a&>e )o55o&$1 @se/ %& '4e U&%'e/ S'a'es s%&)e 7=33, ;4e& /o5es'%) ?2%+a'e >o$/ '2a&sa)'%o&s ;e2e s@s?e&/e/ 6@&'%$ 7= 4).. Bas%)a$$1, $e>a$ 'e&/e2 %s ;4a'e+e2 '4e >o+e2&5e&' sa1s '4a' %' %s. T4e 5os' )o55o& (o25 o( $e>a$ 'e&/e2 'o/a1 %s Fe/e2a$ Rese2+e &o'es, ;4%)4 C1 $a; )a&&o' Ce 2e/ee5e/ (o2 >o$/ s%&)e 7=34 o2, s%&)e 7=<4, (o2 s%$+e2. See, 37 U.S.C. Se)'%o&s 8703, 877! 6C), a&/ 877= 6a). No'eB I D@es'%o& '4e s'a'e5e&' '4a' (e/ 2ese2+e &o'es )a&&o' Ce 2e/ee5e/ (o2 s%$+e2 s%&)e 7=<4. I' ;as Lo4&so& ;4o /e)$a2e/ o& 78 Ma2)1 7=< '4a' a('e2 78 L@&e 7=< '4a' Fe/ Res No'es ;o@$/ &o' Ce eG)4a&>e/ (o2 s%$+e2 a&/ '4e ?2a)'%)e /%/ s'o? o& 78 L@&e 7=< M &o' 7=<4. I Ce$%e+e '4%s 'o Ce e22o2 %& '4e 'eG' o( '4e a@'4o2Is a((%/a+%'. . Le>a$ 'e&/e2 @&/e2 '4e U&%(o25 Co55e2)%a$ Co/e 6U.C.C.), Se)'%o& 7-:07 6:4) 6O((%)%a$ Co55e&'), %s a )o&)e?' '4a' so5e'%5es s@2(a)es %& )ases o( '4%s &a'@2e.. T4e 2e(e2e&)e/ O((%)%a$ Co55e&' &o'es '4a' '4e /e(%&%'%o& o( 5o&e1 %s &o' $%5%'e/ 'o $e>a$ 'e&/e2 @&/e2 '4e U.C.C. Mo&e1 %s /e(%&e/ %& Se)'%o& 7-:07 6:4) as Ea 5e/%@5 o( eG)4a&>e a@'4o2%Ae/ o2 a/o?'e/ C1 a /o5es'%) o2 (o2e%>& >o+e2&5e&' a&/ %&)$@/es a 5o&e'a21 @&%' o( a))o@&' es'aC$%s4e/ C1 a& %&'e2>o+e2&5e&'a$ o2>a&%Aa'%o& o2 C1 a>2ee5e&' Ce';ee& ';o o2 5o2e &a'%o&s.F T4e 2e$e+a&' O((%)%a$ Co55e&' s'a'es '4a' ET4e 'es' a/o?'e/ %s '4a' o( sa&)'%o& o( >o+e2&5e&', ;4e'4e2 C1 a@'4o2%Aa'%o& Ce(o2e %ss@e o2 a/o?'%o& a('e2;a2/, ;4%)4 2e)o>&%Aes '4e )%2)@$a'%&> 5e/%@5 as a ?a2' o( '4e o((%)%a$ )@22e&)1 o( '4a' >o+e2&5e&'. T4e &a22o; +%e; '4a' 5o&e1 %s $%5%'e/ 'o $e>a$ 'e&/e2 %s 2e0e)'e/.F T4@s, I )o&)$@/e '4a' '4e U.C.C. 'e&/s 'o +a$%/a'e '4e )$ass%)a$ '4eo2e'%)a$ +%e; o( 5o&e1.
