Video 1 ======================================================================== The US code is only prima facia evidence [at first glance] and is not fact “law” but appears as law at first glance. When a claim is made under federal law, the use of USC is used. The USC is codification by subject matter of the general and permanent law of the US based upon what is printed in the statutes at large. The statutes at large are the original intent of congress. A judge wrote a book about attorneys and judges are in collusion. There is no such thing as law but rather “opinions”. The reason why things turned out this way was over time, both parties failed to bring up the law and instead spoke of theories and presumptions. The judiciaries job is to interpret the intent of congress, not give opinions. Congress can write a statute 13 stat 99 [title 12 banking]. Congress writes the laws. Judges have no authority to suggest what the law meant or should mean. The judges only authority is to state what the intent of congress was. If the judge makes up his own laws, it leads to a voided judgment or contract. The judiciary has an obligation to review the statutes congress creates to ensure it meets constitutional muster. The statutes at large are not easily accessible to the public. There are 50 titles under the USC. The USC on GPO Access is the official; however, there is USC annotated and USC Service which provides additional notes. Of the 50 titles only 23 have been enacted into positive law: 1, 3, 4, 5, 9, 10, 11, 13, 14, 17, 18, 23, 28, 31, 32, 35, 36, 37, 38, 39, 44, 46 and 49. title 12 is not enacted into positive law or the process of preparing and enacting one title at a time, a revision and restatement of the general and permanent laws of the US. In the annotated version, you obtain the judicial confirming constitutional muster along with case law. Under blacks law rectum means accusation or trial. USC is prina facia evidence. Statutes at large are the laws of the US. The statutes at large differ greatly from the USC. Where do banks get their authority from? From the Chicago Federal Reserve, a publication: Points of interest: page 6, banks and deposit creation: depository institutions which for simplicity, we will call banks, are different from other financial institutions because they offer checking accounts, and make loans by lending checkbook deposits. What is loaning checkbook deposits? The deposit creation activity creates money and affects interest rates, because these deposits are part of savings, the source of supply of credit. Banks create deposits by making loans. Rather than handing cash to borrowers, banks simply increase balances in borrower’s checking accounts. Borrowers can then draw checks to pay for goods and services. This creation of checking accounts through loans is just as much as a deposit as one we might make by pushing a bill through a teller’s window. With all the nation’s banks able to increase the supply of credit in this fashion, credit can expand conceivably without limit. When banks create checkbook deposits, they create money as well as credit since these deposits are part of the money supply. Another publication is called the two faces of debt: page 19: for an individual institution, they arise typically when a depositor brings in currency or checks drawn on other institutions. The depositor’s balance rises, but the currency he or she holds or the deposits someone else holds are reduced a corresponding amount. The public’s total money supply is not changed. But a depositor’s balance also rises when the depository institution extends credit either by granting a loan to or buying securities from the depositor. In exchange for the note or security, the lending or investing institution credits the deposit’s account or gives a check that can be deposited at yet another depository institution. In this case no one else loses a deposit. The total of currency and checkable deposits the money supply is increased. New money has been brought into existence by expansion by depository institution credit. Such newly created funds are in addition to funds that all financial institutions provide in their operations as intermediaries between savers and users of savings. But individual depository institutions can not expand credit and create deposits without limit. Furthermore, most of the deposits they create are soon transferred to other institutions. A deposit created through lending is a debt that has to be paid upon demand of the depositor, just the same as the debt arising from a customer’s deposit of checks or currency in a bank. There is a presumption that when you deposit money into your account, the deposit rises. But it does NOT. How does a bank buy securities from a depositor? This is an “unknown contract” the people are not aware of. ------------- In terms of the national debt, every dollar of the government’s debt is someone’s asset. Who owns this asset? WTF? We believe we put our money in the bank accounts and we have an asset. However, the banks call it debits and credits. Who is the bank? Who has standing? Who grants the court jurisdiction? Banks are arms or agencies of the US government. You do not really get a loan from a bank but rather from the US government. This is provided at 31 CFR 202. The bank accepts this designation as an agency of the US government. ======================================================================== Video 2 ======================================================================== The bank acts as an agent for the government. The banks “loan check book deposits”. On old cases the court says the bank can not lend the depositor’s deposits. Thus proceeds were granted to the bank as a result of the notes and mortgage. Dan did not realize mortgages and notes were purchased and sold. The logical things was when one borrows “money”, the source is the actual lender. Banker’s response: the bank loans out depositor’s money. Thus, logically, if you loan my money out, I can not get it because you loaned it to someone else. Therefore, money can not be in two spots at the same time. The court says the bank is not authorized to loan the money out. The federal reserve says the money comes from the bank’s checkbook deposits. Historically, the court disagrees with this. In MMM, on page 3, Everyone soon found that it was a lot easier simply to use the deposit receipts directly as a means of payment. These receipts, which became known