Crash Course
This is a Quick explanation of something we call "MONEY"
"THE PRICE OF IGNORANCE IS FAR GREATER THAN THE COST OF AN EDUCATION"
We must educate ourselves or in most cases, we must "un-educate" ourselves
Federal Reserve Act
Section 16. Note Issues
1. Issuance of Federal Reserve notes; nature of obligation; where redeemable
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are hereby authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
[12 USC 411. As amended by act of Jan. 30, 1934 (48 Stat. 337). For redemption of Federal reserve notes whose bank of issue cannot be identified, see act of June 13, 1933.]
"The money of the sovereign is his credit, he is the wealth for which no substance on earth can establish a value for."
Maxim in Law
"The ultimate ownership of all property is in the State; individual so-called "ownership" is ONLY by virtue of Government, i.e., law, amounting to mere user; and use must be in accordance with law and subordinate to the necessities of the State."
Senate Document #43; Senate Resolution No. 62 (Pg 9 Para 2) April 17, 1933
The following statements come from several different sources, from Congress, Supreme Court cases, and the Federal Reserve.
All stem from the passage of HJR-192.
"The Treasury writes up an interest-bearing bond for one billion dollars. The Federal Reserve gives the Treasury a one Billion dollar credit for the bond, and has created out of nothing a one Billion dollar debt which the American people are obligated to pay with interest."
- Money Facts, House Banking and Currency
Committee, 1964. p. 9
"A debt is not paid by the giving of a note."
- Noland Co. v. Maryland Casualty Co.
"A note is only a promise to pay and not payment, "
-Fidelity Savings State Bank v. Grimes, 131 P.
2nd 894
"Checks aren't money in themselves ."
-I BET YOU THOUGHT from the Federal
Reserve Board of N., p. 7​
"They (checks) are simply order forms instructing banks and other depository institutions such as savings banks and credit unions to move transaction balances, which are money."
-Same as Above
"Banks don't keep cash in checking accounts - and don't transfer currency or coin when acting on a check's instructions."
- From the Same book on the Federal Reserve.
"The money (Federal Reserve Notes) will be worth 100 cents on the dollar; because it is backed by the credit of the nation.
It will represent a mortgage on all the homes and other property of all the people in the nation.
The money so issued will not have one penny of gold coverage behind it, because it is really not needed."
- 73rd Congress - March 9, 1933
"The giving of a (federal reserve) note does not constitute payment."
- See Echart v Commissioners C.C.A., 42 Fd2d 158
"The use of a (federal reserve) 'Note' is only a promise to pay"
-see Fidelity Savings v. Grimes, 131 P. 2nd 894
"Legal Tender (federal reserve) Notes are not good and lawful money of the United States."
-see Rains v State, 226 S.W. 189​
"Federal reserve notes are valueless."
-see Fidelity Savings v. Grimes
"That (federal reserve) 'Notes do not operate as payment in the absence of an agreement that they shall constitute payment."
- see Blachshear Mfg. Co. v Harrell, 12 S.E. 2d
766.
THE FOLLOWING IS A BANKRUPTCY CASE
STANEK v. WHITE
Supreme Court of Minnesota - 1927
Chief Justice Wilson: "The original debt was not paid. The discharge in bankruptcy operated as a bar to enforcement. The debt could be revived with a new promise, which in Minnesota, must be in writing. The moral obligation involved in the original debt affords a sufficient consideration to suppose a new promise to pay the debt.
Liability rests upon the promise to pay, not on the original note. The discharge took the enforceability from the original note which still evidenced the moral obligation, and the new note revived the legal obligation.
There is a distinction between a debt discharged and one paid. When discharged, the debt still exists, though divested of its character as a legal obligation during the consideration of the discharge. Something of the original vitality of the debt continues to exist, which may be transferred even though the transferee takes it subject to the disability incident to the discharge. The fact that it carries something which may be a consideration for a new promise to pay, so as to make an otherwise worthless promise a legal obligation, makes it the subject of transfer by assignment. Indeed, there is no reason why a transferee of such note should not have the benefit of having the debt advanced to a condition of legal liability."
