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NO TI CE O F ME MO RA NDU M O F L AW PO I NTS A ND A UTHO RI TI ES I N S UPP O RT O F I NTE RN ATI O NA L B IL L O F

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NOTICE

NOTICE OF MEMORANDUM OF LAW – Points and Authorities in Support of International Bill of Exchange

Th o se wh o c o n s ti tu te a n a s s o ci a ti on na ti o nw i d e o f p r i v a te, un in c o r p o ra te d pe r s o n s en g a ge d in

th e b u s in e s s o f ba n k i ng to i s su e no te s against the s e ob li g a ti on s o f th e U ni te d Sta te s d ue the m ;

w ho s e private pr o p e r ty is a t r i s k to co l la te r a l i ze th e go v e r n m en ts d e b t an d c u r re n c y, b y l e ga l

d e fin i ti o n s, a “ national banking association ; s u c h n o te s, is s u ed against these obligations of

the United States to that part of the public debt due its Principals and Sureties a re r e quir e d by la w t o be ac c e pt e d as le ga l te nde r of pa y me nt f or a ll de bt s pu blic a nd pr iv a t e ,

a n d a re de fin ed in l a w a s “ ob l i ga ti o n s o f the Un i te d Sta te s ” , o n th e s a m e pa r an d c a te g o r y wi th

Fe d e r al re s e r v e n o te s a nd o the r cu r r e n c y a nd le g al te nd e r o b li g a tio n s .(Pa g e 8)

RE: Item tendered for Discharge of Debt.

The instrument tendered to the bank and negotiated to the United States Treasury for settlement is an “Obligation of THE UNITED STATES”, u nd e r Title 18 USC Sect. 8, re p r e s en ti n g

a s th e de fin i ti o n p r o vi d e s a “certificate of indebtedness…drawn upon an authorized officer of

the United States,” (i n th i s c a s e th e Se c r e ta r y o f the Tre a s u r y ) “issued under an Act of

Congress” (i n th i s c a s e public law 73-10, HJR-192 of 1933 and Title 31 USC 3123, and 31 USC

5103) and by treaty ( in thi s ca s e the UNITED NATIONS CONVENTION ON INTERNATIONAL

BILLS OF EXCHANGE AND INTERNATIONAL PROMISSORY NOTES (UNCITRAL) an d th e

Universal Postal Union headquartered in Bern, Switzerland).

TITLE 1>PART I>CHAPTER 1>Sec. 1.>Sec. 8

Sec. 8. – Obligation or other security of the United States defined

The term “obligation or other security of the United States” includes all b o nd s , certificates

of indebtedness, national bank currency, Fe de r a l R e se r v e n o te s , Fe de r a l R e se r v e b a n k n o te s,

c o u po n s , Un i te d Sta te s no te s , Tr e a su r y no te s , g ol d c e r ti fic a te s , s il v e r c e r ti fic a te s, fr a c ti on a l n o te s,

c e r ti fic a te s o f de p o si t, b i ll s , c h e c k s, or dr a fts fo r mo n e y, drawn b y o r upon authorized officers of

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the United States, s ta m p s a n d o th e r r ep r e s e n ta ti v e s o f v a lu e , o f wh a te v e r d e no m i n a tio n , issued

under any Act of Congress, an d c a n c el l ed Un i te d Sta te s s ta mp s .

Th e In te r n a tio n a l Bi ll o f Ex c h an g e is l eg a l ten d e r a s a na ti o n al b an k n o te, o r no te o f a Na ti o na l

Ba n ki n g As s o ci a ti on , b y l e ga l an d /o r s ta tu to r y d e fin i ti on (UCC 4-105 12 CFR Sec 229.2, 210.2, 12

USC 1813), i s s ue d u nd e r Au tho r i ty o f th e Un i te d Sta te s Co d e 31 USC 392, 5103, w hi c h o ffic i a l l y

d e fin e s thi s as a s ta tu to r y l e ga l te n d e r ob l i ga ti o n o f TH E UN ITED STATES, an d i s i s s ue d in

a c c o r da n c e w i th 31 USC 3123 a n d HJR – 192 (1933) wh i c h e s ta bl i s h an d pr o v id e fo r i ts i s s ua n c e a s

“ Pu bl i c Po l i c y ” in re m e d y fo r di s c h a rg e o f eq u i ty i n te r e s t r e c o v e r y on th a t p o r tio n o f th e p ub l i c d eb t

to i ts Pr in c i p al s , a nd Su re ti e s b e a ri n g th e Ob l ig a ti o n s o f TH E UN ITED STATES.

Th i s i s a s ta tu to r y r e m ed y fo r e qu i ty i n te re s t re c o v e r y du e th e p r i n ci p le s a nd s u r e ti e s o f th e Un i te d

Sta te s for discharge of lawful debts in commerce in conjunction with US obligations to that

protion of the public debt it is intended to reduce. D u ri n g th e fi n a n ci a l c r i s i s o f the d ep r e s s i on , in 1933 s ub s ta n c e o f go l d, s il v e r, an d r e al m o ne y w a s

removed a s a fo u n da ti o n fo r ou r fin a n c i al s y s te m . In i ts pl a c e, th e substance o f th e Am e ri c a n

c i ti z en r y ; their r e al p ro p e r ty, w ea l th , a s s e ts a nd p ro d u c ti vi ty th a t that belongs to them w a s, in

e ffe c t, ‘pledged’ b y th e g o ve r n m e n t an d placed at risk a s th e collateral fo r US debt, credit and

currency fo r co m m e r c e to fu n c tio n .

Th i s i s w el l do c u m e n te d i n the a c ti o n s o f C on g r e s s an d th e Pre s i de n t a t th a t ti m e an d in th e

C on g r e s s io n a l de b a te s th a t p re c e d ed the ad o p ti on o f th e r e o rg a n i za ti o n al me a s u r e s :

Senate Document No. 43, 73 rd Congress, 1 st Session, s ta te d,

Un d e r the n ew l a w, th e m on e y i s i s s u ed to th e ba n k s in return fo r Government obligations, bills

of exchange, drafts, notes, trade acceptances, and bankers acceptances. The money 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.” (wh i c h lawfully

belongs to th e se pr i v a te c i ti z en s .)

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Th e N a ti on a l D eb t i s de fin e d i s de fin e d a s “ mortgages on the wealth and income of the people of a country.” (En c y cl o p ed i a Br i ta nn i c a, 1959.) Their we a l th, the i r i n c o me

Th e r e o r ga n i z a tio n i s e v i de n c e d b y :

Em e r g en c y Ba n k i ng Ac t H ou s e Jo i n t R e s ol u ti on 192

M a r c h 9, 1933 J u n e 5, 1933

Se r ie s o f Ex e c u ti ve Or d e r s th a t s u r r o un d e d th e m :

6073 Re o pe n in g o f Ban k s . fo r e i gn ex c h a ng e tr a n s a c ti o n s .

Em b a rg o o n g o ld p a y me n ts a n d e x p o r ts , a n d l i mi ta ti o n s on M a r c h 10, 1933

6111

Tra n s a c ti on s in fo re i g n e x ch a n ge ar e pe r m i tte d u nd e r go v e r n me n ta l s u pe r v i s io n . Ap r il 20, 1933

6102

Fo rb i d di n g th e h o a rd i ng o f g ol d c o i n, go ld bu l li o n a nd go l d c e r ti fic a te s . Ap r il 5, 1933

On D e ce m b e r 23, 1913, C on g r e s s ha d pa s s e d “ An Ac t to p r o vi d e fo r the e s ta bl i s h m en t o f fe d e r al r e s e r v e ba n k s , to fu r n i s h a n el a s ti c c u r r e n c y, to a ffo r d a m e a n s o f r e d i s co u n ti ng co m m e r c i al pa p e r, to e s ta bl i s h a m o r e e ffe c ti ve s u p e r vi s i on o f b an k i n g i n the U ni te d Sta te s , an d for other purposes”. Th e a c t i s c o m mo n l y k n ow n a s “ The Federal Reserve Act”.