as notes, were acceptable as money since whoever held them could go to the banker and exchange them for metallic money. Then, bankers discovered that they could make loans merely by giving their promises to pay, or bank notes, to borrowers. In this way, banks began to create money. More notes could be issued than the gold and coin on hand because only a portion of the notes outstanding would be presented for payment at any one time. Enough metallic money had to be kept on hand, of course, to redeem whatever volume of notes was presented for payment. Transaction deposits are the modern counterpart of bank notes. It was a small step from printing notes to making book entries crediting deposits of borrowers, which the borrowers in turn could "spend" by writing checks, thereby "printing" their own money. Definition of money: anything that serves as a generally accepted medium of exchange, a standard of value,, a means of saving or storing purchasing power. If money is the FRNs that they claim, why not state this. What they are saying is a “value of exchange”. If this piece of paper is my promise, then it has value because it is a future contract – thus the note itself is an asset. These “receipts” which became known as notes, ie PN, were accepted AS money, since whoever held them, could go to the banker and exchange them for metallic money. Then bankers discovered that they can make loans by giving the bank’s promise to pay or bank notes to borrowers, in this way, banks began to create money. Therefore more notes could be issued, then gold coin, on hand because only a portion of notes outstanding would ever be presented for payment. Enough metallic money had been kept on hand. Transaction deposits are the modern counter part of bank notes. It was a small step from actual notes to make “book entries” crediting deposits of borrowers which the borrowers entered in turn could spend by writing checks thus printing their own money. Maybe the loan was not made of “cash”, maybe it was just a piece of paper which was a promise. What is a mortgage or note? Wheeler v sohmer 1914, comptroller of the State of NY – in this case, a footnote states: PNs, are only evidence of debt and not debt itself. Where is the debt then? In the publications, the notes is used a “payment advancement”, and these are also enforced in court by referring to the PN as an “obligation”. An obligation is an asset according to their publications. Per the comptroller of NY, PNs are not debts. If it is not a debt, it can not be an asset either. So where is the debt? Maybe it is in the mortgage. Furthermore [can not verify in case], the debt due of which the notes is evidence is property vested in the owner, except where he has conferred authority upon someone else as his agent to loan, manage or receive and collect the same for him, and in such case it might be reasonable that it be held that situs of property was the domicile of the agent – in other words, the situs is the legal glue between you and the bank. Situs = contract. Summing up: notes are not debt. Thus, it can not be an asset. The banks can not use depositor’s money. The banks can NOT use either one of them. So where does this MONEY come from? How does the bank say there is an obligation? 12 USC 3754 – 59 CJS section 2 – mortgages: mortgage = dead pledge = the debt secured by the mortgage, but in its true sense an ordinary mortgage is not a debt, as the debt is the principle obligation in the mortgage is generally regarded as merely an incident or accessory to the debt. Thus the mortgage is an accessory to the debt. An accessory would not give ownership over the property. However, courts and banks allow this to happen daily. Dan makes reference to the 13 stat 99 -1864 banking act. 12 USC 73 Oath Each director, when appointed or elected, shall take an oath that he will, so far as the duty devolves on him, diligently and honestly administer the affairs of such association, and will not knowingly violate or willingly permit to be violated any of the provisions of title 62 of the Revised Statutes, and that he is the owner in good faith, and in his own right, of the number of shares of stock required by title 62 of the Revised Statutes, subscribed by him, or standing in his name on the books of the association, and that the same is not hypothecated, or in any way pledged, as security for any loan or debt. The oath shall be taken before a notary public, properly authorized and commissioned by the State in which he resides, or before any other officer having an official seal and authorized by the State to administer oaths, except that the oath shall not be taken before any such notary public or other officer who is an officer of the director’s bank. The oath, subscribed by the director making it, and certified by the notary public or other officer before whom it is taken, shall be immediately transmitted to the Comptroller of the Currency and shall be filed and preserved in his office for a period of ten years. 12 U.S. Code § 83 - Loans by bank on its own stock (a) General prohibition No national bank shall make any loan or discount on the security of the shares of its own capital stock. (b) Exclusion For purposes of this section, a national bank shall not be deemed to be making a loan or discount on the security of the shares of its own capital stock if it acquires the stock to prevent loss upon a debt previously contracted for in good faith. The capital stock for the creation of the bank by the directors can not be touched or loaned. It can not be pledged. Summing up: The bank can NOT use the capital stock, it can not use the depositor’s deposit, and it can not lend credit. In contract law, it is imperative that both parties understand the terms otherwise there is no contract and thus void. If it were a voidable contract, it would be of bad faith, breach of duty, etc. The question comes up – WHO issued the PN? If the bank issued the PN, then it violated federal law. When you flip the note over, it gives you one option for signature. There is no signature for the bank to sign. Therefore the PN is yours. HOWEVER, the note can not be a debt according to case law and the judicial system. If it is not a debt according to the federal reserve publications, it can not be an asset. THEREFORE, THE PN AND MORTGAGE ARE JUST “ACCESSORIES” AND ARE NOT DEBTS, IF THEY ARE NOT DEBTS, THEY ARE NOT ASSETS, WHERE DID THE ASSET COME FROM? All it is – is all make believe. You believe there is a debt, you believe it is money, you believe it has value – it is nothing more than a belief system. If we stop believing in this – what is left. If a FRN had value, could you physically go to the FRB and get gold bullion for it? If the FRB does not give you the gold, then the FRN is not worth what they want us to believe. With a foreclosure case, without the original note being brought forth into the court, judicial or nonjudicial, the alleged holder of the note, has no rights because the original has not been brought forth. The reason why the original PN must be brought forth is to provide evidence that the note was duly negotiated which means transferred. According to the SEC, negotiated means, exchange, sale, transfer, delivery or assign. Since you are the only one who can sign it and give it to the bank, it has been transferred, regardless what may have been exchanged. 