HJR- 192 June 5, 1933
Resolved by the Senate and the House of Representatives of the United States of America in Congress assembled:
"That (a) every provision contained in or made with respect to any obligation which purports to give the obligee a right to require payment in gold or a particular kind of coin or currency, or in an amount in money of the United States measured thereby, IS DECLARED TO BE AGAINST PUBLIC POLICY, and no such provision shall be contained in or made with respect to any obligation hereafter incurred.
Every obligation, heretofore or hereafter incurred, whether or not any such provisions is contained therein or made with respect thereto, SHALL BE DISCHARGED UPON PAYMENT, DOLLAR FOR DOLLAR, in any such coin or currency which at the time of payment is legal tender for public, and private debts "
This Note, credit agreements, bills of exchange, and checks are defined as legal tender, or money, by the statutes such as 12 USC 1813 (I) (1), UCC §1-201 (24), §3-104, §8-102 (9), §9-102 (9), (11), (12) b, (49), (64).
12 U.S. Code § 1813 (I) (1)
(l) DEPOSIT The term “deposit” means—
(1) the unpaid balance of money or its equivalent received or held by a bank or savings association in the usual course of business and for which it has given or is obligated to give credit, either conditionally or unconditionally, to a commercial, checking, savings, time, or thrift account, or which is evidenced by its certificate of deposit, thrift certificate, investment certificate, certificate of indebtedness, or other similar name, or a check or draft drawn against a deposit account and certified by the bank or savings association, or a letter of credit or a traveler’s check on which the bank or savings association is primarily liable: Provided, That, without limiting the generality of the term “money or its equivalent”, any such account or instrument must be regarded as evidencing the receipt of the equivalent of money when credited or issued in exchange for checks or drafts or for a promissory note upon which the person obtaining any such credit or instrument is primarily or secondarily liable, or for a charge against a deposit account, or in settlement of checks, drafts, or other instruments forwarded to such bank or savings association for collection.
§ 1-201 (24)
(24) "Money" means a medium of exchange currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.
§ 3-104. NEGOTIABLE INSTRUMENT.
(a) Except as provided in subsections (c) and (d), "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it:
(1) is payable to bearer or to order at the time it is issued or first comes into possession of a holder;
(2) is payable on demand or at a definite time; and
(3) does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain (i) an undertaking or power to give, maintain, or protect collateral to
(b) "Instrument" means a negotiable instrument.
(c) An order that meets all of the requirements of subsection (a), except paragraph (1), and otherwise falls within the definition of "check" in subsection (f) is a negotiable instrument and a check.
(d) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this Article.
(e) An instrument is a "note" if it is a promise and is a "draft" if it is an order. If an instrument falls within the definition of both "note" and "draft," a person entitled to enforce the instrument may treat it as either.
(f) "Check" means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank or (ii) a cashier's check or teller's check. An instrument may be a check even though it is described on its face by another term, such as "money order."
(g) "Cashier's check" means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.
(h) "Teller's check" means a draft drawn by a bank (i) on another bank, or (ii) payable at or through a bank.
(i) "Traveler's check" means an instrument that (i) is payable on demand, (ii) is drawn on or payable at or through a bank, (iii) is designated by the term "traveler's check" or by a substantially similar term, and (iv) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.
(j) "Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.
§ 8-102. DEFINITIONS.
(9) "Financial asset," except as otherwise provided in Section 8-103, means:
(i) a security;
(ii) an obligation of a person or a share, participation, or other interest in a person or in property or an enterprise of a person, which is, or is of a type, dealt in or traded on financial markets, or which is recognized in any area in which it is issued or dealt in as a medium for investment; or
(iii) any property that is held by a securities intermediary for another person in a securities account if the securities intermediary has expressly agreed with the other person that the property is to be treated as a financial asset under this Article.