HO- BANKS BEGAN TO LEND THEIR O-N CREDIT INSTEAD OF REAL MONEY

!. I& 51 o?%&%o&, '4e Ces' so@2)es o( %&(o25a'%o& o& '4e o2%>%&s a&/ @se o( )2e/%' as 5o&e1 a2e %& A$(2e/ Ma2s4a$$, MONEY, CREDIT N COMMERCE :4=-:87 67=:=) a&/ C4a2$es #. K%&/$eCe2>e2, A FINANCIAL HISTORY OF -ESTERN EURO#E 80-83 67=!4). A s1&'4es%s o( '4ese so@2)es, as a??$%e/ 'o '4e (a)'s o( '4e ?2ese&' )ase, %s as (o$$o;sB As )o55e2)%a$ Ca&*s a&/ /%s)o@&' 4o@ses 6?2%+a'e Ca&*e2s) Ce)a5e es'aC$%s4e/ %& ?a2's o( E@2o?e 6es?e)%a$$1 G2ea' B2%'a%&) a&/ No2'4 A5e2%)a, C1 '4e 5%/&%&e'ee&'4 )e&'@21 '4e1 )o55o&$1 5a/e $oa&s 'o Co22o;e2s C1 eG'e&/%&> '4e%2 o;& )2e/%' 'o '4e Co22o;e2s o2, a' '4e Co22o;e2sI /%2e)'%o&, 'o '4%2/ ?a2'%es. T4e '1?%)a$ (o25 o( s@)4 eG'e&s%o&s o( )2e/%' ;as /2a('s o2 C%$$s o( eG)4a&>e /2a;& @?o& '4e5se$+es 6)$a%5s o& '4e )2e/%' o( '4e /2a;ees) %&s'ea/ o( 3 /%sC@2se5e&'s o( C@$$%o&, )o%&, o2 o'4e2 (o25s o( 5o&e1. I& '2a&sa)'%o&s ;%'4 '4%2/ ?a2'%es, '4ese /2a('s a&/ C%$$s )a5e 'o se2+e 5os' o( '4e o2/%&a21 (@&)'%o&s o( 5o&e1. T4e '4%2/ ?a2'%es 4a/ 'o /e'e25%&e (o2 '4e5se$+es ;4e'4e2 s@)4 E)2e/%' 5o&e1F 4a/ +a$@e a&/, %( so, 4o; 5@)4. T4e Fe/e2a$ Rese2+e A)' o( 7=73 ;as /2a('e/ ;%'4 '4%s

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5o/e$ o( '4e )o55e2)%a$ e)o&o51 %& 5%&/ a&/ ?2o+%/e/ a' $eas' ';o 5e)4a&%s5s 6'4e /%s)o@&' ;%&/o; a&/ '4e o?e&-5a2*e' '2a/%&> /es*) C1 ;4%)4 )e2'a%& '1?es o( Ca&*e2sI )2e/%'s )o@$/ Ce eG)4a&>e/ (o2 Fe/e2a$ Rese2+e )2e/%'s, ;4%)4 %& '@2& )o@$/ Ce ;%'4/2a;& %& $a;(@$ 5o&e1. C2e/%' a' '4e Fe/e2a$ Rese2+e e+e&'@a$$1 Ce)a5e '4e ?2%&)%?a$ (o25 o( 5o&e'a21 2ese2+es o( '4e )o55e2)%a$ Ca&*%&> s1s'e5, es?e)%a$$1 a('e2 '4e s@s?e&s%o& o( /o5es'%) '2a&sa)'%o&s %& >o$/ %& 7=33. T4@s, )2e/%' 5o&e1 %s &o' a$%e& 'o '4e )@22e&' o((%)%a$ 5o&e'a21 s1s'e5O %' %s 0@s' 2a2e$1 @se/ as a /e+%)e (o2 '4e )2ea'%o& o( Fe/e2a$ Rese2+e )2e/%' '4a', %& '@2&, %& '4e (o25 o( e%'4e2 Fe/e2a$ Rese2+e &o'es o2 Ca&*sI /e?os%'s a' Fe/e2a$ Rese2+e Ba&*s, (@&)'%o&s as 5o&e1 %& '4e )@22e&' 5o&e'a21 s1s'e5. I& (a)', a 5ea&s C1 ;4%)4 '4e Fe/e2a$ Rese2+e eG?a&/s '4e 5o&e1 s@??$1, $oose$1 /e(%&e/, %s 'o se' Ca&*sI 2ese2+e 2eD@%2e5e&'s 6)@22e&'$1, @s@a$$1 'e& ?e2)e&' o( /e5a&/ $%aC%$%'%es) a' $e+e$s '4a' ;o@$/ e&)o@2a>e Ca&*s 'o eG'e&/ &e; )2e/%' 'o Co22o;e2s o& '4e%2 o;& Coo*s '4a' '4%2/ ?a2'%es ;o@$/ 4a+e 'o ?2ese&' 'o '4e sa5e Ca&*s (o2 2e/e5?'