2nd reason, to assure that the PN does not reappear that at some time in the future. And the maker may be charged twice for the promise to pay which is against constitutional law. Summing up: Original note must be present so court knows it was duly negotiated and that you can not be charged again should the note resurface. A promise to pay can not, by argument, however ingenious, be made the equivalent of actual payment. Christensen v Beebe 91P. 129, 32 Utah 406 Where is the debt? It can not be the PN. However, the PN is authorization to make the money. It is “not the money” but it is the AUTHORIZATION TO MAKE IT. Mortgage Securites Inc. v Harley Lord No. 4dD02-4051 July 23, 2003: Mortgagee by assignment bought foreclosure action. The circuit court, the 15th judicial circuit, Palm Beach County, Edward fine and John Wessel, JJ, entered summary judgment for mortgagor. Mortgagee appealed. The district court of appeal, Stone, J held that mortgagee could not maintain cause of action to enforce missing PN or foreclosure mortgage, in absence of proof that mortgagee or assignor ever had possession of the note. Dan gives all these case laws – more so in Florida. ======================================================================== Video 5 ======================================================================== Summing up: a loan is an expression of promises. One give and the other takes. The bank makes a claim that it 1. uses depositor’s money, 2. Use the bank’s capital [federal violation], 3. Use the bank’s notes [court case, statute]. Where did the money come from? When the bank refers to its reserves or vault cash, the assumption is money is kept safe within the bank. This is not the definition of the federal reserve. Under purpose and functions FR publication, on page 141, reserves are a depository institution’s vault cash up to its level of required reserves plus balances in its reserve account not including funds applied to required clearing balance. The bank permits people to believe “bank deposits” are kept safe by the depositors in a vault. Required reserves means: funds that a depository institution is required to maintain as vault cash or on deposit with the FRB – IOW – do actual deposit’s money go to the FRB or is there something else that goes to the FRB? Required reserve balance: portion of its requires reserves that depository institution must hold in an account at a FRB. This suggests there is something other than depositor’s money being held at the FRB. There is still requirement that the bank hold some sort of reserve – [not money]. The banks are always an agency of the FRB. So what does the bank deposit to the FRB? If the bank is an agent for the FRB, then who has the power to create money in the US? Who is authorized to make money? FRB – no, Congress – no. According to the constitution, it has the authority to place the weights and measures – how much it is worth NOT TO MAKE MONEY????? IF the bank can not use depositor’s money, capital stock or notes, then the people are the creators of money. Thus on the PN, it is your signature that grants to them the authorization to create money AND to be my fiduciary while doing so keeping that deposit with the FRB so it does not show on the books. We create the money through the FRB. Then the bank makes a book entry asset [per the purpose and functions pub] in its favor. Where is the bank’s right, if you just loaned yourself the money? Who is the bank to take your money and give it back to you as a loan and then take your house for failure to pay back to the bank you money? If you authorize the bank to make that money, it is only true that it is your money to begin with. In essence the PN is a contract. And it follows that for the contract to be valid, there be a mutual or reciprocal assent or agreement by both parties. Since people believe they borrowed the banks capital or something of value, they believe they are obligated to pay the bank back. This, in law, is gross misrepresentation which is a void contract. In court, the bankers or attorneys will not answer if they loaned their capital. If they would answer, they would answer, THEY EXTENDED CREDIT. What is an extension of credit? It is a loan. It still remains something of value for value. The banker and attorneys are not liable but the directors are liable. All banks are extensions of the FRB. Under 12 USC 21, the banks corporate papers are sent to the OCC. We can always do a FOIA request to find out who the directors of the bank are. We can then compare those incorporation papers are consistent with the law. ======================================================================== Video 6 ======================================================================== The bank can not loan its assets as this is a violation of federal law. Yet the loan is funded by the note. The note is the authoritative source for the creation of the loan based upon the reserves the bank keeps at the FRB. The loan is funded by the PN or check/draft. The bank has rights to deposit the PN as the servicer, fiduciary, safe keeper, trustee. In order to get this private deposit transaction in to the public eye, one has to get the agreement from the bank and then simply have it altered, inaccurate, nondisclosed, incorrect information corrected, and make sure all executed or known documents are in the files maintained by the intermediary or bank. The bank offered documents that can be made public. The bank is also regulated by the US government or OCC, SEC, FDIC, FRB, then one can be assured that the governmental agency regulating the bank can aide in correcting or fixing the issue. If neither help, it is reasonable to question both parties: 1. Negligence in safe and sound banking practices by not fully disclosing the entire agreement 2. unlawful enrichment of proceeds by selling off some else’s property without full consent and knowledge. 