fed foreclosure petition

7/25/2019 Fed Foreclosure Petition

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IN THE UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF OKLAHOMA

Timothy and Hannah Lee, Plaintiff(s),

Case No. ____________________v.

First United Bank and Trst,!efendant,

"hannon Taylor, !efendant,

R.I.C.O.

FRAUD, BANK FRAUD

CONSPIRACY/OBSTRUCTION OF JUSTICE

TAX FRAUD, MONEY LAUNDERING, WIRE FRAUD, PERJURY,

DUE PROCESS VIOLATIONS IN STATE COURT AND RIGHT TO REMOVE TO THIS

FEDERAL COURT JURISDICTION, DEFENDANTS DID NOT PRODUCE THE ORIGINAL

NOTE

U.". Patriot #$t Title %%%

PETITION IN THE NATURE OF A SUIT FOR DEPRIVATION

OF FEDERALLY PROTECTED RIGHTS TITLE 42 USC 1!", 1!1, 1!#, 1!!, TITLE 1!

USC 241, 242, 1#12, 1$!, 1$4, FOR INJUNCTIVE AND DECLARATORY RELIEF AND

OTHER DAMAGES AS THE COURT SHALL DETERMINE REASONABLE, LAWFUL, AND

JUST

COMES NOW, Plaintiffs Timothy and Hannah Lee, Pro se, &for the 'resent time for a$om'laint aainst the !efendants, states as follo*s+

JURISDICTION

. This $ort has s-e$t matter risdi$tion nder the la*s of the United "tates of#meri$a, #rti$le %%% / 0, U.". Constittion1 20 U.".C. 345, 346 and 347 (failre to 'revent) as

$onferred -y the U.". Constittion 04 U"C 55 and 525and 0062 nder the st, 2th, 6th, 7th, 4th, and

2th#mendments. This a$tion involves $onstittional $hares, ronds, 8estions, and risdi$tion iss''lemented -y 04 U"C 579(a) and $hallenes the $onstittional violations of state and federal la*,'ro$edre andpractice-y state and federal offi$ials and offi$ers of the $ort. Plaintiff also -rins thismain a$tion throh &$ivil :%C; statte.

0. This a$tion is -roht *ithin the time $onstraints of 20 U"C 345 and 'arti$larly
http://wiki/USA_PATRIOT_Act,_Title_IIIhttp://wiki/USA_PATRIOT_Act,_Title_III


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nder the continuingorani. 97th

"treet North, Collinsville, ;k. 92E0(the Pro'ertyG)

6. D*(-()+

a. First United Bank and Trst Co.,

-. "hannon Taylor.

?:;UN! . Under the 'atriot a$t domesti$ terrorist to deleitimi


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;n "e'tem-er 02, 0EE, Dem-ers of Conress, #lan ?rayson, Barney Frank andCorrine Bro*n *rote an o'en letter to Dr. Di$hael K. illiams, President and C>; ofFannie Dae, as to the ereios natre and Conressional hearins as to the isses *hi$hare the s-e$t of this a$tion.

D P3++ I+++

M:iht to 'resent a defense MHolmes v South Carolina, 07 ".Ct. 909 (0EE7)M!iminished $a'a$ity defenses MClark v Arizona, 07 S.Ct. 27!M#$tal inno$en$e M"regon v #uzek, 627 U.". 69 (0EE7)MConditions of inherent 'redi$e MCare$ v %usladin, &27 S.Ct. '(! )2'*

REFERENCE

EXPERT DECLARATION OF NEIL FRANKLIN GARFIELD, ESQ.

UNITED STATES BANKRUPTCY COURT

DISTRICT OF ARIZONA, TUCSON DIVISION

ANTHONY TARANTOLA, Debtor

D)+5 B&(6 N&)'3(&% T+) C378&(9 ,&+ T+) '( )+) *3 )5 :(*') 3* )5

C)'*'&)53%-+ *3 A;() S')'+

I(., A++)


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Neil Franklin ?arfield, >s8., de'oses and states ns*orn nder 'enalty of 'erry as follo*s+

% am over the ae of 4 years and 8alified to make this affidavit. % have no dire$t or indire$t interest inthe ot$ome of the $ase at -ar for *hi$h % am offerin my o-servations, analysis, o'inions and testi

mony. % have -een a li$ensed mem-er in ood standin of the Florida Bar sin$e Day 5, 399. Dy resme *as filed -y de-tor 'reviosly and is in$or'orated herein.

Dy area of e'ertise *hi$h is offered in the $ase at -ar is -ased 'on my kno*lede, trainin and e'erien$e in the field of se$rities, the se$rities indstry, derivative se$rities, se$riti


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vie*ed the $ontetal do$mentation *hi$h 'rovided the fondation -y *hi$h the loan $losin $oldo$$r, to *it+ the se$riti


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The o-liation that arose as a reslt of the fndin of the loan and the a$$e'tan$e of the -enefits ofsaid fndin, ave rise to an o-liation -et*een the -orro*er and the a$tal lender (investor). %n myo'inion, the do$mentation tili:", aents *ith 'o*er of attorneyG, trsteesof every ilk and level et$. have initiated s$h a$tions $laimin or re'resentin that they stand in theshoes of the Lender *ithot a shred of eviden$e to 'roffer nder the rles of eviden$e to s''ort their$laim.

"everal s$h attem'ts, 'on dis$overy have led to etremely heavy san$tions not only aainst the 'artyilli$itly seekin fore$losre, -t aainst the la* firm that advo$ated for s$h an nst reslt.

Civil san$tions as hih as 46E,EEE have -een levied aainst la*yer and $lient.

Criminal investiations are nder*ay in many states, $lass a$tions -y investors, $lass a$tions -y -orro*ers and 8i tam a$tions are all nder*ay allein ta*dry s$hemes, frad and de$e'tion.

%n some of those $ases % have seen the eviden$e to s''ort the alleations of investors aainst thesesame 'arties and $lass a$tions -y -orro*ers aainst these same 'arties and in my o'inion they havemerit, *hile the defenses offered are, in my o'inion $om'letely *ithot merit.

% do not $onvey here, *ith $ertainty that the Dovant is atomati$ally s-e$t to san$tions or $riminal

'enalties as a reslt of other $ases1 ho*ever, the -a$kdro' of hndreds of $ases in *hi$h do$ments*ere fa-ri$ated and fored in the name of !ets$h Bank in 'arti$lar, leaves me etremely ske'ti$al asto the effi$a$y of their $laims.

% have revie*ed mlti'le files in *hi$h se$riti


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The 'arties the s-e$t transa$tion a$$ordin to my revie* of the se$riti


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e. The amont of money sho*n on the $losin do$ments to have -een fnded on this loan *asa''roimately 599,EEE, 'ls 'oints et$.

f. The amont of money re$eived throh third 'arty 'ayments % have $om'ted throh mathemati$al $al$lation to -e a minimm of 6 times the loan amont and a maimm of 5E timesthe loan amont. Ths the minimm re$eived from third 'arties for $ontra$tal loss mitiation-roken do*n and allo$ated to this loan *as a''roimately ,446,EEE. #ddin the yield s'read

'remim a' (929,EEE599,EEEQ59E,EEE) the ross amont re$eived -y intermediary aentsof the investors totals a''roimately 0,066,EEE. These third 'arty 'ayments are s'e$ifi$ally'rovided in the se$riti


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4. :onaldo :eyes, assistant vi$e 'resident, sinatory for !ets$he Bank National Trst Com'any

3. =alerie !elado, asso$iate, sinatory for !ets$he Bank National Trst Com'any

0E. D>:" "ystem

0. !TC

00. Clear "tream (Lem-r) >ro$lear Bank "#N=

05. !ets$he Bank National Trst Com'any as trstee for #rent "e$rities %n$. asset -a$k 'astthroh $ertifi$ates "eries (si$) 0EE24, referred to in the se$riti


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a*are that a maimm of only 05 of their investment *as a$tally oin to fnd !e-tors loan andothers similarly sitated, *ith the e$ess -ein sed to $reate instant in$ome for Parti$i'ants. !e-tor*as na*are that s$h lare 'rofits or 'remims *ere -ein enerated -y virte of his identity and sinatre on the 'r'orted loan do$ments.

%n my o'inion, TarantolaOs o-liation is o*ed to the 'arty *ho advan$ed the money to fnd the loan.

This 'arty $onsists of a ro' of investors *ho 'r$hased interest kno*n as mortae-a$ked se$rities, rantin them the fll -enefi$ial riht and o*nershi' of a 'er$entae of a 'ool of assets in the 'ro$ess of se$riti


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"in$e Dovant asserts it the Trstee of a Trst and the s-e$t matter in dis'te in the $ase at -ar doesnot a''ear to have any relationshi' to said trst, the Trstee (!ets$h) has no interest in the de-torOso-liation, dire$tly or indire$tly. Based 'on my kno*lede of standard indstry 'ra$ti$es the mostlikely reason is that the alleed assinments either never a$tally took 'la$e or never *ere 'erfe$ted.hile it is 'ossi-le, althoh nlikely, that any s$h assinments *ere 'ro'erly and timely ee$ted,there is no eviden$e that the assinment *as a$$e'ted, and ths the transa$tion *as never $om'leted.

Therefore, % $on$lde that the only -enefi$iary of re$ord is #rent, the oriinatin lender. Ho*ever, allthe fa$ts 'oint to the intention of the 'arties to se$riti


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er and illeal. Besides the sal 'redatory 'ra$ti$e of steerin -orro*ers into more e'ensive and lessvia-le loans than *old -e a''ro'riate or a$$e'ta-le to either the -orro*er or the lender (investor),there eisted a se$ond yield s'read 'remim at the level of the sale of the loan to the investor. The 'ros'e$ts and 'oolin and servi$e areement $learly allo* for the fnds to -e sed for eneral o'erational 'r'oses, instead of 'rovidin a s'e$ifi$ s$hedle of a se of 'ro$eeds in *hi$h all of the investedfnds are sed to fnd residential home mortaes and fees as set forth in those do$ments.

This $reated a a', *hi$h *as sed -y the investment -ankin nder*riter *ho $reated and $ontrolledall of the intermediaries, in *hi$h the differen$e -et*een the rate of retrn 'romised in the offerin ofmortae-a$ked se$rities and the nominal rate of retrn of the 'ool reslted in a a' *hi$h variedfrom 6 'er$ent to EE 'er$ent of the a$tal loan fnded in any iven $ase. %n my o'inion, in the $ase at-ar, this yield s'read 'remim a', 'ro'erly allo$ated to the loan in the $ase at -ar, toether *ith thendis$losed fees and yield s'read 'remims 'aid to the 'arties and intermediaries involved in the $losin, a$tally e$eeds the entire 'rin$i'le de at the time of the $losin of the loan.

C#LCUL#T%;N ;F @%>L! "P:>#! P:>D%UD %N UPP>: T%>: ;F ">CU:%T%#T%;N CH#%N+ -illion (a''roimate) in se$rities offerin. No sho*in of a$tal 'ro$eeds or any limitations on is

ser. "e$ond yield s'read 'remim may eist in this nkno*n s'read or in the s'read -et*een the offerin amont and the nkno*n a$tal amont fnded. >tra'olatin from yields dis$losed in the 'ros'e$ts the a$tal yield 'romised to investors *as a''roimately 9V, *ith the riht to red$e same nder a variety of $ir$mstan$es *holly in $ontrol of the nder*riters. The nominal yield *eihted averae is stated in several different *ays in order to $onfse the reader and make $om'tation more $hallenin. Based 'on $om'tations made dire$tly from the 'ros'e$ts and $om'arin it *ith similar'ros'e$tses involvin most of the same 'arties, the nominal a$tal averae interest *as sold to the"P= at a''roimately 3.7V. Ths, rondin do*n, the yield s'read 'remim *as 0.6V. 0.6V is 07Vof the nominal 3.7V rate. #''lyin 07V to the de$lared 'ro$eeds, the dollar yield s'read, ndis$losedto either the investors or the -orro*ers, *as a''roimately 06E,EEE,EEE. The nominal 'rin$i'al of thede-torOs note is a''roimately 599,EEE. The non*eihted yield s'read 'remim at this level of thelendin $hain shold therefore -e e'ressed as either 32,06E or 40,6EE. #''lyin an averae-et*een the t*o methods, the estimated non*eihted yield s'read 'remim on this loan is a''roimately 44,EEE *ithot *eihtin. #''lyin the $stomary *eihtin sin the a$tal nominal rate soldon this de-torOs loan (2.V), the estimated yield s'read 'remim earned -y 'arti$i'ants in this lendin$hain from this level of the lendin $hain *as in fa$t a''roimately 573,27E (almost e8al to the loanitself). #ddin $stomary interest (050,963.4E) and tre-le damaes (,E4,54E) nder the FederalTrth and Lendin #$t the net a$tal dollar lia-ility for yield s'read 'remim at said level de from thelendin $hain on de-torOs loan *old therefore -e e'ressed as ,52,53.4E de to -orro*er. Thisamont is s-e$t of $orse to a determination of all other $laims and defenses ea$h or any of the'arties may have.