On e o f th e p u rp o s e s fo r en a c ti ng the Fe de r a l R e se r v e Ac t w as :

(3) to authorize “hypothecation” of obligations including “United States bonds or other securities which Federal Reserve Banks are authorized to hold” un d e r Se c ti on 14(a ):

12 USC; Ch. 6, 38 Stat. 251 Sect 14(a)

Th e te r m “ hypothecation ” a s s ta te d i n Se c ti on 14(a ) o f th e a c t is de fin e d :

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1. Ba n ki n g .

assets owned by a party other than the

If th e bo r r o w e r tu r n s th e

p r o pe r ty o ve r to th e l e nd e r w h o ho l d s i t fo r s a fe ke e p in g , th e a c ti on is r e fe r re d to a s a pledge.

If the borrower retains possession, but gives the lender the right to sell the property in event of default, it is a true hypothecation.

borrower as collateral for a loan, without transferring title.

Offer of s to c k s , b on d s , o r o th e r

2. Se c u ri ti e s . Th e p le d gi n g o f ne g o tia b l e s e cu r i ti e s to co l la te r a l i ze a b ro k e r s margin lo a n . Th e

b r o k e r p l ed g e s the s a m e se c u r i ti e s to a ba n k a s co l la te r a l fo r a b r o ke r s l oa n , the p r o ce s s i s

r e fe r r e d to a s re-hypothecation.

[Dictionary Of Banking Terms, Fitch, pg. 228 (1997)]

As se e n fr o m the de fin i tio n s , i n h yp o th e c a tio n th e r e i s equitable ri s k to th e actual ow n e r.

Se c ti o n 16 o f the c u r r e n t Fe de r a l Re s e r ve Ac t, c o di fie d a t 12 USC 411, d e cl a r e s th a t “Federal

Reserve Notes” are “obligations of the United States”.

So , w e se e th e full faith and credit” of the United States:

Am e r i ca n ci ti z e n r y : their r ea l p r o pe r ty, we a l th, as s e ts an d p r o du c ti v i ty tha t belongs to them, i s

wh i c h i s th e substance o f th e

th e r e b y hypothecated and re-hypothecated b y th e Un i ted Sta te s to its ob l ig a ti o n s a s w el l a s to

th e Fe d e ra l Re s e r v e for the issuance and backing of Federal Reserve Notes as legal tender “ fo r

a ll ta x e s, c u s to m s , a nd o the r pu b li c du e s ” .

TITLE 12>CHAPTER 3>SUBCHAPTER XII>Sec. 411

Sec. 411. – Issuance to reserve banks; nature of obligation; redemption

Federal Reserve Notes, to be i s su e d a t th e d i s c r e tio n o f th e Bo a r d o f Go v e r n o r s o f the

Fe d e r al R e se r v e Sy s te m fo r th e p u r po s e o f m a ki n g ad v a n ce s to Fe d e ra l Re s e r v e Ba n k s

th r o u gh th e Fe de r a l R e se r v e Ag e n ts a s h e r ei n a fte r se t fo r th an d fo r no o th e r p u r po s e , a re

a

receivable by all national and member banks and Federal Reserve Banks and for all taxes, customs, and other public dues.

The said notes, shall be obligations of the United States and shall be

u th o ri z e d .

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Th e c o m m e r c e a nd c re d i t o f th e n a tio n c o n ti nu e s o n to d a y u nd e r fin a n ci a l r e o rg a n i za ti o n

(Ba n k r up tc y ) a s i t ha s s i n c e 1933, still ba c k e d b y th e a s s e ts an d w ea l th o f th e Am e ri c a n c i ti z en r y :

at risk fo r th e go v e r n m en ts ob l i ga ti o n s a nd cu r r e n c y.

U nd e r th e 14 th a m en d m e n t an d nu m e r o u s Su p r e me C ou r t pr e c e de n ts , a s w e ll a s in eq u i ty, PRIVATE

property cannot be taken or pledged for public use without just compensation, or due process

of law.

for any government purpose without legally providing them remedy to recover what is due them on their risk.

Th e U ni te d Sta te s cannot pledge or risk the property and wealth of its private citizens,

Th i s p r i n ci p le is so we l l e s tab l i s he d i n En gl i s h c o m m on la w a nd in th e hi s to r y o f Am e ri c a n

The 14 th am e n d me n t p ro v i de s : no person shall be deprived of … property

without due process of law”. And c o u r ts ha v e lo n g ru l e d to h a v e o n e s p r o pe r ty le ga l l y he l d a s

j

u ri s p r u de n c e .

c o ll a te r a l o r s u r e ty fo r a d eb t ev e n wh e n h e s til l ow n s i t an d s ti ll h a s i t i s to deprive hi m o f i t si n c e i t

i s a t ri s k an d c o ul d be l o s t fo r th e d eb t a t a n y ti m e .

Th e Un i te d Sta te s Su p r e m e Co u r t s ai d , i n Un i te d Sta te s v. Ru s s el l [13 Wal l, 623, 627] “Private

property,

compensation.” Th e right of subrogation i s n o t fo u n d ed on c o n tr a c t. It is a creature of equity; is en fo r c e d s o le l y

fo r th e pu r p o s e o f a c c o m pl i s hi n g th e e n d s o f s u b s ta n tia l ju s ti c e ; and is independent of any

just

the

Constitution

provides,

shall

not

be

taken

for

public

use

without

contractual relations between the parties.” 302 (1887)

Memphis & L.R.R. Co. v. Dow, 120 U.S. 287, 301-

The rights of a surety to recovery on his risk or loss when standing for the debts of another w a s re a f fir m e d ag a in a s la te a s 1962 i n Pe a rl m a n v. Re l ia n c e In s . Co ., 371 U .S. 132 wh e n the C ou r t

s a id :

“sureties compelled to pay debts for their principal have been deemed entitled to

reimbursement, even without a contractual promise…And probably there are a few doctrines better established…”

Black’s Law Dictionary, 5 th Edition, defines “surety”:

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On e w h o u n de r ta k e s to p a y or to do any other act in event that his principal fails therein.

Ev e r y o ne wh o i n cu r s a liability in person or estate for the benefit of another, w i tho u t s ha r i n g in

th e c o n s id e r a ti on , stands in the position of a “surety”.

C on s ti tu ti o n al l y an d i n th e la w s o f eq u i ty, the U ni te d Sta te s could not borrow or pledge the

property and wealth of its private citizens, put at risk, as collateral for its currency and credit without legally providing them equitable remedy for recovery of what is due them.

Th e Un i te d Sta te s go v e r n me n t, o f c ou r s e , di d not v i ol a te th e la w or th e Co n s ti tu ti o n i n thi s w a y, i n

o r d e r to c o ll a te r a li z e i ts fin a n c ia l r e o r ga n i za ti o n , bu t d id , in fact, p ro v i de s u ch a le g al re m e d y s o th a t

i t ha s b e en ab l e to c o n ti nu e on s i n c e 1933 to hy p o th e ca te th e private w ea l th an d a s s e ts o f th o se

c l a s se s o f p e r so n s b y wh o m i t i s ow n e d, at risk backing the government’s o bl i g a tio n s an d

c u r r e n c y, by their implied consent, th r o u gh th e go v e r n m en t ha v in g p r o vi d ed s u c h remedy, as

d e fin e d a n d c od i fie d ab o v e, fo r r e c o ve r y o f w ha t i s du e the m on the i r a s s e ts an d w ea l th a t ri s k .

Th e p r o v i si o n s fo r thi s ar e fo u n d i n th e s a m e a c t o f “ Pu b l i c Pol i c y ” HJR-192, public law 73-10 th a t

s u s p en d e d th e g ol d s ta n d a rd fo r o u r c u r re n c y, a b r og a te d th e r i g h t to de m a nd pa y m e n t i n g ol d , an d

m a d e Fe d e r al R e se r v e No te s fo r th e fir s t ti m e le ga l te n de r, “backed by the substance or “credit

of the nation”.

All US c u r re n c y s i n c e th a t ti m e i s o n l y credit ag a in the r ea l p r o pe r ty, we a l th an d as s e ts be l on g i ng to

th e p ri v a te s o v e re i gn Am e r i ca n p eo p le , taken a n d /o r pledged’ by TH E U N ITED STATES to i ts

secondary c r ed i to r s a s security fo r i ts o bl i ga ti o n s .

C on s e q ue n tl y, th o s e backing th e n a ti on s c re d i t an d c u r r en c y could not r e co v e r w h a t w a s du e

th e m by anything drawn on Federal Reserve Notes without expanding their risk and obligation

to themselves. An y r e co v e r y p a y m en ts b a c ke d b y this c u r re n c y w o ul d o nl y increase the public

debt its citizens were collateral for, which an equitable remedy was intended to reduce, a n d in

e q ui ty w o ul d no t s a ti s fy a n y th in g . An d the r e w as n o lo n ge r actual money of substance to pay

anybody.

Th e r e a r e o th e r s e ri o u s l i mi ta ti o n s o n ou r p re s e n t s y s te m . Since the institution of these events,

for practical purposes of commercial exchange, there has been no actual money in circulation by which debt owed from one party to another can actually be repaid.

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Fe d e r al Re s e r v e No te s , a l th ou g h m a de le g al ten d e r fo r al l d eb ts p ub l i c an d pr i v a te i n th e

r e o r ga n i za ti o n , c a n on l y discharge a d e b t. De b t m u s t be “payed” wi th value or substance (i .e .

g ol d , s il v e r, ba r te r, l a bo r, or a c o m mo d i ty ). Fo r th i s r e a s on HJ R -192 (1933), w hi c h e s ta b li s h e d th e

“ p u bl i c p ol i c y ” o f ou r cu r r e n t mo n e ta r y s y s te m , r e pe a te d l y u s e s th e te c h ni c a l te r m o f “ di s c h a r ge ” in

c o nj u n c ti on wi th “p a y m e n t” i n la y i n g ou t p ub l i c po l i c y fo r the ne w s y s te m . A de b t c u r re n c y s y s te m

c a n no t pa y de b t.

So , fr o m th a t ti m e to th e pr e s e n t, c o m me r c e i n th e c o r p o ra te UN ITED STATES an d am o n g s ub -

c o r p o ra te su b j e c t e n ti ti e s ha s ha d o nl y de b t no te in s tr u m e n ts b y w hi c h de b t c a n b e d i s ch a r g ed an d

tr a n s fe r r e d in di ffe r e n t fo r m s . Th e un p ai d de b t, c r ea te d a nd /o r e x pa n d ed b y th e pl an n ow c a r r ie s a

public liability fo r co l l e c tio n i n th a t wh e n de b t is di s c h a rg e d w i th d eb t in s tr u m e n ts (i .e . Fed e r a l

R e se r v e N o te s i n cl u d ed ), b y ou r c o m me r c e , de b t i s i n ad v e r te n tl y be i ng expanded in s te a d o f be in g

cancelled, th u s increasing the public debt. This is a situation potentially fatal to any economy.

C on g r e s s a n d go v e r n m en t o f fic ia l s w h o o r ch e s tr a te d th e pu b li c la w s an d re g ul a ti o n s th a t ma d e th e

financial reorganization an ti c i pa te d th e lo n g te r m e ffe c t o f a de b t b a s ed fin a n c ia l s y s te m wh i c h

m a n y i n go v e r n m en t fe a r ed , a n d wh i c h w e fa c e to d a y in se r v i c in g the in te r e s t on tr i l li o n s u p on

tr i l li o n s o f do ll a r s i n U S C o rp o r a te p u bl i c d eb t a nd in th i s sa m e a c t m ad e p r o v i si o n n o t o nl y fo r th e

recovery remedy to satisfy equity to i ts Su r e ti e s, bu t to simultaneously resolve this problem, as

well.

Si n ce i t i s, in fa c t, th e r ea l p r o pe r ty, we a l th a nd as s e ts o f th a t cl a s s o f pe r s o n s th a t is the

substance b a c ki n g all th e o th e r ob l ig a ti o n s, cu r r e n c y a nd c r ed i t o f TH E U N ITED STATES and such

currencies could not be used to reduce its obligations for equity interest recovery to it Principals and Sureties.

H J R -192 fu r th e r m ad e th e “the notes of national banks” a n d “national banking associations” o n

a p a r w i th i ts o th e r c u r r en c y an d l e ga l te n d e r ob l i ga ti o n s :

TITLE 31, SUBTITLE IV, CHAPTER 51, SUB-CHAPTER 1, Sec. 5103 states:

Legal Tender U ni te d Sta te s c oi n s a n d c u r re n c y (i n c lu d i ng Fe de r a l r e s e r ve no te s an d c i r c ul a ti ng

notes of Fed e r a l Re s e r v e Ba n k s a nd National Banks) a r e legal tender fo r al l de b ts , p u bl i c

c h a r ge s , ta x e s , an d du e s . (e m p ha s i s a d de d ).

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Bu t thi s o ffic i a l d e fin i ti o n fo r ‘legal tender’ w a s fir s t e s ta b li s h e d in HJR-192 (1933) in the sa m e ac t

th a t m ad e Fe d e r al Re s e r v e No te s an d notes of national banking associations l eg a l te n d e r.