As context requires, the term means either the interest itself or the means by which a person's claim to it is evidenced, including a certificated or uncertificated security, a security certificate, or a security entitlement.
§ 9-102. DEFINITIONS AND INDEX OF DEFINITIONS.
(9) "Cash proceeds" means proceeds that are money, checks, deposit accounts, or the like.
(11) "Chattel paper" means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. In this paragraph, "monetary obligation" means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods. The term does not include (i) charters or other contracts involving the use or hire of a vessel or (ii) records that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card. If a transaction is evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper.
(12) "Collateral" means the property subject to a security interest or agricultural lien. The term includes:
(B) accounts, chattel paper, payment intangibles, and promissory notes that have been sold; and
(64) "Proceeds", except as used in Section 9-609(b), means the following property:
(A) whatever is acquired upon the sale, lease, license, exchange, or other disposition of collateral;
(B) whatever is collected on, or distributed on account of, collateral;
(C) rights arising out of collateral;
(D) to the extent of the value of collateral, claims arising out of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or damage to, the collateral; or
(E) to the extent of the value of collateral and to the extent payable to the debtor or the secured party, insurance payable by reason of the loss or nonconformity of, defects or infringement of rights in, or damage to, the collateral.
(65) "Promissory note" means an instrument that evidences a promise to pay a
§ 3-603. TENDER OF PAYMENT.
(a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract.
(b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.
(c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument.
§ 3-419. INSTRUMENTS SIGNED FOR ACCOMMODATION.
(a) If an instrument is issued for value given for the benefit of a party to the instrument ("accommodated party") and another party to the instrument ("accommodation party") signs the instrument for the purpose of incurring liability on the instrument without being a direct beneficiary of the value given for the instrument, the instrument is signed by the accommodation party "for accommodation."
(b) An accommodation party may sign the instrument as maker, drawer, acceptor, or indorser and, subject to subsection (d), is obliged to pay the instrument in the capacity in which the accommodation party signs. The obligation of an accommodation party may be enforced notwithstanding any statute of frauds and whether or not the accommodation party receives consideration for the accommodation.
(c) A person signing an instrument is presumed to be an accommodation party and there is notice that the instrument is signed for accommodation if the signature is an anomalous indorsement or is accompanied by words indicating that the signer is acting as surety or guarantor with respect to the obligation of another party to the instrument. Except as provided in Section 3-605, the obligation of an accommodation party to pay the instrument is not affected by the fact that the person enforcing the obligation had notice when the instrument was taken by that person that the accommodation party signed the instrument for accommodation.
(d) If the signature of a party to an instrument is accompanied by words indicating unambiguously that the party is guaranteeing collection rather than payment of the obligation of another party to the instrument, the signer is obliged to pay the amount due on the instrument to a person entitled to enforce the instrument only if (i) execution of judgment against the other party has been returned unsatisfied, (ii) the other party is insolvent or in an insolvency proceeding, (iii) the other party cannot be served with process, or (iv) it is otherwise apparent that payment cannot be obtained from the other party.
(e) If the signature of a party to an instrument is accompanied by words indicating that the party guarantees payment or the signer signs the instrument as an accommodation party in some other manner that does not unambiguously indicate an intention to guarantee collection rather than payment, the signer is obliged to pay the amount due on the instrument to a person entitled to enforce the instrument in the same circumstances as the accommodated party would be obliged, without prior resort to the accommodated party by the person entitled to enforce the instrument.
(f) An accommodation party who pays the instrument is entitled to reimbursement from the accommodated party and is entitled to enforce the instrument against the accommodated party. In proper circumstances, an accommodation party may obtain relief that requires the accommodated party to perform its obligations on the instrument. An accommodated party that pays the instrument has no right of recourse against, and is not entitled to contribution from, an accommodation party.