mortgage killer doc

7/29/2019 mortgage killer doc

1/51

Mortgage Killer: Another approach to Fight the Bank Things to do list: All names are case sensitive-John Doe or JOHN DO

!" #o the co$nt% recorders o&&ice 'here the ho$se is located (co$nt%) and ask &or theMortgage Deed o& Tr$st that is recorded 'ith them &or that propert%* that is the

original 'hen the original +loan, 'as taken o$t (not s$se.$ent assignments tone' Banks)" The &irst n$mer 'ill e the %ear (i"e" /001-1210343 'o$ld e the%ear /001)" Ask the 5lerk &or a 6certi&ied cop%7 it costs more $t is proo& o&eing an e8act cop% o& the original and 'ill e stamped to sho' it is a 6certi&iedcop%7" Take it home and 'rite the 'ords 6 9evoked* 9ecinded and 5ancelled7across it at a 1 degree angle starting in the lo'er le&t and proceeding to $pperright* (in 9D pen or B;$dice aove signat$re* John Doe ($pper andlo'er case-like %o$r normal signat$re)* and 'rite ?ettlor@ A$thoried9epresentative elo' %o$r signat$re" Make a cop% to practice on &irst e&oredoing certi&ied cop%"

/" #et %o$r cop% o& the romissor% Note that came 'ith all the paper'ork &rom %o$roriginal loan" The romissor% Note 'ill e called +NOT, and 'ill have6orro'ers promise to pa%7(it 'ont call %o$ settler) as the &irst n$mer and 'illonl% e C-1 pages and it is not a sec$rit% agreement or the Deed o& Tr$st" Thesigned part 'ill e lank and $s$all% have 1-3 empt% spaces 'ith the 'ord ?A;and Borro'er a&ter the line to sign on" Take %o$r $nsigned cop% (the one the%gave %o$* ,ve never seen a case 'here the% gave %o$ a cop% o& the original %o$signed at closeing)" A&ter making a cop% to practice on* take %o$r $n'ritten cop%to the Notar% and sign it in &ront o& them* sign at a 1 degree angle 'ith 6=itho$tpre>$dice aove sig"* %o$r signat$re (i"e" John Doe) and $nderneath %o$r normalsignat$re p$t 6as ?ettlor@A$thoried 9epresentative7 5op% and aste the Notar%

in&ormation on the ottom o& the Note s$ch as &or 5ali&ornia:

?tate o& 5ali&ornia )

5o$nt% o& EEEEEEEEEEEEE )

On EEEEEEEEEEEEEEEEEEE* /002* e&ore me EEEEEEEEEEEEEEEEEEEEEEEEEEEEE*personall% appearedEEEEEEEEEEEEEEEEEEEEEEEEEEEEE* 'ho proved to me on the asiso& satis&actor% evidence to e the person(s) 'hose name(s) is@are s$scried to the 'ithininstr$ment* and ackno'ledged to me that he@she@the% e8ec$ted the same in his@hera$thoried capacit%(ies)* and that % his@her@their signat$re(s) on the instr$ment* theperson(s) or entit% $pon ehal& o& 'hich the person(s) acted e8ec$ted the instr$ment" certi&% $nder NA;T OF 9J


2/51

A&ter getting it notaried Make !0 copies o& the notaried romissor% note and signedDeed o& Tr$st &or later"

C" =e 'ill then sign and get Notaried all the ?el&-8ec$ting 5ontract paper'ork inthe Doc$ments!section and incl$de these / doc$ments the certi&ied cop% o& theDeed o& Tr$st %o$ 'rote 69evoked* 9escinded and 5ancelled7 across and the

romissor% Note %o$ signed as stated aove and mail ever%thing o&& to Te8as toe recorded online here: http:@@'''"nationalrep$licregistr%"com@ t costs G3 &orthe &irst page and G/ &or each s$se.$ent page" A&ter getting the doc$ments acksho'ing recordation* sign the romissor% Note in 9ed ink at a 1 degree angleacross the &ront 6Accepted &or al$e* 8empt &rom ;ev%* John Henr% Doe*c$rrent date* (i"e" Jan$ar% !/th* /0!0)* e8emption "D"I (social sec$rit% I with nodashes)* deposit to


3/51

e8ample, Foreclos$re ?el&-8ec$ting 5ontract listed athttp:@@'''"scrid"com@And%Jackson (see &ootnote) 'ith %o$r partic$larin&ormation &illed in* copies o& the


4/51

CALIFORNIA REPUBLIC FLAG [ your state-fa! de"rees the aw of the "ontra"t#To: ?$nn% ?ide MO9T#A# To: #9NHAD N?TMNT?* N5 (Tr$stee)5OMAN* N5 To: M9? (Bene&iciar% as ;enders nominee)0 ron ?ands 5ircle* ?T /00 "O" Bo8 /0/4* Flint* M" 130!-/0/4F9?NO* 5A* 24C0 (;ender) (the lender* tr$stee and ene&iciar% are the principals)

AFFI$A%I& OF 'ohn (enry $oeIn the "oon aw* and for the re"ord* +now a en ,y these resents.

That * one John Henr% Doe* one o& the eople o& 5ali&ornia* ?$i J$ris* herea&ter kno'n as the+settlor@orro'er,* d$l% depose and s'ear as a&&iant* that * elieve that:

!" The Bank* ?$nn% ?ide MO9T#A# 5ompan%" nc" and or an% assigns* herea&ter kno'n as the+Bank,* operated in a similar manner to F9?T NATONA; BANK o& Montgomer%* the plainti&&in the 5redit 9iver Decision1* 'hereas ?$nn% ?ide MO9T#A# 5ompan%" nc" as agent o&* andin coll$sion 'ith the FD9A; 9?9 "reated the ae!ed /oney0that 'as advanced onehal& o& the orro'er % +ookkeeping entr%,"

/" The Bank led the orro'er to elieve the Bank had +mone%, to +loan,* the alleged +mone%, &or thealleged +loan, 'as coming &rom the Bank,s val$ale assets and as s$ch the &ail$re to re-pa% the+mone%, loaned 'o$ld create a potential &or a loss o& val$ale assets to the Bank"

C" The Bank did not disclose to the orro'er that the signat$re o& the orro'er on the promissor%note allo'ed the Bank to create the +mone%, iss$ed on the orro'er@settlors ehal& to the +seller,"

1" The s$se.$ent +mone%, created % monetiing the promissor% note 'as never credited to theorro'ers acco$nt 'ith a +deposit slip, given to the depositor (orro'er)* and the Bank neverdisclosed the &acts to the orro'er detailing their ac.$isition o& the +mone%, thro$gh monetiingthe promissor% note"

" The Bank led the orro'er to elieve it 'as acting in +good &aith, 'ith +clean hands, and thealleged +loan, doc$ments 'ere la'&$l inding contracts"

4" The orro'er 'as $na'are and $nschooled in the la's* and operation o& the Banking ind$str% andthe Bank took advantage o& this &act to &ra$d$lentl% deceive the orro'er"

" * John Henr% Doe decree4:the alleged +loan, +romissor% Note,* and +Deed o& Tr$st, contract(s)are +$ltra vires,* void % not meeting the la'&$l re.$irements o& a contract* to 'it: !" A +meetingo& the minds, did not occ$r (&$ll disclos$re o& the &acts involved an the operation o& the contract)*/" No val$ale consideration 'as e8changed (there is no stat$te or la' $nder the 5onstit$tion o&the


5/51

+signat$re, C" There 'as no risk or liailit% on the Banks part eca$se no +mone%, 'as +loaned,and the Bank,s agent(s) &ailed to sign a 'et ink signat$re on the contract evidencing acceptance o&the contract and a commercial liailit% on their part"

3" The Bank threatens a &oreclos$re action against the orro'er &or &ail$re to make pa%ments 'itho$t&irst proving it has a la'&$l right o& claim* % estalishing it did +loan, mone%* it does have the'et-ink signed +romissor% Note,* and 'et-ink signed +Deed o& Tr$st,"3

2" The Bank has not estalished a la'&$l contract(s) e8ists* that i& it did e8ist the contract(s) and orall doc$mentation s$ch as the promissor% note* have not een ro$ght &orth to e e8amined* theank has committed &ra$d % &ailing to provide the &act$al evidence o& a claim $pon 'hich relie&can e granted"

!0" The Bank did kno'ingl% commit &ra$d $pon the orro'er the proo& o& 'hich is the Bank,s re&$salto have a &lesh and lood agent sign the alleged +loan, doc$ments th$s ecoming commerciall%liale &or an% $nla'&$l proced$re"

!!" The Bank has never presented a +ill, &or a det d$e it &rom the +orro'er,* onl% +statements,"F$rthermore the a&&iant sa%s not" =itness m% hand and seal:

=itho$t pre>$dice

B%:EEEEEEEEEEEEEEEEEEEsettlor@A$thoried 9epresentative

?A;

7ELF-E8ECU&ING CON&RAC& IN CO99ON LA:

Fail$re on the part o& the alleged +lender,: ?$nn% ?ide MO9T#A#* (Bank) and or Sit,s assigns* theTr$stee: #9NHAD N?TMNT?* N5"* and or Sits, assigns* the Bene&iciar%: M9?* and or Sit,sassigns to re$t the &acts set &orth in n$mers one (!) thro$gh eleven (!!) o& the aove A&&adavit*individ$all% and completel% 'ith &act$al evidence* also incl$ding $t not limited to a complete &orensicacco$nting o& all acco$nts* Form F9/014 (sho'ing the original alance sheet)* an 9? &orm !022OD'hich 'ill identi&% 'ho the principal &$nds originated &rom* 'hich capital and interest 'as taken and 'hothe recipient o& the &$nds is* and 'ho is holding the acco$nt in escro'* $nad>$sted* Form ?C-A(registration) to sho' i&* 'hen and 'here the romissor% Note 'as sold* the 1/1 B- prospect$s (sec$rit%

&iling)* 95-? and 95-B call sched$les* and FA? !/* !CC* !10* * and 2 &orms* and all doc$ments relating

6The Misso$ri co$rt &o$nd that* eca$se M9? 'as not the original holder o& the promissor% note and eca$se therecord contained no evidence that the original holder o& the note a$thoried M9? to trans&er the note* the lang$age o&the assignment p$rporting to trans&er the promissor% note 'as ine&&ective" 6M9? never held the promissor% note* th$sits assignment o& the deed o& tr$st to Oc'en separate &rom the note had no &orce"7 /31 ?"="Cd at 4/1R see also n re=ilhelm* 10 B"9" C2/ (Bankr" D" daho /002) (standard mortgage note lang$age does not e8pressl% or implicitl%a$thorie M9? to trans&er the note)R n re argas* C24 B"9" !!* ! (Bankr" 5"D" 5al" /003) (7S& FHM hastrans&erred the note* M9? is no longer an a$thoried agent o& the holder $nless it has a separate agenc% contract 'iththe ne' $ndisclosed principal" M9? presents no evidence as to 'ho o'ns the note* or o& an% a$thoriation to act on

ehal& o& the present o'ner"7)R ?a8on Mortgage ?ervices* nc" v" Hiller%* /003 =; !0!30 (N"D" 5al" /003)($np$lished opinion) (7SFor there to e a valid assignment* there m$st e more than >$st assignment o& the deedaloneR the note m$st also e assigned" " " " M9? p$rportedl% assigned oth the deed o& tr$st and the promissor%note" " " " Ho'ever* there is no e2iden"e of re"ord that esta,ishes that 9ER7 either hed the roissory note or

was !i2en the authority 4 4 4 to assi!n the note45)"7 ;ANDMA9K NATONA; BANK v" K??;9* (Kansas?$preme 5o$rt A$g$st /002)

36To sho' standing* then* in a &oreclos$re action* the plainti&& m$st sho' that it is the hoder of the note and the

ort!a!eat the time the complaint 'as &iled" The &oreclos$re plainti&& m$st also sho'* at the time the &oreclos$reaction is &iled* that the holder o& the note and mortgage is harmed* $s$all% % not having received pa%ments on thenote"7


6/51

to the alleged +loan, 'ithin t'ent% one (/!) calendar da%s o& receipt o& this notice 'ill res$lt in the Bank(s)*Tr$stee(s)* and Bene&iciaries tacit agreement* and silent ac.$iescence2to the tr$th o& the statement(s) hereinand 'ill &orever arr the Bank* the Tr$stee* and the Bene&iciar%* &rom re&$ting them in the &$t$re* 'ill giveJohn Henr% Doe or his agent $nlimited o'er o& Attorne% to represent the principals in an% capacit%* insettling this matter* and 'ill arr the principals &rom engaging in an% legal action &or claims* liens* legalorders* levies* damages* losses* and relieves an% liailities o& settler@orro'er that are c$rrentl% d$e or thatma% ecome d$e in the &$t$re against the +settlor,@orro'er &or alleged +loan,MN I !00UUUU-00000UUUU-* loan I 0000UUUU* apnI 0UU-/UU-00-000* Tr$st Deed recorders I /00UUU/!4"An% re$ttal o& the tr$th o& the aove statements 'ill e in the &orm o& an a&&idavit* signed and notaried %high ranking o&&icer(s) or agent(s) o& the principals involved and sent 'ith +proo& o& service,*


7/51

:(ERE $OE7 &(E FRAU$ BEGIN; FBI FILE7This doc$ment is meant to take the reader do'n a road the% have likel% never traveled" This is a la%man,se8planation o& 'hat has een happening in this co$ntr% that most have no idea or inkling o&" t is intendedto give the reader an overvie' o& a s%stemic Fra$d in this co$ntr% that has reached epic proportions androvoke action to eradicate this sco$rge that has descended $pon the people o& America" Depending on'hat %o$r sit$ation is* %o$* anger or o$tright disg$st at 'hat %o$ are ao$t to learn" The &ollo'ingin&ormation is s$pported 'ith &acts* e8hiits* and la' and is not mere opinion" ;et,s start o$r >o$rne% o&discover% 'ith the p$rchase o& a home and s$se.$ent steps in the &inancial process thro$gh the li&e o&the 6mortgage loan7" t all starts at the 6closing7 'here 'e gather 'ith other people that are 6involved7 inthe process to sign the doc$ments to p$rchase o$r ne' home" Do 'e reall% kno' 'hat goes on at theclosing Are 'e ever told 'ho all the participants are in that entire process Are 'e tr$l% given 6&$lldisclos$re7 o& all the vario$s aspects o& that entire transaction regarding 'hat* &or most people* is the singlelargest p$rchase the% 'ill make in their entire li&e ;et,s start 'ith the ver% &irst part o& the transaction" =ehave a virt$al stack o& papers placed in &ront o& $s and 'e are instr$cted 'here 'e are s$pposed to startsigning or initialing on those 6closing doc$ments7" There seems to e so man% di&&erent doc$ments 'itheno$gh legal lang$age that 'e co$ld read &or ho$rs >$st to get thro$gh them the &irst time* m$ch less eginto &$ll% $nderstand them" Are 'e given a cop% o& all these doc$ments at least da%s prior to the closing so'e can read and st$d% these doc$ments so 'e &$ll% $nderstand 'hat it is that 'e are signingAnd agreeing to That has never happened &or the average cons$mer and p$rchaser o& a propert% in the lastC0 %ears or more i& it ever has at all" =H =e have a stack o& doc$ments placed e&ore $s at the

6closing7 that 'e haven,t ever seen e&ore and are instr$cted 'here to sign or initial to complete thetransaction and 6get o$r ne' home7" =e depend on the real estate agent* in most cases* to ring the partiestogether at the closing a&ter 'e have s$pplied eno$gh &inancial data and other re.$ested in&ormation sothat the 6lender7 can determine 'hether 'e can .$ali&% &or o$r 6loan7" Ovio$sl% 'e have the 6three da%right o& rescission7 $t do 'e reall% stop to read all the doc$ments after 'e have >$st p$rchased o$r homeand 'ant to move in s the tho$ght that there might e something 'rong 'ith 'hat 'e have >$st signed aprimar% tho$ght in o$r mind at that time Did 'e tr$st the people involved in the transaction Are 'enat$rall% &oc$sing on getting moved into o$r ne' home and getting settled 'ith o$r &amil%=ho are the pla%ers involved in the transaction &rom the perspective o& the cons$mer p$rchasing a propert%and signing a 6Mortgage Note7 and 6Deed7 or similar 6?ec$rit% nstr$ment7 at the closing There is* o&co$rse* the seller* the real estate agent(s)* title ins$rance compan%* propert% appraiser 'ho is s$pposed toproperl% determine the val$e o& the propert%* and the most ovio$s one eing 'ho 'e elieve to e 6thelender7 in the transaction" =e are led* % all involved* to elieve that 'e are* in &act* orro'ing mone%

&rom the 6lender7 'hich is then paid to the c$rrent o'ner o& the propert% as compensation &or themrelin.$ishing an% 6claim o& o'nership7 to the propert% and trans&erring that 6claim o& o'nership7 to $s asthe p$rchaser" t all seems so simple and clear on its &ace and then the transaction is completed" A&ter the6closing7 ever%one is all smiles and %o$ elieve %o$ have a ne' home and have to r epa% the 6lender7* overa period o& %ears* the mone% 'hich %o$ elieve %o$ have 6orro'ed7"? TH9 ?OMTHN# = DON,T KNO=ver%thing appears to e relativel% simple and straight&or'ard $t is that reall% the case 5o$ld it e thatthere are other pla%ers involved in this 'hole transaction that 'e kno' nothing ao$t thathave a ver% s$stantial &inancial interest in 'hat has >$st occ$rred 5o$ld it e that those pla%ers that 'eare totall% that &alls into the categor% o& criminal cond$ct t is 'ell-estalished la' that Fra$d vitiates(makes void) an% contract that arises &rom it" Does this mean that this intentional 6lack o& disclos$re7 o& thetr$e nat$re o& the contract 'e have entered into is Fra$d and 'o$ld make the mortgage contract voidon its &ace 5o$ld it e that the Fra$d co$ld act$all% e 6st$died concealment or misrepresentation7 that

makes those involved in the act responsile and acco$ntale =hat happens to the 6Note7 once it isdeposited in the ank and is converted to 6mone%7 Are there di&&erent kinds o& mone% There is mone% o&e8change and mone% o& acco$nt" The% are t'o ver% di&&erent things" ?ee attached (8hiit 6B7 para !!)*A&&idavit o& 8pert =itness =alker Todd" =alker Todd e8plains in his e8pert 'itness a&&idavit that theanks act$all% do convert signat$res into mone%" The de&inition o& 6mone%7 according to the