3. Genuine authentic evidence that ABC bank is the services and not the lender of the loan. The bank is the holder of the PN. Again, if you, the bank loaned your capital, why not state this in court? Extending credit still must provide something of value, what did your bank provide as consideration or value? If the PN is not important, please give it back to me. The FRB requires original documents, as part of your reserve accounting. Page 6 MMM: . Of course, they do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts. So what we are borrowing is credits. Did you ever agree to accept credit and pay back with FRNs or your cash? It would be fair to say, if I was loaned credit, then it would be fair to pay you back in credit. Negotiable instruments – the bank has to put a certain amount of stock to become a member of the FRB, it buys stock in the FRB, Under the SEC, the documents put forth are registered. These documents are pooled together and re-sold on the secondary market. Under UCC 8, there are different definitions for a “banking security” and commercial security. The ABCs of the UCC by Sandra M. Rocks. Under UCC 8, it covers acquisition [ie, PN stealing], holding, transfer of interest, securities and other investment properties. The definition of security constinue in 8-102 with 8-103, has little to do with security as developed for the purpose under federal securities law. Article 8 definition is intended to cover assets that one would normally expect to be bought and sold as securities in today’s market place. And it has four components, 1 the asset must be an obligation of the issuer [we “issue” the PN and have obligated ourselves], 2 the asset must take one of 3 forms: it must be in bearer form, registered form, or uncertificated form [just book entries]. 3 the asset must be one of a class of series or by its terms by divisible in a class of series shares, participations, interests or obligations. [the bank does have a fiduciary interest because the bank is holding it and it is also an obligation so it falls under both categories]. 4 the asset must function like a security, meaning it is dealt or traded in the securities industry. On the bottom of the PN, it says it is a Freddie mac or fannie mae instrument. Dan asked for clarification from the head of fannie mae. How does fannie mae get involved in this after a few years. Dan did not realize fannie may was even involved. The response from fannie mae was that fannie mae acquired the loan and owns the loan. GMAC serviced the loan before fannie mae. Somehow fannie mae acquired the loan. Who is GMAC? What is a servicer? Dan thought the bank loans its capital and he gives the money back – WRONG. What is a servicer? The PN is fannie mae’s who took that interest and put it into a pool of loans [one can find this over at the SEC, ask for servicing agreement or pooling agreement.] fannie mae puts all the “interests in loan” together and call it a security. Under the 1933 securities act [SEC website], a security means any note [PN], stock, bond, evidence of indebtedness is commonly known as a security. The term sale or sell http://www.sec.gov/about/laws/sa33.pdf The term ‘‘security’’ means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profitsharing agreement, collateral-trust certificate, pre organization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a ‘‘security’’, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing. The term ‘‘sale’’ or ‘‘sell’’ shall include every contract of sale or disposition of a security or interest in a security, for sale or disposition of a security or interest in for value. The term ‘‘offer to sell’’, ‘‘offer for sale’’, or ‘‘offer’’ shall include every attempt or offer to dispose of, or solicitation of an offer to buy, a security or interest in a security, for value. The terms defined in this paragraph and the term ‘‘offer to buy’’ as used in subsection (c) of section 5 shall not include preliminary negotiations or agreements between an issuer (or any person directly or indirectly controlling or controlled by an issuer, or under direct or indirect common control with an issuer) and any underwriter or among underwriters who are or are to be in privity of contract with an issuer (or any person directly or indirectly controlling or controlled by an issuer, or under direct or indirect common control with an issuer). Any security given or delivered with, or as a bonus on account of, any purchase of securities or any other thing, shall be conclusively presumed to constitute a part of the subject of such purchase and to have been offered and sold for value. The issue or transfer of a right or privilege, when originally issued or transferred with a security, giving the holder of such security the right to convert such security into another security of the same issuer or of another person, or giving a right to subscribe to another security of the same issuer or of another person, which right cannot be exercised until some future date, shall not be deemed to be an offer or sale of such other security; but the issue or transfer of such other security upon the exercise of such right of conversion or subscription shall be deemed a sale of such other security. Any offer or sale of a security futures product by or on behalf of the issuer of the securities underlying the security futures product, an affiliate of the issuer, or an underwriter, shall constitute a contract for sale of, sale of, offer for sale, or offer to sell the underlying securities. Any offer or sale of a security-based swap by or on behalf of the issuer of the securities upon which such security-based swap is based or is referenced, an affiliate of the issuer, or an underwriter, shall constitute a contract for sale of, sale of, offer for sale, or offer to sell such securities. The publication or distribution by a broker or dealer of a research report about an emerging growth company that is the subject of a proposed public offering of the common equity securities of such emerging growth company pursuant to a registration statement that the issuer proposes to file, or has filed, or that is