%o&, '4@s $ea/%&> 'o a& eG?a&s%o& o( Ca&*-)2ea'e/ )2e/%' 5o&e1. I& '4e 5o/e2& e)o&o51, 5a&1 &o&-Ca&* ?2o+%/e2s o( )2e/%' a$so eG'e&/ Coo* )2e/%' 'o '4e%2 )@s'o5e2s ;%'4o@' ?2e+%o@s$1 se''%&> as%/e a& eD@%+a$e&' a5o@&' o( 5o&e'a21 2ese2+es 6)2e/%' )a2/ $%&e o( )2e/%' a))ess )4e)*s %ss@e/ C1 &o&-Ca&*s a2e a >oo/ eGa5?$e o( '4%s '1?e o( )2e/%'), ;4%)4 a$so )a@ses a& eG?a&s%o& o( '4e a>>2e>a'e D@a&'%'1 o( )2e/%' 5o&e1. T4e /%s)@ss%o& o( 5o&e1 'a*e& (2o5 Fe/e2a$ Rese2+e a&/ o'4e2 5o/e2& so@2)es %& ?a2a>2a?4s 77 e' seD. %s )o&s%s'e&' ;%'4 '4e a))o@&' o( '4e o2%>%&s o( '4e @se o( Ca&* )2e/%' as 5o&e1 %& '4%s ?a2a>2a?4. A$&AN'() *+ ,AN- '.($I/ A) /0( (12I&A3(N/ *+ 4*N(5 =. #$a%&'%(( a??a2e&'$1 asse2's '4a' '4e De(e&/a&'s s%>&e/ a ?2o5%se 'o ?a1, s@)4 as a &o'e6s) o2 )2e/%' a??$%)a'%o& 6)o$$e)'%+e$1, '4e ENo'eF), %& eG)4a&>e (o2 '4e #$a%&'%((Is a/+a&)e o( (@&/s, )2e/%', o2 so5e '1?e o( 5o&e1 'o o2 o& Ce4a$( o( De(e&/a&'. Ho;e+e2, '4e Coo**ee?%&> e&'2%es 2eD@%2e/ C1 a??$%)a'%o& o( GAA# a&/ '4e Fe/e2a$ Rese2+eIs o;& ;2%'%&>s s4o@$/ '2%>>e2 )$ose s)2@'%&1 o( #$a%&'%((Is a??a2e&' asse2'%o&s '4a' %' $e&' %'s (@&/s, )2e/%', o2 5o&e1 'o o2 o& Ce4a$( o( De(e&/a&'s, '4e2eC1 )a@s%&> '4e5 'o o;e '4e #$a%&'%(( J400,000. A))o2/%&> 'o '4e Coo**ee?%&> e&'2%es s4o;& o2 o'4e2;%se /es)2%Ce/ 'o 5e a&/ a??$%)a'%o& o( GAA#, '4e De(e&/a&'s a$$e>e/$1 ;e2e 'o 'e&/e2 so5e (o25 o( 5o&e1 6E$a;(@$ 5o&e1 o( '4e U&%'e/ S'a'es o( A5e2%)aF %s '4e '1?e o( 5o&e1 eG?$%)%'$1 )a$$e/ (o2 %& '4e No'e), se)@2%'%es o2 o'4e2 )a?%'a$ eD@%+a$e&' 'o 5o&e1, (@&/s, )2e/%', o2 so5e'4%&> e$se o( +a$@e %& eG)4a&>e 65o&e1 o( eG)4a&>e, $oose$1 /e(%&e/), )o$$e)'%+e$1 2e(e22e/ 'o 4e2e%& as E5o&e1,F 'o 2e?a1 ;4a' '4e #$a%&'%(( )$a%5s ;as '4e 5o&e1 $e&' 'o '4e De(e&/a&'s. It is not an unreasonable argument to state that #laintiff apparently changed the economic substance of the transaction from that contemplated in the credit application form, agreement, note(s!, or other similar instrument(s! that the $efendants executed, thereby changing the costs and risks to the $efendants" A' 5os', '4e #$a%&'%(( eG'e&/e/ %'s o;& )2e/%' 65o&e1 o( a))o@&'), C@' '4e De(e&/a&'s ;e2e 2eD@%2e/ 'o 2e?a1 %& 5o&e1 65o&e1 o( eG)4a&>e, a&/ $a;(@$ 5o&e1 a' '4a'), which creates at least the inference of ine uality of obligations o& '4e ';o s%/es o( '4e '2a&sa)'%o& 65o&e1, %&)$@/%&> $a;(@$ 5o&e1, %s 'o Ce eG)4a&>e/ (o2 Ca&* )2e/%'). MODERN AUTHORITIES ON MONEY 77.To @&/e2s'a&/ ;4a' o))@22e/ Ce';ee& #$a%&'%(( a&/ De(e&/a&'s )o&)e2&%&> '4e a$$e>e/ $oa& o( 5o&e1 o2, 5o2e a))@2a'e$1, )2e/%', %' %s 4e$?