Public Policy HJR-192 J OIN T R ESOL U TION TO SU SPEND TH E GOL D

STAN D ARD & ABR OGATE TH E GOL D CL AU SE J u n e 5, 1933

H .J . R e s . 192. 73 rd C on g r e s s, 1 s t Se s s io n

As us e d i n th i s r e s ol u ti on , the term “obligation” means an obligation (including every obligation

of and to the United States, excepting currency) p a ya b l e in mo n e y o f th e Un i te d Sta te s ; an d the

term “coin or currency” means coin or currency of the United States, including Fe d e r al

R e se r v e n o te s a n d ci r c u la ti n g notes of Fe de r a l Re s e r v e Ba n k s an d National Banking

Associations. “All coins and currencies of the United States (including Fe de r a l R e se r v e N o te s a nd

c i r c ul a ti n g notes of Fe de r a l R e se r v e Ba n k s a nd Na ti o na l Ba n k in g As s o c i a tio n s ) he r e to fo r e o r

h e r ea fte r co i ne d o r is s u e d, shall be legal tender fo r a ll d eb ts , fo r p ub l i c a n d pr i v a te, p ub l i c ch a r g e s,

ta x e s , d u tie s , a nd du e s ,

[USC Title 12.221 Definitions “ Th e te r m s “national bank” an d “national banking

association”… s ha l l be he l d to b e synonymous and interchangeable.”]

been

maintained in the official definition of legal tender since June 5, 1933 to the present day, when the term had never been used to define “currency” or “legal tender” before that.

“notes

of

national

banks”

or

“national

banking

associations”

have

continuously

Pr i o r to 1933 th e fo r m s o f c u r re n c y i n u s e th a t w e r e le g a l te nd e r we r e m a n y an d v a r i ed : - U ni te d

Sta te s Go l d Ce r ti fic a te s U ni te d Sta te s No te s Tre a s u r y No te s In te re s t Be a r i ng N o te s Go ld

C oi n s o f Un i te d Sta te s Sta n da r d Sil v e r Do l la r s Sub s i di a r y Sil v e r Co i n s M in o r C oi n s

C o m me m o r a ti v e Co in s but the list did not include federal reserve notes or notes of national

banks or national banking associations de s p i te th e fa c t n a tio n al ba n k n o te s w e re a c o m mo n

m e di u m o f e x ch a n ge o r “ c u r re n c y ” a n d h ad be e n, al m o s t s i n c e th e fo u nd i n g o f o u r b an k i n g s y s te m

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a n d we r e b a c k ed by Un i te d Sta te s bo n d s o r o th e r s e cu r i ti e s o n de p o s i t fo r th e ba n k w i th th e U S

Tr e a su r y.

Fu r th e r, from the time of their inclusion in the definition they have been phased out u n til

p r e s en tl y all p r o vi s i o n s i n th e U ni te d Sta te s C od e pe r ta i n in g to incorporated federally chartered

national banking institutions issuing, redeeming, replacing and circulating notes ha v e al l be e n

repealed:

USC TITLE 12 > CHAPTER 2 – NATIONAL BANKS

Subchapter V – OBTAINING AND ISSUING CIRCULATING NOTES

Se c . 101 to 110,

R ep e a le d . Pu b . L . 103-325, Ti tle VI, Se c . 602e 5-11, f2-4a, g 9, Se p t. 23,

1994, 108 Sta t. 2292, 2294

SU BC H APTER VI RED EM PTI ON & R EPL AC EM EN T OF C IR C UL AT IN G N OTES

Se c . 121.

R ep e a le d . Pu b . L . 103-325, Ti tle VI, Se c . 602 f4B, Se p t. 23, 1994, 108 Sta t. 2292

Se c . 121a .

R ed e m p ti on o f n o te s u ni d e n ti fia b le as to b an k o f i s s ue

Se c . 122.

R ep e a le d . Pub . L . 97-258, Se c . 5b , Se p t. 13, 1982, 96 Sta t. 1068

Se c . 122a .

R ed e e m ed no te s o f u ni d e n ti fia b le is s u e ; fu n d s c h a rg e d a g ai n s t

Se c . 123 to 126. R e pe a l ed . Pu b . L. 103-325, Ti tle VI, Se c . 602e 12, 13, f4C , 6, Se p t. 23, 1994,

108 Sta t. 2292, 2293

 

Se c . 127.

R ep e a le d . Pub . L . 89-554, Se c . 8a , Se p t. 6, 1966, 80 Sta t. 633

As stated in “Money & Banking” 4 th Edition, by David H. Friedman, published by the American Bankers Association, pa g e 78, Toda y c om m er c ia l ba nk s no longe r iss ue c ur r e nc y

It is c l ea r, fe d e r al l y in c o r po r a te d ba n k i ng i n s ti tu tio n s s ub j e c t to th e re s tr i c ti o n s an d r ep e al e d

p r o vi s i o n s o f Ti tl e 12, are not those primarily referred to maintained in the current definition of

“legal tender”.

Th e le g a l s ta tu to r y a n d pr o fe s s i on a l de fin i ti o n s o f “bank”, “banking”, and “banker” u s e d i n the

U ni te d Sta te s C od e a n d Co d e o f Fed e r a l Re g ul a ti o n s a r e no t th o s e c o m mo n l y u nd e r s to o d fo r the s e

te r m s an d h a v e m ad e th e s ta tu to r y d e fin i ti o n o f “Bank” a c co r d in g l y :

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EX CHA NG E

U CC 4-105 PART 1

“Bank” m e an s a person engaged in the business of banking,”

12CFRSec. 229.2 De fin i tio n s (e) Bank m ea n s “ th e te r m b a n k al s o in c lu d e s any person engaged in

the business of banking." 12CFRSec. 210.2 De fin i tio n s (d) Bank m e a n s “ any person engaged in the business of banking.

USC Title 12 Sec. 1813 – Definitions of Bank and Related Terms – (1) Ban k m e an s “ a n y na ti o na l

b a n k, s ta te ba n k , a nd di s tr i c t ba n k , an d an y fe d e r al br a n c h a nd in s u r ed br a n c h .

Black’s Law Dictionary, 5 th Edition, page 133 d e fin e s a “ Ba n k e r ” “ In g en e r a l s e n s e, p e r so n th a t

e n ga g e s in bu s i n e s s o f b a n ki n g . In a na r r o w e r m e a ni n g, a private person wh o is e ng a g ed i n

th e b u s in e s s o f ba n k i ng without being incorporated. Un d e r s o m e s ta tu e s , an in d i vi d ua l b a n ke r,

a s di s ti n g ui s h ed fr o m a “ p ri v a te ba n k e r ”, i s a p e r s on w ho , ha v i ng c o m pi l e d w i th th e s ta tu to r y

r e q ui r e m en t, h a s re c e i ve d a u tho r i ty fr o m th e s ta te to en g ag e i n th e bu s i n e s s o f b a n ki n g, w hi l e a

private banker is a pe r s o n en g ag e d in ba n k i ng without having any special privileges or authority

from the state.

“Banking” - Is p a r tl y a n d o p ti on a l l y d e fin e d a s “The business of issuing notes or circulation……,

negotiating bills.”

Black’s Law Dictionary. 5 th Edition, pa g e 133, de fin e s “Banking”:

“The business of banking, as defined by law and custom, consists in the issue of notes…… intended to circulate as money…….

An d d e fin e s a “Bankers Note” a s :

A co m m e r c i al in s tr u m e n t r e s e mb l i ng a ba n k n o te i n e ve r y pa r ti c u la r e x ce p t th a t i t is given by a

private banker or unincorporated banking institution.”

