DISHONOR
3-20-2023
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§ 3-503. NOTICE OF DISHONOR.
(a) The obligation of an indorser stated in Section 3-415(a) and the obligation of a drawer stated in Section 3-414(d) may not be enforced unless (i) the indorser or drawer is given notice of dishonor of the instrument complying with this section or (ii) notice of dishonor is excused under Section 3-504(b).
(b) Notice of dishonor may be given by any person; may be given by any commercially reasonable means, including an oral, written, or electronic communication; and is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.
(c) Subject to Section 3-504(c), with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given (i) by the bank before midnight of the next banking day following the banking day on which the bank receives notice of dishonor of the instrument, or (ii) by any other person within 30 days following the day on which the person receives notice of dishonor. With respect to any other instrument, notice of dishonor must be given within 30 days following the day on which dishonor occurs.
§ 3-204. INDORSEMENT.
(b)"Indorser" means a person who makes an indorsement.
§ 3-504. EXCUSED PRESENTMENT AND NOTICE OF DISHONOR.
(b) Notice of dishonor is excused if (i) by the terms of the instrument notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument, or (ii) the party whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of dishonor.
18 U.S. Code § 8 - Obligation or other security of the United States defined
The term “obligation or other security of the United States” includes all bonds, certificates of indebtedness, national bank currency, Federal Reserve notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any Act of Congress, and canceled United States stamps.
(June 25, 1948, ch. 645, 62 Stat. 685.)
31 U.S. Code § 3124 - Exemption from taxation
(a)Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax, except—
(1) a nondiscriminatory franchise tax or another non property tax
instead of a franchise tax, imposed on a corporation; and
(2) an estate or inheritance tax.
(b) The tax status of interest on obligations and dividends, earnings, or other income from evidences of ownership issued by the Government or an agency and the tax treatment of gain and loss from the disposition of those obligations and evidences of ownership is decided under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.). An obligation that the Federal Housing Administration had agreed, under a contract made before March 1, 1941, to issue at a future date, has the tax exemption privileges provided by the authorizing law at the time of the contract. This subsection does not apply to obligations and evidences of ownership issued by the District of Columbia, a territory or possession of the United States, or a department, agency, instrumentality, or political subdivision of the District, territory, or possession.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 945; Pub. L. 99–514, §â€¯2, Oct. 22, 1986, 100 Stat. 2095.)
18 U.S. Code Chapter 63 - MAIL FRAUD AND OTHER FRAUD OFFENSES
Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), or affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.
(June 25, 1948, ch. 645, 62 Stat. 763; May 24, 1949, ch. 139, §â€¯34, 63 Stat. 94; Pub. L. 91–375, §â€¯(6)(j)(11), Aug. 12, 1970, 84 Stat. 778; Pub. L. 101–73, title IX, §â€¯961(i), Aug. 9, 1989, 103 Stat. 500; Pub. L. 101–647, title XXV, §â€¯2504(h), Nov. 29, 1990, 104 Stat. 4861; Pub. L. 103–322, title XXV, §â€¯250006, title XXXIII, §â€¯330016(1)(H), Sept. 13, 1994, 108 Stat. 2087, 2147; Pub. L. 107–204, title IX, §â€¯903(a), July 30, 2002, 116 Stat. 805; Pub. L. 110–179, §â€¯4, Jan. 7, 2008, 121 Stat. 2557.)
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.]
Dishonor Flowcart
Presentment/Offer
Step 1 Act in Honor and Pay the Offer
Create Note send with the payment Coupon if available.
(If they have a history of dishonor then go right to Step 1a)
This is a Cover Letter for IRS payments​
Step 1/1a Certificate of Mailing
(Notarized)
This is to provide Proof that they received the Instrument
​
I Would do this with a Mortgage or Car Loan just to have documentation that they have been Paid
Wait for their response;
Do they Claim the payment was a Check?
Do they simply ignore that you made a Payment?
Do They Return Your Payment and claim they can NOT Process/Cash it?
All 3 scenarios are the same, they DID NOT Honor your payment move to Step 2
Domestic Return Receipt
(example)
Affidavits
to Help Process Your Notes
These were used to "force" a bank to credit an instrument to an account
A. the Note was made payable to the bank with the account on the memo line
B. I will be sending these affidavits to AMEX today along with the cover letter below
Step 2 Notice of Dishonor (Notarized)
Sent with a Cover letter
Remember: Any & Everything they send you is an Offer
A. We received Check #XXXXX was not accepted as it was not legal tender.
B. This is to inform you that your check payment was unable to be processed by your bank with the NON-CASH ITEM.
These are just offers to get you to agree that it is all right for them to DISHONOR your instrument. Stand firm Know what you are doing is correct. Remember they are NOT IN DISHONOR until you NOTICE them of DISHONOR.
This a NOTICE for them to get an Opportunity to Cure the matter. We are now established on the record as the Creditor…we have always been, but now it is confirmed. NOTE: I would NOT do this process with a Credit Card Company unless they have already closed the Acct. (made it private). Print 2 Copies
Mail this Notice via CERTIFIED MAIL and using a Green Card return receipt, with signature confirmation. Then track the mailing at www.USPS.com and obtain a print out of delivery confirmation for your file.
Put a predetermined Certified Mail Tracking Number on this “Notice of Dishonor”. You can obtain Certified Mail green forms in advance at the post office.
Seal envelope: Take Picture of the envelope + Have them deposit into “Post”.
FIle a copy of everything, stay well organized.
This is just NOW being Done;
My 1st Notice of Dishonors went out on 3-19-2023
I Would NOT do this with a Credit Card Company unless they have already closed the Acct. (made it private)
Give Them 10 (ten) Days to Honor the Instrument
You will Recieve Your
Domestic Return Receipt
Example Below
Step 3 Certificate Of DISHONOR
&
Intent to SUE
Certificate Of Dishonor and Intent to Sue OR File Insurance Bond Claims or
File Complaints with Consumer Financial Protection Bureau
https://www.consumerfinance.gov (follow their procedures on if dishonor occurs)
This Step is to Get the People involved Who know what is going on so they can assess their liability.
This should Act just like filling a Lawsuit
They Can NO LONGER CLAIM they did NOT KNOW they Needed to process this instrument after the NOTICE OF DISHONOR
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MUST be Printed on Bond Paper
​
Look up Your State Statutes and add to form below
Step 4 Federal Lawsuit
You need to show your teeth and do the step to show them you can and will file a lawsuit. Leave no doubt you are prepared to file one. This helps them decide whether to honor your filing or not. They don't want to go to court on this. The bottom line is they are guilty as can be. They NO LONGER have an excuse as to why they did NOT honor and process your instrument.
Additionally, they are guilty of a Felony under 15 U.S. Code § 1 for restaining commerce.
Also, consider adding mail fraud, and wire fraud, as you may feel appropriate, based on the evidence and case law, etc.
​
We highly recommend using How to Win in Court Without a Lawyer as your basic training guide.
Go to: http://youarelaw.org/jd
15 U.S. Code § 1 - Trusts, etc., in restraint of trade illegal; penalty
Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court.
DEPRIVATION OF LIFE, LIBERTY, PROPERTY, ETC. BY DUE COURSE OF LAW. No citizen of this State shall be deprived of life, liberty, property, privileges or immunities, or in any manner disfranchised, except by the due course of the law of the land.
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