Under the terms of the Trth in Lendin #$t and other a''li$a-le stattes, ndis$losed fees are de-a$k to the -orro*er, and ths *old affe$t the stats of any alleed defalt, and the -alan$e de on theo-liation. %n addition, the 'resen$e of the se$ond yield s'read 'remim as des$ri-ed a-ove, ne$essitates the 'r$hasin of insran$e and other $redit enhan$ements, hede 'rod$ts and arantees. Thereason *hy it ne$essitates the se of s$h 'rod$ts, -esides the o-vios risk that the loan is likely to on'aid -y the -orro*er, is that in the event that the loan is in fa$t 'aid, and remains flly 'erformin,the amont o*ed to the $reditor *ill -e e8ivalent to the amont allo$ated to his 'r$hase of mortae-a$ked se$rities. This *old leave the se$rities nder*riter in the 'osition of o*in the differen$e-et*een *hat the investor thoht *as -ein invested in loans and the a$tal lo*er amont.


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The 'r$hase amont of the se$rities vastly e$eeds the amont that *as invested in the fndin ofmortae loans in$ldin the one in the $ase at -ar. %n order to avoid $riminal and $ivil lia-ility in administrative san$tions, it *old -e ne$essary for the intermediaries *ho retained the yield s'read'remim a', to retain the 'o*er to de$lare the 'ool in *hi$h loans *ere alleedly lo$ated, to have-een de're$iated in vale and ths $olle$t the 'ro$eeds of insran$e, $redit enhan$ements, hede

'rod$ts and so forth. By retainin the 'o*er to de$lare a 'ool as -ein in defalt or failre, the intermediaries *ere aranteed the 'ro$eeds of insran$e or other third'arty 'ayments reardless of*hether a 'arti$lar loan *ent into defalt or not.

These amonts *ere defalt mitiation 'ayments, *hi$h shold have -een allo$ated on some -asis toea$h o-liation $laimed to -e in the loan 'ool. % have sed a sim'le mathemati$al $al$lation arrivinat the relative si


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ation as to the a$tal stats of a 'arti$lar o-liation and *hether it is in a$tality in defalt after ivin$redit for all 'otential 'ayments that may have -een made and a$$e'ted on -ehalf of *hoever is the$rrent holder of the 'a'er *hi$h is sed as eviden$e of the o-liation.

%t is hihly likely that the investors have a $laim to the same money that the -orro*ers are entitled to re$eive nder the Trth in Lendin #$t. "ome of these a$tions -y the intermediaries, violate the*ordin and the intent of the real 'arties and interests (the home o*ner and the investor). The a$tal

do$mentation that serves as the eviden$e of the o-liation is -oth the note that *as ee$ted -y the-orro*er and the -ond that *as re$eived -y the lender (investors). %n some $ases the s'e$ifi$ 'rovisions vary $onsidera-ly, and a$tally $onfli$t *ith one another. That $onfli$t is al*ays resolved in favorof the intermediaries to the detriment of -oth the investor and the -orro*er. %n my o'inion, neither theinvestor nor the -orro*er *old have ee$ted any do$mentation, advan$ed any fnds, nor a$$e'tedthe loan 'rod$t that *as offer, had the fll fa$ts -een kno*n -y -oth sides. %t is therefore the im'erative of the intermediaries to kee' the investor and the home o*ner se'arate inasm$h as sharin of information -et*een the investor and the home o*ner $old lead to a $onsidera-le $hain of neative $onse8en$es to the intermediaries.

%n addition, the $hain of athorityG $ontines do*n from the master servi$er to s-servi$ersand other aents. %n $onne$tion *ith this 'arti$lar $ase, the 'oolin and servi$e areement *as ee$ted -y :enaldo :eyes, *hose $onversation *ith a -orro*er *as heard -y the de$larant. %n 'art, %rely 'on the $ontent of said $onversation in *hi$h Dr. :eyes said that not*ithstandin the *ordinand 'rovisions $ontained in the se$riti


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$ort. %n trn the -orro*er has a $laim aainst any 'arty *ho re$eived dire$tly or indire$tly the -enefitof third 'arty 'ayments, the 'ro$eeds of *hi$h $ame from insran$e 'oli$ies 'r$hased from the transa$tion -et*een the Lender (%nvestors) and the -orro*er.

% se the follo*in definition of CreditorG taken from resear$h in $ases, the Bankr't$y Codeand the Uniform Commer$ial Code. # CreditorG is a leal entity that has advan$ed fnds, oods or

servi$es in $onsideration of the riht to 'ayment, or has 'r$hased the riht to -e 'aid. %n the -ankr't$y $ontet, a CreditorG is an entity that had a Claim aainst !e-tor -efore the $ase *as filed. U.".C. / E(E). # Claim is a riht to 'ayment. / E(6). ;nly a Creditor may file a Proof of Claim./ 6E(a). The ;ffi$ial Form E refle$ts this re8irement -y des$ri-in the WName of Creditor as Wthe'erson or other entity to *hom the de-tor o*es money or 'ro'erty. %n the $ontet of se$riti


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Dy 'resm'tion, in the $ontet of the 8estion 'osed to me, is that standin re8ires that a'arty *ill sffer finan$ial loss derived from non'erforman$e (i.e., non'ayment) of the s-e$t $ontra$t,*hi$h in this $ase is the o-liation that arose *hen the s-e$t loan *as fnded on -ehalf of the de-toras homeo*ner and referred to in some do$ments as the Borro*er. "in$e the fndin o$$rred ot of a'ool of money re$eived -y the investment -anker from the investors, the investors are the $reditors.

By *ay of indentre (sally in$or'oratin a 'ros'e$ts) the investors areed to an o'eratin'lan that defined the fn$tions of the $ondit *hi$h *as sed to fnnel fnds to the investor from the'ool. Ho*ever, sin$e no assets remain in the $ondit *hi$h is defined nder the %nternal :evene Codeas a :>D%C (:eal >state Dortae %nvestment Condit) it is $hallenin to des$ri-e the $reation,maintenan$e and fn$tion of the trst.G. The :>D%C is referred to in the *orld of finan$e as an "P=("'e$ial Pr'ose =ehi$le). % 'resme the *ords $onditG and vehi$leG $onvey the fa$t that no a$tal-siness events of taa-le or monetary sinifi$an$e takes 'la$e in the :>D%C. % $on$lde that this $orro-orates my o'inion that the investors are the $reditors, havin -een the only 'arties to advan$e fndsfrom *hi$h the s-e$t loan *as fnded.

The note sined -y said -orro*er and the mortae-a$ked -ond a$$e'ted -y the investor *ho'r$hased said se$rity are -oth eviden$e of the o-liation.

The !eed of Trst is intended to -e in$ident to the note and 'ossi-ly in$ident to the -ond, if the$hain of title *as 'erfe$ted. The Payee on the note and the 'ayee on the -ond are different 'arties. The-onds *ere issed *ith three 'rin$i'al indentres+ () re'ayment of 'rin$i'al nonre$orse -ased 'onthe 'ayments -y o-liors nder the terms of notes and mortaes in the 'ool (0) 'ayment of interestnder the same $onditions and (5) the $onveyan$e of a 'er$entae o*nershi' in the 'ool of loans,*hi$h means that $olle$tively EEV of the investors o*n EEV of the entire 'ool of loans.

This means that the TrstG does N;T o*n the 'ool nor the loans in the 'ool. %t means that theTrstG is merely an o'eratin areement throh *hi$h the investors may a$t $olle$tively nder $ertain $onditions. #$$ordinly, it is my o'inion that the 'arties *ith standin in relation to a se$riti


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therefore there never *as any leitimate redress availa-le to any of these 'arties -y a favora-le de$ision.

#s relates to the isse of :eal Party in %nterest, the fa$tal $riteria and 8estion % have

'res''osed is+ hether DovantOs o*n finan$ial interest *as at stake in the ot$ome of the litiation-efore the Bankr't$y Cort.G Dy o'inion is offered -ased on all eviden$e -efore the Cort to date isas follo*s+

#) ;ther than the Lender (investors) none of the 'arties to this transa$tion and $ertainlyno 'arty in $ort no* ever had any of its o*n fnds at risk in the ot$ome of the litiation.

B) The Trstee $annot a$t as one *old have the athority to do, for eam'le, as if it hadan nlimited 'o*er of attorney, or as in an e'ress trst that rants nlimited athority toa$t on -ehalf of the Certifi$ate Holders. The Trstee $annot stand in the shoesG of the$ertifi$ate holders *ithot a s'e$ial rant of athority and indemnifi$ation. Therefore, the

Trstee does not have the athority to -e the :eal Party in %nterest on -ehalf of the Certifi$ate Holders. #lso, the 'roof in the re$ord is inade8ate to esta-lish that the o*nershi'of the Note, holdershi' of the Note, or riht to enfor$e the Note *as 'ro'erly 'ooled tothe a-ove des$ri-ed alleed Dortae Trst Pool.G #$$ordinly, as the re$ord stands,the eviden$e does not esta-lish the Trstee as -ein the :eal Party in %nterest.

None of the kno*n Parti$i'ants in the s-e$t se$riti


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termine the amont of !e-torOs e8ity in the 'ro'erty ntil a $om'lete a$$ontin of all de-its and$redits, in$ldin -t not limited to, the 5rd 'arty 'ayments referred to a-ove.

Until s$h time as re8ests for said information have -een ans*ered, % *ill -e na-le to identify*ith $ertainty the ea$t identity of the $rrent $reditor, meanin the tre o*ner of the alleed o-liation, other than to say, *ith $ertainty, that it is not Dovant, nor any Parti$i'ant in the "e$riti:" ele$troni$ reistry and that an assinment *as ee$ted to D>:" 'r'ortedly ivin

D>:" some 'o*er over the o-liation, the Note andor the en$m-ran$e. #s a eneral rle in se$riti


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ta$hed hereto as >hi-it #1 and (5) kno*lede of title and $hain of title defe$ts in the o*nershi' of theNote, -enefi$ial interest in the en$m-ran$e, and 'osition as ;-liee on the o-liation oriinally ndertaken -y the s-e$t homeo*ner.

The only 'arty that $an $laim to -e a Holder in !e Corse (H!CG) of the Note are those that'aid vale for the Note, *ithot kno*lede that there *ere any 'endin $hallenes to its validity and*ho flfill the other re8irements for H!C stats. This H!C and the Third Party "or$es are the only

ones that $old $on$eiva-ly sffer a monetary or 'e$niary loss resltin from non'ayment of the o-liation. The %nvestor $old lose if -e$ase they advan$ed the a$tal fnds from *hi$h the Finan$ialProd$t Loan *as fnded, assmin these %nvestors that 'r$hased asset -a$ked se$rities *ere thosein *hi$h o*nershi' of the Loans *ere des$ri-ed *ith sffi$ient s'e$ifi$ity as to at least e'ress the intent to $onvey o*nershi' of the o-liation as eviden$ed -y the Promissory Note and an interest in real'ro'erty $onsistin of a se$rity interest held -y an entity that *as des$ri-ed as the Benefi$iary of aTrst $reated -y an instrment entitled !eed of Trst.G These %nvestors *ere not named. This 'ra$ti$ehas -een intentional, in my o'inion, -ased on the over*helmin $ommonality of this reo$$rrin o-vios failre, and other over*helmin eviden$e. The Third Party "or$es that $old $on$eiva-ly lose -e$ase they *old have 'aid vale 'rior to defalt or noti$e of defalt, and fall *ithin one or more ofthe follo*in $lassifi$ations+

a) %nsrers that 'aid some 'arty on -ehalf of said investors1

-) Conter'arties on $redit defalt s*a's1

$) Conveyan$es or $onstr$tive trsts arisin -y o'eration of la* throh $ross $ollaterali


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the Loan "ervi$er or another %ntermediary $ondit in the "e$riti


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22/80

) Borro*ers *ere advised that they did not have to *orry a-ot the 'ayments -ein nafforda-le in the ftre, -e$ase they *old -e definitely -e a-le to refinan$e aain atthat 'oint, -e$ase the market *as so solid.

h) Under*riters *ere 'shed -y s'ervisors to 'ass throh -ad loans, many of *hi$h*ere o-viosly doomed to fail from the start.

Under the Trth in Lendin #$t, :elation , and the :eal >state "ettlement Pro$edres #$t,

these ndis$losed yield s'read 'remims are a lia-ility of Parti$i'ants in the se$ritistate "ettlement and Pro$edres #$t. Frther, no information a''ears in!e-tors $losin do$mentation that *old have $ased him to in8ire a-ot s$h a 'remim.

%n my o'inion, the alleations $ontained in YY 005 of the #mended Com'laint, 'ertainin toT%L#, :>"P# and similar stattes are *ell taken. Aestions as to statte of limitation *old not -e a''li$a-le on a nm-er of theories, in$ldin, -t not limited to+ frad tolls the statte of limitations1 and

ntil the name of the tre $reditor, lender, -enefi$iary is made kno*n to the -orro*er, the statte oflimitations time frame does not -ein to rn.

# DB" Pool Trst is not really a tre Trst.G The Trstee thereof has -een involved in aoint enter'rise *ith the other Parti$i'ants in the $reation of a Finan$ial Prod$t for sale to %nvestors, the 'r$hasers of Dortae Bonds. The so$alled Pool TrsteeG is more like an administrator. The first loyalty of the Pool Trstee is not to the %nvestors, -t to the 'arties to *hi$h itentered into $ontra$t *ith, the Parti$i'ants. Based on its a$tions as $an -e seen over and overaain, it seems it is more interested findin *ays not to reim-rse the %nvestors than to find*ays to do so. %n the se$riti


23/80

dormant and 'ro-a-ly dissolved, leavin the Trstee 'rsin fore$losre on a home loan that(a) is not in the 'ool and (-) is 'aid off #N! in some other 'ool.

#lso, a 'arty mst -e ans*era-le to the $laims, affirmative defenses and $onter$laims of thehomeo*ners for s$h $ases of a$tion or defenses as miht -e a''li$a-le or they *old -e -lo$ked 'otentially -y $ollateral esto''el if the $ort determined the fore$losin 'arty *as a$tin *ithin the s$o'eof its aen$y for the Prin$i'al, the Certifi$ate Holders.

%n my o'inion, as a-ove, and *ith a reasona-le deree of fa$tal and leal $ertainty, the dis$losed 'rin$i'als in the se$riti


24/80

:>F>:>NC>+ N; ;:%?%N#L N;T>Z Cra*ford v. ashinton, (E032E) 62 U.". 57 (0EE2) 29ash. 0d 202, 62 P.5d 767here is the -odyJ

%N TH> "UP:>D> C;U:T ;F FL;:%!#C#"> N;.+ E327E

IN RE AMENDMENTS TO RULESOF CIVIL PROCEDURE AND FORMS FOR USE

WITH RULES OF CIVIL PROCEDURE

COMMENTS OF THE FLORIDA BANKERS ASSOCIATION

The Florida Bankers #sso$iation thanks this Honora-le Cort for the o''ortnity to$omment on the >meren$y :le and Form Pro'osals of the "'reme Cort Task For$eon :esidential Dortae Fore$losre Cases.%ntrod$tion+The Florida Bankers #sso$iation (FB#) is one of Floridas oldest trade asso$iation. %tsmem-ershi' is $om'osed of more than 5EE -anks and finan$ial instittions ranin insi P:;P;">! #D>N!D>NT %LL N;T >FF>CTU#T> TH> !>"%:>!?;#L.The rationale for the 'ro'osed amendment is set forth in the 'ro'osal for 'romlation+[;2674361\5 This rle $hane is re$ommended -e$ase of the ne* e$onomi$ reality


25/80

dealin *ith mortae fore$losre $ases in an era of se$ritista-lishin the Note Provides "inifi$ant "-stantive Prote$tionto the Dortaor.The 'ro$ess for reesta-lishment of a lost or destroyed instrment -y la* im'oses astri$t -rden of 'roof and instr$ts the $ort to 'rote$t the o-lior from mlti'le sits onthe same instrment. "e$tion 795.5E3, Florida "tattes, sets forth the elements a

'laintiff mst 'rove in order to enfor$e an o-liation for *hi$h it does not have the


26/80

oriinal instrment+ [;2674361\6 # 'erson not in 'ossession of an instrment is entitled toenfor$e the instrment if+ a) 'erson seekin to enfor$e the instrment *as entitled toenfor$e the instrment *hen loss of 'ossession o$$rred, or has dire$tly or indire$tlya$8ired o*nershi' of the instrment from a 'erson *ho *as entitled to enfor$e theinstrment *hen loss of 'ossession o$$rred. -) The loss of 'ossession *as not the

reslt of a transfer -y the 'erson or a la*fl sei- the foreoin, there is an additional di$ialre8irement+ T5 3) 7&9 (3) () -;7() '( *&>3 3* )5 8+3( +6'(;(*37() (%++ ') *'(-+ )5&) )5 8+3( '- )3 8&9 )5 '(+)7() '+

&-&)%9 83))- &;&'(+) %3++ )5&) 7';5) 3 :9 &+3( 3* & %&'7 :9 &(3)5

8+3( )3 (*3 )5 '(+)7(). A-&) 83))'3( 7&9 : 83>'-- :9 &(9

&+3(&:% 7&(+.

/ 795.5E3(0), Fla. "tat. (em'hasis added). This 'rote$tion may -e effe$tated -y anymeans satisfa$tory to the $ort. %t $ommonly takes the form of a 'rovision in the final

dment statin that to the etent any o-liation of the note is later deemed not to have-een etinished -y merer into the final dment, the 'laintiff has -y la* a$$e'tedassinment of those o-liations. %n other *ords, theThe leislatre amended "e$tion 795.5E3, Florida "tattes, in 0EE2 to address theisses raised -y the State Street $ort in re$onition of the $ommer$ial reality thatalmost all 'r$hase money notes are ele$troni$ally stored and assined in ele$troni$form. [;2674361\7'laintiff *ho enfor$es a lost or destroyed instrment assmes the risk

that a third 'arty in la*fl 'ossession of the oriinal note or *ith a s'erior interesttherein *ill assert that $laim. The oriinal o-lior has no lia-ility. C. Corts Have"tattory and %nherent #thority to "an$tion Plaintiffs #ssertin Claims Not "''orted

-y La* or >viden$e.#ny 'arty seekin to fore$lose a mortae *ithot a ood faith -elief]-ased oninvestiation reasona-le nder the $ir$mstan$esin the fa$ts ivin rise to the asserted$laim may -e san$tioned 'on the $orts initiative. / 69.E6(), Fla. "tat. This statte,thoh some*hat ndersed -y or $orts, affords des the athority to immediatelyim'ose sinifi$ant 'enalties for -rinin nfonded litiation. Perha's more sinifi$antis this Corts re$ent (and a''ro'riate) reaffirmation of a trial $orts inherent athority

to san$tion litiants]s'e$ifi$ally attorneys]*ho enae in -ad faith and a-sive'ra$ti$e. See %oakel$ v. Smallwood, 407 "o. 0d 00, 005 (Fla. 0EE0), $itin nitedStates Savings +ank v. /ittman, 4E Fla. 205, 47 "o. 679, 690 (30E) (san$tioninattorney for a$tin in -ad faith in a mortae fore$losre sale).00 The 'otential for san$tions is '( &--')'3( to the sinifi$ant e$onomi$ deterren$e to

-rinin nathori


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mortaor no loner resides in the $ollateral) sinifi$antly raise the $ost of filin a sitin error. [;2674361\ 9 %%. :>AU%:%N? =>:%F%C#T%;N ;F :>"%!>NT%#L D;:T?#?>F;:>CL;"U:> C;DPL#%NT" %DPL>D>NT" PUBL%C P;L%C@ %TH%N TH>L>?%"L#TU:>" C;N"T%TUT%;N#L #UTH;:%[email protected] Task For$e :e'ort ivin rise to the 'ro'osed amendment $learly s'eaks to a '-li$

'oli$y $on$ern nrelated to the 'ro$edral $on$erns of the $orts. The stated 'r'ose]to 'revent the filin of mlti'le sits on the same note]is $learly a matter of '-li$'oli$y rather than one of $ort 'ro$edre. :e8irin verifi$ation of a residentialmortae fore$losre $om'laint im'oses a $ondition 're$edent to a$$ess to $orts thate$eeds the 'ro$edral s$o'e of the Florida :le of Civil Pro$edre .E. %n sitationsin *hi$h verifi$ation of $om'laints or 'etitions is esta-lished as a threshold re8irementfor 'rsin an a$tion, that re8irement is im'osed -y the leislatre. See, e.g., /9E0.E, Fla. "tat. (re8irin verifi$ation of mortae fore$losre $om'laint *here

'laintiff ele$ts ;rder to "ho* Case 'ro$edre.) %f '-li$ 'oli$y favors settin anevidentiary threshold for a$$ess to $orts, the leislatre mst eer$ise its 'oli$ymakin

athority.The only other rle of $ivil 'ro$edre *hi$h im'oses the dty to verify a 'etition is a

'etition for tem'orary inn$tion. Fla. :. Civ. P. .7E. The rationale for re8irinverifi$ation there is $lear+ The 'etition itself and any s''ortin affidavits $onstitte theeviden$e s''ortin the re8ested tem'orary inn$tion. The $orts de$ision is madesolely on the evidentiary 8ality of the do$ments [;2674361\4-efore it. That is not the$ase here. =erifi$ation of the fore$losre $om'laint *ill not relieve the 'laintiff seekinto fore$lose a residential mortae of the -rden of 'rovin -y $om'etent ands-stantial eviden$e that it is the holder of the note se$red -y the mortae and entitled

to enfor$e the mortaors o-liation.=erifi$ation adds little 'rote$tion for the mortaor and, realisti$ally, *ill notsinifi$antly diminish the -rden on the $orts. The amendment is not needed or hel'fl.CONCLUSION

The Florida Bankers #sso$iation re$onis8irePresident and C>; Florida Bar No.+ 57493


28/80

Florida Bankers #sso$iation #I>:D#N, ">NT>:F%TTEE Thomasville :oad, "ite 0E 20E "oth ;rane #vene"ite 0E "ite 0EE (504E)Tallahassee, FL 505E5 Post ;ffi$e Bo 05Phone+ (46E) 0020076 ;rlando, FL 504E0

Fa+ (46E) 0020205 Phone+ (2E9) 2052EEEasan$he:T%F%C#T> ;F ">:=%C>% H>:>B@ C>:T%F@ that a tre and $orre$t $o'y of the foreoin $omments have -eenserved on The Honora-le Kennifer !. Bailey, Task For$e Chair, 95 . Flaler "treet,"ite 5E9, Diami, Florida 555E2972, this 04th day of "e'tem-er, 0EE3.

___________________________=irinia To*nes, >s8ireFlorida Bar No. 57493

BRIEF IN SUPPORT

TH> ?;=>:ND>NT"P;N";:>! >NT>:P:%">" C#N :>CL#%D TH> D;N>@ "C#DD>!O

F:;D TH>D B@ TH> B#NI"+ TH>@ #:> ?:;""L@ N>?L%?>NT %N F#%L%N? T; !; ";

Both the 'rin$i'al sm and the illeal 'rofits enerated -y the -ank $an theoreti$ally -e re$laimed -y

Fannie Dae and Freddie Da$ (*hi$h, iven the he a's in the a$$onts of these and other?overnment"'onsored >nter'rises, they rently need to do), sin$e it *as their fnds that *ereo-tained -y frad in the first 'la$e. These $an -e re$overed *ith the Ai Tam #$t.

;f $orse *e are no* *ell and trly lookin throh the Lookin?lass, -e$ase Fannie Dae, FreddieDa$, the Federal Home Loan Bank "ystem and other relevant ?overnment"'onsored >nter'rises (or?">s) and the -anks themselves are all a$tally overnment aen$iesO M althoh the do-leminded'hrase ?overnment"'onsored >nter'rise itself ives the lie to s$h o-fs$ation and the -anks areinde'endent orani


29/80

dis$lose, the $ontra$ts *ere sho*n to have -een illeal.

The -anks a''ealed aainst this ot$ome, and lost. #s a $onse8en$e, thosands of homeo*ners hadmillions in 'ayments and fees retrned to them. Ho*ever the $ase in 8estion did N;T -rin ' any ofthe isses dis$ssed in or analysis.

hen loans are etended, the 'arty etendin the loan DU"T 'rovide FULL !%"CL;"U:>, or thetransa$tion is illeal. #nother thorny 'ro-lem fa$in -anks is that on$e a -ankin $or'oration has$ommitted an ltra vires a$tion, their $harter is re8ired to -e ss'ended and they are o-lied to $easeall -siness transa$tions immediately ntil reinstated -y the "tate -ankin athority.

hile in this $ondition, -anks may not enter into any $ontra$ts, nor may they se in $ort. hat, then,does this mean for #LL TH> BU"%N>"" that they have $ond$ted "%NC> the first ltra vires a$tion*as $ommittedJ

:eferen$e+

Kanary 6, 0EE

E%+'> U.S. A))3(9 G(&%+ #,=== DOJ P(-'(;

I(-')7()+ T&;)'(; F'(&('&% F&-, A(- N&)'3(&% S')9

htt'+***.familyse$ritymatters.or'-li$ationsid.6095'-_detail.as'

C. #stin Brrell

T;P ">C:>T B#NI>:" D#NU#Lhtt'+$irrs.maillist.$om'ay$he$k'ira$yBankersDanalTo'"e$ret.'df

!avid Da$k itness

MEMORANDUM OF LAW BANK FRAUD

% have, throh resear$h, learned the follo*in to -e tre and most likely a''lies to me, *hi$h is thereason % have re8ested and demanded the -ankG to validate their $laims and 'rod$e 'rsant toa''li$a-le la*. This D>D;:#N!UD serves to s''ort my ss'i$ions and identify $riminal fa$ts. The-ankG alleedly loaned me their moneyG *hen in reality they de'osited ($redited) my 'romissory noteand sed that de'osit to 'ay my sellerG. "or$e and reasonin after revie*in the oriinal file $learlysho*s this fa$t, *hi$h is the reason for the -ankG refsin and failin to validate and to 'rod$e as

sti'lated -y la*. Ho*ever, the trth is ot and there is 'lenty of la* -a$kin ' the fa$t that the -ank is$riminal.

FORECLOSURE ACTIONS AND CASES LAWFULLY DISMISSED NOT LETTING BANK

FORECLOSE WITHOUT LAWFUL VALIDATION AND PRODUCTION BY THE COURTS DUE

TO BANKS FAILURE TO VALIDATE PRODUCE AS STIPULATED BY LAW AND

COMMITTED BANK FRAUD AGAINST THE BORROWER

FROM THE BAR ASSOCIATIONS OFFICIAL WEB SITE +... 0this Court has the responsi1ilit$ toassure itself that the foreclosure plaintiffs have standing and that su1ect matter urisdiction re3uirements

are met at the time the complaint is filed. 4ven without the concerns raised 1$ the documents the plaintiffs
http://www.familysecuritymatters.org/publications/id.5273/pub_detail.asphttp://www.familysecuritymatters.org/authors/id.150/author_detail.asphttp://cirrus.mail-list.com/paycheck-piracy/Bankers-Manual-Top-Secret.pdfhttp://www.familysecuritymatters.org/publications/id.5273/pub_detail.asphttp://www.familysecuritymatters.org/authors/id.150/author_detail.asphttp://cirrus.mail-list.com/paycheck-piracy/Bankers-Manual-Top-Secret.pdf


30/80

have filed, there is reason to 3uestion the e5istence of standing and the urisdictional amount0. "ver 6cases are covered 1$ the +A at8htt'+***.a-anet.orr'te'-li$ationsere'ort0EE45;hiofore$losres.'df

# national -ank has no 'o*er to lend its $redit to any 'erson or $or'oration . . . Bo*en v. Needles Nat.Bank, 32 F 306 57 CC# 665, $ertiorari denied in 0E ".Ct E02, 97 U" 740, 22 L>! 759.

Contry*ide Home Loans, %n$. v Taylor Dayer, K., "'reme Cort, "ffolk Conty 3E9

#meri$an Brokers Condit v. #D#LL;# Kde "CH#CI 04Kan0EE4

#rora Loan "ervi$es v. D#CPH>:";N Kde F#:N>T% Dar0EE4

# -ank may not lend its $redit to another even thoh s$h a transa$tion trns ot to have -een of -enefitto the -ank, and in s''ort of this a list of $ases miht -e $ited, *hi$h*old look like a catalog of ships.G&>m'hasis added Norton ?ro$ery Co. v. Peo'les Nat. Bank, 22 "> 6E6. 6 =a 36.

%n the federal $orts, it is *ell esta-lished that a national -ank has not 'o*er to lend its $redit to another -y

-e$omin srety, indorser, or arantor for him.G Farmers and Diners Bank v. Blefield Nat l Bank, F0d 45, 09 U.". 773.

Bank of Ne* @ork v. "%N?H Kde IU:T 2!e$0EE9

Bank of Ne* @ork v. T;::>" Kde C;"T>LL; Dar0EE4

Bank of Ne* @ork v. ;:;"C; Kde "CH#CI 3Nov0EE9

Citi Dortae %n$. v. B:;N Kde F#:N>T% 5Dar0EE4

The do$trine of ltra vires is a most 'o*erfl *ea'on to kee' 'rivate $or'orations *ithin their leitimates'heres and to 'nish them for violations of their $or'orate $harters, and it 'ro-a-ly is not invoked toooftenS. in$ Car-onate Co. v. First National Bank, E5 is 06, 93 N 003. #meri$an >'ress Co. v.CitiLL; 5Dar0EE4

!ets$he Bank v. BarnesKdment >ntry

!ets$he Bank v. Barnesithdra*al of ;-e$tions and Dotion to !ismiss!ets$he Bank v. #L>D#N@ Kde C;"T>LL; E9Kan0EE4


31/80

!ets$he Bank v. Benamin C:U M Kde IU:T 0Day0EE4!ets$he Bank v. @o-anna C:U Kde IU:T 0Day0EE4!ets$he Bank v. C#B#:;@ Kde C;"T>LL; E0#'r0EE4!ets$he Bank v. C#"T>LL#N;" 0EE9N@"li';'6E394U Kde "CH#CI Day0EE9

!ets$he Bank v. C#"T>LL#N;" 0EE4N@"li';'6EE55U Kde "CH#CI 2Kan 0EE4

H"BC v. =alentin Kde "CH#CI $alls them liars and dismisses %TH 'redi$e RR

!ets$he Bank v. CL;U!>N 0EE9N@"li';'6 979U Kde "CH#CI 4"e'0EE9

!ets$he Bank v. >#?U% Kde "CH#CI 0!e$0EE9

!ets$he Bank v. ?:#NT Kde "CH#CI 06#'r0EE4

!ets$he Bank v. H#::%" Kde "CH#CI E6Fe-0EE4

!ets$he Bank v. LaCrosse, Cede, !TC Com'laint

!ets$he Bank v. N%CH;LL" Kde IU:T 0Day0EE4

!ets$he Bank v. :@#N Kde IU:T 03Kan0EE4

!ets$he Bank v. "#DP";N Kde IU:T 7Kan0EE4

!ets$he v. Dar$he ;rder to "ho* Case to =#C#T> Kdment of Fore$losre M Kne0EE3

?D#C Dortae LLC v. D#TTH>" Kde IU:T EKan0EE4?D#C Dortae LLC v. ">:#F%N> Kde C;"T>LL; E4Kan0EE4

H"BC Bank U"# N# v. C%P:%#N% Kde C;"T>LL; E4Kan0EE4H"BC Bank U"# N# v. K#CI Kde C;"T>LL; E0#'r0EE4%ndyDa$ Bank F"B v. :;!N>@:;"" Kde IU:T 6Kan0EE4La"alleBank N# v. CH#:L>U" Kde IU:T E5Kan0EE4La"alleBank N# v. "D#LL" Kde IU:T E5Kan0EE4PHH Dortae Cor' v. B#:B>: Kde IU:T 6Kan0EE4Pro'erty #sset Danaement v. HU#@T# E6!e$0EE9

:ivera, %n :e "ervi$es LLC v. "#TT#: 0EE9N@"li';'6 436U Kde "CH#CI E3;$t0EE9

U"Bank N# v. #U?U"T> Kde IU:T 09Nov0EE9U"Bank N# v. ?:#NT Kde IU:T 2!e$0EE9

U"Bank N# v. :;UN!T:>> Kde BU:I> ;$t0EE9U"Bank N# v. =%LL#:U>L Kde IU:T EFe-0EE4

ells Faro Bank N# v. H#DPT;N Kde IU:T E5 Kan0EE4

ells Faro, Litton Loan v. Farmer %TH P:>KU!%C> Kde "$ha$k Kne0EE4

ells Faro v. :eyes %TH P:>KU!%C>, Frad on Cort X "an$tions Kde "$ha$k Kne0EE4


32/80

!ets$he Bank v. Pea-ody Kde Nolan (:elation )

%ndyma$ Bank,F"B v. Boyd "$ha$k K. Kanary 0EE3

%ndyma$ Bank, F"B v. Bethley "$ha$k, K. Fe-rary 0EE3 ( The tale of many hats)

La"alle Bank Natl. #ssn. v #hearn #''ellate !ivision, Third !e'artment (Pro "e)

N> K>:">@ C;U:T !%"D%"">" F;:>CL;"U:> F%L>! B@ !>UT"CH> B#NI F;: F#%LU:>T; P:;!UC> TH> N;T>

hittiker v. !ets$he (D>D;:#N!UD %N ;PP;"%T%;N T; !>F>N!#NT"O D;T%;N" T;!%"D%""* hittiker (PL#%NT%FF"O ;BK>CT%;N" T; :>P;:T #N! :>C;DD>N!#T%;N) hittiker(!>F>N!#NT >LTD#N, >%NB>:? X :>%" C;., LP#O" :>"P;N"> T; PL#%NT%FF"O;BK>CT%;N" T; :>P;:T #N! :>C;DD>N!#T%;N) hittiker (:>"P;N"> T; PL#%NT%FF"O;BK>CT%;N" T; D#?%"T:#T> KU!?> P>#:";NO" :>P;:T #N! :>C;DD>N!#T%;N T;?:#NT %T" D;T%;N T; !%"D%"")

Novastar v. "nyder R )lack of standing* "nyder )motion to amend w9preudice* "nyder )response to amend*

ashinton Dtal v. City of Cleveland )WA%:s motion to dismiss*

0EE4;hio991 !LK Dte. Ca'ital, %n$. v. Parsons (S; eversed for lack of standing)

>verhome v. :o*land

!ets$he Class #$tion (:%C;) Bank of Ne* @ork v. T;::>" Kde

C;"T>LL; Dar0EE459.!ets$he Bank #ns*er hittiker

54.Danley #ns*er hittiker53.Ksti$e #rthr D. "$ha$k2E.Kde Hols$hh "ho* $ase2.Kde Hols$hh !ismissals20.Kde Boykos !ets$he Bank Fore$losres25.

:ose Com'laint for Fore$losre :ose !ismissals22.;Dalley !ismissals26.City ;f Cleveland v. Banks27.!o*d !ismissal29.>DC $ant find the note24.


33/80

;$*en $ant find the note23.U" Bank $ant find the Note6E.U" Bank No Note6.Iey Bank No Note

60.ells Faro !efe$tive 'leadin

Com'laint in Ka$k v. D>:", Citi, !ets$he

?D#C v. Darsh

Dassa$hsetts + :o-in Hayes v. !ets$he Bank

Florida+ !ets$he Banks "mmary Kdment !enied

Teas+ D>:" v. @on 0nd Cir$it Cort of #''eals P#N>L+ L%=%N?"T;N, !#UPH%N;T, andDCC;@, KK.

Nevada+ D>:" $rshed+ %n re Dit$hell

Neither, as in$lded in its 'o*ers not in$idental to them, is it a 'art of a -anks -siness to lend its $redit. %fa -ank $old lend its $redit as *ell as its money, it miht, if it re$eived $om'ensation and *as $arefl to 'tits name only to solid 'a'er, make a reat deal more than any la*fl interest on its money *old amont to.%f not $arefl, the 'o*er *old -e the mother of 'ani$s, . . . %ndeed, lendin $redit is the ea$t o''osite oflendin money, *hi$h is the real -siness of a -ank, for *hile the latter $reates a lia-ility in favor of the-ank, the former ives rise to a lia-ility of the -ank to another.< %orse. +anks and +anking 6th >d. "e$ 761%agee, +anks and +anking, 5rd >d. "e$ 024. #meri$an >'ress Co. v. Citi 02, 50 L:# (N") 66E.

.. . the -ank is allo*ed to hold money 'on 'ersonal se$rity1 -t it mst -e money that it loans, not its

$redit. "eliman v. Charlottesville Nat. Bank, 5 Hhes 729, Fed Case No.0, 720, E53.

# loan may -e defined as the delivery -y one 'arty to, and the re$ei't -y another 'arty of, a sm of money'on an areement, e'ress or im'lied, to re'ay the sm *ith or *ithot interest. Parsons v. Fo 93 ?a7E6, 97 "> 722. #lso see Iirkland v. Bailey, 66 "> 0d 9E and United "tates v. Neifert hite Co., 029Fed "'' 494, 493.

The *ord money in its sal and ordinary a$$e'tation means old, silver, or 'a'er money sed as a$ir$latin medim of e$hane . . . Lane v. :ailey 04E Iy 53, 55 " 0d 96.


34/80

# 'romise to 'ay $annot, -y arment, ho*ever inenios, -e made the e8ivalent of a$tal 'ayment ...Christensen v. Bee-e, 3 P 55, 50 Utah 2E7.

# -ank is not the holder in de $orse 'on merely $reditin the de'ositors a$$ont.G Bankers Trst v.Naler, 003 N@" 0d 20, 25.

# $he$k is merely an order on a -ank to 'ay money. @on v. Hem-ree, 95 P0d 535

#ny false re'resentation of material fa$ts made *ith kno*lede of falsity and *ith intent that it shall -ea$ted on -y another in enterin into $ontra$t, and *hi$h is so a$ted 'on, $onstittes frad, and entitles'arty de$eived to avoid $ontra$t or re$over damaes. Barnsdall :efinin Corn. v. Birnam ood ;il Co. 30F 07 49.

#ny $ond$t $a'a-le of -ein trned into a statement of fa$t is re'resentation. There is no distin$tion-et*een misre'resentations effe$ted -y *ords and misre'resentations effe$ted -y other a$ts. Leonard v."'riner 39 %ll 650. 72 N> 5E.

%f any 'art of the $onsideration for a 'romise -e illeal, or if there are several $onsiderations for annsevera-le 'romise one of *hi$h is illeal, the 'romise, *hether *ritten or oral, is *holly void, as it isim'ossi-le to say *hat 'art or *hi$h one of the $onsiderations ind$ed the 'romise.G Denominee :iver Co.v. #sts "'ies L X C Co.,29 is 6636901 50 N 00.

The $ontra$t is void if it is only in 'art $onne$ted *ith the illeal transa$tion and the 'romise sinle orentire.G ?ardian #en$y v. ?ardian Dt. "avins Bank, 009 is 66E, 093 N 45.

%t is not ne$essary for re$ision of a $ontra$t that the 'arty makin the misre'resentation shold have kno*nthat it *as false, -t re$overy is allo*ed even thoh misre'resentation is inno$ently made, -e$ase it*old -e nst to allo* one *ho made false re'resentations, even inno$ently, to retain the frits of a-arain ind$ed -y s$h re'resentations.G hi'' v. %verson, 25 is 0d 77.

>a$h Federal :eserve -ank is a se'arate $or'oration o*ned -y $ommer$ial -anks in its reion ... Le*is v.United "tates, 74E F 0E 053 (340).

HOW AND WHY THE BANKS SECRETLY AND UICKLY

SWITCH CURRENCY

NOT FULFILL THE LOAN AGREEMENT (THE CONTRACT)

OBTAIN YOUR MORTGAGE NOTE WITHOUT INVESTING ONE CENT

TO FORCE YOU TO LABOR TO PAY INTEREST ON THE CONTRACT

TO REFUSE TO FULFILL THE CONTRACT

TO MAKE YOU A DEPOSITOR (NOT A BORROWER)

The oldest s$heme throhot History is the $hanin of $rren$y. :emem-er the money$haners in thetem'le (B%BL>)J "If you !# $o!y %o My &!o&!' %o %! &oo *$o+ you' you *! o% %o *,% *- *,!#.%o %o .$/ you -* o% ,*+! .$ .%!!-%0 E1o#u- 223245 They $haned $rren$y as a -siness.@o *old have to $onvert to Tem'le $rren$y in order to -y an animal for sa$rifi$e. The Tem'leDer$hants made money -y the e$hane. The Bi-le $alls it nst *eihts and measres, and des it to -e


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an a-omination. Kess $leared the Tem'le of these a-ominations. ;r Christian Fondin Fathers did thesame. Ben Franklin said in his ato-iora'hy, ... the ina-ility of the $olonists to et the 'o*er to isse theiro*n money 'ermanently ot of the hands of Iin ?eore %%% and the international -ankers *as the 'rimereason for the revoltionary *ar.G The year 35 *as the third attem't -y the >ro'ean -ankers to et theirsystem -a$k in 'la$e *ithin the United "tates of #meri$a. President #ndre* Ka$kson ended the se$ondattem't in 457. hat they $old not *in militarily in the :evoltionary ar they attem'ted to a$$om'lish-y a -ankin money s$heme *hi$h allo*ed the >ro'ean Banks to o*n the mortaes on nearly every

home, $ar, farm, ran$h, and -siness at no $ost to the -ank. :e8irin e the Peo'leG to 'ay interest onthe e8ity *e lost and the -ank ot free.

Today 'eo'le -elieve that $ash and $oins -a$k ' the all $he$ks. %f yo de'osit EE of $ash, the -ankre$ords the $ash as a -ank asset (de-it) and $redits a !emand !e'osit #$$ont (!!#), sayin that the -anko*es yo EE. For the EE lia-ility the -ank o*es yo, yo may re$eive $ash or *rite a $he$k. %f yo*rite a EE $he$k, the EE lia-ility yor -ank o*es yo is transferred to another -ank and that -ank o*esEE to the 'erson yo *rote the $he$k to. That 'erson $an *rite a EE $he$k or re$eive $ash. "o far thereis no 'ro-lem.

:emem-er one thin ho*ever, for the $he$k to -e valid there mst first -e a de'osit of money to the -anksASSETS, to make the $he$k (lia-ility) ood. The lia-ility is like a HOLDING ACCOUNT $laimin that

money *as de'osited to make the $he$k ood.

H )5(, '+ 53@ )5 +@')5 '( (9 )&6+ 8%&

The -ank advertises it loansO money. The -ank says, sin here. Ho*ever the -ank never sins -e$asethey kno* they are not oin to lend yo theirs, or other de'ositors money. Under the la* of -ankr't$y ofa nation, the mortae note a$ts like money. The -ank makes it look like a loan -t it is not. I) '+ &(5&(;.

T5 :&(6 '>+ )5 ')9 '( )5 537 93 & :9'(;, *3 *, '( 5&(; *3 &( (8&'- :&(6

%'&:'%')9 )5&) )5 :&(6 &((3) 8&9, @')53) )('(; )5 73);&; (3). I* )5 :&(6 5&- *%*'%%- ')+

(- 3* )5 3()&), )5 :&(6 3%- (3) 5&> '>- )5 ')9 '( 93 537 *3 *.

T5 :&(6 '>+ 93 73);&; (3) @')53) '(>+)'(; 3 '+6'(; 3(


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To 'ay this lia-ility the -ank mst retrn the mortae note to yo. Ho*ever instead of the -ank 'ayin thelia-ility it o*es yo, the -ank demands yo se these n'aid -ank lia-ilities, $reated in the alleed loan'ro$ess, as the ne* $rren$y. No* yo mst la-or to earn the -ank $rren$y (n'aid lia-ilities $reated inthe alleed loan 'ro$ess) to 'ay -a$k the -ank. hat the -ank re$eived for free, the individal lost in e8ity.

%f yo tried to re'ay the -ank in like kind $rren$y, (*hi$h the -ank de'osited *ithot yor athori@G 'ae seven,...-7&(- -83+') &3()+ & (3) %;&% )(-... %f a 'romissory note is leal tender, the -ank msta$$e't it to dis$hare the mortae note. The -ank $haned the $rren$y from the money de'osited,

(mortae note) to $he$k -ook money (lia-ility the -ank o*es for the mortae note de'osited) for$in sto la-or to 'ay interest on the e8ity, in real 'ro'erty (real estate) the -ank re$eived for free. This $ost *asnot dis$losed in NOTICE TO CUSTOMER REUIRED BY FEDERAL LAW, F-&% R+>R;%&)'3( .

hen a -ank says they ave yo $redit, they mean they $redited yor transa$tion a$$ont, leavin yo *iththe 'resm'tion that they de'osited other de'ositors money in the a$$ont. The fa$t is they de'osited yormoney (mortae note). The -ank $annot $laim they o*n the mortae note ntil they loan yo theirmoney. %f -ank de'osits yor money, they are to $redit a !emand !e'osit #$$ont nder yor name, so yo$an *rite $he$ks and s'end yor money. %n this $ase they $laim yor money is their money. #sk a $riminalattorney *hat ha''ens in a fradlent $onversion of yor fnds to the -anks se and -enefit, *ithot yorsinatre or athori


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nderstand it. You $u-% u#!-%*# %! ,u!,y -6.%,.

The -ank does not loan money. The -ank merely s*it$hes the $rren$y. The alleed -orro*er $reatedmoney or $rren$y -y sim'ly sinin the mortae note. The -ank does not sin the mortae note -e$asethey kno* they *ill not loan yo their money. The mortae note a$ts like money. To make it look like the-ank loaned yo money the -ank de'osits yor mortae note (lien on 'ro'erty) as money from *hi$h toisse a $he$k. No money *as loaned to leally flfill the $ontra$t for the -ank to o*n the mortae note.

By doin this, the -ank re$eived the lien on the 'ro'erty *ithot riskin or sin one $ent. The 'eo'le lostthe e8ity in their homes and farms to the -ank and no* they mst la-or to 'ay interest on the 'ro'erty,*hi$h the -ank ot for free and they lost.The $he$k is not money, the $he$k merely transfers money and -y transferrin money the $he$k a$ts L%I>money. The money de'osited is the mortae note.


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%f the -anks loaned leal tender, this *old never ha''en and the home *old $ost m$h less. %f yo allo*someone to o-tain liens for free and $reate a ne* $rren$y, *hi$h is not leal tender and yo mst se lealtender to re'ay. This $hanes the $ost and the risk.

Under this -ank s$heme, even if everyone in the nation o*ned their homes and farms de-t free, the -anks*old soon re$eive the liens on the 'ro'erty in the loan 'ro$ess. The liens the -anks re$eive for free, are*hat the 'eo'le lost in 'ro'erty, and no* mst la-or to 'ay interest on. The interest *old not -e 'aid if the

-anks flfilled the $ontra$t they *rote. %f there is e8al 'rote$tion nder the la* and $ontra$t, yo $old etthe mortae note -a$k *ithot frther la-or. hy shold the -ank et yor mortae note and yor la-orfor free *hen they refse to flfill the $ontra$t they *rote and told yo to sinJ

"orry for the redndan$y, -t it is im'ortant for yo to kno* -y heart their shell ameG, % *ill $ontine inthat redndan$y as it is im'erative that yo nderstand the 'rin$i'le. The follo*in material is $ase la* onthe s-e$t and other related leal isses as *ell as a smmary.

LOGIC AS EVIDENCE

The $he$k *as *ritten *ithot ded$tin fnds from "avins #$$ont or Certifi$ate of !e'osit allo*inthe mortae note to -e$ome the ne* 'ool of money o*ed to !emand !e'osit #$$ont, "avins #$$ont,Certifi$ate of !e'osit *ith !emand !e'osit, "avins #$$ont, andor Certifi$ate of !e'osit in$reasin -ythe amont of the mortae note. %n this $ase the -ankers sell the mortae note for Federal :eserve BankNotes or other assets *hile still o*in the lia-ility for the mortae note sold and *ithot the -ank ivin' any Federal :eserve Bank Notes.

%f the -ank had to 'art *ith Federal :eserve Bank Notes, and *ithot the -enefit of $he$ks to hide thefradlent $onversion of the mortae note from *hi$h it isses the $he$k, the -ank frad *old -ee'osed.

Federal :eserve Bank Notes are the only money $alled leal tender. %f only Federal :eserve Bank Notes arede'osited for the $redit to !emand !e'osit #$$ont "avins #$$ont, Certifi$ate of !e'osit, and if the-ank *rote a $he$k for the mortae note, the $he$k then transfers Federal :eserve Bank Notes and the-ank ives the -orro*er a -ank asset. There is no in$rease in the $he$k -ook money s''ly that eists in the

loan 'ro$ess.

The -ank 'oli$y is to in$rease -ank lia-ilities1 !emand !e'osit #$$ont, "avins #$$ont, Certifi$ate of!e'osit, -y the mortae note. %f the mortae note is money, then the -ank never ave ' a -ank asset.The -ank sim'ly sed fradlent $onversion of o*nershi' of the mortae note. The -ank $annot o*n themortae note ntil the -ank flfills the $ontra$t.