8/51

=ere 'e ever ta$ght an%thing ao$t this in the school s%stem in this co$ntr% 5o$ld it e that this 'holeidea o& eing ale to convert o$r signat$re to mone% is a 6st$died concealment7 or 6misrepresentation7'here those involved ecome responsile i& 'e are harmed % their actions =hat %o$r home and the%come at a later date and &oreclose and take it &rom %o$ =o$ld %o$ consider %o$rsel& to e harmed in an%'a% =e 'ill ring this $p again ver% shortl% $t 'e need to look at the other doc$ment that is signed atthe 6closing7 that is o& great signi&icance"

&(E $EE$ OF &RU7&=h% do 'e need a Deed o& Tr$st =hat e8actl% ? a Deed o& Tr$st or other similar 6?ec$rit% nstr$ment7t spells o$t all the details o& the contract that %o$ are signing at the 6closing7* incl$ding s$ch things asins$rance re.$irements* preservation and maintenance and all o& the &inancial details o& ho'* 'hen* 'hereand 'h% %o$ are going to make pa%ments to the 6lender7 &or %ears and %ears" =ait a min$teWWWWW Makepa%ments to the 6lender7 =h% do %o$ have to make pa%ments to the 6lender7 Didn,t 'e >$stestalish the &act that %o$r ho$se 'as paid &or % O


9/51

8change 5ommission 'hich is an agenc% o& the Federal #overnment" There are ver% strict reg$lationsao$t 'hat can and cannot e done 'ith 6?ec$rities7" There are ver% strict reg$lations that appl% to thereprod$ction or 6cop%ing7 o& 6?ec$rities7: The 5o$nter&eit Detection Act o& !22/* $lic ;a' !0/ 0*in ?ection 1!! o& Title C! o& the 5ode o& Federal 9eg$lations* permits color ill$strations o&


10/51

the &oreclos$re action =ho is it that is no' legall% in possession o& that 5O$dicial proceeding in those states 'here the doc$mentationp$rported to e legal and proper to ring a &oreclos$re action can e veri&ied 'itho$t e8pensive litigation% the alleged 6orro'er7 All the tr$stee has to do is send a letter to the alleged 6orro'er7 statingthe% are in de&a$lt and can sell their propert% at p$lic a$ction" t is >$st A??$dicial&oreclos$res) to demand that those 6original doc$ments7 e prod$ced in 5o$rt % the lainti&&*the &oreclos$re action stops and it is ovio$s 'h% that happensW TH DON,T HA TH 6O9#NA;7DO5


11/51

'ere going to get their pro&its immediatel% and risk asol$tel% nothing at all 5o$ld it e that* i& an%thing*the% stood to make even more mone% i& a person de&a$lted on the 6alleged loan7 in a short period o& timeThe% co$ld literall% otain the propert% &or nothing other than some legal &ees and co$rt &iling costs thro$gh&oreclos$re" The% co$ld then resell the propert% and reap additional $n>$st pro&its once againW One does notneed to have een a &inance ma>or in college to &ig$re o$t 'hat has een happening once %o$ areenlightened to the FA5T?"=HAT A5TON? HA O; TAKN TO AOD ;O?N#TH9 HOM? N FO95;O?


12/51

Fra$d Ho' man% o& %o$r &riends or neighors have lost their homes to these &ra$d$lent &oreclos$resver%one 'ho has a mortgage is a 5TM o& this &ra$d $t some o& the most honest* tr$sting* hardest'orking and most dedicated people in this co$ntr% have een the iggest victims" =ho are those 'ho haveeen the ma>or ene&iciaries o& this massive Fra$d Those 'ith the 6s$perior kno'ledge7 that enales themto take advantage o& anotherZs ignorance o& the la' to deceive them % 6st$died concealment ormisrepresentation7" This gro$p o& ene&iciaries incl$des man% on =all ?treet* large investors* and mostnotorio$sl%* the ankers at the top and the la'%ers 'ho 'ork so hard to enhance their pro&itsand protect the Fra$d % them &rom eing e8posed" The time has no' come to make those having s$periorkno'ledge 'ho HA taken advantage o& anotherZs ignorance o& the la' to deceive them% st$died concealment or misrepresentation to e held responsile &or that cond$ct" This isn,t >$st an idea"t is TH ;A= and it is time to en&orce it starting 'ith the criminal aspect o& the &ra$dW


13/51

making the misrepresentation sho$ld have kno'n that it 'as &alse* $t recover% is allo'ed even tho$ghmisrepresentation is innocentl% made* eca$se it 'o$ld e $n>$st to allo' one 'ho made &alserepresentations* even innocentl%* to retain the &r$its o& a argain ind$ced % s$ch representations"7 S=hippv" verson* 1C =is /d !44" PAn% &alse representation o& material &acts made 'ith kno'ledge o& &alsit% and'ith intent that it shall e acted on % another in entering into contract* and 'hich is so acted $pon*constit$tes Z&ra$d*Z and entitles part% deceived to avoid contract or recover damages"P Barnsdall 9e&ining5orn" v" Birnam =ood Oil 5o" 2/ F /4 3!" A thoro$gh reading o& the attached e8hiits 'ill enlighten oneeven more* incl$ding 8hiit 6#7";isting o& Attached 8hiits A" Deed o& Tr$st Template FromFreddiemac"com (5ali&ornia) B" A&&idavit o& =alker Todd 8pert =itness 5" Memorand$m o& ;a' BankFra$d D" Memorand$m o& ;a' oints o& A$thorit% Bills o& 8change " $r%:!" That am &amiliar 'ith the romissor% Note and Dis$rsement 9e.$est and A$thoriation*dated Novemer /C* !222* together sometimes re&erred to in other doc$ments &iled %De&endants in this case as the 6alleged agreement7 et'een De&endants and lainti&& $tcalled the 6Note7 in this A&&idavit" & called as a 'itness* 'o$ld testi&% as stated herein" make this A&&idavit ased on m% o'n personal kno'ledge o& the legal* economic* andhistorical principles stated herein* e8cept that have relied entirel% on doc$ments provided tome* incl$ding the Note* regarding certain &acts at iss$e in this case o& 'hich previo$sl% hadno direct and personal kno'ledge" am making this a&&idavit ased on m% e8perience and

e8pertise as an attorne%* economist* research 'riter* and teacher" am competent to makethe &ollo'ing statements"9OF??ONA; BA5K#9O


14/51

ork" n addition* &or nine %ears* 'orked as an economic research o&&icer at the Federal 9eserve Bank o&5leveland" ecame one o& the Federal 9eserve ?%stem,s recognied e8perts on the legal histor% o& centralanking and the pledging o& notes* onds* and other &inancial instr$ments at the disco$nt 'indo' to enalethe Federal 9eserve to make advances o& credit that ecame or co$ld ecome mone%" also have reade8tensivel% treatises on the legal and &inancial histor% o& mone% and anking and have p$lished severalarticles covering all o& the s$>ects >$st mentioned" have served as an e8pert 'itness in several trialsinvolving anking practices and monetar% instr$ments" A s$mmar% iographical sketch and res$meincl$ding &$rther details o& m% 'ork e8perience* readings* p$lications* and ed$cation 'ill e tendered toDe&endants and ma% e made availale to the 5o$rt and to lainti&&,s co$nsel $pon re.$est"#N9A;; A55TD A55O


15/51

repa%ment oligation d$e7 /. 0egal tender* a related concept $t one that is economicall% in&erior tolawful moneyeca$se it allo's pa%ment in instr$ments that cannot e redeemed &or gold or silver ondemand* has een the &orm o& mone% o& e8change commonl% $sed in the


16/51

something else o& val$e in e8change (mone% o& e8change* loosel% de&ined)* collectivel% re&erred to hereinas 6mone%*7 to repa% 'hat the lainti&& claims 'as the money lent to the De&endants" It is not anunreasona,e ar!uent to state that Paintiff aarenty "han!ed the e"onoi" su,stan"e of the

transa"tion fro that "onteated in the "redit ai"ation for* a!reeent* noteDs)* or other

siiar instruentDs) that the $efendants e3e"uted* there,y "han!in! the "osts and ris+s to the

$efendants4 At most* the lainti&& e8tended its o'n credit (mone% o& acco$nt)* $t the De&endants 'erere.$ired to repa% in money (mone% o& e8change* and lawful money at that)* whi"h "reates at east theinferen"e of ineuaity of o,i!ations on the t'o sides o& the transaction (money* incl$ding lawful money*is to e e8changed &or bank credit)" MOD9N A


