Banks securitize mortgages by selling them to a SPV (a special purpose vehicle, a trust). Then they create bonds of trust assets to sell to DTC. The bank cannot foreclose on the note, because they are not a holder and lack standing. However, the mortgage contract requires payments. This makes the note non-negotiable. They are foreclosing on the contract under common law, not the note. The bank claims to be holder in due course, but that is not possible for there to be a holder in due course of a non negotiable instrument. Non-negotiable instruments are governed by common law, not the UCC. SPV- A special purpose vehicle, an organization constructed for a limited purpose and life. Frequently these SPV’s serve as conduits or pass through organizations or corporation in relation to securitization. The entity that hold the legal rights over the asset transferred by the originator. The originator of a mortgage is the living man. If he is the originator, the SPV becomes the legal holder when the deed is signed. The bank is acting in the capacity as a servicer. When you are involved in a foreclosure case, the strawman creates an allusion. No party is real. So the real parties in interest are not involved in the court. The bank may be named as the plaintiff on the foreclosure is the servicer. The real party in interest is the SPV. Patriots usually ask the plaintiff to produce the note. The note is not a negotiable note because it has terms and conditions associated with the instrument which could lead to a question as to whether the terms and conditions have been met. A negotiable instrument can have no restrictions, terms or conditions. One, the note is non-negotiable. Two, it is never registered in the public. These instruments cannot appear in a court. If it was brought into court, the judge would see that it is not registered, and would claim he has no subject matter jurisdiction over your claim. Secondly, it is not negotiable, so it does not come under the UCC negotiable instruments act. Consequently it comes under contract obligations, so the appearance of the note is immaterial and irrelevant. Especially since it was never registered in the public. The next problem is, since the note is not registered, what standing does the plaintiff, bank, have to be there. Under the UCC, the plaintiff has no standing if he is not a holder in due course. The plaintiff is not there on the note for several reasons. It is also shows that the bank is liable and the originator is the creditor. The note is an asset to the defendant, which is a counterclaim for recoupment. It does not support the banks case. Before closing the note goes into an SPV which now has legal title to these issues and it creates a new instrument in the place of the note. They create securities and bonds, which are registered. The plaintiff is representing the registered security and bond at closing. They are hiding the pea under several shells so you don’t know where it is. This keeps the patriots from making the proper claims. Jean Keating The statute says you have a right to restitution and rescission if they sell an unregistered security, Ohio statute 1707-261. Is the note an unregistered security? It is a non-negotiable instrument. When they convert it into a security, it takes it out of UCC Article 3. It could be under UCC article 4 because it is deposited in a bank. But eventually, after it has gone into the SPV, and been securitized, it is moved to UCC Article 8 and Article 9 is applicable to the remedy. They have to give you the right to rescission because it is unregistered. So, they ledger that you no longer have a liability by giving you the setoff. So they are following the law. But they are keeping the records in two different sets of books like the Mafia. We are following the letter of the law and showing them what they are doing. We have a right to rescind and restitution, which is also part of recoupment. We can go to the NASD, the national association of securities dealers, they have an arbitration and resolution board located in NYC. They have tribunals in each state for hearings. You can go to arbitration and have the contract rescinded and get restitution because they are selling unregistered securities. I have examples of four recent cases from 2005 and 2006. People have purchased promissory notes and found out they were unregistered securities. There is case law on this. This is money laundering or RICO. But there is a statute protecting us. Since, as soon as they sell the unregistered security, we are entitled to setoff to settle the claim. We are raising this claim; we have not waived it. They have not addressed our claims or defenses, so we have grounds for appeal. The law requires them to do this because they have raised it. One can stop any mortgage on this basis. They would be better off if the judge gave you a remedy on other grounds. We have given them several grounds for rescission. They can also allow rescission because the property is in a flood plain. Their attorney said that if what we are saying is true, it would destroy the mortgage market. We had an attorney say the same in her pleadings fifteen years ago, and then she was taken off the case. I don’t think they like attorneys saying those things in public. Federal court through out our RICO complaint initially. I brought up the FASB and IASB standards and regulations in appellate court. I corrected them from stating that the bank is the creditor. That is only true on the receivable side of the ledger. We are the creditor and they are the debtors on the liability ledger. That provides a remedy. The G7 has endorsed it. Now we are getting into international law, with the IASB standards that they have adopted. These standards say we have a right to setoff. So, like the Mafia, they always have a second set of books that are not available to the public. They only use the public books when they make a claim against us to determine how much we know about our claims available on the other side of the accounting. It is up to us to bring this claim or waive our remedy. Most CPA’s are not familiar with these issues, because they don’t have to deal with them. Bank One uses KPMG to audit their books; others use Price Waterhouse. They are international auditing services. They are expert at auditing off balance sheet accounts. There is off balance sheet financing, payables and receivables. These auditors are the only ones that are aware of these issues. Scott Taub is the chief accountant for the SEC and his assistant. They confirmed my information. The SEC is also the enforcement agent for this practice, because it involves securities. He admitted that this is their practice. He wanted to know who I was, but I did not tell him. One bank auditor wanted to know why I was asking these questions. What does why I am asking have to do with question. “Are going to tell me what you are going to do with my note? Don’t I have a right to know what you are doing with my note if I go into business with you? “ Everybody thinks a note is a liability, but it is not. Under UCC 4(a), 104(c), it says that the originator is the sender of the first fund transfer. We are the first funds transferor. UCC 3-105(a)(c), subsection (a) talks about issue and (c) talks about issuer. It defines the issuer as the transferor of the first fund transfer, which is the drawer and the maker. UCC 8-102 (12), (15) and (9) that defined what an entitlement holder is. UCC 8-105 that says we are identified as the person with securities and entitlement right on the books of a banking intermediary. They call them intermediaries under Article 8. This practice is all under Article 8 because it involves securities. That is how they are hiding their practices. They are treating these notes as securities and not Article 3 paper. Under Article 8 we are the holders of entitlement and possessory rights to the proceeds of the transaction because we are the originator of the first funds transfer on the accounts payable side of the ledger. We are entitled to the funds. A promissory note is an asset
Posted on: Sun, 25 Jan 2015 11:20:34 +0000
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