Fe d e r al Sta tu te d oe s no t s pe c i fic al l y d e fin e “national bank” and “national banking association” i n

th o s e se c ti o n s where these uses are legislated on to exclude a private banker o r

unincorporated banking institution.

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It does de fin e th e s e te r m s to th e exclusion o f su c h p e r s on s in th e ch a p te r s a n d s e c tio n s w h e re th e

i s s ue an d c i r c ul a ti o n o f n o te s b y n a ti on a l b an k s ha s be e n repealed or forbidden.

“In the absence of a statutory definition, courts give terms their ordinary meaning. Ba s s, Te r r i L . v. Sto lp e r, Ko r i tz i n s k y, III F.3d 1325,7th C i r.Ap p s .(1996).

As th e U .S. Su p r e me C ou r t no te d , “We have stated time and again that courts must presume

that a legislature says in a statute what it means and means in a statute what it says there.” Se e, e .g ., U ni te d Sta te s v. Gol d e nb u r g, 168 U .S. 95, 102-103 (1897);

“The legislative purpose is expressed by the ordinary meaning of the words used. Ri c h a rd s v. U ni te d Sta te s , 369 U .S.1 (1962).

Th e r e fo r e, as no te d a b o ve , th e l e ga l d e fin i ti o n s r el a te d to ‘legal tender’ ha v e b ee n wr i tte n b y

C on g r e s s a n d m ai n ta i ne d a s s u c h to be bo th exclusive, wh e r e ne c e s s a r y, a nd inclusive, wh e r e

a p p ro p r ia te , to p ro v i d e in i ts s ta tu to r y de fin i ti o n s o f legal tender fo r the inclusion o f a ll th o s e , wh o

b y d e fin i ti o n o f p r i v a te, un i n co r p o r a ted pe r s o n s e ng a g ed in th e bu s in e s s o f ba n k i ng to i s s ue no te s

against th e ob l ig a ti o n o f th e U ni te d Sta te s fo r re c o v e r y on th e i r r i s k , wh o se private as s e ts a n d

p r o pe r ty a re be i ng u se d to c ol l a te ra l i z e th e o bl i ga ti o n s o f the Un i te d Sta te s si n c e 1933, a s

c o ll e c ti v e l y an d n a ti on a l l y c on s ti tu ti n g a l e ga l c l a s s o f p e r s on s be i ng a “national bank” or “national

banking association” with the right to issue such notes against The Obligation of THE UNITED STATES for equity interest recovery due and accrued to these Principles and Sureties of the United States backing the obligations of US currency and credit; as a means for the legal tender discharge of lawful debts in commerce as remedy due them in conjunction with US obligations to the discharge of that portion of the public debt, which is provided for in the present financial reorganization still in effect and ongoing since 1933. [12 U SC 411, 18 U SC 8,

12 USC : c h . 6, 38 Sta t.251 Se c t 14(a ), 31 USC 5118, 3123. w i th r i g h ts p ro te c te d u nd e r th e 14 th

Am e n d me n t o f th e Un i te d Sta te s Co n s ti tu ti on , by th e U .S. Su p r e m e C o u r t in U ni te d Sta te s v.

R u s se l l (13 Wal l , 623, 627), Pea r l m an v. R el i a n ce In s . C o ., 371 U.S. 132,136,137 (1962) , Th e Un i te d

Sta te s v. H o oe , 3 Cr a n c h (U .S.)73(1805), an d i n c on fo r m i ty wi th the U .S. Sup r e m e C ou r t 79 U .S.

287 (1970), 172 U.S.48 (1898), a n d a s c on fir m e d a t 307 U.S. 247(1939).]

H J R -192 fu r th e r de c l a r ed ……. “every provision………which purports to give the oblige a right

to require payment in gold or a particular kind of coin or currency….is declared to be against

Public Policy; and no such provision shall be … incurred.”

made with respect to any obligation hereafter

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M a k in g w ay fo r d i s ch a r g e a n d re c o v e r y on U S C o r po r a te p ub l i c d e b t du e th e Pri n c ip a l s an d

Su r e ti e s o f TH E UN ITED STATES p ro v i di n g a s “public policy” fo r the di s c h a rg e o f “every

obligation”, “including every obligation OF and TO THE UNITED STATES”. “dollar for dollar”, a ll o wi n g th o se b a c ki n g th e U S fin a n c ia l r eo r g a ni z a ti o n to r e c o v e r o n i t by discharging o n o b li g a ti on

th e y ow e d TO THE UNITED STATES o r i ts su b - c o rp o r a te en ti ti e s , against that same amount of

obligation OF THE UNTIED STATES owed to them; thus providing the remedy for the discharge a n d orderly recovery o f e qu i ty in te r e s t on U S C o r po r a te p u bl i c d e b t d u e th e Su r e tie s , Pr i n ci p al s ,

a n d Ho l de r s o f TH E UN ITED STATES, d i s c ha r g in g that po r ti o n o f th e pu bl i c d e b t without

expansion of credit, debt or obligation on THE UNITED STATES or these its prime-creditors i t

w a s i n ten d e d to s a ti s fy eq u i tab l e r e m ed y to, bu t ga i n in g fo r ea c h b e a re r o f s u c h no te , d i s c ha r g e o f

o bl i g a tio n e q ui v a l en t in va l u e do l la r fo r d ol l a r to a n y a n d al l “unlawful money of the United

States”.

Th o s e w ho co n s ti tu te an as s o c ia ti o n n a ti on w id e o f p ri v a te , u ni n c o rp o r a te d p e r so n s e n ga g e d i n

b u si n e s s o f ba n k in g to i s su e no te s against th e s e ob li g a ti on s o f th e Un i te s Sta te s du e th e m ; wh o s e

private pr o p e r ty is a t r i s k to co l la te r a l i ze th e go v e r n m en ts d e b t an d c u r re n c y, b y l e ga l de fin i tio n s , a

“national banking association”; su c h n o te s, i s su e d ag a in s t these obligations of the United

States to that part of the public debt due its Principals and Sureties ar e r eq u i r ed b y la w to be

a c c e p ted a s “l e g al te n d e r ” o f p a y m en t fo r a ll d e b ts pu b li c a nd p r i va te , an d , as w e h a v e s e e n, a r e

d e fin e d in l aw a s “obligations of the United States”, on th e s a me p a r a n d ca te g o r y wi th Fe d e ra l

r e s e r v e no te s an d o th e r c u r r e n c y an d l e ga l te n d e r o bl i ga ti o n s .

Th i s i s w h a t is a s s e r te d i n the te n d e r p r e s en te d to th e ba n k fo r de p o si t an d the g o v e rn m e n t ha s

s a id no th i n g to th e c o n tr a r y.

Wo u ld w e q u e s tio n th a t th i s is e x a c tl y w h a t Co n g re s s h a s pr o v i de d fo r in th e s e s ta tu e s a nd c o d e s

o n th e p u bl i c d eb t a nd ob l ig a ti o n s o f th e U n i ted Sta te s a nd th a t th i s i s th e re m e d y c o di fie d i n

s ta tu to r y la w a n d de fin i tio n we h a v e c i ted he r e ? Eve n tho u g h i t i s n e v e r di s c u s s e d .