17/51

promissor% notes in e8change &or credits to the orro'ers, transaction acco$nts"7 The ne8t sentence on thesame page e8plains that the anks, assets and liailities increase % the amo$nt o& the loans" 5OMMNTA9 AND ?$st as i& the De&endants 'ere to deposit cash or apa%roll check into their acco$nt" !4" The &ollo'ing appears to e a disp$ted &act in this case ao$t 'hich have ins$&&icient in&ormation on 'hich to &orm a concl$sion: in&er that it is alleged that lainti&& re&$sed

to lend the De&endants lainti&&,s o'n mone% or assets and recorded a G100*000 loan &rom the De&endantsto the lainti&&* 'hich arg$al% 'as a G100*000 deposit o& mone% o& acco$nt % the De&endants* and then'hen the lainti&& repaid the De&endants % pa%ing its o'n credit (mone% o& acco$nt) in the amo$nt o&G100*000 to third-part% sellers o& goods and services &or the acco$nt o& De&endants* the De&endants 'ererepaid their loan to lainti&&* and the transaction 'as complete" !" do not have s$&&icient kno'ledge o&the &acts in this case to &orm a concl$sion on the &ollo'ing disp$ted points: None o& the &ollo'ing material&acts are disclosed in the credit application or Note or 'ere advertised % lainti&& to prove that theDe&endants are the tr$e lenders and the lainti&& is the tr$e orro'er" &he Paintiff is tryin! to use the"redit ai"ation for or the Note to ersuade and de"ei2e the $efendants into ,eie2in! that the

oosite o""urred and that the $efendants were the ,orrower and not the ender4 The &ollo'ing pointis $ndisp$ted: The De&endants, loan o& their credit to lainti&&* 'hen iss$ed and paid &rom theirdeposit or credit acco$nt at lainti&&* ecame mone% in the Federal 9eserve ?%stem (s$>ectto a red$ction o& $p to ten percent &or reserve re.$irements) as the ne'l% iss$ed credit 'as

paid p$rs$ant to 'ritten orders* incl$ding checks and 'ire trans&ers* to sellers o& goods andservices &or the acco$nt o& De&endants"5ON5;


18/51

(110) CC3-!!42* &a8 (110) CC3-!Ce-mail: 'estoddQadelphia"net\mailto:'estoddQadelphia"net]NO&AR107 %ERIFICA&ION

At 5hagrin Falls* OhioDecemer * /00COn this da% personall% came e&ore me the aove-named A&&iant* 'ho proved his identit% to me tom% satis&action* and he ackno'ledged his signat$re on this A&&idavit in m% presence and stated that hedid so 'ith &$ll $nderstanding that he 'as s$>ect to the penalties o& per>$r%"EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEENotar% $lic o& the ?tate o& OhioE3hi,it C

9eorandu of Law Ban+ Fraud

9E9ORAN$U9 OF LA: K BANH FRAU$

have* thro$gh research* learned the &ollo'ing to e tr$e and most likel% applies to me* 'hich is the reason have re.$ested and demanded 6the ank7 to validate their claims and prod$ce p$rs$ant to applicale la'"This MMO9AND


19/51

!!" American Brokers 5ond$it v" [AMA;;OA - J$dge ?5HA5K !! ?ep/00 5o$ntr%'ide Mortgage v"B9;


20/51

1" 5it% O& 5leveland v" Banks14" Do'd Dismissal1" M5 canZt &ind the note13" Oc'en canZt &ind the note12"


21/51

/" 6The contract is void i& it is onl% in part connected 'ith the illegal transaction and the promise single orentire"7 #$ardian Agenc% v" #$ardian M$t" ?avings Bank* // =is 0* /2 N= 3C" C" 6t is notnecessar% &or recision o& a contract that the part% making the misrepresentation sho$ld have kno'n that it'as &alse* $t recover% is allo'ed even tho$gh misrepresentation is innocentl% made* eca$se it 'o$ld e$n>$st to allo' one 'ho made &alse representations* even innocentl%* to retain the &r$its o& a argainind$ced % s$ch representations"7 =hipp v" verson* 1C =is /d !44" 1" Pach Federal 9eserve ank is aseparate corporation o'ned % commercial anks in its region """P ;e'is v"


22/51

re&$ses to loan %o$ other depositorsZ mone%* or pa% the liailit% it o'es %o$ &or having deposited %o$rmortgage note" To pa% this liailit% the ank m$st ret$rn the mortgage note to %o$" Ho'ever instead o& theank pa%ing the liailit% it o'es %o$* the ank demands %o$ $se these $npaid ankliailities* created in thealleged loan process* as the ne' c$rrenc%" No' %o$ m$st laor to earn the ank c$rrenc% ($npaid liailitiescreated in the alleged loan process) to pa% ack the ank" =hat the ank received &or &ree* the individ$allost in e.$it%" & %o$ tried to repa% the ank in like kind c$rrenc%* ('hich the ank deposited 'itho$t%o$r a$thoriation to create the check the% iss$ed %o$)* then the ank claims the promissor% note is notmone%" The% 'ant pa%ment to e in legal tender (check ook mone%)" The mortgage note is the mone% theank $ses to $% %o$r propert% in the &oreclos$re" The% get %o$r real propert% at no cost" & the% accept%o$r promissor% note to discharge the mortgage note* the ank can $se the promissor% note to $% %o$rhome i& %o$ sell it" Their prolem is* the promissor% note stops the interest and there is no lien on thepropert%" & %o$ sell the home e&ore the ank can &ind o$t and $se the promissor% note to $% the home*the ank lost" The ank claims the% have not o$ght the home at no cost" Y$estion is* 'hat right does theank have to receive the mortgage note at no cost in direct violation o& the contract the% 'rote and re&$sedto sign or &$l&ill" B% demanding that the ank &$l&ill the contract and not change the c$rrenc%* the ankm$st deposit %o$r second promissor% note to create check ook mone% to end the &ra$d* p$tting ever%oneack in the same position the% 'here* prior to the &ra$d* in the &irst place" Then all the homes* &arms*ranches* cars and $sinesses in this co$ntr% 'o$ld e redeemed and the e.$it% ret$rned to the right&$lo'ners (the people)" & not* ever% time the homes are re&inanced the anks get the e.$it% &or &ree" o$ and m$st laor /0 to C0 %ears &$ll time as the ankers sit ehind their desks* la$ghing at $s eca$se 'e are too

st$pid to &ig$re it o$t or to &orce them to &$l&ill their contract" The G!00*000 created in&lation and thisincreases the e.$it% val$e o& the homes" On an average homes are re&inanced ever% !@/ %ears" =hen thehome is re&inanced the ank again receives the e.$it% &or &ree" =hat the ank receives &or &ree the allegedorro'er loses to the ank" According to the Federal 9eserve Banks, o'n ook o& 9ichmond* a" titled6O


23/51

=h% do %o$ have to &$l&ill %o$r end o& the agreement i& the ank re&$ses to &$l&ill their end o& theagreement & the ank does not loan %o$ their mone% the% have not &$l&illed the agreement* the contract isvoid" 1ou "reated "urren"y ,y siy si!nin! the ort!a!e note4 The mortgage note has val$e eca$seo& the lien on the propert% and eca$se o& the &act that %o$ are to repa% the loan" The ank deposits themortgage note (c$rrenc%) to create a check (c$rrenc%* ank mone%)" Both c$rrencies cost nothing to create"B% la' the ank cannot create c$rrenc% (ank mone%* a check) 'itho$t &irst depositing c$rrenc%* (mortgagenote) or legal tender" For the check to e valid there m$st e mortgage note or ank mone% as e!a tender*$t the ank accepted c$rrenc% (mortgage note) as a deposit 'itho$t telling %o$ and 'itho$t %o$ra$thoriation" The ank 'ithdre' %o$r mone%* 'hich the% deposited 'itho$t telling %o$ and 'ithdre'it 'itho$t %o$r signat$re* in a &ra$d$lent conversion scheme* 'hich can land the ankers in >ail $t ispla%ed o$t in ever% 5it% and To'n in this nation on a dail% asis" :ithout oanin! you oney* the ,an+deosits your oney Dort!a!e note)* withdraws it and "ais it is the ,an+6s oney and that it is

their oney they oaned you4 t is not a loan* it is merel% an e8change o& one c$rrenc% &or another* the%Zllo'e %o$ the mone%* 'hich the% claimed the% 'ere to loan %o$" & the% do not loan the mone% andmerel% e8change one c$rrenc% &or another* the ank receives the lien on %o$r propert% &or &ree" =hat the%get &or &ree %o$ lost and m$st laor to pa% ack at interest" & the anks loaned %o$ legal tender* the% co$ldnot receive the liens on nearl% ever% home* car* &arm* and $siness &or &ree" The people 'o$ld still o'n theval$e o& their homes" The ank m$st sell %o$r c$rrenc% (mortgage note) &or legal tender so i& %o$ $sethe ankZs c$rrenc% (ank mone%)* and 'ant to convert c$rrenc% (ank mone%) to legal tender the% 'ill eale to make it appear that the c$rrenc% (ank mone%) is acked % legal tender" The ankZs c$rrenc% (ank

mone%) has no val$e 'itho$t %o$r c$rrenc% (mortgage note)" The ank cannot sell %o$r c$rrenc% (mortgagenote) 'itho$t &$l&illing the contract % loaning %o$ their mone%" The% never loaned mone%* the% merel%e8changed one c$rrenc% &or another" The ank received %o$r c$rrenc% &or &ree* 'itho$t making an% loan or&$l&illing the contract* changing the cost and the risk o& the contract 'herein the% re&$sed to sign* kno'ingthat it is a change o& c$rrenc% and not a loan" & %o$ $se c$rrenc% (mortgage note)* the same c$rrenc% theank deposited to create c$rrenc% (ank mone%)* to pa% the loan* the ank re>ects it and sa%s %o$ m$st $sec$rrenc% (ank mone%) or legal tender" The ank received %o$r c$rrenc% (mortgage note) and the ankZsc$rrenc% (ank mone%) &or &ree 'itho$t $sing legal tender and 'itho$t loaning mone% there% re&$sing to&$l&ill the contract" No' the ank s'itches the c$rrenc% 'itho$t loaning mone% and demands to receive%o$r laor to pa% 'hat 'as not loaned or the ank 'ill $se %o$r c$rrenc% (mortgage note) to $% %o$rhome in &oreclos$re* The 9evol$tionar% 'ar 'as &o$ght to stop these ank schemes" The ank has a 'rittenpolic% to e8pand and contract the c$rrenc% (ank mone%)* creating recessions* &orcing people o$t o& 'ork*allo'ing the anks to otain %o$r propert% &or &ree" & the anks loaned legal tender* this 'o$ld never

happen and the home 'o$ld cost m$ch less" & %o$ allo' someone to otain liens &or &ree and create a ne'c$rrenc%* 'hich is not legal tender and %o$ m$st $se legal tender to repa%" This changes the cost and therisk"