(@$ 'o 2e+%e; a 5o/e2& Fe/e2a$ Rese2+e /es)2%?'%o& o( a Ca&*Is $e&/%&> ?2o)ess. See, Da+%/ H. F2%e/5a&,

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MONEY AND BANKING 64'4 e/. 7=!4)6a??a2e&'$1 a$2ea/1 %&'2o/@)e/ %&'o '4%s )ase)B ET4e )o55e2)%a$ Ca&* $e&/%&> ?2o)ess %s s%5%$a2 'o '4a' o( a '42%(' %& '4a' '4e 2e)e%?' o( )as4 (2o5 /e?os%'o2s %&)2eases Co'4 %'s asse's a&/ %'s /e?os%' $%aC%$%'%es, ;4%)4 e&aC$es %' 'o 5a*e a//%'%o&a$ $oa&s a&/ %&+es'5e&'s" 4 . . . -4e& a )o55e2)%a$ Ca&* 5a*es a C@s%&ess $oa&, %' a))e?'s as a& asse' '4e Co22o;e2Is /eC' oC$%>a'%o& 6'4e ?2o5%se 'o 2e?a1) a&/ )2ea'es a $%aC%$%'1 o& %'s Coo*s %& '4e (o25 o( a /e5a&/ /e?os%' %& '4e a5o@&' o( '4e $oa&"F 6Co&s@5e2 $oa&s a2e (@&/e/ s%5%$a2$1.) T4e2e(o2e, '4e Ca&*Is o2%>%&a$ Coo**ee?%&> e&'21 s4o@$/ s4o; a& %&)2ease %& '4e a5o@&' o( '4e asse' )2e/%'e/ o& '4e asse' s%/e o( %'s Coo*s a&/ a )o22es?o&/%&> %&)2ease eD@a$ 'o '4e +a$@e o( '4e asse' o& '4e $%aC%$%'1 s%/e o( %'s Coo*s. /his would show that the bank received the customer6s signed promise to repay as an asset, thus moneti7ing the customer6s signature and creating on its books a liability in the form of a demand deposit or other demand liability of the bank" T4e Ca&* '4e& @s@a$$1 ;o@$/ 4o$/ '4%s /e5a&/ /e?os%' %& a '2a&sa)'%o& a))o@&' o& Ce4a$( o( '4e )@s'o5e2. I&s'ea/ o( '4e Ca&* $e&/%&> %'s 5o&e1 o2 o'4e2 asse's 'o '4e )@s'o5e2, as '4e )@s'o5e2 2easo&aC$1 5%>4' Ce$%e+e (2o5 '4e (a)e o( '4e No'e, '4e Ca&* )2ea'e/ (@&/s (o2 '4e )@s'o5e2Is '2a&sa)'%o& a))o@&' ;%'4o@' '4e )@s'o5e2Is ?e25%ss%o&, a@'4o2%Aa'%o&, o2 *&o;$e/>e a&/ /e$%+e2e/ '4e )2e/%' o& %'s o;& Coo*s 2e?2ese&'%&> '4ose (@&/s 'o '4e )@s'o5e2, 5ea&;4%$e a$$e>%&> '4a' '4e Ca&* $e&' '4e )@s'o5e2 5o&e1. I( #$a%&'%((Is 2es?o&se 'o '4%s $%&e o( a2>@5e&' %s 'o '4e e((e)' '4a' %' a)*&o;$e/>es '4a' %' $e&' )2e/%' o2 %ss@e/ )2e/%' %&s'ea/ o( 5o&e1, o&e 5%>4' 2e(e2 'o T4o5as #. F%')4, BARRONIS BUSINESS GUIDE DICTIONARY OF BANKING TERMS, EC2e/%' Ca&*%&>,F 3. EBoo**ee?