U nd e r thi s re m e d y fo r discharge o f the pu b li c de b t and recovery to i ts Pr in c i pl e s a n d Su r e tie s ,

TWO debts th a t w ou l d ha v e be e n d i s c ha r g e d i n Fe de r a l Re s e r ve d e b t no te i n s tr u me n ts o r c he c k s

d r aw n o n th e s a m e, eq u a ll y expanding the p u bl i c de b t b y th o se tr a n s a c tio n s , ar e di s c h a r ge d

a g ai n s t a SINGLE public debt of the Corporate UNITED STATES and its sub-corporate entities

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EX CHA NG E

to i ts p ri m e - c r e di to r without the expansion and use of Federal Reserve debt note instruments

as currency and credit, a n d s o , without th e e xp a n s io n o f de b t a n d d e b t in s tr u m e n ts in th e

m o n e ta r y s y s te m a n d th e expansion of the public debt as b u rd e n up o n the e n ti r e fi n a n ci a l s y s te m

a n d i ts Pr i n ci p al s , a n d Su re ti e s the re c o v e r y r e m e d y wa s in te n de d to r el i e ve .

Ap p a re n tl y th ei r u s e is fo r th e di s c h a rg e an d non-cash accrual reduction o f U S Co r po r a te p ub l i c

d e b t to the Pri n c i pa l s , Pr i me Cr e d i to r s an d Ho ld e r s o f i t a s p r o vi d e d i n la w a nd th e in s tr u m e n ts wi ll

u l ti ma te l y b e s e ttl e d b y a d ju s tm e n t a n d s e t- o ff in di s c h a rg e o f a be a r e rs o bl i g a tio n TO TH E

U N ITED STATES ag ai n s t th e o bl i ga ti o n OF TH E U N ITED STATES fo r th e a mo u n t o f th e in s tr u m e n t

to th e o ri g in a l c re d i to r i t wa s te nd e r e d to o r w ho m e v e r or w ha te v e r in s ti tu ti o n m a y b e th e fi n al

b e a re r an d h ol d e r i n du e co u r s e o f i t, a g ai n , th u s d i s ch a r g in g that p o r tio n o f th e p ub l i c de b t without

expansion of credit, debit or note on the prime-creditors of THE UNITED STATES i t w a s

i n te nd e d to sa ti s fy e q ui ta b l e r e m e d y to, b u t ga i ni n g fo r ea c h en d o r se d be a r e r o f i t di s c ha r g e o f

o bl i g a tio n e q ui v a l en t in va l u e do l la r fo r d ol l a r o f c u r r e n c y, m ea s u r a bl e i n “lawful money of the

United States”.

Al th o ug h th i s h a s be e n pu b li c p ol i c y as a r e me d y fo r th e di s c ha r g e o f de b t i n c o n ju n c ti o n w i th

r e m o v al o f go l d, s i l ve r a nd r e al m o n e y a s le g a l te n d e r cu r r e n c y by th e s a me a c t o f p ub l i c p o li c y i n

1933, i t ha s b e en a difficult c o n c ep t to c o m m u ni c a te fo r o the r s to a c c ep t a nd to k n ow wh a t to do

w i th i t, s o i ts n e v e r g a in e d co m m o n u se a nd fo r o b vi o u s re a s o n s th e g o ve r n m e n t ha s discouraged

p u bl i c u nd e r s ta n di n g o f th e r e me d y a n d r e c o ve r y un d e r t an d th e r e fo r e i t i s little known an d n o t

g e ne r a ll y a c c e s se d b y the p u bl i c . Bu t i t i s s ti ll a n o b li g a tio n th e Un i te d Sta te s h a s bound i tse l f to

a n d ha s pr o v i de d fo r in s ta tu to r y l aw an d th e U ni te d Sta te s s ti ll a c ce p ts th e se no n - c a sh ac c r u a l

e x c h an g e s tod a y a s a m a tte r o f l aw a nd e qu i ty. So i s th e e x pe r i en c e o f m an y w ho h a v e a tte m p te d

to ac c e s s the re m e d y.

Th a t th e “ pu b l i c p o li c i e s ” o f H o u se J o in t R e s ol u ti o n 192 o f 1933 ar e s ti ll i n e ffe c t is e v id e n c ed b y th e

o th e r p r o vi s i o n s o f “ p u bl i c p ol i c y ” i t es ta b l i sh e d th a t we c a n s e e a lo n g w i th th e se di s c u s s ed . N o on e

w ou l d a tte m p t to d e ma n d p a y m en t in go l d o r a p a r ti cu l a r k i nd o f c oi n or cu r r e n c y i n u se o r th in k to

because the gold standard for currency is still

suspended and the right to a ‘gold clause’ to require payment in gold is still abrogated. Both are also part of “public policy” established in HJR-192.

w r i te su c h an o bl i g a tio n in to a c on tr a c t,

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Th e p r a c ti c al ev i d en c e a n d fa c t o f th e U ni te d Sta te s fin a n c i al re o r g an i z a ti on (b a n k r up tc y ) i s s ti l l o n go i ng to d a y, v i s i bl e al l ar o u nd u s to s ee a nd u nd e r s ta n d . Whe n Tr ea s u r y no te s c o m e du e, th e y r e n o t p ai d . Th e y a r e refinanced b y new T- Bil l s a n d no te s to b a c k th e c u r r en c y an d c o v e r th e d e b ts . … so m e th i ng th a t c a nn o t b e do n e wi th de b t ……unless,…… the debtor is protected from creditors in a bankruptcy reorganization tha t i s r e gu l a rl y be i ng restructured to ke e p i t go i ng . Ev e r y ti m e th e Fe d e ra l de b t c e il i n g i s r ai s e d by C on g r e s s they are restructuring the ba n k r up tc y r e o r ga n i za ti o n o f th e go v e r n m en ts de b t s o c o m me r c e ca n c o n ti nu e o n .

Fo r ob v i ou s re a s o n s th e U ni te d Sta te s go v e r n m en t d oe s no t li k e h a vi n g to re c o g ni z e a l l th i s . I t i s a v e r y s e n s i ti ve an d d el i c a te m a tte r. An d fe w c a n s p e a k o r will s p e a k au th o r i ta ti v el y ab o u t i t, a s th e b a n k ha s fo un d o u t.

Th e r e c o v e r y r e m ed y is ma i n ta in e d i n la w b e c au s e i t ha s to be to s a ti s fy eq u i ty to i ts p ri m e c r e di to r s . At th i s l a te ti m e, the Un i te d Sta te s i s n e i the r e xp e c ti n g no r in te n di n g i t to be ge n e r al l y a c c e s s ed b y th e p u bl i c . Re g a rd i n g s u c h in s tr u m e n ts te nd e r e d to th e Se c r e ta r y, w he n p ub l i c o f fic i a l s a r e pu t i n a p o si ti o n to le ga l l y ac k n o wl e dg e o r de n y th e a u th o ri ty or v a li d i ty o f th e i n s tr u m en ts , th o s e i n re s p o n si b il i ty will not deny or dishonor it, or an instrument of discharge property submitted for that purpose.

Th e i s s u e wh a t ha s the go v e r n m en t s ai d a b ou t i t now? Wh a t is th e po l i c y in practice? An d h ow does i t fi n a ll y re s p o nd to s u c h c la i m s o f wh i c h i t r e c ei v e s th o u s a nd s ev e r y d a y ?