24/51

Deposit Acco$nt* ?avings Acco$nt* 5erti&icate o& Deposit* % the mortgage note" & the mortgage note ismone%* then the ank never gave $p a ank asset" The ank simpl% $sed &ra$d$lent conversion o&o'nership o& the mortgage note" The ank cannot o'n the mortgage note $ntil the ank &$l&ills the contract"The check is not the mone%R the mone% is the deposit that makes the check good" n this case* the mortgagenote is the mone% &rom 'hich the check is iss$ed" =ho o'ns the mortgage note 'hen the mortgage note isdeposited The orro'er o'ns the mortgage note eca$se the ank never paid mone% &or the mortgagenote and never loaned mone% (ank asset)" The ank simpl% claimed the ank o'ned the mortgage note'itho$t pa%ing &or it and deposited the mortgage note &rom 'hich the check 'as iss$ed" This is &ra$d$lentconversion" The ank risked nothingW Not even one penn% 'as invested" The% never took mone% o$t o& an%acco$nt* in order to o'n the mortgage note* as proven % the ookkeeping entries* &inancial ratios* thealance sheet* and o& co$rse the ankZs literat$re" The ank simpl% never complied 'ith the contract"& the mortgage note is not mone%* then the check is check kiting and the ank is insolvent and the ankstill never paid" & the mortgage note is mone%* the ank took o$r mone% 'itho$t sho'ing the deposit* and'itho$t pa%ing &or it* 'hich is &ra$d$lent conversion" The ank claimed it o'ned the mortgage note'itho$t pa%ing &or it* then sold the mortgage note* took the cash and never $sed the cash to pa% the liailit%it o'ed &or the check the ank iss$ed" The liailit% means that the ank still o'es the mone%" The ankm$st ret$rn the mortgage note or the cash it received in the sale* in order to pa% the liailit%" ven i& theank did this* the ank still never loaned $s the ankZs mone%* 'hich is 'hat ZloanZ means" The check is notmone% $t merel% an order to pa% mone%" & the mortgage note is mone% then the ank m$st pa% the check% ret$rning the mortgage note" The onl% 'a% the ank can pa% Federal 9eserve Bank Notes &or the check

iss$ed is to sell the mortgage note &or Federal 9eserve Bank Notes" Federal 9eserve Bank Notes arenon-redeemale in violation o& the


25/51

loan the ank never made and %et placed a lien on the real propert% demanding pa%ment" $aa!es e3ist inthat the ,an+ refuses to oan their oney4 The ank denies the alleged orro'er e.$al protection $nderthe la' and contract* % merel% e8changing one c$rrenc% &or another and re&$sing repa%ment in the samet%pe o& c$rrenc% deposited" The ank re&$sed to &$l&ill the contract % not loaning the mone%* and % theank re&$sing to e repaid in the same c$rrenc%* 'hich the% deposited as an e8change &or another c$rrenc%"A det tender o&&ered and re&$sed is a det paid to the e8tent o& the o&&er" The ank has no a$thoriation toalter the alleged contract and to re&$se to per&orm % not loaning mone%* % changing the c$rrenc% and thenre&$sing repa%ment in 'hat the ank has a 'ritten polic% to deposit" The seller o& the home received acheck" The mone% deposited &or the check iss$ed came &rom the orro'er not the ank" The ank has noright to the mortgage note $ntil the ank per&orms % loaning the mone%" n the transaction the ank 'as toloan legal tender to the orro'er* in order &or the ank to sec$re a lien" The ank never made the loan* $tkept the mortgage note the alleged orro'er signed" This allo'ed the ank to otain the e.$it% in thepropert% (% a lien) and trans&er the 'ealth o& the propert% to the ank 'itho$t the ankZs investment* loan*or risk o& mone%" Then the ank receives the alleged orro'erZs laor to pa% principal and s world of &omputer financial transactions* the Federal ;eserve Bank pays

for the securities with an "electronic" check drawn on itself. @ia its "Fedwire" transfer network* the

Federal ;eserve notifies the dealer>s designated bank 1Bank :2 that payment for the securities should be

credited to 1deposited in2 the dealer>s account at Bank :. :t the same time* Bank :>s reserve account at the

Federal ;eserve is credited for the amount of the securities purchased. !he Federal ;eserve %ystem has

added D9*999 of securities to its assets* which it has paid for* in effect* by creating a liability on itself inthe form of bank reserve balances. !hese reserves on Bank :>s books are matched by D9*999 of the

dealer>s deposits that did not exist before. -f business is active* the banks with excess reserves probably will

have opportunities to loan the DE*999. 7f course* they do not really pay out loans from money they receive

asdeposits. -f they did this* no additional money would be created. +hat they do when they make loans is to

accept promissory notes in exchange for credits to tile borrower>s transaction accounts. 0oans 1assets2 and

deposits 1liabilities2 both rise by DE*999. ;eserves are unchanged by the loan transactions. But the deposit

credits constitute new additions to the total deposits of the banking system. 9OOF BANK? DO?TNOT? AND ??


26/51

6xcerpt from booklet Cour Money* page )< 7ther M Money +hile demand deposits* traveler,s checks* and

interestbearing accounts with unlimited checking authority are not legal tender* they are usually

acceptable in payment for purchases of goods and services. The ooklet* 6o$r Mone%7* is distri$ted &reeo& charge" Additional copies ma% e otained % 'riting to: Federa Reser2e Ban+ of Ri"hond Pu,i"7er2i"es

$eartent P4O4 Bo3 @ Ri"hond* %ir!inia $st to allo' one 'ho made &alse representations* even innocentl%* to retain the &r$its o& aargain ind$ced % s$ch representations"7 =hipp v" verson* 1C =is /d !44"24" Pach Federal 9eserve ank is a separate corporation o'ned % commercial anks in its region """P;e'is v"


28/51

Did the ank loan gold or silver to the alleged orro'erDid the ank loan credit to the alleged orro'erDid the orro'er sign an% agreement 'ith the ank* 'hich prevents the orro'er &rom repa%ing the ankin credits it tr$e that %o$r ank creates check ook mone% 'hen the ank grants loans* simpl% % adding depositdollars to acco$nts on the ankZs ooks* in e8change* &or the orro'erZs mortgage noteHas %o$r ank* at an% time* $sed the orro'erZs mortgage note* Ppromise to pa%P* as a deposit on the ankZsooks &rom 'hich to iss$e ank checks to the orro'erAt the time o& the loan to the alleged orro'er* 'as there one dollar o& Federal 9eserve Bank Notes in theankZs possession &or ever% dollar o'ed in ?avings Acco$nts* 5erti&icates o& Deposits and check Acco$nts(Demand Deposit Acco$nts) &or ever% dollar o& the loanAccording to the ankZs polic%* is a promise to pa% mone% the e.$ivalent o& mone%Does the ank have a polic% to prevent the orro'er &rom discharging the mortgage note in Plike kind&$ndsP 'hich the ank deposited &rom 'hich to iss$e the checkDoes the ank have a polic% o& violating the Deceptive Trade ractices Act=hen the ank loan o&&icer talks to the orro'er* does the ank in&orm the orro'er that the ank $ses theorro'ers mortgage note to create the ver% mone% the ank loans o$t to the orro'erDoes the ank have a polic% to sho' the same mone% in t'o separate places at the same timeDoes the ank claim to loan o$t mone% or credit &rom savings and certi&icates o& deposits 'hile neverred$cing the amo$nt o& mone% or credit &rom savings acco$nts or certi&icates o& deposits* 'hich c$stomers

can 'ithdra' &rom


29/51

o& the acco$nt* 'hich 'as credited" =hen the orro'erZs ass$med mortgage note 'as deited as aookkeeping entr%* 'as the o&&setting entr% a credit acco$nt9egarding the initial ookkeeping entr% to record the orro'erZs ass$med mortgage note and the ass$medloan to the orro'er* 'as the ookkeeping entr% credited &or the mone% loaned to the orro'er* and 'asthis credit o&&set % a deit to record the orro'erZs ass$med mortgage noteDoes the ank c$rrentl% or has it ever at an%time $sed the orro'erZs ass$med mortgage note as mone% tocover the ankZs liailities re&erred to aove* i"e" Demand Deposit Acco$nt* ?avings Acco$nt and5erti&icate o& Deposit=hen the ass$med loan 'as made to the orro'er* did the ank have ever% Demand Deposit Acco$nt*?avings Acco$nt* and 5erti&icate o& Deposit acked $p % Federal 9eserve Bank Notes on hand at theankDoes the ank have an estalished polic% and practice to emit ills o& credit 'hich it creates $pon its ooksat the time o& making a loan agreement and iss$ing mone% or socalled mone% o& credit* to its orro'ers7U99AR1