%&> e&'21 2e?2ese&'%&> a /e?os%' o( (@&/s %&'o a& a))o@&'.F B@' #$a%&'%((Is $oa& a>2ee5e&' a??a2e&'$1 a+o%/s )$a%5%&> '4a' '4e Ca&* a)'@a$$1 $e&' '4e De(e&/a&'s 5o&e1. T4e1 a??a2e&'$1 s'a'e %& '4e a>2ee5e&' '4a' '4e De(e&/a&'s a2e oC$%>a'e/ 'o 2e?a1 #$a%&'%(( ?2%&)%?a$ a&/ %&'e2es' (o2 '4e E,a$@aC$e )o&s%/e2a'%o& 65o&e1) '4e Ca&* >a+e '4e )@s'o5e2 6Co22o;e2).F T4e $oa& a>2ee5e&' a&/ No'e a??a2e&'$1 s'%$$ /e$e'e a&1 2e(e2e&)e 'o '4e Ca&*Is 2e)e%?' o( a)'@a$ )as4 +a$@e (2o5 '4e De(e&/a&'s a&/ eG)4a&>e o( '4a' 2e)e%?' (o2 a)'@a$ )as4 +a$@e '4a' '4e #$a%&'%(( Ca&*e2 2e'@2&e/. 89"According to the +ederal .eserve ,ank of New 5ork, money is anything that has value that banks and people accept as money% money does not have to be issued by the government" Fo2 eGa5?$e, Da+%/ H. F2%e/5a&, I BET YOU THOUGHT. . . . =, Fe/e2a$ Rese2+e Ba&* o( Ne; Yo2* 64 '4 e/. 7=!4)6a??a2e&'$1 a$2ea/1 %&'2o/@)e/ %&'o '4%s )ase), eG?$a%&s '4a' Ca&*s )2ea'e &e; 5o&e1 C1 /e?os%'%&> IOUs, ?2o5%sso21 &o'es, o((se' C1 Ca&* $%aC%$%'%es )a$$e/ )4e)*%&> a))o@&' Ca$a&)es. #a>e 8 sa1s, EMo&e1 /oes&I' 4a+e 'o Ce %&'2%&s%)a$$1 +a$@aC$e, Ce %ss@e/ C1 >o+e2&5e&', o2 Ce %& a&1 s?e)%a$ (o25. . . .F 73.T4e ?@C$%)a'%o&, A&&e Ma2%e L. Go&)A1, MODERN MONEY MECHANICS -33, Fe/e2a$ Rese2+e Ba&* o( C4%)a>o 62e+. e/. L@&e 7==:)6a??a2e&'$1 a$2ea/1 %&'2o/@)e/ %&'o '4%s )ase), )o&'a%&s s'a&/a2/ Coo**ee?%&> e&'2%es /e5o&s'2a'%&> '4a' 5o&e1 o2/%&a2%$1 %s 2e)o2/e/ as a Ca&* asse', ;4%$e a Ca&* $%aC%$%'1 %s e+%/e&)e o( 5o&e1 '4a' a Ca&* o;es. T4e Coo**ee?%&> e&'2%es 'e&/ 'o ?2o+e '4a' Ca&*s a))e?' )as4, )4e)*s, /2a('s, a&/ ?2o5%sso21 &o'es9)2e/%' a>2ee5e&'s 6asse's) as 5o&e1 /e?os%'e/ 'o )2ea'e )2e/%' o2 )4e)*Coo* 5o&e1 '4a' a2e Ca&* $%aC%$%'%es, ;4%)4 s4o;s '4a', aCse&' a&1 2%>4' o( se'o((, Ca&*s o;e 5o&e1 'o ?e2so&s ;4o /e?os%' 5o&e1.. 'ash (money of exchange! is money, and credit or promissory notes (money of account! become money when banks deposit promissory notes with the intent of treating them like deposits of cash" See, 7: U.S.C. Se)'%o& 7!73 6$)67) 6/e(%&%'%o& o( E/e?os%'F @&/e2 Fe/e2a$ De?os%' I&s@2a&)e A)'). T4e #$a%&'%(( a)'s %& '4e )a?a)%'1 o( a $e&/%&> o2 Ca&*%&> %&s'%'@'%o&, a&/ '4e &e;$1 %ss@e/ )2e/%' o2 5o&e1 %s s%5%$a2 o2 eD@%+a$e&' 'o a ?2o5%sso21 &o'e, ;4%)4 5a1 Ce '2ea'e/ as a /e?os%' o( 5o&e1 ;4e& 2e)e%+e/ C1 '4e $e&/%&> Ca&*..