Is it a fact: Ti tle 31 USC 3123 ma k e s a s ta tu to r y pl e dg e o f th e U n i ted Sta te s g o ve r n m e n t to p a y m en t o f o b li g a tio n s an d i n te re s t o n th e p ub l i c de b t.

TI TL E 31, SU BT ITL E III, C H APTER 31, SU BC H APTER II, Se c . 3123 – Payment of obligations and interest on the public debt

(a ) Th e fa i th o f the U ni te d Sta te s Go v e r n me n t i s pl e dg e d to pa y in

legal tender, p r in c i p al a nd

i n te r e s t o n th e o bl i g a tio n s o f th e Go v e r n me n t is s u e d un d e r th i s c h a p te r.

(b ) The Secretary of the Treasury sh a ll pa y in te r e s t du e o r a c c r ue d on th e pu bl i c d e b t.

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It is a fact: Ti tl e 32 Se c tio n 3130 fu r th e r de l i ne a te s i n i ts de fin i ti o n s a p o r ti on o f th e to ta l p u bl i c d e b t

w hi c h i s held by the public a s th e “ Ne t p ub l i c d eb t”

TITLE 31 >SUBTITLE>CHAPTER 31>SUBCHAPTER II>Sec. 3130.

Sec.3130. – Annual public debt report

(e ) De fin i ti o n s . –

(2) To ta l pu b li c de b t. – Th e te r m “ to ta l pu b li c de b t” me a n s th e to ta l am o u n t o f th e ob l ig a ti o n s

s u bj e c t to th e p u bl i c d e b t l i mi t e s ta bl i s he d i n s e c ti on 3101 o f thi s ti tle .

(3) Net public debt. –

The term “net public debt” means the portion of the total public debt which is held by the public.

It is a fact: Se c ti o n 3101 r e fe r e n ce s guaranteed obligations held by the Secretary of the

Treasury w hi c h a re expected an d exempted fr o m “ the fa c e a mo u n t o f ob l i ga ti o n s wh o s e p r i n ci p al

a n d in te r e s t a re gu a r an te e d b y th e Un i ted Sta te s Go v e r n m en t.

Sec. 3101. – Public debt limit

(b ) Th e fa c e am o u n t o f ob l ig a ti o n s i s su e d u nd e r th i s ch a p te r a nd th e fa c e a m ou n t o f o bl i g a tio n s

w ho s e p ri n c i pa l an d in te r e s t a r e gu a r an te e d b y th e U ni te d Sta te s Go v e rn m e n t (except

guaranteed obligations held by the Secretary of the Treasury) m a y n o t b e m o r e th a n

$ 5,950,000,000,000, o u ts ta nd i n g a t o n e ti m e , su b j e c t to ch a n ge s p e ri o d i ca l l y m a d e in th a t a mo u n t

a s p r o v id e d b y l a w.

It is a fact: Ev e r y da y th e Un i te d Sta te s Tre a s u r y d ep a r tm e n t re c e i v e s do z e n s o r h u nd r e d s o f su c h

i n s tr u m en ts m a ki n g c l ai m s o f th i s ty p e . Ob vi o u s l y s o me a re va l id an d s o m e a r e n o t.

It is a fact: The r e a r e o n l y 3 o f fic i a l g o v e rn m e n t d ir e c ti v e s o r a l e r ts th a t ad d r e s s sp u r io u s ,

fr a u d ul e n t, fic ti ti o u s , o r o th e rw i s e i n v al i d, i n s tr u me n ts s e n t to th e US Tr ea s u r y fo r pa y m e n t, an d only

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one th a t o ffic i a ll y s ta te s w ha t i s to b e official US government policy a n d tr e a tm e n t o f the m i f th e y

a r e re c e i v ed , thi s i s AL ERT 99-10: wh i c h is a l so p ub l i sh e d on th e go v e r n m en t w e b si te fo r th e Un i te d

Sta te s Tre a s u r y : w w w.pu b li c d e b t.tr e a s .go v un d e r Fr a u d s a nd Pho n ie s ,

Th e O ffi c e o f the Co m p tr o ll e r o f th e Cu r r e n c y, En fo r c e me n t & C om p l ia n c e D iv i s i on in AL ERT 99-10

s ta te s :

Typ e : Su s p i ci o u s Tr a n sa c ti o n s

TO: C hi e f Exe c u ti v e Of fic e r s o f a ll Na ti o na l Ba n k s : a ll Sta te

Ba n ki n g Au th o r i tie s ; Ch a i r ma n , Boa r d o f Go v e r no r s o f th e

Fe d e r al Re s e r v e Sy s te m ; C h ai r m a n, Fed e r a l De p o s i t In s u r a n ce Co r p o ra ti o n ;

C on fe r e n c e o f Sta te Ba n k Sup e r v i s o r s ; De p u ty Co m p tr ol l e r s (D i s tr i c ts );

As s i s ta n t D e pu ty C om p tr o l le r s ; Di s tr i c t Co u n se l a n d Ex a mi n i ng Pe r s o n ne l .

R E: Fi c ti tio u s Si g h t D r a fts pa y a bl e th ro u g h th e U .S. Tr e a su r y

It ha s b ee n b ro u g h t to ou r a tte n ti o n th a t c e r ta i n i n di v i du a l s ha v e be e n ma k i n g a n d e x e c u tin g

w o r thl e s s p ap e r do c u m e n ts wh i c h a r e ti tl ed “ Si gh t D r a ft” . Th e s e i te m s s ta te th a t th e y a re p a y ab l e

th r o u gh th e U .S. Tr ea s u r y, 1500 Pe n n s y l va n ia Ave n u e, NW, Wa s h i ng to n , D .C . 20220. Th e s e

i n s tr u m en ts a r e be i ng p r e s en te d fo r pa y m e n t a t ba n k s a nd o th e r bu s in e s s e s th r ou g h ou t the U ni te d

Sta te s . Any of these instruments that are presented to the U.S. Treasury for payment will be

returned to the sender an d c o pi e s w il l b e p r o vi d e d to th e ap p r op r i a te l aw en fo r c e m en t a ge n c i e s .

Dishonored.

Th i s i s i n c o n fo r mi ty w i th th e Un i fo r m C o m m e r ci a l C od e th a t pa r ti e s m a y r e l y o n th e i r p re s e n tm e n t

o f ob l ig a ti o n s a s s e ttl e d un l e s s g i ve n a N o ti c e o f D i sh o n o r, w he th e r d i r e c tl y ap p li c a b le to Tr e a su r y

D ep t. o f fic e r s o r n o t.

UCC3-503. NOTICE OF DISHONOR …(b) Notice of dishonor may be given by a n y pe r s o n ; may be g i ve n b y an y c o m me r c i a ll y

r e a s on a bl e m e an s , in c l ud i ng a n or a l, w r i tte n, o r el e c tr o ni c c o m m un i c a ti on ; and is sufficient if it

reasonably id e n ti fie s th e i n s tr u m en t and i nd i c a te s th a t th e i n s tr u m en t ha s be e n di s h on o r e d or h a s

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n o t b e en paid or a c c e p ted . Re tu r n o f an in s tr u m e n t given to a bank for collection is su f fic i e n t

n o ti c e o f d i sh o n o r.

c ) Su b j e c t to Se c ti o n 3-504(c ), with respect to an instrument taken for collection no ti c e o f

d i sh o n o r mu s t b e gi v e n …. 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.