The ank advertised it 'o$ld loan mone%* 'hich is acked % legal tender" s not that 'hat the s%mol Gmeans s that not 'hat the contract said Do %o$ not kno' there is no agreement or contract in theasence o& m$t$al consent The ank ma% sa% that the% gave %o$ a check* %o$ o'e the ank mone%" Thisin&ormation sho's %o$ that the check came &rom the mone% the alleged orro'er provided and the anknever loaned an% mone% &rom other depositors"I02e shown you the aw and the ,an+0s own iterature to ro2e y "ase4 All the ank did 'as trick %o$"

The% get %o$r mortgage note 'itho$t investing one cent* % making%o$ a depositor and not a orro'er"&he +ey to the ue is* the ,an+ did not si!n the "ontra"t" If they did they ust oan you the oney4If they did not si!n it* "han"es are* they deosited the ort!a!e note in a "he"+in! a""ount and used

it to issue a "he"+ without e2er oanin! you oney or the ,an+ in2estin! one "ent4

O$r Nation* along 'ith ever% ?tate o& the


30/51

direct violation o& an% signed agreement" =e 'ant e.$al protection $nder the la' and contract* and to havethe ank &$l&ill the contract or ret$rn the mortgage note" :e want the Qud!es* sheriffs* and awa+ers touhod their oath of offi"e and to honor and uhod the foundin! fathers U474 Constitution4 Is this too

u"h to as+;

=hat is the mortgage note The mortgage note represents %o$r &$t$re loan pa%ments" A promise to pa% themone% the ank loaned %o$" =hat is a lien The lien is a sec$rit% on the propert% &or the mone% loaned"Ho' can the ank promise to pa% mone% and then not pa% Ho' can the% take a promise to pa% and call itmone% and then $se it as mone% to p$rchase the &$t$re pa%ments o& mone% at interest" nterest is thecompensation allo'ed % la' or &i8ed % the parties &or in2ested any oney to receive your mortgagenote" =hat is it the% are charging interest on The ank received an asset" The% never gave $p an asset" Didthe% pa% interest on the mone% the% received as a deposit A check iss$ed on a deposit received &rom theorro'er cost the ank nothing =here did the mone% come &rom that the ank invested to charge intereston The ank ma% sa% 'e received a ene&it" =hat ene&it =itho$t their ene&it 'e 'o$ldreceive e.$al protection $nder the la'* 'hich 'o$ld mean 'e did not need to give $p an asset or pa%interest on o$r o'n mone%W =itho$t their ene&it 'e 'o$ld e &ree and not enslaved" =e 'o$ld have littledet and interest instead o& eing enslaved in det and interest" The anks roke the contract* 'hich the%never intended to &$l&ill in the &irst place" =e got a check and a ho$se* 'hile the% received a lien andinterest &or &ree* thro$gh a roken contract* 'hile 'e got a det and lost o$r assets and o$r co$ntr%" Theene&it is the anks* 'ho have placed liens on nearl% ever% asset in the nation* 'itho$t costing the ank onecent" n&lation and 'orking to pa% the ank interest on o$r o'n mone% is the ene&it" ?ome ene&itW:hat a 7he Gae4 &he Foowin! "ase was an a"tua tria "on"ernin! the issues we ha2e "o2ered4

&he 'ud!e was e3traordinary in-that he had a !ras of the Constitution that I ha2en0t seen often

enou!h in our "ourts4 &his is the rea thin!* a,soutey true4 &his "ase was re2iewed ,y the 9innesota

7uree Court on their own otion4 &he ast thin! in the word that the Ban+ers and the 'ud!es

wanted was "ase aw a!ainst the Ban+ers4 (owe2er* this "ase aw is rea4

EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE7&A&E OF 9INNE7O&A IN 'U7&ICE COUR& COUN&1 OF 7CO&& &O:N7(IP OF CRE$I&

RI%ER )9AR&IN %4 9A(ONE1* 'U7&ICE FIR7& BANH OF 9ON&GO9ER1* Paintiff* )

CA7E NO.


31/51

title or interest in said premises or lien thereon* as is aove descried"That an% provision in the Minnesota5onstit$tion and an% Minnesota ?tat$te limiting the J$risdiction o& this 5o$rt is rep$gnant to the5onstit$tion o& the $r% to resolve"lainti&& admitted that it* in comination 'ith the Federal 9eserve Bank o& Minneapolis* 'hich are &or allpractical p$rposes eca$se o& their interlocking activit% and practices* and oth eing Banking nstit$tionsncorporated $nder the la's o& the $r% g$aranteed"This is a 5ommon ;a' Action" Minnesota cannot limit or impair the po'er o& this 5o$rt to rendercomplete >$stice et'een the parties" An% provisions in the 5onstit$tion and la's o& Minnesota 'hichattempt to do so is rep$gnant to the 5onstit$tion o& the $r%* at least in so &ar as the% sa' it" No complaint 'as made %

lainti&& that lainti&& did not receive a &air trial" From the admissions made % Mr" Morgan the path o&d$t% 'as made direct and clear &or the >$r%" Their verdict co$ld not reasonal% have eenother'ise" J$stice 'as rendered completel% and 'itho$t p$rchase* con&ormale to the la'in this 5o$rt on Decemer * !243"B1 &(E COUR& 9AR&IN %4 9A(ONE1

'usti"e of the Pea"e Credit Ri2er &ownshi 7"ott County* 9innesota

Note. t has never een do$ted that a note given on a consideration* 'hich is prohiited % la' is void" thas een determined independent o& Acts o& 5ongress* that sailing $nder the license o& an enem% is illegal"The emission o& Bills o& 5redit $pon the ooks o& these private 5orporations &or the p$rposes o& privategain is not 'arranted % the 5onstit$tion o& the


32/51

American J$rist section 3* /!) PThe activit% o& the Federal 9eserve Banks o& Minnesota* ?an Franciscoand the First National Bank o& Montgomer% is contrar% to p$lic polic% and contrar% to the 5onstit$tion o&the


33/51

incl$ding eonage* thralldom* and det created % &ra$d is $niversall% prohiited in the


34/51

pro&it % accepting gold and coins ro$ght to them &or sa&ekeeping and lending the gold and coins toorro'ers" B$t the goldsmiths soon &o$nd that the receipts the% iss$ed to depositors 'ere eing $sed as ameans o& pa%ment" ZThen* ankers discovered that the% co$ld make loans merel% % giving orro'ers theirpromises to pa%* or ank notes""" n this 'a%* anks egan to create mone% """ Demand deposits are themodern co$nterpart o& ank notes " " " t 'as a small step &rom printing notes to making ook entries to thecredit o& orro'ers 'hich the orro'ers* in t$rn* co$ld ZspendZ % 'riting checks* there% printing theirown mone%"P Smphasis added(O: BANH7 CREA&E 9ONE1

n the modern sense* anks create mone% % creating Pdemand deposits"P Demand deposits are merel%Pook entriesP that re&lect ho' m$ch la'&$l mone% the ank o'es its c$stomers" Th$s* all deposits arecalled demand deposits and are the ankZs liailities" The ankZs assets are the va$lt cash pl$s all the PO


35/51

a PdollarP amo$nt" The orro'er ma% then PspendP these ook entries (demand deposits) % 'riting checksto others* 'ho in t$rn deposit their checks and have ook entries trans&erred to their acco$nt &rom theorro'erZs checking acco$nt" Ho'ever* t'o highl% .$estionale and $nla'&$l acts have no' occ$rred" The&irst 'as 'hen t he ank 'rote the check or made the loan 'ith ins$&&icient &$nds to ack them $p" Thesecond is 'hen the ank stamps its o'n 6Not ?$&&icient F$nds7 check PpaidP or posts a loan % merel%crediting the orro'erZs acco$nt 'ith ook entries the ank calls Pdollars"P ronicall%* the check or loanseems good and passes as mone% -- $nless an emergenc% occ$rs via demands &or cash - or a 5o$rtchallenge -- and the art&$l* ill$sion $le* $rsts"$IFFEREN& HIN$7 OF 9ONE1

The ook* 6- Bet Cou !hought3* p$lished % the Federal 9eserve Bank o& Ne' ork* states: PMone% isan% generall% accepted medi$m o& e8change* not simpl% coin and c$rrenc%" Mone% doesn>t have to eintrinsicall% val$ale* be issued by a government or e in an% special &orm"P Smphasis added Th$s 'e seethat privatel% iss$ed &orms o& mone% onl% re.$ire p$lic con&idence in order to pass as mone%" 5o$nter&eitmone% also passes as mone% as long as nood% discovers itZs co$nter&eit" ;ike 'ise* PadP checks andPcreditP loans pass as mone% so long as no one &inds o$t the% are $nla'&$l" et* once the &ra$d isdiscovered* the val$es o& s$ch 6ank mone%7 like ad check,s ceases to e8ist" There are* there&ore* t'okinds o& mone% -- government iss$ed legal mone% and privatel% iss$ed $nla'&$l mone%"$IFFEREN& HIN$7 OF $OLLAR7

The dollar once represented something intrinsicall% val$ale made &rom gold or silver" For e8ample* in!2/* 5ongress de&ined the silver dollar as a silver coin containing C!"/ grains o& p$re silver" The legal

dollar is no' kno'n as P


36/51

The co$rts have long held that 'hen a corporation e8ec$tes a contract e%ond the scope o& its charter orgranted corporate po'ers* the contract is void or P$ltra viresP" n &entral !ransp. &o. v. Gullman* !C2