effective shall be deemed for purposes of paragraph (10) of this subsection and section 5(c) not to constitute an offer for sale or offer to sell a security, even if the broker or dealer is participating or will participate in the registered offering of the securities of the issuer. As used in this paragraph, the term ‘‘research report’’ means a written, electronic, or oral communication that includes information, opinions, or recommendations with respect to securities of an issuer or an analysis of a security or an issuer, whether or not it provides information reasonably sufficient upon which to base an investment decision. What fannie mae did was convert the PN into another security. A sale does include any kind of transfer. A transfer could be of an interest in that piece of property, or whoever signed the PN. It is an entitlement right. (4) The term ‘‘issuer’’ means every person who issues or proposes to issue any security; except that with respect to certificates of deposit, voting-trust certificates, or collateral-trust certificates, or with respect to certificates of interest or shares in an unincorporated investment trust not having a board of directors (or persons performing similar functions) or of the fixed, restricted management, or unit type, the term ‘‘issuer’’ means the person or persons performing the acts and assuming the duties of depositor or manager pursuant to the provisions of the trust or other agreement or instrument under which such securities are issued; except that in the case of an unincorporated association which provides by its articles for limited liability of any or all of its members, or in the case of a trust, committee, or other legal entity, (11) The term ‘‘underwriter’’ means any person who has purchased from an issuer with a view to, or offers or sells for an issuer in connection with, the distribution of any security, or participates or has a direct or indirect participation in any such undertaking, or participates or has a participation in the direct or indirect underwriting of any such undertaking; but such term shall not include a person whose interest is limited to a commission from an underwriter or dealer not in excess of the usual and customary distributors’ or sellers’ commission. (12) The term ‘‘dealer’’ means any person who engages either for all or part of his time, directly or indirectly, as agent, broker, or principal, in the business of offering, buying, selling, or otherwise dealing or trading in securities issued by another person. We are the issuer of the PN. If the bank did issue the PN, it would be a violation of law, as it can not directly or indirectly pledge or hypothecate ANY of their notes in circulation. And if the bank said the PN was theirs, then it would be their obligation. Here the term underwriter [as what most banks say they are just underwriting it for someone else] but this is NOT the definition under the SEC definitions: An underwriter “purchases” from the issuer the PN. How can this be? If Dan issued the PN, and the bank states it is the underwriter, then it states that the BANK PURCHASED the PN from Dan. WHAT????? There is no bill of sale. Did the bank use its own assets for the loan proceeds? Bank: No, the bank extended credit to you the borrower. If the bank “purchased” the PN, it would have had to be purchased with the bank’s own money. OR the bank is admitting that it used fannie mae’s money as a servicer for fannie mae meaning the bank NEVER LOANED ANYTHING TO ME, AND meaning that when the bank puts “its lien” on the house, it is actually a cloud on the title to “my house” because the bank did not have any right to the property to begin with. [clarification note: Dan does not understand by the mere fact the person he uses DAN BENHAM is property belonging to the state. This purchase concept is already defined under UCC 1-201 in essence the word stolen sums it up but under UCC taking by sale, lease, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift, or ANY other VOLUNTARY transaction creating an interest in property. Dan is trying to explain contract law but he forget that he voluntary consents to be under the jurisdiction thereof when he claims the name. It is presumed, Dan the person KNOWS the law and voluntarily consents to act as surety.] The term dealer means any person who engages as agent or broker in the business of “peddling fraudulent securities where the man was tricked”. The bank is dealing in securities for someone else. Under 12 CFR 1.2 (e) Investment security means a marketable debt obligation that is investment grade and not predominately speculative in nature. (f) Marketable means that the security: (1) Is registered under the Securities Act of 1933, 15 U.S.C. 77a et seq.; (2) Is a municipal revenue bond exempt from registration under the Securities Act of 1933, 15 U.S.C. 77c(a)(2); (3) Is offered and sold pursuant to Securities and Exchange Commission Rule 144A, 17 CFR 230.144A, and investment grade; or (4) Can be sold with reasonable promptness at a price that corresponds reasonably to its fair value. Asset v Security” UCC 8-102 Securities have 4 components: 1 Must either be an obligation or share, participation or other interest in the issuer or issuer’s property. 2. Asset must take 1 of 3 forms: Bearer Form – physical certificate Registered Form – physical certificate entitling the person registered the rights Uncertified – Book Entry 3. Must be divisible into a class or series of shares – jumbo certificate 4. Must function like a security – dealt or traded on securities exchange or market a financial asset is defined to include all securities AND also to include 2 other groups of assets: 1. Any share or obligation dealt in or traded on financial markets or is issued or dealt in as a medium of exchange. Examples are: commercial paper, bankers acceptance and certificates of deposit. 2. ANY PROPERTY HELD IN A SECURITIES ACCOUNT. The bank has an “interest in the PN”. The bank has an interest in the mortgage. If the bank has an interest in the note – then where is the debt? The bank would respond that is has evidence of the debt has produced called the PN. Great, NOW WHERE IS THE ACTUAL DEBT? The mortgage and PN are accessories, who is the owner? The definition of securities under UCC 8-102 will match exactly the publication public debt, private assets from the Chicago FRB. EVERY ASSET IS AN OBLIGATION. Asset = obligation = security. The PN is property held in a securities account and offered on a secondary market. 