| The United States Supreme Court has ruled time and | | | | describes all coins and currency issued by the United |
| again that banking institutions do not have the | | | | States Government as legal tender for all debts, |
| authority to lend you credit. Numerous Consumer | | | | public and private. For purposes of this article, we will |
| Protection laws, such as Truth in Lending, Fair Debt | | | | call money either coins or currency. Also, no effort |
| Collections, and Fair Credit Reporting, and Commercial | | | | will be made to argue that Federal Reserve notes are |
| and Contract Law define the way banks and lending | | | | unconstitutional; that is beyond the scope of this |
| institutions can legally function. | | | | article. |
| Federal and state banking laws allow banks to lend | | | | Now, if you went to a motorcycle dealer to buy a |
| money - not credit. They aren't allowed by law to | | | | new Harley Davidson with no money down, you |
| create credit or money out of thin air. They can't | | | | would say that "your credit is good." What exactly |
| lend you something they don't have, and they can't | | | | does that mean? It means that your promise to pay |
| charge you interest on something that doesn't exist! | | | | money is good. In other words, they trust you. You |
| A true Debt Relief process is founded on numerous | | | | sign a loan agreement to pay the motorcycle dealer |
| Consumer Protection laws, as well as common law | | | | a certain sum of money with interest, and you also |
| rulings of the courts, including the United States | | | | sign a security agreement in which you pledge the |
| Supreme Court. They have ruled time and again that | | | | motorcycle as collateral for the security agreement. |
| banks do not have the authority to lend you their | | | | So, the motorcycle dealer has accepted your credit, |
| credit. Federal and state laws allow banks to lend | | | | or promise pay a sum of money, in exchange for the |
| money - not credit. They can't lend you something | | | | motorcycle. Consider how different a bank loan is. |
| they don't have, and they can't charge you interest | | | | When you apply for a bank loan, you sign a loan |
| on something that doesn't exist! Are YOU legally | | | | agreement pledging to pay the bank so many dollars, |
| allowed to create money out of thin air? NO! Neither | | | | with interest. When the bank accepts your promise |
| can the banks, but they do. . . | | | | to pay in exchange for a loan, it means your credit is |
| Here's how the process works: | | | | good. However, the next question is the most |
| You will send a series of letters to the credit card | | | | interesting. What does the bank lend you? |
| company, banking institution, and/or collections | | | | The bank will invariably give you a check, which is a |
| agencies. You will ask them to provide proof in many | | | | promise to pay you so many dollars. In effect, what |
| areas, and tell them your intentions if they cannot | | | | you and the bank have done is exchange a promise |
| provide proof, such as: | | | | to pay. In other words, you have accepted each |
| 1. Do they have the authority to lend you their | | | | others credit, yet no money has exchanged hands! |
| credit? | | | | Now what do you do with the check? Probably one |
| 2. Do they have the authority to create money or | | | | of two things: either you deposit it into your checking |
| credit? | | | | account, or you take it to a merchant for instance, a |
| 3. If they don't have the authority, they concealed | | | | car dealer. In either case, the check, when deposited |
| this fact. This is fraud. | | | | goes directly to the bookkeeping department where |
| 4. You believe you have been tricked into | | | | the numbers are transferred from the check and are |
| participating in their fraud. | | | | added to your account as a bookkeeping entry. Once |
| 5. You do not wish to be party to their fraud and | | | | this entry is made a bank will say that its deposits |
| must stop immediately. | | | | have increased. |
| 6. Since they didn't disclose to you the fraud, and | | | | How can a transfer of numbers increase the |
| since they knew about it when you signed the credit | | | | deposits? IT CANNOT! This fictional increase is all on |
| application, the contract is illegal. | | | | the books as there is no increase in the actual |
| 7. A contract that is illegal at the time of signing is null | | | | amount of money in the bank's vault. All of these |
| and void. | | | | bookkeeping entry deposits are called "demand |
| 8. You inform them that no amount can be owed on | | | | deposits," which means that the customer can literally |
| a void contract. | | | | walk into the bank and demand the deposit. These |
| 9. You request a $0.00 (zero) balance on the account. | | | | figures are placed into the bank's liabilities column as |
| 10. You will revoke your signature on all documents | | | | money, which the bank owes people. |
| they may have. | | | | So, what are the bank's assets? Interestingly, I've |
| 11. Numerous State, Federal, and Supreme Court | | | | just covered part of that. One type of asset is the |
| decisions on the matter are included. | | | | "deposit" which actually consists of the check you |
| 12. Any evidence of a lawful debt or legal agreement | | | | just transferred to your account. It was a loan, an |
| must be presented to you in a timely manner, or | | | | IOU from the bank. Banks will count the small amount |
| they will be in default. | | | | of vault cash on hand as a type of asset, also. But |
| They commonly send you a response, stating you | | | | most of the bank's "assets" are all the promises to |
| signed a contract and you must pay it, or offering | | | | pay. In other words, its loans. |
| you payment counseling, or even reducing the | | | | Thus, both the bank's assets and its liabilities are |
| amount you owe and telling you to pay the | | | | virtually all on paper. And, this being the case, the |
| discounted amount. They often claim to have the | | | | expression from the book Modern Money Mechanics, |
| proper authority, but they never provide any proof | | | | published by the Federal Reserve Bank of Chicago, |
| of any authority. If they have the authority to lend | | | | that "deposits are merely book entries" is now easier |
| their credit, WHY CAN'T THEY PROVE IT? | | | | to understand. Now, it's also easier to understand |
| After a series of letters, you may receive a monthly | | | | what the electronic transfer of money is all about. All |
| statement with a $0.00 (zero) balance. They may | | | | this amounts to is a transfer of numbers, or book |
| cancel the debt, and write it off. Often, any unpaid | | | | entries, from one bank account to another. The |
| "balance" on the fraudulent account simply disappears. | | | | same thing happens when you write a check. |
| The debt may be charged-off, or sold to a collector. | | | | Numbers called dollars are transferred as a |
| When you receive a letter from the debt collection | | | | bookkeeping entry from your checking account to |
| company, you will then request a validation of the | | | | someone else's. When a credit card is used, bank |
| debt, asking them to prove you owe them any | | | | credit or book entries are created and transferred to |
| money and showing the collector why no claim | | | | another person simultaneously! |
| against you can be maintained. A true Debt Relief | | | | Hence, our money system can be described as a |
| Course will also teach you how to stop all of the | | | | "debt usury" money system. For every dollar of |
| harassing phone calls and nasty collection notices. | | | | credit that comes into existence, a debt is created to |
| The process can help you avoid the invasive nature | | | | the banks and interest (usury) is charged. Under our |
| of bankruptcy and be selective over which accounts | | | | present money system, the Federal Government will |
| you want to dispute. You can save thousands of | | | | never be able to balance its budget, and the national |
| dollars, which may not be possible with a debt | | | | debt will continue to grow by leaps and bounds. |
| consolidation program or credit counseling. | | | | However, every bank loan made in the United States |
| If you entered into a loan or credit contract, you | | | | today is also completely illegal, as all bank loans are |
| may have signed a note or contract promising to pay | | | | based on credit instead of money. |
| them back. This contract supposedly qualified you to | | | | "Ultra Vires" |
| receive the money or credit. But did they provide 'full | | | | The words "ultra vires" are important words. They |
| disclosure' of all of the terms of this agreement? | | | | mean that "a contract made by a corporation |
| Answer the following questions and decide for | | | | beyond the scope of its corporate powers is |
| yourself if the bank or credit card company was | | | | unlawful." (See Black's Law Dictionary) The courts |
| acting in 'good faith,' that you received 'valuable | | | | have consistently ruled that banks cannot lend their |
| consideration,' and that your 'signature' on that | | | | credit, but can only lend their money, and that all |
| agreement is valid. Were you told that the Federal | | | | loans of credit are ultra vires. |
| Reserve Policies and Procedures and the Generally | | | | Because no bank or credit card company charter |
| Accepted Accounting Principles (GAAP) requirements | | | | gives them (all of which are corporations) permission |
| imposed upon all Federally-insured (FDIC) banks | | | | to lend its credit, and Congress never gave them |
| prohibit them from lending their own money from | | | | permission to create money, all such loans of credit |
| their own assets, or from other depositors? Did | | | | are ultra wires, or unlawful. By lending credit they |
| anyone tell you where the money was coming from? | | | | have unjustly enriched themselves. They pay no |
| Were you told that the contract you signed (your | | | | interest for the use of the credit, but charge their |
| promissory note) was going to be converted into a | | | | customers the same amount of interest as if they |
| 'negotiable instrument' by the bank or credit card | | | | had lent out their own money. It is a racket and con |
| company and become an asset on their accounting | | | | game, to say the least. It is deception and fraud. The |
| books? Did they tell you that your signature on that | | | | collection of interest on credit is in violation of all |
| note made it 'money,' according to the Uniform | | | | usury laws. After all, they are collecting interest on |
| Commercial Code (UCC), sections 1-201(24) and | | | | money which doesn't exist. It is little wonder that as |
| 3-104? Were you told that your promissory note | | | | more Americans are beginning to understand this |
| (money) would be taken, recorded as an asset, and | | | | issue they are suing banks on fraud and usury |
| be sold for cash - without 'valuable consideration' | | | | charges. |
| given to obtain your note? Did they give you a | | | | Now that you have been informed concerning what |
| deposit slip as a receipt for the money you gave | | | | the United States Supreme Court has stated and the |
| them, just as a bank would normally provide when | | | | Fraud the banks are committing, you have a decision |
| you make a deposit to the bank? | | | | to make. Do you want to keep supporting FRAUD? |
| "A national bank. . . cannot lend its credit to another | | | | If the answer is "NO" than I can help you find a Debt |
| by becoming surety, endorser, or guarantor for him, | | | | Relief Course that you can be use to eliminate any |
| such an act being ultra vires. . ." Merchants' Bank v. | | | | kind of unsecured debt where credit was extended |
| Baird 160 F. 642 There are many more cases to | | | | such as credit cards, personal loans, and certain |
| prove that banks are participating in deceptive | | | | student loans. |
| banking practices, which is why we request a "zero | | | | I have found one company that can take you |
| balance due" statement. Many banking and credit | | | | through this process with integrity. Let me know if |
| institutions discharge or cancel the debt balance | | | | you want to know more about them. |
| because Fraud is a criminal offense. | | | | I can always be reached at 707-395-0585or through |
| What is Credit? | | | | my website at |
| Credit is the opposite of money. Money, which is legal | | | | Best Wishes |
| tender for the payment of debts, is defined by | | | | R.J. |
| Congress in 31 USCA Sec 392. This section basically | | | | |