37/51

% $sing the


38/51

6private mone%7 6Federal 9eserve Bank Notes7 to e $sed % lending instit$tions s$ch as memer anks*to operate $pon a s%stem o& &ractionaliing" The nat$re o& 'hich is that the% do not lend either their mone%or the mone% o& the depositors* the mone% is created o$t o& thin air* % the mere stroke o& a pen" =hen thereis no consideration in >eopard% o& eing ret$rned* then the oligation is to make the ank in>$r% proo&* tothe e8tent o& the oligation* 'hich 'o$ld e to make them 'hole"The onl% legal oligation is ased $pon the moral iss$e* 'hich $nder the la' is an mper&ect Oligation* toret$rn to them their propert%* 'hich isn,t 'ealth* $t credit" A romissor% Note is signed $nder Peconomiccomp$lsionP 'hen* the PloanP 'ill not e cons$mmated $nless and $ntil the orro'er signs it" Th$s*per&orming the act o& signing a romissor% Note cannot e considered vol$ntar%" The discharging o& thecredit is ased $pon social* economic* and moral standards to make the ank 'hole* i& in>$r% is claimed* inan% co$rt action 'here de&a$lt on the romissor% Note is on record and 'here the ank &ails to veri&% anin>$r%* the ank cannot en&orce a promise to pa% consideration 'here the% provided no consideration" Forthe ank to e ale to &orce $pon the de&endant an amo$nt over and aove the credit* is to &orce $pon thede&endants a det that goes to the control o& their laor against their 'ill" This condition 'o$ld e eonage*'hich has een aolished in this co$ntr%" (1/ o%ment o&

an% right or privilege sec$red to him % the 5onstit$tion or la's o& the


39/51

preventing or hindering the constit$ted a$thorities o& an% ?tate or Territor% &rom giving or sec$ring to allpersons 'ithin s$ch ?tate or Territor% the e.$al protection o& the la'sR or i& t'o or more personsconspire to prevent % &orce* intimidation* or threat* an% citien 'ho is la'&$ll% entitled to vote* &romgiving his s$pport or advocac% in a legal manner* to'ard or in &avor o& the election o& an% la'&$ll%.$ali&ied person as an elector &or resident or ice resident* or as a Memer o& 5ongress o& the $re an% citien in person or propert% on acco$nt o& s$ch s$pport or advocac%R in an% case o&conspirac% set &orth in this section* i& one or more persons engaged therein do* or ca$se to e done* an% actin &$rtherance o& the o>ect o& s$ch conspirac%* 'here% another is in>$red in his person or propert%* ordeprived o& having and e8ercising an% right or privilege o& a citien o& the $red or deprived ma% have an action &or the recover% o& damages occasioned % s$ch in>$r% ordeprivation* against an% one or more o& the conspirators" S1/


40/51

PThose 'ho constit$te an association nation'ide o& private* $nincorporated persons engaged in the $sinesso& anking to iss$e notes a!ainst these oligations o& the


41/51

stocks* onds* or other assets o'ned % a part% other than the ,orrower as "oatera for a oan* withouttransferrin! tite" & the orro'er t$rns the propert% over to the lender 'ho holds it &or sa&ekeeping* theaction is re&erred to as a pledge" & the orro'er retains possession* $t !i2es the ender the ri!ht to sethe roerty in e2ent of defaut* it is a tr$e h%pothecation" /" ?ec$rities" The pledging o& negotialesec$rities to collateralie a rokerZs ar!in loan" The roker pledges the same sec$rities to a ank ascollateral &or a rokerZs loan* the process is re&erred to as rehyothe"ation"P[$i"tionary Of Ban+in! &ers* Fit"h* !4 = D


42/51


43/51

?tates 5ode pertaining to in"ororated federay "hartered Nationa Ban+in! institutions issuin!*redeein!* rea"in! and "ir"uatin! notes have all een reeaed"U7C &I&LE


44/51

awfu de,ts in "oer"e as reedy due the in "onQun"tion with U7 o,i!ations to the dis"har!e of

that ortion of the u,i" de,t* whi"h is ro2ided for in the resent finan"ia reor!aniation sti in

effe"t and on!oin! sin"e


45/51

6p$lic polic%7 it estalished that 'e can see along 'ith these disc$ssed" No one 'o$ld attempt to demandpa%ment in gold or a partic$lar kind o& coin or c$rrenc% in $se or think to 'rite s$ch an oligation into acontract* ,e"ause the !od standard for "urren"y is sti susended and the ri!ht to a /!od"ause0 to reuire ayent in !od is sti a,ro!ated4 Both are aso art of u,i"

oi"y5 esta,ished in ('R-


46/51

?tates" Any of these instruents that are resented to the U4 74 &reasury for ayent wi ,ereturned to the sender andcopies 'ill e provided to the appropriate la' en&orcement agencies"7 $ishonored"This is in con&ormit% 'ith the


47/51

honored* even i& the% 'anted to keep it &or prosec$tion or investigation" This is in e&&ect 'hat the directivesa%s the government 'ill do i& its no good" :hat does statutory aw* re!uation* or "ase aw tes usa,out what that o,i!ation is The% do not dishonor it in an% 'a% % ret$rn o& the item or the sending o&an% notice to that e&&ect* or make re.$est &or additional in&ormation or time &or e8amination o& theinstr$ment* or given a statement o& e8planation indicating the time &rame &or its revie' and settlement i& it'o$ld e an inordinatel% length% time as longer than 40 da%s to &inish 'ith it" The instr$ments are eingkept* held* and 'itho$t ret$rn or dishonor* are accepted as an oligation o& the $risdiction" &oyne v. :merican !obacco &ompany* !3C F" Cd 133 (4th 5ir" !222)" F$rther* the

plainti&& 6ears the $rden o& demonstrating standing and m$st plead its components 'ith speci&icit%"7&oyne* !3C F" Cd at 121R @alley Forge &hristian &ollege v. :mericans $nited for %eparation of &hurch H%tate* -nc.* 11


48/51

rights* title and interest $nder the Mortgage at iss$e as o& the date o& the Foreclos$re 5omplaint" TheAssignments* in ever% instance* e8press a present intent to conve% all rights* title and interest in theMortgage and the accompan%ing Note to the lainti&& named in the caption o& the Foreclos$re 5omplaint$pon receipt o& s$&&icient consideration on the date the Assignment 'as signed and notaried" F$rther* theAssignment doc$ments are all prepared % co$nsel &or the named lainti&&s" These pro&&ered doc$mentselie lainti&&s, assertion the% o'n the Note and Mortgage % means o& a p$rchase 'hich pre-dated the5omplaint % da%s* months or %ears" lainti&&-;enders shall take note* &$rthermore* that prior to theiss$ance o& its Octoer !0* /00 Order* the 5o$rt considered the principles o& 6real part% in interest*7 ande8amined Fed" 9" 5iv" " ! 6arties lainti&& and De&endantR 5apacit%7 and its associated 5ommentar%"The 9$le is not apropos to the sit$ation raised % these Foreclos$re 5omplaints" The 9$le,s 5ommentar%o&&ers this e8planation: 6The provision sho$ld not e mis$nderstood or distorted" t is intended to prevent&or&eit$re 'hen determination o& the 5ase !:0-cv-0//3/-5AB Doc$ment !! Filed !0@C!@/00 age C o& 4! Asto$ndingl%* co$nsel at oral arg$ment stated that his client* the p$rchaser &rom the original mortgagee*ac.$ired complete legal and e.$itale interest in land 'hen mone% changed hands* even e&ore thep$rchase agreement* let alone a proper assignment* made its 'a% into his client,s possession"-1-proper part% to s$e is di&&ic$lt or 'hen an $nderstandale mistake has een made" """ t is* in cases o& thissort* intended to ins$re against &or&eit$re and in>$stice """7 lainti&&-;enders do not allege mistake or that apart% cannot e identi&ied" Nor 'ill lainti&&-;enders s$&&er &or&eit$re or in>$stice % the dismissal o& thesede&ective complaints other'ise than on the merits" Moreover* this 5o$rt is oligated to care&$ll% scr$tinieall &ilings and pleadings in &oreclos$re actions* since the $ni.$e nat$re o& real propert% re.$ires contracts

and transactions concerning real propert% to e in 'riting" 9"5" X !CC"01" Ohio la' holds that 'hen amortgage is assigned* moreover* the assignment is s$>ect to the recording re.$irements o& 9"5" X C0!"/"&reager v. :nderson (!2C1)* !4 Ohio ;a' As" 100 (interpreting the &ormer stat$te* #"5" X 31C)" 6Th$s*'ith regards to real propert%* e&ore an entit% assigned an interest in that propert% 'o$ld e entitled toreceive a distri$tion &rom the sale o& the propert%* their interest therein m$st have een recorded inaccordance 'ith Ohio la'"7-n re 7chmanek* /44 B"9" !!1* !/0 (Bkrtc%"N"D" Ohio /000) (citingGinney v.