12 USC 92a Trust Powers. a) Authority of Comptroller of the Currency The Comptroller of the Currency shall be authorized and empowered to grant by special permit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, or in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are permitted to act under the laws of the State in which the national bank is located. 12 USC 83 Loans by bank on its own stock (a) General prohibition No national bank shall make any loan or discount on the security of the shares of its own capital stock. (b) Exclusion For purposes of this section, a national bank shall not be deemed to be making a loan or discount on the security of the shares of its own capital stock if it acquires the stock to prevent loss upon a debt previously contracted for in good faith 12 U.S. Code § 582 - Receipt of United States or bank notes as collateral No national banking association shall hereafter offer or receive United States notes or national-bank notes as security or as collateral security for any loan of money, or for a consideration agree to withhold the same from use, or offer or receive the custody or promise of custody of such notes as security, or as collateral security, or consideration for any loan of money. Any association offending against the provisions of this section shall be deemed guilty of a misdemeanor and shall be fined not more than $1,000 and a further sum equal to one-third of the money so loaned. The officer or officers of any association who shall make any such loan shall be liable for a further sum equal to one-quarter of the money loaned; and any fine or penalty incurred by a violation of this section shall be recoverable for the benefit of the party bringing such suit. 12 USC 581 has been repealed – however, look under 12 USC 73. However, you can go under 18 USC 334 Issuance of Federal Reserve or national bank notes Whoever, being a Federal Reserve Agent, or an agent or employee of such Federal Reserve Agent, or of the Board of Governors of the Federal Reserve System, issues or puts in circulation any Federal Reserve notes, without complying with or in violation of the provisions of law regulating the issuance and circulation of such Federal Reserve notes; or Whoever, being an officer acting under the provisions of chapter 2 of Title 12, countersigns or delivers to any national banking association, or to any other company or person, any circulating notes contemplated by that chapter except in strict accordance with its provisions— Shall be fined under this title or imprisoned not more than five years, or both. The banks can not use their own capital. The banks can not have money in two different spots nor is there an agreement between you and the bank for the bank to loan your money out. 12 USC 24 Seventh. To exercise by its board of directors or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking; by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; by receiving deposits; by buying and selling exchange, coin, and bullion; by loaning money on personal security [BY LOANING THE BANK’S CAPITAL? WHO’S PERSONAL SECURITY????? WHO’S MONEY?????]; and by obtaining, issuing, and circulating notes according to the provisions of title 62 of the Revised Statutes. The business of dealing in securities and stock by the association shall be limited to purchasing and selling such securities and stock without recourse, solely upon the order, and for the account of, customers, and in no case for its own account, and the association shall not underwrite any issue of securities or stock; Provided, That the association may purchase for its own account investment securities under such limitations and restrictions as the Comptroller of the Currency may by regulation prescribe. In no event shall the total amount of the investment securities of any one obligor or maker, held by the association for its own account, exceed at any time 10 per centum of its capital stock actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund, except that this limitation shall not require any association to dispose of any securities lawfully held by it on August 23, 1935. As used in this section the term “investment securities” shall mean marketable obligations, evidencing indebtedness of any person, copartnership, association, or corporation in the form of bonds, notes and/ or debentures commonly known as investment securities under such further definition of the term “investment securities” as may by regulation be prescribed by the Comptroller of the Currency. Except as hereinafter provided or otherwise permitted by law, nothing herein contained shall authorize the purchase by the association for its own account of any shares of stock of any corporation. The limitations and restrictions herein contained as to dealing in, underwriting and purchasing for its own account, investment securities shall not apply to obligations of the United States, or general obligations of any State or of any political subdivision thereof, or obligations of the Washington Metropolitan Area Transit Authority which are guaranteed by the Secretary of Transportation under section 9 of the National Capital Transportation Act of 1969, or obligations issued under authority of the Federal Farm Loan Act, as amended, or issued by the thirteen banks for cooperatives or any of them or the Federal Home Loan Banks, or obligations which are insured by the Secretary of Housing and Urban Development under title XI of the National Housing Act [12 U.S.C. 1749aaa et seq.] or obligations which are insured by the Secretary of Housing and Urban Development (hereinafter in this sentence referred to as the “Secretary”) pursuant to section 207 of the National Housing Act [12 U.S.C. 1713], if the debentures to be issued in payment of such insured obligations are guaranteed as to principal and interest by the United States, or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association, or the Government National Mortgage Association, or mortgages, obligations or other securities which are or ever have been sold by the Federal Home Loan Mortgage Corporation pursuant to section 305 orsection 306 of the Federal Home Loan Mortgage Corporation Act [12 U.S.C. 1454 or 1455], or obligations of the Federal Financing Bank or obligations of the Environmental Financing Authority, or obligations or other instruments or securities of the Student Loan Marketing Association, or such