The $he$k is not the money1 the money is the de'osit that makes the $he$k ood. %n this $ase, the mortaenote is the money from *hi$h the $he$k is issed. ho o*ns the mortae note *hen the mortae note isde'ositedJ The -orro*er o*ns the mortae note -e$ase the -ank never 'aid money for the mortae noteand never loaned money (-ank asset). The -ank sim'ly $laimed the -ank o*ned the mortae note *ithot'ayin for it and de'osited the mortae note from *hi$h the $he$k *as issed. This is fradlent

$onversion. The -ank risked nothinZ Not even one 'enny *as invested. They never took money ot of anya$$ont, in order to o*n the mortae note, as 'roven -y the -ookkee'in entries, finan$ial ratios, the-alan$e sheet, and of $orse the -anks literatre. The -ank sim'ly never $om'lied *ith the $ontra$t.

%f the mortae note is not money, then the $he$k is $he$k kitin and the -ank is insolvent and the -ank stillnever 'aid. %f the mortae note is money, the -ank took or money *ithot sho*in the de'osit, and*ithot 'ayin for it, *hi$h is fradlent $onversion. The -ank $laimed it o*ned the mortae note *ithot'ayin for it, then sold the mortae note, took the $ash and never sed the $ash to 'ay the lia-ility it o*edfor the $he$k the -ank issed. The lia-ility means that the -ank still o*es the money. The -ank mst retrnthe mortae note or the $ash it re$eived in the sale, in order to 'ay the lia-ility. >ven if the -ank did this,


39/80

the -ank still never loaned s the -anks money, *hi$h is *hat loan means. The $he$k is not money -tmerely an order to 'ay money. %f the mortae note is money then the -ank mst 'ay the $he$k -y retrninthe mortae note.

The only *ay the -ank $an 'ay Federal :eserve Bank Notes for the $he$k issed is to sell the mortaenote for Federal :eserve Bank Notes. Federal :eserve Bank Notes are nonredeema-le in violation of theUCC. The -ank for$es s to trade in nonredeema-le 'rivate -ank notes of *hi$h the -ank refses to 'ay

the lia-ility o*ed. hen *e 'resent the Federal :eserve Bank Notes for 'ayment the -ank st ives s-a$k another Federal :eserve Bank Note *hi$h the -ank 'aid 0 0 $ents for 'er -ill reardless ofdenomination.

W5&) & 83*') *3 )5 :&(6

The $he$k issed $an only -e redeemed in Federal :eserve Bank Notes, *hi$h the -ank o-tained -y sellinthe mortae note that they 'aid nothin for.

The -ank for$es s to trade in -ank lia-ilities, *hi$h they never redeem in an asset. e the 'eo'le arefor$ed to ive ' or assets to the -ank for free, and *ithot $ost to the -ank. This is fradlent $onversionmakin the $ontra$t, *hi$h the -ank $reated *ith their 'oli$y of -ookkee'in entries, illeal and the alleed$ontra$t nll and void.The -ank has no riht to the mortae note or to a lien on the 'ro'erty, ntil the -ank 'erforms nder the$ontra$t. The -ank had less than ten 'er$ent of Federal :eserve Bank Notes to -a$k ' the -ank lia-ilitiesin !emand !e'osit #$$ont, "avins #$$ont, or Certifi$ate of !e'osits. # -ank lia-ility to 'ay money isnot money. hen *e try and re'ay the -ank in like fnds (s$h as is the -anks 'oli$y to de'osit from *hi$hto isse $he$ks) they $laim it is not money. The -anks $onfsin and de$e'tive trade 'ra$ti$es and theiralleed $ontra$ts are n$ons$iona-le.

SUMMARY OF DAMAGES

The -ank made the alleed -orro*er a de'ositor -y de'ositin a EE,EEE neotia-le instrment, *hi$h the-ank sold or had availa-le to sell for a''roimately EE,EEE in leal tender. The -ank did not $redit the-orro*ers transa$tion a$$ont sho*in that the -ank o*ed the -orro*er the EE,EEE. :ather the -ank

$laimed that the alleed -orro*er o*ed the -ank the EE,EEE, then 'la$ed a lien on the -orro*ers real'ro'erty for EE,EEE and demanded loan 'ayments or the -ank *old fore$lose.

The -ank de'osited a nonleal tender neotia-le instrment and e$haned it for another non leal tender$he$k, *hi$h traded like money, sin the de'osited neotia-le instrment as the money de'osited. The-ank $haned the $rren$y *ithot the -orro*ers athori


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D&7&;+ '+) '( )5&) )5 :&(6 *++ )3 %3&( )5' 73(9. The -ank denies the alleed -orro*er e8al'rote$tion nder the la* and $ontra$t, -y merely e$hanin one $rren$y for another and refsinre'ayment in the same ty'e of $rren$y de'osited. The -ank refsed to flfill the $ontra$t -y not loanin themoney, and -y the -ank refsin to -e re'aid in the same $rren$y, *hi$h they de'osited as an e$hane foranother $rren$y. # de-t tender offered and refsed is a de-t 'aid to the etent of the offer. The -ank has noathori Suppose the @ederal eserve S$stem,through its trading desk at the @ederal eserve +ank of ew Bork, 1u$s &, of reasur$ 1ills from a

dealer in .S. government securities.


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S$stem has added &, of securities to its assets, which it has paid for, in effect, 1$ creating a lia1ilit$on itself in the form of 1ank reserve 1alances. hese reserves on +ank A:s 1ooks are matched 1$ &, of

the dealer:s deposits that did not e5ist 1efore.

P;"%T N;T>" #N! %""U> B#NI CH>CI". TH> CH>CI" #:> ;NL@ #"?;;! #" TH> P:;D%"";:@ N;T>. N>#:L@ #LL B#NI CH>CI" #:> C:>#T>! F:;DP:%=#T> N;T>". F>!>:#L :>">:=> B#NI N;T>" #:> # P:%=#T> C;:P;:#T> N;T>(Cha'ter 24, 24 "tat 0) > U"> N;T>" T; !%"CH#:?> N;T>".

45cerpt from 1ooklet Bour %one$, page 78 "ther %& %one$

While demand deposits, travelerDs checks, and interestE1earing accounts with unlimited checking authorit$

are not legal tender, the$ are usuall$ accepta1le in pa$ment for purchases of goods and services.

The -ooklet, @or DoneyG, is distri-ted free of $hare. #dditional $o'ies may -e o-tained -y *ritin to+F-&% R+> B&(6 3* R'573(- P:%' S>'+ D8&)7() P.O. B3 2$22 R'573(-, V';'('&

2"2$1

CREDIT LOANS AND VOID CONTRACTS CASE LAW

%n the federal $orts, it is *ell esta-lished that a national -ank has not 'o*er to lend its $redit to another -y-e$omin srety, indorser, or arantor for him.G Farmers and Diners Bank v. Blefield Nat l Bank, F0d 45, 09 U.". 773.

# national -ank has no 'o*er to lend its $redit to any 'erson or $or'oration . . . Bo*en v. Needles Nat.

Bank, 32 F 306 57 CC# 665, $ertiorari denied in 0E ".Ct E02, 97 U" 740, 22 L>! 759.

The do$trine of ltra vires is a most 'o*erfl *ea'on to kee' 'rivate $or'orations *ithin their leitimates'heres and to 'nish them for violations of their $or'orate $harters, and it 'ro-a-ly is not invoked toooften .. .G in$ Car-onate Co. v. First National Bank, E5 is 06, 93 N 003. #meri$an >'ress Co. v.Citi 6E6. 6 =a 36.

%t has -een settled -eyond $ontroversy that a national -ank, nder federal La* -ein limited in its 'o*ersand $a'a$ity, $annot lend its $redit -y aranteein the de-ts of another. #ll s$h $ontra$ts entered into -yits offi$ers are ltra vires . . . Ho*ard X Foster Co. v. Citi963(307).

. . . $he$ks, drafts, money orders, and -ank notes are not la*fl money of the United "tates ...G "tate v.Neilon, 95 Pa$ 502, 25 ;re 74.

Neither, as in$lded in its 'o*ers not in$idental to them, is it a 'art of a -anks -siness to lend its $redit. %f


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a -ank $old lend its $redit as *ell as its money, it miht, if it re$eived $om'ensation and *as $arefl to 'tits name only to solid 'a'er, make a reat deal more than any la*fl interest on its money *old amont to.%f not $arefl, the 'o*er *old -e the mother of 'ani$s . . . %ndeed, lendin $redit is the ea$t o''osite oflendin money, *hi$h is the real -siness of a -ank, for *hile the latter $reates a lia-ility in favor of the-ank, the former ives rise to a lia-ility of the -ank to another.< %orse. +anks and +anking 6th >d. "e$ 761%agee, +anks and +anking, 5rd >d. "e$ 024. #meri$an >'ress Co. v. Citi 02, 50 L:# (N") 66E.46... . the -ank is allo*ed to hold money 'on 'ersonal se$rity1 -t it mst -e money that it loans, not its

$redit. "eliman v. Charlottesville Nat. Bank, 5 Hhes 729, Fed Case No.0, 720, E53.47.# loan may -e defined as the delivery -y one 'arty to, and the re$ei't -y another 'arty of, a sm of money'on an areement, e'ress or im'lied, to re'ay the sm *ith or *ithot interest. Parsons v. Fo 93 ?a7E6, 97 "> 722. #lso see Iirkland v. Bailey, 66 "> 0d 9E and United "tates v. Neifert hite Co., 029Fed "'' 494, 493.49.The *ord money in its sal and ordinary a$$e'tation means old, silver, or 'a'er money sed as a$ir$latin medim of e$hane . . . Lane v. :ailey 04E Iy 53, 55 " 0d 96.44.# 'romise to 'ay $annot, -y arment, ho*ever inenios, -e made the e8ivalent of a$tal 'ayment ...Christensen v. Bee-e, 3 P 55, 50 Utah 2E7.

43.# -ank is not the holder in de $orse 'on merely $reditin the de'ositors a$$ont.G Bankers Trst v.Naler, 003 N@" 0d 20, 25.3E.# $he$k is merely an order on a -ank to 'ay money. @on v. Hem-ree, 95 P0d 535.3.#ny false re'resentation of material fa$ts made *ith kno*lede of falsity and *ith intent that it shall -ea$ted on -y another in enterin into $ontra$t, and *hi$h is so a$ted 'on, $onstittes frad, and entitles'arty de$eived to avoid $ontra$t or re$over damaes. Barnsdall :efinin Corn. v. Birnam ood ;il Co..30 F 07 49.30.

#ny $ond$t $a'a-le of -ein trned into a statement of fa$t is re'resentation. There is no distin$tion-et*een misre'resentations effe$ted -y *ords and misre'resentations effe$ted -y other a$ts. Leonard v."'riner 39 %ll 650. 72 N> 5E.35.%f any 'art of the $onsideration for a 'romise -e illeal, or if there are several $onsiderations for annsevera-le 'romise one of *hi$h is illeal, the 'romise, *hether *ritten or oral, is *holly void, as it isim'ossi-le to say *hat 'art or *hi$h one of the $onsiderations ind$ed the 'romise.G Denominee :iver Co.v. #sts "'ies L X C Co., 29 is 663. 6901 50 N 00.32.The $ontra$t is void if it is only in 'art $onne$ted *ith the illeal transa$tion and the 'romise sinle or


43/80

entire.G ?ardian #en$y v. ?ardian Dt. "avins Bank, 009 is 66E, 093 N 45.36.%t is not ne$essary for res$ission of a $ontra$t that the 'arty makin the misre'resentation shold havekno*n that it *as false, -t re$overy is allo*ed even thoh misre'resentation is inno$ently made, -e$aseit *old -e nst to allo* one *ho made false re'resentations, even inno$ently, to retain the frits of a-arain ind$ed -y s$h re'resentations.G hi'' v. %verson, 25 is 0d 77.37.

>a$h Federal :eserve -ank is a se'arate $or'oration o*ned -y $ommer$ial -anks in its reion ... Le*is v.United "tates, 74E F 0E 053 (340).39.%n a !e-tors :%C; a$tion aainst its $reditor, allein that the $reditor had $olle$ted an nla*fl de-t, aninterest rate (*here all loan $hares *ere added toether) that e$eeded, in the lanae of the :%C;"tatte, t*i$e the enfor$ea-le rate. The Cort fond no reason to im'ose a re8irement that the Plaintiffsho* that the !efendant had -een $onvi$ted of $olle$tin an nla*fl de-t, rnnin a loan sharkino'eration. The de-t in$lded the fa$t that ea$tion of a srios interest rate rendered the de-t nla*fl andthat is all that is ne$essary to s''ort the Civil :%C; a$tion. !rante Bros. X "ons, %n$. v. Flshin Nat lBank. 966 F0d 053, Cert. denied, 295 U" 3E7 (346).34.