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Fe/e2a$ Rese2+e Ba&* o( Da$$as ?@C$%)a'%o& MONEY AND BANKING, ?a>e 77, eG?$a%&s '4a' ;4e& Ca&*s >2a&' $oa&s, '4e1 )2ea'e &e; 5o&e1. T4e &e; 5o&e1 %s )2ea'e/ Ce)a@se a &e; E$oa& Ce)o5es a /e?os%', 0@s' $%*e a ?a1)4e)* /oes.F MODERN MONEY MECHANICS, ?a>e <, sa1s, E-4a' '4e1 PCa&*sQ /o ;4e& '4e1 5a*e $oa&s %s 'o a))e?' ?2o5%sso21 &o'es %& eG)4a&>e (o2 )2e/%'s 'o '4e Co22o;e2sI '2a&sa)'%o& a))o@&'s.F T4e &eG' se&'e&)e o& '4e sa5e ?a>e eG?$a%&s '4a' '4e Ca&*sI asse's a&/ $%aC%$%'%es %&)2ease C1 '4e a5o@&' o( '4e $oa&s. 8 COMMENTARY AND SUMMARY OF ARGUMENT 74. #$a%&'%(( a??a2e&'$1 a))e?'e/ '4e De(e&/a&'sI No'e a&/ )2e/%' a??$%)a'%o& 65o&e1 o( a))o@&') %& eG)4a&>e (o2 %'s o;& )2e/%' 6a$so 5o&e1 o( a))o@&') a&/ /e?os%'e/ '4a' )2e/%' %&'o a& a))o@&' ;%'4 '4e De(e&/a&'sI &a5es o& '4e a))o@&', as ;e$$ as a??a2e&'$1 %ss@%&> %'s o;& )2e/%' (o2 J=8,=08.7< 'o M%)4%>a& Na'%o&a$ Ba&* (o2 '4e a))o@&' o( '4e De(e&/a&'s. O&e 2easo&aC$1 5%>4' a2>@e '4a' '4e #$a%&'%(( 2e)o2/e/ '4e No'e o2 )2e/%' a??$%)a'%o& as a $oa& 65o&e1 o( a))o@&') (2o5 '4e De(e&/a&'s 'o '4e #$a%&'%(( a&/ '4a' '4e #$a%&'%(( '4e& Ce)a5e '4e Co22o;e2 o( a& eD@%+a$e&' a5o@&' o( 5o&e1 o( a))o@&' (2o5 '4e De(e&/a&'s.