Merchants, National Bank of efiance* ! Ohio ?t" !C* ! (!201)"! This 5o$rt ackno'ledges the righto& anks* holding valid mortgages* to receive timel% pa%ments" And* i& the% do not receive timel%pa%ments* anks have the right to properl% &ile actions on the de&a$lted notes seeking &oreclos$re on thepropert% sec$ring the notes" et* this 5o$rt possesses the independent oligations to preserve the >$dicialintegrit% o& the &ederal co$rt and to >ealo$sl% g$ard &ederal >$risdiction" Neither the &l$idit% o& 5ase !:0-cv-0//3/-5AB Doc$ment !! Filed !0@C!@/00 age 1 o& 4 /lainti&&,s reliance on Ohio,s 6real part% in interest r$le7 (O95 !) and on an% Ohio case citations is

misplaced" Altho$gh Ohio la' g$ides &ederal co$rts on s$stantive iss$es* state proced$ral la' cannot e$sed to e8plain* modi&% or contradict a &ederal r$le o& proced$re* 'hich p$rpose is clearl% spelled o$t inthe 5ommentar%" 6n &ederal diversit% actions* state la' governs s$stantive iss$es and &ederal la'governs proced$ral iss$es"76rie ;.;. &o. v. !ompkins* C01 $risdictional re.$irements* eitherpro se or thro$gh co$nsel" Their &oc$s is either* 6ho' do save m% home*7 or 6i& have to give it $p* ,ll simpl% leave and &ind some'here else to live"7n the meantime* the &inancial instit$tions or s$ccessors@assignees r$sh to &oreclose* otain a

de&a$lt >$dgment and then sit on the deed* avoiding responsiilit% &or maintaining the propert% 'hilereaping the &inancial ene&its o& interest r$nning on a >$dgment" The &inancial instit$tions kno' the la'charges the one 'ith title (still the homeo'ner) 'ith maintaining the propert%"There is no do$t ever% decision made % a &inancial instit$tion in the &oreclos$re process isdriven % mone%" And the legal 'ork 'hich &lo's &rom 'inning the &inancial instit$tion,s &avor is highl%l$crative" There is nothing improper or 'rong 'ith &inancial instit$tions or la' &irms making a pro&it to the contrar% * the% sho$ld e re'arded &or so$nd $siness and legal practices" Ho'ever* $nchallenged% $nder&inanced opponents* the instit$tions 'orr% less ao$t >$risdictional re.$irements and more ao$tma8imiing ret$rns"


49/51

5o$nsel &or the instit$tions are not 'itho$t legal arg$ment to s$pport their position* $t theirarg$ments &all 'oe&$ll% short o& >$sti&%ing their premat$re &ilings* and $tterl% &ail to satis&% their standing--the secondar% mortgage market* nor monetar% or economic considerations o& the parties* nor theconvenience o& the litigants s$persede those oligations" Despite lainti&&s, co$nsel,s elie& that 6thereappears to e some level o& disagreement and@or mis$nderstanding amongst pro&essionals* orro'ers*attorne%s and memers o& the >$diciar%*7 the 5o$rt does not re.$ire instr$ction and is not operating $nderan% misapprehension" The 6real part% in interest7 r$le* to 'hich the lainti&&-;enders contin$all% re&er intheir responses or motions* is clearl% comprehended % the 5o$rt and is not intended to assist anks inavoiding traditional &ederal diversit% re.$irements"/ $risdiction* evidence s$mitted either'ith the complaint or later in the case indicates that standing and@or s$>ect matter >$risdiction ma% nothave e8isted at the time certain o& the &oreclos$re complaints 'ere 5ase C:0-cv-00/34-TM9-M9MDoc$ment /1 Filed !!@!@/00 age ! o& -/-

&iled" F$rther* onl% one o& these &oreclos$re complaints th$s &ar 'as &iled in compliance 'ith this5o$rt,s #eneral Order 0-0C captioned 6roced$res &or Foreclos$re Actions Based On Diversit%J$risdiction" ?tanding Federal co$rts have onl% the po'er a$thoried % Article o& the $risdiction"-d.lainti&&s have the $rden o& estalishing standing"0oren v. Blue&ross H Blue %hield of Michigan* No" 04-/020* /00 =; //401 at V (4th 5ir" ?ept" /0* /00). & the%cannot do so* their claims m$st e dismissed &or lack o& s$>ect matter >$risdiction"-d. (citing &entral%tates

%outheast H %ou hwest :reas ealth and +elfare Fund v. MerckMedco Managed &are* 1CC F"Cd !3!* !22


50/51

(/d 5ir" /00))" Beca$se standing involves the &ederal co$rt,s s$>ect matter >$risdiction* it can e raiseds$a sponte"-d. (citing &entral %tates* 1CC F"Cd at !23)" F$rther* standing is determined as o& the time thecomplaint is &iled" &leveland Branch* N::&G v. &ity of Garma* 7hio* /4C F"Cd !C* /1 (4th 5ir" /00!)*cert. denied* C ect matter >$risdiction e8isted at thetime the complaint 'as &iled"-d. Finall%* i& s$>ect matter >$risdiction is .$estioned % the co$rt* theplainti&& cannot rel% solel% $pon the allegations in the complaint and m$st ring &or'ard relevant* ade.$ateproo& that estalishes s$>ect matter >$risdiction"Nelson &onstruction &o. v. $.%.* No" 0-!/05* /00 =;C/22!4! at VC (Fed" 5l"* Oct" /2* /00) (citingMcNutt v. Ieneral Motors :cceptance &orp. of -ndiana*/23 ect-matter->$risdiction re.$irements are met at the time the complaint is &iled"ven 'itho$t the concerns raised % the doc$ments the plainti&&s have &iled* there is reason to .$estion thee8istence o& standing and the >$risdictional amo$nt" %ee Katherine M" orter*Misbehavior and Mistake in

Bankruptcy Mortgage &laims C-1 (Novemer 4* /00)*


51/51

icks v. Miller Brewing &ompany* /00/ =; 44C0C (th 5ir" /00/)" Ho'ever* a part% ma% e deniedrights as a sanction i& &ail$re to compl% 'ith s$ch a local r$le is 'ill&$l"-d. #eneral Order 0-0C providesproced$res &or &oreclos$re actions that are ased $pon diversit% >$risdiction" ncl$ded in this #eneral Orderis a list o& items that m$st accompan% the 5omplaint"! Among the items listed are: a reliminar% J$dicial9eportR a 'ritten pa%ment histor% veri&ied % the plainti&&,s a&&idavit that the amo$nt in controvers%e8ceeds G*000R a legile cop% o& the promissor% note and an% loan modi&ications* a recorded cop% o& themortgageR an% applicale assignments o& the mortgage* an a&&idavit doc$menting that the named plainti&& isthe o'ner and holder o& the note and mortgageR and a corporate disclos$re statement" n general* it is &romthese items and the &oreclos$re complaint that the 5o$rt can con&irm standing and the 5ase C:0-cv-00/34-TM9-M9M Doc$ment /1 Filed !!@!@/00 age o& /The ?i8th 5irc$it ma% look to an attorne%,sactions in other cases to determine the e8tent o& his or her good &aith in a partic$lar action" %ee &apital

-ndemnity &orp. v. ?ellinick* F" App,8 222* !00/ (4th 5ir" /00C)" F$rther* the la' holds a plainti&&6acco$ntale &or the acts and omissions o& Sits chosen co$nsel"7Gioneer -nv. %ervices &o. v. Brunswick

:ssociates 0td.Gartnership* 0 $risdiction pending e&ore this 5o$rt 'ere &iled % the sameattorne%" One o& the t'ent%-si8 (/4) &oreclos$re actions 'as &iled in compliance 'ith #eneral Order 0-0C"The remainder 'ere not"/ Also* man% o& these &oreclos$re complaints are notated on the docket to indicatethat the% are not in compliance" Finall%* the attorne% 'ho has &iled the t'ent%-si8 (/4) &oreclos$recomplaints has in&ormed the 5o$rt on the record that he kno's and can compl% 'ith the &iling re.$irements

&o$nd in #eneral Order 0-0C" There&ore* since the attorne% 'ho has &iled t'ent%-si8 (/4) o& the t'ent%-seven (/) &oreclos$re actions ased $pon diversit% >$risdiction that are c$rrentl% e&ore this 5o$rt is 'ella'are o& the re.$irements o& #eneral Order 0-0C and can compl% 'ith the #eneral Order,s &ilingre.$irements* &ail$re in the &$t$re % this attorne% to compl% 'ith the &iling re.$irements o& #eneral Order0-0C ma% onl% e considered to e 'ill&$l" Also* d$e to the e8tensive disc$ssions and arg$ment that hastaken place* &ail$re to compl% 'ith the re.$irements o& the #eneral Order e%ond the &iling re.$irements% this attorne% ma% also e considered to e 'ill&$l" A 'ill&$l &ail$re to compl% 'ith #eneral Order 0-0Cin the &$t$re % the attorne% 'ho &iled the t'ent%-si8 &oreclos$re actions no' pending ma% res$lt inimmediate dismissal o& the 5ase C:0-cv-00/34-TM9-M9M Doc$ment /1 Filed !!@!@/00 age 4 o& -- &oreclos$re action" F$rther* the attorne% 'ho &iled the t'ent%-seventh &oreclos$re action is here% p$ton notice that &ail$re to compl% 'ith #eneral Order 0-0C in the &$t$re ma% res$lt in This 5o$rt is 'ella'are that entities 'ho hold valid notes are entitled to receive timel% pa%ments in accordance 'ith thenotes" And* i& the% do not receive timel% pa%ments* the entities have the right to seek &oreclos$re on the

accompan%ing mortgages" Ho'ever* 'ith regard the en&orcement o& standing and other >$risdictionalre.$irements pertaining to &oreclos$re actions* J$dge 5hristopher A Bo%ko o& the

mortgage killer doc

Documents