These instruments are never returned from the Treasury dishonored.

It is a fact: The r e i s no ba s i s o r r e a s on o r pl a u si b l e e x p la n a ti on fo r s u c h unexplained silence wi th

r e g a rd to these p a r ti c ul a r i n s tr u m en ts .

Ev e r y o th e r b r a n ch o f th e Fe d e r al go v e r n me n t in c l ud i ng th e De p t. o f th e Tr e a s u r y ha s de v e lo p e d

e la b o r a te l ib r a r ie s o f c o m pu te r ge n e r a ted fo r m l e tte r s o f s ta te m en ts a nd re p li e s de al i n g wi th al m o s t

e v e r y po s s i bl e qu e s ti o n o r c la i m th a t c ou l d be m ad e o f an y a g en c y o r de p a r tm e n t o f the Fe d e r al

g o v e rn m e n t. Th e Un i ted Sta te s Tr e a su r y h a s an Of fic e o f Pu bl i c Co r r e s po n d en c e wh o s e so l e jo b i t

i s to re s p o nd to c o m m un i c a ti on s fr o m th e g e ne r a l p ub l i c . THERE IS NO COMMUNICATION SENT

TO THE UNITED STATES TREASURY THAT CAN NOT BE RESPONDED TO AS IT MAY REQUIRE.

M a n y s u c h c a te go r i e s o f r e q ue s ts c a ll i ng fo r r e s po n s e a r e far greater i n nu m b e r th a n c l ai m s in

e q ui ty fo r r e c o v e r y to a Pr i me - c r e di to r o v e r the U ni te d Sta te s a nd s o m e c a te g o ri e s a r e far fewer i n

n u m be r, a nd y e t b e th e r e qu e s ts g r e a te r o r s m al l e r in nu m b e r o r i n co m p l e xi ty o f r e s p on s e r eq u i r ed ,

all these of a commercial nature are regularly and timely responded to.

There is virtually no written response by the Federal government to this issue of recovery to the prime-creditors and holders in equity over the United States. The factually observable position of the Secretary of the Treasury and his department in response to THIS type of claim has been ABSOLUTE SILENCE be they from bank, business or private person:

Not denial, disavowal, dishonor, or repudiation of such claims OR their basis in law and fact if they are not true, which in every other case of correspondence to the Federal government or the Department of Treasury dealing with any question, request or claim: ANY SUCH FALSE CLAIM, MISCONCEPTION OR MISTAKEN UNDERSTANDING ON THE PART OF THE GENERAL PUBLIC IS TIMELY DEALT WITH IN EVERY CASE BY SUCH FORM LETTERS.

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It is th e duty o f the U ni te d Sta te s Tr ea s u r y to th e co m m e r c e o f the n a tio n a nd i n th e i n te re s ts o f th e

g e ne r a l p ub l i c wh o m i t s e r ve s to quickly an d conclusively quash and repudiate any such false

understandings o r claims of remedy in equity on recovery of the public debt in the commercial

realm and it is easily within their power to do so.

This despite the fact th e on l y o f fic i a l U S go v e r n m en t d ir e c ti v e fr o m th e De p a r tm e n t o f th e Tr ea s u r y

d e al i ng wi th p o li c y o f th e g o ve r n m e n t to w a r d fic ti ti ou s or o the r w i se in v a li d i n s tr u m en ts s e n t to the

Tr e a su r y fo r c o ll e c ti o n s ta tu s clearly “they will be returned to the sender.

Th e r e i s, th e re fo r e , n o ba s i s o r re a s o n o r pl a u s ib l e e x pl a na ti o n fo r su c h unexplained silence wi th

r e g a rd to this pa r ti c u la r cl a s s o f in s tr u m e n t except th a t a remedy in equity for recovery to the

prime-creditors over the United States IS true and factual and CANNOT BE DENIED or DISHONORED in equity, and that such Bills of Acceptance in discharge of mutually offsetting obligations between the United States and its holders in equity as secured parties ARE, in fact, being kept, held, and without return or dishonor, accepted as obligations of the United States in the discharge and recovery of the public debt as they make claim on their face to the Secretary of the Treasury to be.

How the y a re to b e r e co v e r e d on is up to th e p a r tie s in v o l ve d h o ld i n g s u ch ob l ig a ti o n s an d i s

p r o vi d e d fo r i n l aw an d r e gu l a ti on an d r e g ul a ti on an d a d m in i s tr a ti o n p ro c e d u re a ho l de r o r i ts

b a n ki n g i ns ti tu ti o n m a y u s e .

In Conclusion:

When a Commercial Bank sends the instrument to the Secretary for discharge of its own obligations and a problem arises concerning the instrument, a commercial response of some kind is required. There is a legal liability of the government to a negotiable legal tender obligation upon the United States government sent to them for acceptance by a member Federal Reserve Bank after they received it and became responsible for it.

Th e Tr e a s u r y ha s an ob li g a ti on a s a de p a r tm e n t o f go v e r n m en t s e r vi n g th e p u bl i c i n te r e s t to th e

b a n k wh i c h a s a m e m be r o f th e Fe d e r al Re s e r v e Sy s te m th a t ha s a c o m me r c i al ob l ig a ti o n to a n

a c c o un t ho l d e r an d a 3 rd p a r ty w ho te nd e r e d th e i te m i n pa y m e n t to te ll th e m th a t i ts no t an y go o d o r

i ts no t go i ng to b e h on o r e d, e v e n i f th e y wa n te d to k e e p i t fo r pr o s e c u tio n o r in v e s tig a ti o n . Th i s is in

e ffe c t wh a t th e di r e c ti ve s a y s th e go v e r n me n t w il l do i f i ts no g oo d . What does statutory law,

regulation, or case law tells us about what that obligation is?

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Th e y do n o t di s h o no r i t i n a n y wa y b y r e tu r n o f th e i te m o r the s e n di n g o f a n y no ti c e to th a t e ffe c t,

o r m a k e r e qu e s t fo r a d di ti o na l i n fo r m a tio n or ti me fo r e x a mi n a ti on o f th e i n s tr u me n t, o r gi v en a

s ta te m e n t o f e x pl a na ti o n i nd i c a ti ng th e ti m e fr a m e fo r i ts r e vi e w a nd se t tle m e n t i f i t w ou l d b e a n

i no r d i na te l y l e ng th y ti m e a s lo n g e r th a n 60 da y s to fin i s h w i th i t. Th e i ns tr u m e n ts ar e be in g ke p t,

h el d , an d wi th o u t r e tu rn o r di s h on o r, a r e a c c e p ted a s an o bl i g a tio n o f th e U n i ted Sta te s i n th e

d i s ch a r g e a nd re c o v e r y o f the pu b li c de b t as i t m a k e s c la i m o n i ts fa c e to b e .

Pu t an o th e r w a y : If th e b an k ha d h a d to p a y th e i te m to ho n o r i ts c u s to m e r a g r ee m e n t as i f i t h a d

b e en a ch e c k , what would or could the bank be trying to do with it to finally settle the account?

The bank needs to treat the Instrument tendered as an obligation of the United States to the bank. The tender of these instruments discharge the obligation of the debt for which they are delivered and the payee becomes the new holder in due course and collection agent on the instruments.

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