8:" /he #laintiff in fact never lent any of its own pre;existing money, credit, or assets as consideration to purchase the Note or credit agreement from the $efendants" 6RoCe2'so& No'esB I a// '4a' ;4e& '4e Ca&*
/oes '4e (o2>o%&>, '4e& %& '4a' e+e&', '4e2e %s a& @''e2 failure of consideration (o2 '4e E$oa& )o&'2a)'F.) -4e& '4e #$a%&'%(( /e?os%'e/ '4e De(e&/a&'sI J400,000 o( &e;$1 %ss@e/ )2e/%' %&'o a& a))o@&', '4e #$a%&'%(( )2ea'e/ (2o5 J3<0,000 'o J400,000 o( &e; 5o&e1 6'4e &o5%&a$ ?2%&)%?a$ a5o@&' $ess @? 'o 'e& ?e2)e&' o2 J40,000 o( 2ese2+es '4a' '4e Fe/e2a$ Rese2+e ;o@$/ 2eD@%2e a>a%&s' a /e5a&/ /e?os%' o( '4%s s%Ae). T4e #$a%&'%(( 2e)e%+e/ J400,000 o( )2e/%' o2 5o&e1 o( a))o@&' (2o5 '4e De(e&/a&'s as a& asse'. GAA# o2/%&a2%$1 ;o@$/ 2eD@%2e '4a' '4e #$a%&'%(( 2e)o2/ a $%aC%$%'1 a))o@&', )2e/%'%&> '4e De(e&/a&'sI /e?os%' a))o@&', s4o;%&> '4a' '4e #$a%&'%(( o;es J400,000 o( 5o&e1 'o '4e De(e&/a&'s, 0@s' as %( '4e De(e&/a&'s ;e2e 'o /e?os%' )as4 o2 a ?a12o$$ )4e)* %&'o '4e%2 a))o@&'. 7<. T4e (o$$o;%&> a??ea2s 'o Ce a /%s?@'e/ (a)' %& '4%s )ase aCo@' ;4%)4 I 4a+e %&s@((%)%e&' %&(o25a'%o& o& ;4%)4 'o (o25 a )o&)$@s%o&B I %&(e2 '4a' %' %s a$$e>e/ '4a' #$a%&'%(( 2e(@se/ 'o $e&/ '4e De(e&/a&'s #$a%&'%((Is o;& 5o&e1 o2 asse's a&/ 2e)o2/e/ a J400,000 $oa& (2o5 '4e De(e&/a&'s 'o '4e #$a%&'%((, ;4%)4 a2>@aC$1 ;as a J400,000 /e?os%' o( 5o&e1 o( a))o@&' C1 '4e De(e&/a&'s, a&/ '4e& ;4e& '4e #$a%&'%(( 2e?a%/ '4e De(e&/a&'s C1 ?a1%&> %'s o;& )2e/%' 65o&e1 o( a))o@&') %& '4e a5o@&' o( J400,000 'o '4%2/-?a2'1 se$$e2s o( >oo/s a&/ se2+%)es (o2 '4e a))o@&' o( De(e&/a&'s, '4e De(e&/a&'s ;e2e 2e?a%/ '4e%2 $oa& 'o #$a%&'%((, a&/ '4e '2a&sa)'%o& ;as )o5?$e'e. 7 . I /o &o' 4a+e s@((%)%e&' *&o;$e/>e o( '4e (a)'s %& '4%s )ase 'o (o25 a )o&)$@s%o& o& '4e (o$$o;%&> /%s?@'e/ ?o%&'sB No&e o( '4e (o$$o;%&> 5a'e2%a$ (a)'s a2e /%s)$ose/ %& '4e )2e/%' a??$%)a'%o& o2 No'e o2 ;e2e a/+e2'%se/ C1 #$a%&'%(( 'o ?2o+e '4a' '4e De(e&/a&'s a2e '4e '2@e $e&/e2s a&/ '4e #$a%&'%(( %s '4e '2@e Co22o;e2. /he #laintiff is trying to use

the credit application form or the Note to persuade and deceive the $efendants into believing that the opposite occurred and that the $efendants were the borrower and not the lender" T4e (o$$o;%&> ?o%&' %s
@&/%s?@'e/B T4e De(e&/a&'sI $oa& o( '4e%2 )2e/%' 'o #$a%&'%((, ;4e& %ss@e/ a&/ ?a%/ (2o5 '4e%2 /e?os%' o2 )2e/%' a))o@&' a' #$a%&'%((, Ce)a5e 5o&e1 %& '4e Fe/e2a$ Rese2+e S1s'e5 6s@C0e)' 'o a 2e/@)'%o& o( @? 'o 'e& ?e2)e&' (o2 2ese2+e 2eD@%2e5e&'s) as '4e &e;$1 %ss@e/ )2e/%' ;as ?a%/ ?@2s@a&' 'o ;2%''e& o2/e2s, %&)$@/%&> )4e)*s a&/ ;%2e '2a&s(e2s, 'o se$$e2s o( >oo/s a&/ se2+%)es (o2 '4e a))o@&' o( De(e&/a&'s.

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

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