obligations of any local public agency (as defined in section 110(h) of the Housing Act of 1949 [42 U.S.C. 1460 (h)]) as are secured by an agreement between the local public agency and the Secretary in which the local public agency agrees to borrow from said Secretary, and said Secretary agrees to lend to said local public agency, monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments, or such obligations of a public housing agency (as defined in the United States Housing Act of 1937, as amended [42 U.S.C. 1437 et seq.]) as are secured (1) by an agreement between the public housing agency and the Secretary in which the public housing agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the public housing agency, prior to the maturity of such obligations, monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, (2) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Secretary if such contract shall contain the covenant by the Secretary which is authorized by subsection (g) ofsection 6 of the United States Housing Act of 1937, as amended [42 U.S.C. 1437d (g)], and if the maximum sum and the maximum period specified in such contract pursuant to said subsection 6(g) [42 U.S.C. 1437d (g)] shall not be less than the annual amount and the period for payment which are requisite to provide for the payment when due of all installments of principal and interest on such obligations, or (3) by a pledge of both annual contributions under an annual contributions contract containing the covenant by the Secretary which is authorized by section 6(g) of the United States Housing Act of 1937 [42 U.S.C. 1437d (g)], and a loan under an agreement between the local public housing agency and the Secretary in which the public housing agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the public housing agency, prior to the maturity of the obligations involved, moneys in an amount which (together with any other moneys irrevocably committed under the annual contributions contract to the payment of principal and interest on such obligations) will suffice to provide for the payment when due of all installments of principal and interest on such obligations, which moneys under the terms of the agreement are required to be used for the purpose of paying the principal and interest on such obligations at their maturity: Provided, That in carrying on the business commonly known as the safe-deposit business the association shall not invest in the capital stock of a corporation organized under the law of any State to conduct a safe-deposit business in an amount in excess of 15 per centum of the capital stock of the association actually paid in and unimpaired and 15 per centum of its unimpaired surplus. The limitations and restrictions herein contained as to dealing in and underwriting investment securities shall not apply to obligations issued by the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, the Inter-American Development Bank  Bank for Economic Cooperation and Development in the Middle East and North Africa,,  the North American Development Bank, the Asian Development Bank, the African Development Bank, the Inter-American Investment Corporation, or the International Finance Corporation,,  or obligations issued by any State or political subdivision or any agency of a State or political subdivision for housing, university, or dormitory purposes, which are at the time eligible for purchase by a national bank for its own account, nor to bonds, notes and other obligations issued by the Tennessee Valley Authority or by the United States Postal Service: Provided, That no association shall hold obligations issued by any of said organizations as a result of underwriting, dealing, or purchasing for its own account (and for this purpose obligations as to which it is under commitment shall be deemed to be held by it) in a total amount exceeding at any one time 10 per centum of its capital stock actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund. Notwithstanding any other provision in this paragraph, the association may purchase for its own account shares of stock issued by a corporation authorized to be created pursuant to title IX of the Housing and Urban Development Act of 1968 [42 U.S.C. 3931 et seq.], and may make investments in a partnership, limited partnership, or joint venture formed pursuant to section 907(a) or 907(c) of that Act [42 U.S.C. 3937 (a) or 3937 (c)]. Notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock issued by any State housing corporation incorporated in the State in which the association is located and may make investments in loans and commitments for loans to any such corporation: Provided, That in no event shall the total amount of such stock held for its own account and such investments in loans and commitments made by the association exceed at any time 5 per centum of its capital stock actually paid in and unimpaired plus 5 per centum of its unimpaired surplus fund. Notwithstanding any other provision in this paragraph, the association may purchase for its own account shares of stock issued by a corporation organized solely for the purpose of making loans to farmers and ranchers for agricultural purposes, including the breeding, raising, fattening, or marketing of livestock. However, unless the association owns at least 80 per centum of the stock of such agricultural credit corporation the amount invested by the association at any one time in the stock of such corporation shall not exceed 20 per centum of the unimpaired capital and surplus of the association: Provided further, That notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation or a holding company which owns or controls such an insured bank if the stock of such bank or company is owned exclusively (except to the extent directors’ qualifying shares are required by law) by depository institutions or depository institution holding companies (as defined in section 1813 of this title) and such bank or company and all subsidiaries thereof are engaged exclusively in providing services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a “banker’s bank”), but in no event shall the total amount of such stock held by the association in any bank or holding company exceed at any time 10 per centum of the association’s capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in an association’s acquiring more than 5 per centum of any class of voting securities of such bank or company. The limitations and restrictions contained in this paragraph as to an association purchasing for its own account investment securities shall not apply to securities that (A) are offered and sold pursuant to section 4(5) of the Securities Act of 1933 (15 U.S.C. 77d (5));  (B) are small business related securities (as defined in section 3(a)(53) of the Securities Exchange Act of 1934 [15 U.S.C. 78c (a)(53)]); or (C) are mortgage related securities (as that term is defined in section 3(a)(41) of the Securities Exchange Act of 1934 (15 U.S.C. 78c (a)(41)).  