The "'reme Cort fond that the Plaintiff in a $ivil :%C; a$tion need esta-lish only a $riminal violationand not a $riminal $onvi$tion. Frther, the Cort held that the !efendant need only have $ased harm to thePlaintiff -y the $ommission of a 'redi$ate offense in s$h a *ay as to $onstitte a 'attern of :a$keteerina$tivity. That is, the Plaintiff need not demonstrate that the !efendant is an orani


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CONSIDERATION+ The ind$ement to a $ontra$t. The $ase, motive, 'ri$e or im'ellin inflen$es,*hi$h ind$es a $ontra$tin, 'arty to enter into a $ontra$t. The reason, or material $ase of a $ontra$t.

CHECK # draft dra*n 'on a -ank and 'aya-le on demand, sined -y the maker or dra*er, $ontainin ann$onditional 'romise to 'ay a $ertain sm in money to the order of the 'ayee. The Federal :eserve Boarddefines a $he$k as, ?...a draft or order upon a 1ank or 1anking house purporting to 1e drawn upon adeposit of funds for the pa$ment at all events of, a certain sum of mone$ to a certain person therein named,

or to him or his order, or to 1earer and pa$a1le instantl$ on demand of.?

UESTIONS ONE MIGHT ASK THE BANK IN AN INTERROGATORY

!id the -ank loan old or silver to the alleed -orro*erJ

!id the -ank loan $redit to the alleed -orro*erJ

!id the -orro*er sin any areement *ith the -ank, *hi$h 'revents the -orro*er from re'ayin the -ank in$reditJ

%s it tre that yor -ank $reates $he$k -ook money *hen the -ank rants loans, sim'ly -y addin de'osit

dollars to a$$onts on the -anks -ooks, in e$hane, for the -orro*ers mortae noteJ Has yor -ank, atany time, sed the -orro*ers mortae note, 'romise to 'ay, as a de'osit on the -anks -ooks from *hi$hto isse -ank $he$ks to the -orro*erJ

#t the time of the loan to the alleed -orro*er, *as there one dollar of Federal :eserve Bank Notes in the-anks 'ossession for every dollar o*ed in "avins #$$onts, Certifi$ates of !e'osits and $he$k #$$onts(!emand !e'osit #$$onts) for every dollar of the loanJ

#$$ordin to the -anks 'oli$y, is a 'romise to 'ay money the e8ivalent of moneyJ

!oes the -ank have a 'oli$y to 'revent the -orro*er from dis$harin the mortae note in like kindfnds *hi$h the -ank de'osited from *hi$h to isse the $he$kJ

!oes the -ank have a 'oli$y of violatin the !e$e'tive Trade Pra$ti$es #$tJ

hen the -ank loan offi$er talks to the -orro*er, does the -ank inform the -orro*er that the -ank ses the-orro*ers mortae note to $reate the very money the -ank loans ot to the -orro*erJ

!oes the -ank have a 'oli$y to sho* the same money in t*o se'arate 'la$es at the same timeJ

!oes the -ank $laim to loan ot money or $redit from savins and $ertifi$ates of de'osits *hile neverred$in the amont of money or $redit from savins a$$onts or $ertifi$ates of de'osits, *hi$h $stomers$an *ithdra* fromJ

Usin the -ankin 'ra$ti$e in 'la$e at the time the loan *as made, is it theoreti$ally 'ossi-le for the -ank tohave loaned ot a 'er$entae of the "avins #$$onts and Certifi$ates of !e'ositsJ

%f the ans*er is no to 8estion b5, e'lain *hy the ans*er is no.

%n reards to 8estion b5, at the time the loan *as made, *ere there enoh Federal :eserve Bank Noteson hand at the -ank to mat$h the fires re'resented -y every "avins #$$ont and Certifi$ate of !e'ositand $he$kin #$$ont (!emand !e'osit #$$ont)J

!oes the -ank have to o-ey, the la*s $on$ernin, Commer$ial Pa'er1 Commer$ial Transa$tions,


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Commer$ial %nstrments, and Neotia-le %nstrmentsJ

!id the -ank lend the -orro*er the -anks assets, or the -anks lia-ilitiesJ

hat is the $om'lete name of the -ankin entity, *hi$h em'loys yo, and in *hat risdi$tion is the -ank$harteredJ

hat is the -anks definition of Loan CreditJ

!id the -ank se the -orro*ers assmed mortae note to $reate ne* -ank money, *hi$h did not eist-efore the assmed mortae note *as sinedJ

!id the -ank take money from any !emand !e'osit #$$ont (!!#), "avins #$$ont ("#), or aCertifi$ate of !e'osit (C!), or any $om-ination of any !emand !e'osit #$$ont, "avins #$$ont orCertifi$ate of !e'osit, and loan this money to the -orro*erJ

!id the -ank re'la$e the money or $redit, *hi$h it loaned to the -orro*er *ith the -orro*ers assmedmortae noteJ

!id the -ank take a -ank asset $alled money, or the $redit sed as $ollateral for $stomers -ank de'osits, toloan this money to the -orro*er, andor did the -ank se the -orro*ers note to re'la$e the asset it loaned tothe -orro*erJ

!id the money or $redit, *hi$h the -ank $laims to have loaned to the -orro*er, $ome from de'osits ofmoney or $redit made -y the -anks $stomers, e$ldin the -orro*ers assmed mortae noteJ

Considerin the -alan$e sheet entries of the -anks loan of money or $redit to the -orro*er, did the -ankdire$tly de$rease the $stomer de'osit a$$onts (i.e. !emand !e'osit #$$ont, "avins #$$ont, andCertifi$ate of !e'osit) for the amont of the loanJ

!es$ri-e the -ookkee'in entries referred to in 8estion b5.

!id the -anks -ookkee'in entries to re$ord the loan and the -orro*ers assmed mortae note ever, atany time, dire$tly de$rease the amont of money or $redit from any s'e$ifi$ -ank $stomers de'osita$$ontJ

!oes the -ank have a 'oli$y or 'ra$ti$e to *ork in $oo'eration *ith other -anks or finan$ial instittions se-orro*ers mortae note as $ollateral to $reate an offsettin amont of ne* -ank money or $redit or $he$k-ook money or !emand !e'osit #$$ont enerally to e8al the amont of the alleed loanJ

:eardin the -orro*ers assmed mortae loan, ive the name of the a$$ont *hi$h *as de-ited to re$ordthe mortae.

:eardin the -ookkee'in entry referred to in %nterroatory b9, state the name and 'r'ose of thea$$ont, *hi$h *as $redited.

hen the -orro*ers assmed mortae note *as de-ited as a -ookkee'in entry, *as the offsettin entry a$redit a$$ontJ

:eardin the initial -ookkee'in entry to re$ord the -orro*ers assmed mortae note and the assmedloan to the -orro*er, *as the -ookkee'in entry $redited for the money loaned to the -orro*er, and *asthis $redit offset -y a de-it to re$ord the -orro*ers assmed mortae noteJ !oes the -ank $rrently or has


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it ever at anytime sed the -orro*ers assmed mortae note as money to $over the -anks lia-ilitiesreferred to a-ove, i.e. !emand !e'osit #$$ont, "avins #$$ont and Certifi$ate of !e'ositJ

hen the assmed loan *as made to the -orro*er, did the -ank have every !emand !e'osit #$$ont,"avins #$$ont, and Certifi$ate of !e'osit -a$ked ' -y Federal :eserve Bank Notes on hand at the-ankJ

!oes the -ank have an esta-lished 'oli$y and 'ra$ti$e to emit -ills of $redit *hi$h it $reates 'on its -ooksat the time of makin a loan areement and issin money or so$alled money of $redit, to its -orro*ersJ

SUMMARY

The -ank advertised it *old loan money, *hi$h is -a$ked -y leal tender. %s not that *hat the sym-ol meansJ %s that not *hat the $ontra$t saidJ !o yo not kno* there is no areement or $ontra$t in the a-sen$eof mtal $onsentJ The -ank may say that they ave yo a $he$k, yo o*e the -ank money. Thisinformation sho*s yo that the $he$k $ame from the money the alleed -orro*er 'rovided and the -anknever loaned any money from other de'ositors.

I> +53@( 93 )5 %&@ &(- )5 :&(6+ 3@( %')&) )3 83> 79 &+. #ll the -ank did *as tri$k yo.

They et yor mortae note *ithot investin one $ent, -y makin yo a de'ositor and not a -orro*er.T5 69 )3 )5 8QQ% '+, )5 :&(6 -'- (3) +';( )5 3()&) . I* )59 -'- )59 7+) %3&( 93 )5 73(9.I* )59 -'- (3) +';( '), 5&(+ &, )59 -83+')- )5 73);&; (3) '( & 56'(; &3() &(- +- ')

)3 '++ & 56 @')53) > %3&('(; 93 73(9 3 )5 :&(6 '(>+)'(; 3( ().

;r Nation, alon *ith every "tate of the Union, entered into Bankr't$y, in 355. This $hanes the la*from old and silverG leal money and $ommon la*G to the la* of -ankr't$y. Under Bankr't$y la* themortae note a$ts like money. ;n$e yo sin the mortae note it a$ts like money. The -ankers no* tri$kyo into thinkin they loaned yo leal tender, *hen they never loaned yo any of their money.

The tri$k is they made yo a de'ositor instead of a -orro*er. They de'osited yor mortae note and isseda -ank $he$k. N')5 )5 73);&; (3) (3 )5 56 '+ %;&% )(-. The mortae note and the $he$k

are no* money $reated that never eisted, 'rior. The -ank ot yor mortae note for free *ithot loaninyo money, and sold the mortae note to make the -ank $he$k a''ear leal. The -orro*er 'rovided theleal tender, *hi$h the -ank ave -a$k in the form of a $he$k. %f the -ank loaned leal tender, &+ )53()&) +&9+, for the -ank to leally o*n the mortae note, then the 'eo'le *old still o*n the homes,farms, -sinesses and $ars, nearly de-t free and 'ay little, if any interest. B9 )5 :&(6+ (3) *%*'%%'(; )53()&) :9 %3&('(; %;&% )(-, )59 7&6 )5 &%%;- :33@, & -83+')3. T5'+ '+ & *&-%()

3(>+'3( 3* )5 73);&; (3). A F&- '+ & *%3(9.

The -ank had no intent to loan, makin it 'romissory frad, mail frad, *ire frad, and a list of other $rimesa mile lon. Ho* $an they make a felony, lealJ They $annotZ Frad is fradZ

The -anks de'osit yor mortae note in a $he$kin a$$ont. The de'osit -e$omes the -ankOs 'ro'erty.

They *ithdra* money *ithot yor sinatre, and $all the money, the -anks money that they loaned to yo.The -ank forot one thin. %f the -ank de'osits yor mortae note, then the -ank mst $redit yor$he$kin a$$ont $laimin the -ank o*es yo EE,EEE for the EE,EEE mortae note de'osited. The$redit of EE,EEE the -ank o*es yo for the de'osit allo*s yo to *rite a $he$k or re$eive $ash. They didnot tell yo they de'osited the money, and they foret to tell yo that the EE,EEE is money the -anks o*eyo, not *hat yo o*e the -ank. @o lost EE,EEE and the -ank ained EE,EEE. For the EE,EEE the-ank ained, the -ank re$eived overnment -onds or $ash of EE,EEE -y sellin the mortae note. For theloan, the -ank re$eived EE,EEE $ash, the -ank did not ive ' EE,EEE.

#nytime the -ank re$eives a de'osit, the -ank o*es yo the money. @o do not o*e the -ank the money.


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%f yo or % de'osit anyones neotia-le instrment *ithot a $ontra$t athori+)- &(9 73(9 to re$eive 93 mortae note. hat is it they are $harin interest onJ

The -ank re$eived an asset. They never ave ' an asset. !id they 'ay interest on the money they re$eivedas a de'ositJ # $he$k issed on a de'osit re$eived from the -orro*er $ost the -ank nothinJ here did themoney $ome from that the -ank invested to $hare interest onJ The -ank may say *e re$eived a -enefit.hat -enefitJ ithot their -enefit *e *old re$eive e8al 'rote$tion nder the la*, *hi$h *old mean*e did not need to ive ' an asset or 'ay interest on or o*n moneyZ ithot their -enefit *e *old -efree and not enslaved. e *old have little de-t and interest instead of -ein enslaved in de-t and interest.The -anks -roke the $ontra$t, *hi$h they never intended to flfill in the first 'la$e. e ot a $he$k and ahose, *hile they re$eived a lien and interest for free, throh a -roken $ontra$t, *hile *e ot a de-t andlost or assets and or $ontry. The -enefit is the -anks, *ho have 'la$ed liens on nearly every asset in thenation, *ithot $ostin the -ank one $ent. %nflation and *orkin to 'ay the -ank interest on or o*n moneyis the -enefit. "ome -enefitZ

W5&) & S5%% G&7. T5 F3%%3@'(; &+ @&+ &( &)&% )'&% 3(('(; )5 '+++ @ 5&> 3>-.

T5 J-; @&+ )&3-'(&9 '(() +( 3*)(

(3;5 '( 3 3)+. T5'+ '+ )5 &% )5'(;, &:+3%)%9 ). T5'+ &+ @&+ >'@- :9 )5 M'((+3)&

S87 C3) 3( )5' 3@( 73)'3(. T5 %&+) )5'(; '( )5 @3%- )5&) )5 B&(6+ &(- )5 J-;+

@&()- @&+ &+ %&@ &;&'(+) )5 B&(6+. H3@>, )5'+ &+ %&@ '+ &%.

STATE OF MINNESOTA IN JUSTICE COURT COUNTY OF SCOTT TOWNSHIP OF CREDITRIVER

MARTIN V. MAHONEY, JUSTICE

FIRST BANK OF MONTGOMERY, P%&'()'**, CASE NO 1144

V+. JUDGMENT AND DECREE

J37 D&%9, D*(-&().


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The a-ove entitled a$tion $ame on -efore the $ort and a ry of 0 on !e$em-er 9, 374 at E+EE a.m.Plaintiff a''eared -y its President La*ren$e =. Doran and *as re'resented -y its Consel Theodore :.Dell-y, !efendant a''eared on his o*n -ehalf.# ry of Talesmen *ere $alled, im'aneled and s*orn to try the isses in this $ase. La*ren$e =. Doran*as the only *itness $alled for 'laintiff and defendant testified as the only *itness in his o*n -ehalf.Plaintiff -roht this as a Common La* a$tion for the re$overy of the 'ossession of lot 3, Fairvie* Bea$h,"$ott Conty, Dinn. Plaintiff $laimed titled to the :eal Pro'erty in 8estion -y fore$losre of a Note and

Dortae !eed dated Day 4, 372 *hi$h 'laintiff $laimed *as in defalt at the time fore$losre'ro$eedins *ere started. !efendant a''eared and ans*ered that the 'laintiff $reated the money and $redit'on its o*n -ooks -y -ookkee'in entry as the leal failre of $onsideration for the Dortae !eed andalleed that the "heriffOs sale 'assed no title to 'laintiff. The isses tried to the ry *ere *hether there *asa la*fl $onsideration and *hether !efendant had *aived his rihts to $om'lain a-ot the $onsiderationhavin 'aid on the note for almost 5 years. Dr. Doran admitted that all of the money or $redit *hi$h *assed as a $onsideration *as $reated 'on their -ooks that this *as standard -ankin 'ra$ti$e eer$ised -ytheir -ank in $om-ination *ith the Federal :eserve Bank of Dinnea'olis, another 'rivate -ank, frther thathe kne* of no United "tates "tatte of La* that ave the Plaintiff the athority to do this. Plaintiff frther$laimed that !efendant -y sin the leder -ook $reated $redit and -y 'ayin on the Note and Dortae*aived any riht to $om'lain a-ot the $onsideration and that !efendant *as esto''ed from doin so. #t

0+6 on !e$em-er 9, 374 the Kry retrned a nanimos verdi$t for the !efendant. No* therefore -yvirte of the athority vested in me 'rsant to the !e$laration of %nde'enden$e, the North*est ;rdinan$eof 949, the Constittion of the United "tates and the Constittion and la*s of the "tate Dinnesota notin$onsistent there*ith.

IT IS HEREBY ORDERED, ADJUDGED AND DECREED

That Plaintiff is not entitled to re$over the 'ossession of lot 3, Fairvie* Bea$h, "$ott Conty, Dinnesotaa$$ordin to the 'lat thereof on file in the :eister of !eeds offi$e. That -e$ase of failre of a la*fl$onsideration the note and Dortae dated Day 4, 372 are nll and void.

That the "heriffs sale of the a-ove des$ri-ed 'remises held on Kne 07, 379 is nll and void, of no effe$t.That Plaintiff has no riht, title or interest in said 'remises or lien thereon, as is a-ove des$ri-ed.That any 'rovision in the Dinnesota Constittion and any Dinnesota "tatte limitin theKrisdi$tion of this Cort is re'nant to the Constittion of the United "tates and to the Bill of :ihts ofthe Dinnesota Constittion and is nll and void and that this Cort has Krisdi$tion to render $om'leteKsti$e in this $ase.That !efendant is a*arded $osts in the sm of 96.EE and ee$tion is here-y issed therefore.# E day stay is ranted.The follo*in memorandm and any s''lemental memorandm made and filed -y this Cort in s''ort ofthis dment is here-y made a 'art hereof -y referen$e.

B@ TH> C;U:T!ated !e$em-er 3, 373

D#:T%N =. D#H;N>@Ksti$e of the Pea$e Credit :iver To*nshi' "$ott Conty, Dinnesota

MEMORANDUM

The isses in this $ase *ere sim'le. There *as no material dis'te on the fa$ts for the ry to resolve.Plaintiff admitted that it, in $om-ination *ith the Federal :eserve Bank of Dinnea'olis, *hi$h are for all'ra$ti$al 'r'oses -e$ase of their interlo$kin a$tivity and 'ra$ti$es, and -oth -ein Bankin %nstittions%n$or'orated nder the la*s of the United "tates, are in the La* to -e treated as one and the same Bank, did$reate the entire 2,EEE.EE in money or $redit 'on its o*n -ooks -y -ookkee'in entry. That this *as theConsideration sed to s''ort the Note dated Day 4, 372 and the Dortae of the same date. The Doneyand $redit first $ame into eisten$e *hen they $redited it.Dr. Doran admitted that no United "tates La* of "tatte eisted *hi$h ave him the riht to do this. #la*fl $onsideration mst eist and -e tendered to s''ort the note. ("ee #nheser Bs$h Bre*in Co. v.


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>mma Dason, 22 Dinn. 54. 27 N 664.) The Kry fond there *as no la*fl $onsideration and % aree;nly ?od $an $reate somethin of vale ot of nothin. >ven if defendant $old -e $hared *ith *aiver oresto''el as a matter of la* this is no defense to the 'laintiff. The la* leaves *rondoers *here it findsthem. ("ee se$tions 6E, 6 , and 60 of #m Kr 0d #$tions on 'ae 642.) No a$tion *ill lie to re$over on a$laim -ased 'on, or in any manner de'endin 'on, a fradlent, illeal, or immoral transa$tion or$ontra$t to *hi$h 'laintiff *as a 'arty. Plaintiffs a$t of $reatin is not athori


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s$heme is o-li8ely desined for the -enefit of an idle mono'oly to ro-, -la$kmail, and o''ress the'rod$ers of *ealth. The Federal :eserve #$t and the National Bank #$t are, in their o'eration and effe$t,$ontrary to the *hole letter and s'irit of the Constittion of the United "tates, for they $onfer an nla*fland nne$essary 'o*er on 'rivate 'arties1 they hold all of or fello* $iti "H#LL make anythin -t ?old and "ilver Coina leal tender 'ayment of de-ts is dire$t, $lear, nam-ios and *ithot any 8alifi$ation. This Cort is*ithot athority to inter'olate any e$e'tion. Dy dty is sim'ly to ee$te it, as and to 'ronon$e theleal reslt. From an eamination of the $ase of >d*ards v. Iearsey, Federal :eserve Bank Notes (fiatmoney) *hi$h are attem'ted to -e made a leal tender, are ea$tly *hat the athors of the Constittion ofthe United "tates intend to 'rohi-it. No "tate $an make these Notes a leal tender. Conress is in$om'etentto athori


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removed from Federal :eserve Bank Notes. The la* leaves *rondoers *here it finds them. ("ee % Der.Kr 0nd on #$tions "e$tion 66E)."lavery and all its in$idents, in$ldin Peonae, thralldom, and de-t$reated -y frad is niversally 'rohi-ited in the United "tates. This $ase re'resents -t another refined formof "lavery -y the Bankers. Their 'osition is not s''orted -y the Constittion of the United "tates. ThePeo'le have s'oken their *ill in terms, *hi$h $annot -e misnderstood. %t is indis'ensa-le to the'reservation of the Union and inde'enden$e and li-erties of the 'eo'le that this Cort, adhere only to themandate of the Constittion and administer it as it is *ritten. %, therefore, hold these Notes in 8estion void

and not effe$tal for any 'r'ose. (2) Kanary 5E, 373

Kde Dartin =. DahoneyKsti$e of the Pea$e Credit :iver To*nshi'

CREDIT LOANS AND VOID CONTRACTS PERFECT OBLIGATION AS TO A HUMAN BEING

AS TO A BANK

Frthermore, this Demorandm of la* is offered in order to advan$e nderstandin of the $om'le lealisses, 'resent and em-odied in the Common La*, *ith athorities, la* and $ases in s''ort of, *hi$h *ill$onstitte the follo*in fa$ts+

Privately o*ned -anks are makin loans of $redit *ith the intended 'r'ose of $ir$latin $redit as

money. ;ther finan$ial instittions and individals may lander -ank $redit that they re$eive dire$tly orindire$tly from 'rivately o*ned -anks. This $olle$tive a$tivity is n$onstittional, nla*fl, in violation ofCommon La*, U.". Code and the 'rin$i'les of e8ity. "$h a$tivity and nderlyin $ontra$ts have lon-een held void, -y "tate Corts, Federal Corts and the U.". "'reme Cort. This Demorandm *illdemonstrate throh athorities and esta-lished $ommon la*, that $redit money $reation -y 'rivatelyo*ned -ank $or'orations is not really money $reation at all. %t is the trade s'e$ialty and artfl illsion ofla* mer$hants, *hi$h se oldtime trade se$rets of the ?oldsmiths, to entra' the -orro*er and nstlyenri$h the lender throh sry and other nla*fl te$hni8es. %sses -ased on la* and the 'rin$i'les ofe8ity, *hi$h are *ithin the risdi$tion of this Cort, *ill -e addressed.

THE GOLDSMITHS

%n his -ook,%one$ and +anking (4th >dition, 342), Professor !avid :. Iamers$hen *rites on 'aes 6775+ The first -ankers in the modern sense *ere the oldsmiths, *ho fre8ently a$$e'ted -llion and $oinsfor storae ... ;ne reslt *as that the oldsmiths tem'orarily $old lend 'art of the old left *ith them . . .These loans of their $stomers old *ere soon re'la$ed -y a revoltionary te$hni8e. hen 'eo'le -rohtin old, the oldsmiths ave them notes 'romisin to 'ay that amont of old on demand. The notes, firstmade 'aya-le to the order of the individal, *ere later $haned to -earer o-liations. %n the 'revios form,a note 'aya-le to the order of Ke-idiah Kohnson *old -e 'aid to no one else nless Kohnson had firstendorsed the note ... Bt notes *ere soon -ein sed in an nforeseen *ay. The note holders fond that,*hen they *anted to -y somethin, they $old se the note itself in 'ayment more $onveniently and let theother 'erson o after the old, *hi$h the 'erson rarely did . . .The s'e$ie, then tended to remain in theoldsmiths valts. . . . The oldsmiths -ean to reali


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additional notes, rather than -y 'ayin ot in old. %n e$hane for the interest-earin note re$eived fromtheir $stomer (in effe$t, the loan $ontra$t), they ave their o*n noninterest -earin note. >a$h *asa$tally -orro*in from the other ... The advantae of the later 'ro$edre of lendin notes rather than old*as that . . . more notes $old -e issed if the old remained in the valts ... Ths, throh the 'rin$i'le of-ank note issan$e, 1anks learned to create mone$ in the form of their own lia1ilit$. &>m'hasis #dded

MODERN MONEY MECHANICS

#nother '-li$ation *hi$h e'lains modern -ankin as learned from the ?oldsmiths is %odern %one$%echanics (6th edition 330), '-lished -y the Federal :eserve Bank of Chi$ao *hi$h states -einnin on'ae 5+ %t started *ith the oldsmiths ... #t one time, -ankers *ere merely middlemen. They made a 'rofit-y a$$e'tin old and $oins -roht to them for safekee'in and lendin the old and $oins to -orro*ers.Bt the oldsmiths soon fond that the re$ei'ts they issed to de'ositors *ere -ein sed as a means of'ayment. Then, -ankers dis$overed that they $old make loans merely -y ivin -orro*ers their 'romisesto 'ay, or -ank notes... %n this *ay, -anks -ean to $reate money ... !emand de'osits

fed foreclosure petition

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