The exception provided for the securities described in subparagraphs (A), (B), and (C) shall be subject to such regulations as the Comptroller of the Currency may prescribe, including regulations prescribing minimum size of the issue (at the time of initial distribution) or minimum aggregate sales prices, or both. A national banking association may deal in, underwrite, and purchase for such association’s own account qualified Canadian government obligations to the same extent that such association may deal in, underwrite, and purchase for such association’s own account obligations of the United States or general obligations of any State or of any political subdivision thereof. For purposes of this paragraph — (1) the term “qualified Canadian government obligations” means any debt obligation which is backed by Canada, any Province of Canada, or any political subdivision of any such Province to a degree which is comparable to the liability of the United States, any State, or any political subdivision thereof for any obligation which is backed by the full faith and credit of the United States, such State, or such political subdivision, and such term includes any debt obligation of any agent of Canada or any such Province or any political subdivision of such Province if— (A) the obligation of the agent is assumed in such agent’s capacity as agent for Canada or such Province or such political subdivision; and (B) Canada, such Province, or such political subdivision on whose behalf such agent is acting with respect to such obligation is ultimately and unconditionally liable for such obligation; and (2) the term “Province of Canada” means a Province of Canada and includes the Yukon Territory and the Northwest Territories and their successors. In addition to the provisions in this paragraph for dealing in, underwriting, or purchasing securities, the limitations and restrictions contained in this paragraph as to dealing in, underwriting, and purchasing investment securities for the national bank’s own account shall not apply to obligations (including limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of section 142 (b)(1) of title 26) issued by or on behalf of any State or political subdivision of a State, including any municipal corporate instrumentality of 1 or more States, or any public agency or authority of any State or political subdivision of a State, if the national bank is well capitalized (as defined in section 1831o of this title). How is it to our benefit that they take out money from our own pocket and call it their own, then get us to pay them back with interest while they create an interest certificate known as a pool certificate and then go sell it to a secondary market and make triple or 4 times amount of “money”, that we gave them, so they can tell us that it was the bank’s money to begin with. If they do this, it must be in accordance to the revised statutes under title 62. However, it shall be limited to purchasing and selling --- review. 12 CFR 1.1 (a) Authority. This part is issued pursuant to 12 U.S.C. 1 et seq., 12 U.S.C. 24 (Seventh), and 12 U.S.C. 93a. (b) Purpose This part prescribes standards under which national banks may purchase, sell, deal in, underwrite, and hold securities, consistent with the authority contained in 12 U.S.C. 24 (Seventh) and safe and sound banking practices. (c) Scope.The standards set forth in this part apply to national banks and Federal branches of foreign banks.Further, pursuant to 12 U.S.C. 335, State banks that are members of the Federal Reserve System are subject to the same limitations and conditions that apply to national banks in connection with purchasing, selling, dealing in, and underwriting securities and stock. In addition to activities authorized under this part, foreign branches of national banks are authorized to conduct international activities and invest in securities pursuant to 12 CFR part 211. (d) Reservation of authority. The OCC may determine, on a case-by-case basis, that a national bank may acquire an investment security other than an investment security of a type set forth in this part, provided the OCC determines that the bank's investment is consistent with 12 U.S.C. section 24 (Seventh) and with safe and sound banking practices. The OCC will consider all relevant factors, including the risk characteristics of the particular investment in comparison with the risk characteristics of investments that the OCC has previously authorized, and the bank's ability effectively to manage such risks. The OCC may impose limits or conditions in connection with approval of an investment security under this subsection. Investment securities that the OCC determines are permissible in accordance with this paragraph constitute eligible investments for purposes of 12 U.S.C. 24. 12 USC 93a - Authority to prescribe rules and regulations Except to the extent that authority to issue such rules and regulations has been expressly and exclusively granted to another regulatory agency, the Comptroller of the Currency is authorized to prescribe rules and regulations to carry out the responsibilities of the office, except that the authority conferred by this section does not apply to section 36 of this title or to securities activities of National Banks under the Act commonly known as the “Glass-Steagall Act”. 15 USC 18 Acquisition by one corporation of stock of another No person engaged in commerce or in any activity affecting commerce shall acquire, directly or indirectly, the whole or any part of the stock or other share capital and no person subject to the jurisdiction of the Federal Trade Commission shall acquire the whole or any part of the assets of another person engaged also in commerce or in any activity affecting commerce, where in any line of commerce or in any activity affecting commerce in any section of the country, the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly.