Notice of Acceptance Template
Notice of Acceptance Template
In accordance with that stated above, of legal necessity, Principal will withdraw this tender in
discharge of this obligation upon the citing of any verifiable law or federal regulation that
precludes, excludes, prohibits, or disqualifies this presentment as a legal tender obligation of
THE UNITED STATES.
4.) Please note the following:
Currency is defined as: coined money and such other banknotes or other paper money as are
authorized by law and do in fact circulate from hand to hand as the medium of exchange.
Blacks, 5th.
Title 31 United States Code, Section 392 provides in part:
All coins and currencies of the United States, regardless of when coined or issued, shall be legal
tender for all debts, public and private, public charges, taxes, duties and dues.
TITLE 31, SUBTITLE IV, CHAPTER 51, SUBCHAPTER I, Sec. 5103.
Legal tender United States coins and currency (including Federal Reserve notes and circulating
notes of Federal Reserve banks and national banks) are legal tender for all debts, public charges,
taxes, and dues. (emphasis added)
[USC Title 12.221 Definitions The terms national bank and national banking association
shall be held to be synonymous and interchangeable.]
This official definition for legal tender was first established in HJR-192 (1933). This, the same
act that suspended the gold standard for our currency and abrogated the right to demand payment
in gold, also made federal reserve notes and notes of national banks legal tender, both backed by
the credit of the nation.
Public Policy HJR-192
JOINT RESOLUTION TO SUSPEND THE GOLD STANDARD AND ABROGATE THE
GOLD CLAUSE, JUNE 5, 1933
H.J. Res. 192, 73rd Cong., 1st Session
Joint resolution to assure uniform value to the coins and currencies of the United States.
(b) As used in this resolution, the term obligation means an obligation (including every
obligation of and to the United States, excepting currency) payable in money of the United
States; and the term coin or currency means coin or currency of the United States, including
Federal Reserve notes and circulating notes of Federal Reserve banks and national banking
associations.
All coins and currencies of the United States (including Federal Reserve notes and circulating
notes of Federal Reserve banks and national banking associations) heretofore or hereafter coined
or issued, shall be legal tender for all debts, for public and private, public charges, taxes, duties,
and dues, notes of national banks or national banking associations have continuously 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. Prior to 1933,
the forms of currency in use that were legal tender were many and varied:
-United States Gold Certificates United States Notes Treasury Notes Interest bearing notes
Gold Coins of United States Standard silver dollars Subsidiary silver coins minor coins
Commemorative coins
But the list did not include notes of national banks or national banking associations despite the
fact such notes were a common medium of exchange or currency and had been, almost since
the founding of our banking system, and were backed by United States bonds or other securities
on deposit for the bank with the US Treasury.
Further, from the time of their inclusion in the definition, they have been phased out until
presently all provisions in the United States Code pertaining to incorporated National Banking
institutions issuing, redeeming, replacing and circulating notes have all been repealed:
USC TITLE 12 > CHAPTER 2 NATIONAL BANKS
SUBCHAPTER V OBTAINING AND ISSUING CIRCULATING NOTES
Sec. 101 to 110. Repealed. Pub. L. 103-325, title VI, Sec. 602e5-11, f2-4A, g9, Sept. 23, 1994,
108 Stat. 2292, 2294
SUBCHAPTER VI REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES
Sec. 121. Repealed. Pub. L. 103-325, title VI, Sec. 602f4B, Sept. 23, 1994, 108 Stat. 2292
Sec. 121a. Redemption of notes unidentifiable as to bank of issue
Sec. 122. Repealed. Pub. L. 97-258, Sec. 5b, Sept. 13, 1982, 96 Stat. 1068
Sec. 122a. Redeemed notes of unidentifiable issue; funds charged against
Sec. 123 to 126. Repealed. Pub. L. 103-325, title VI, Sec. 602e12, 13, f4C, 6, Sept. 23, 1994,
108 Stat. 2292, 2293
Sec. 127. Repealed. Pub. L. 89-554, Sec. 8a, Sept. 6, 1966, 80 Stat. 633
As stated in Money and Banking, 4th edition, by David H. Friedman, published by the American
Bankers Association, page 78, Today commercial banks no longer issue currency.
It is clear federally incorporated banking institutions subject to the restrictions and repealed
provisions of Title 12 are not those primarily referred to in the current definition of legal
tender.
The legal statutory and professional definitions of bank, banking and banker in the United
States Code and Code of Federal Regulations are not those commonly understood for these terms
have made the statutory definition of Bank to be:
UCC 4-105 PART 1 Bank means a person engaged in the business of banking,
12 CFR Sec. 229.2 Definitions (e) Bankthe term bank also includes any person engaged in
the business of banking,
12 CFR Sec. 210.2 Definitions. (d) Bank means any person engaged in the business of
banking.
USC Title 12 Sec. 1813. Definitions of Bank and Related Terms. (1) Bank. The term bank
(A) means any national bank, State bank, District bank, and any Federal branch and insured
branch;
Blacks Law Dictionary, 5th Edition, page 133, defines a Banker as,
In general sense, a person that engages in business of banking. In narrower meaning, a private
person; who is engaged in the business of banking without being incorporated. Under
some statutes, an individual banker, as distinguished from a private banker, is a person who,
having complied with the statutory requirements, has received authority from the state to engage
in the business of banking, while a private banker is a person engaged in banking without having
any special privileges or authority from the state.
Banking is partly and optionally defined as The business of issuing notes for circulation,
negotiating bills.
Blacks Law Dictionary, 5th Edition, page 133, defines Banking:
The business of banking, as defined by law and custom, consists in the issue of notes payable
on demand intended to circulate as money..
And defines a Bankers Note as:
A commercial instrument resembling a bank note in every particular except that it is given by a
private banker or unincorporated banking institution.
Federal Statute does not specifically define national bank and national banking association
in those sections where these uses are legislated on to exclude a private banker or unincorporated
banking institution.
It does define these terms to the exclusion of such persons in the chapters and sections where the
issue and circulation of notes by national banks has been repealed or forbidden.
In the absence of a statutory definition, courts give terms their ordinary meaning. Bass, Terri L.
v. Stolper, Koritzinsky, 111 F.3d 1325, 7thCir. Apps. (1996).
As the U.S. Supreme Court noted, 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. See, e.g.,
United States v. Ron Pair Enterprises, Inc., 489 U.S. 235, 241 -242 (1989); United States v.
Goldenberg, 168 U.S. 95, 102 -103 (1897);
The legislative purpose is expressed by the ordinary meaning of the words used. Richards v.
United States, 369 U.S.1 (1962).
Therefore, as noted above, the legal definitions relating to legal tender have been written by
Congress and maintained as such to be both exclusive, where necessary, and inclusive, where
appropriate, to provide for the inclusion of the Principals, Sureties, Prime-Creditors and Holders
in Equity over THE UNITED STATES, who, since 1933, have collectively and nationally
constituted, by such statutory definitions, a national bank or national banking association
with the right to issue, as legal tender, notes upon the full faith and credit of THE UNITED
STATES for Obligation of THE UNITED STATES and sub-corporate chartered entities to the
discharge and recovery of the public debt, to the Principals, Prime-Creditors, and Holders in
Equity over THE UNITED STATES as Sureties for its obligations, currency and credit as
remedy for equity interest recovery over US Corporate public debt due them.
A brief review of the historical events that led up to the authorization and use of this type of
instrument, which is not familiar to most or in common use today, is important:
During the financial crisis of the depression, in 1933 substance of gold, silver and real money
was removed as a foundation for our financial system.
In its place the substance of the American citizenry: their real property, wealth, assets and
productivity that belongs to them was, in effect, pledged by the government and placed at risk
as the collateral for US debt, credit and currency for commerce to function.
This is well documented in the actions of Congress and the President at that time and in the
Congressional debates that preceded the adoption of the reorganization measures:
Senate Document No. 43, 73rd Congress, 1st Session, stated:
Under the new law, the money is issued to the banks in return for 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.
Which of course lawfully belongs to these private citizens.
The National Debt is defined as mortgages on the wealth and income of the people of a
country. (Encyclopedia Britannica, 1959.) Their wealth and their income.
On December 23, 1913, Congress had passed An Act to provide for the establishment of
Federal reserve banks, to furnish an elastic currency, to afford a means of re-discounting
commercial paper, to establish a more effective supervision of banking in the United States, and
for other purposes. The Act is commonly known as the Federal Reserve Act.
One of the purposes for enacting the Federal Reserve Act was:
(3) to authorize hypothecation of obligations including United States bonds or other securities
which Federal reserve Banks are authorized to hold under Section 14(a);
12 USC; ch. 6, 38 Stat. 251 Sect 14(a)
Every Federal Reserve Bank shall have power:
(a) To deal in gold coin and bullion at home or abroad, to make loans thereon, exchange Federal
reserve notes for gold, gold coin, or gold certificates, and to contract for loans of gold coin or
bullion, giving therefore, when necessary, acceptable security, including the hypothecation of
United States bonds or other securities which Federal reserve banks are authorized to hold;
The term hypothecation as stated in Section 14(a) of the Act is defined:
1. Banking. Offer of stocks, bonds, or other assets owned by a party other than the borrower as
collateral for a loan, without transferring title. If the borrower turns the property over to the
lender who holds it for safekeeping, the action is referred to as 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.
2. Securities. The pledging of negotiable securities to collateralize a brokers margin loan. If the
broker pledges the same securities to a bank as collateral for a brokers loan, the process is
referred to as re-hypothecation.
[Dictionary of Banking Terms, Fitch, pg. 228 (1997)]
As seen from the definitions, in hypothecation, there is equitable risk to the actual owner.
Section 16 of the current Federal Reserve Act, which is codified at 12 USC 411, and 18 USC 8
declares that Federal Reserve Notes are obligations of the United States.
on by the plan, now carries a public liability for collection in that when debt is discharged with
debt instruments, (Federal Reserve Notes included), by our commerce, debt is inadvertently
being expanded instead of being canceled, thus increasing the public debt. A situation such as
this is potentially fatal to any economy.
The Congress and government officials who orchestrated the public laws and regulations that
made the financial reorganization anticipated the long term effect of a debt based financial
system which many in government feared, and which we face today in servicing the interest on
trillions upon trillions of dollars in US Corporate public debt and in this same act made provision
in the recovery remedy provided to its Prime-creditors to simultaneously resolve this problem as
well.
As has been said, all US currency since that time is only credit against the real property, wealth
and assets belonging to the private sovereign American people, taken and/or pledged by THE
UNITED STATES to its secondary creditors as security for its obligations. Those backing the
nations credit and currency could not recover what was due them by anything drawn on Federal
Reserve notes without expanding their risk and obligation to their own selves. Any recovery
payments backed by this currency would only increase the public debt its citizens were collateral
for which an equitable remedy was intended to reduce, and in equity would not satisfy anything.
And there was no longer actual money of substance to pay anybody.
Since it is, in fact, the real property, wealth and assets of the sovereign American citizenry that is
the substance backing all the other obligations, currency and credit of THE UNITED STATES
and such currencies could not be used to reduce its obligations for equity interest recovery to its
Principals and Sureties, HJR-192 made the notes of such a national banking association of the
Principals, Sureties, Prime-Creditors and Holders in Equity over THE UNITED STATES on a
par with its other currency and legal tender obligations and declared, every provision.which
purports to give the obligee 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 .made with
respect to any obligation hereafter incurred. Every obligation, heretofore or hereafter incurred,
whether or not any such provision 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.
And thus provided as Public Policy the means for discharge and recovery on US Corporate
public debt due the Principals, and Holders of THE UNITED STATES without expansion of
credit, debt or obligation on THE UNITED STATES or these its prime-creditors in the discharge
of every obligation, including every obligation of and to THE UNITED STATES, allowing
those backing the US financial reorganization to recover on it by discharging an obligation they
owed to THE UNITED STATES or its sub-corporate entities, against that same amount of
obligation of THE UNITED STATES owed to them; by the right to issue, as legal tender, notes
upon the full faith and credit of THE UNITED STATES for Obligation of THE UNITED
STATES and sub-corporate chartered entities to the discharge and recovery of the public debt,
dollar for dollar, to the Principals, Prime-Creditors, and Holders in Equity over THE UNITED
STATES as Sureties for its obligations, currency and credit. This, as remedy provided by
Congress, for the orderly recovery of equity interest on US Corporate public debt due the
Sureties, Principals, and Holders of THE UNITED STATES, discharging that portion of the
public debt without expansion of credit, debt or obligation on these, its prime-creditors, was
intended to satisfy equitable remedy, gaining for each bearer of such note, discharge of
obligation equivalent in value dollar for dollar to any and all lawful money of the United
States.
And when tendered in the discharge and recovery of the public debt to its Principals, discharging
those obligations of THE UNITED STATES and sub-corporate chartered entities to its Holders
against the obligations of Its Holders in Equity to them, without expansion of credit, debt or
obligation on THE UNITED STATES or these its prime-creditors, in accordance with Public
Policy established in HJR-192 and 31 USC 5103, such instruments are, of necessity, legal
tender for all debts, public charges, taxes, and dues.
Further, Title 18 Sect. 8 also defines obligation of the United States to include such national
bank currency.
TITLE 18 > PART I > CHAPTER 1 > Sec. 1. > Sec. 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.
As stated, there presently is no national bank currency of federally incorporated banking
institutions.
The Banking Act of 1935 retired national bank currency in favor of Federal Reserve notes.
As quoted in Money and Banking by Friedman, Today commercial banks no longer issue
currency, yet national bank currency is still included in the official definition for
Obligation of the United States.
It could be argued that it is retained to honor those notes yet unredeemed and technically still in
circulation. While this may be true, it is also true the definition includes not only obligation of
the United States drawn by authorized officers of the United States, issued, therefore, by the
government; but also includes all bonds, certificates of indebtedness, and national bank
currency,.drawn upon authorized officers of the United States,
Included in this is the Secretary of the Treasury in his duty as keeper of the public debt:
Title 31 USC 3123 Payment of obligations and interest on the public debt
The Secretary of the Treasury shall pay interest due or accrued on the public debt.
Also included are any such notes or currency drawn upon him as an authorized officer of the
United States by whoever may have the right and power to do so issued under any Act of
Congress.
This includes the rights established under public policy by HJR-192 (public law 73-10) and 31
USC 5103 to the prime-creditors and holders in equity of US Corporate public debt to issue as
legal tender, notes upon the full faith and credit of THE UNITED STATES for Obligation of
THE UNITED STATES and sub-corporate chartered entities to the discharge and recovery of the
public debt, dollar for dollar, to the Principals, Prime-Creditors, and Holders in Equity over
THE UNITED STATES as Sureties for its obligations, currency and credit.
By these statutory provisions, such notes issued by the Principals, Sureties, and prime-Holders of
US corporate public debt as legal tender obligations of THE UNITED STATES for recovery of
equity interest due are the national bank currency, backed as obligations of THE UNITED
STATES, primarily allowed for in these statutes.
Although this has been public policy as a remedy for the discharge of debt in conjunction with
removal of gold, silver and real money as legal tender currency by the same act of public policy
in 1933, we acknowledge it has been a difficult concept to communicate and for others to accept
and understand what to do under it, so it has never gained common use, and for obvious reasons
the government has discouraged public understanding of the remedy and recovery under it, and
therefore it is little known and not generally accessed by the public, but it is just as much public
policy today for the discharge and recovery of the public debt to those to whom it is due as it was
in 1933 and is still there as a remedy for those who need to access it.
And, as noted above, in accordance with Public Policy established in HJR-192, respondent, as
obligee, may not require of the Principal a tender of any particular kind of coin or currency in
place of it.
We state again this instrument makes no claims except such claims as are supported by law.
Principal will withdraw this tender in discharge of this obligation upon the verifiable citing of
any law or federal regulation that precludes, excludes, prohibits, or disqualifies this presentment
as a legal tender obligation of The United States and is of full belief that none exists.
You may wish to consult with your attorneys on these points of law. Please be advised that their
lack of familiarity with this matter does not constitute evidence or documentation in law that
what is presented here is not true or binding on all parties. To expedite the final settling of this
account, any legal corrections or clarifications of what is here stated must be supported by the
appropriate state or federal law(s) and/or regulations on which it is based.
This bankers acceptance note may now be used in the discharge of your obligations for all
debts, public charges, taxes, and dues, negotiated and exchanged in the course of business with
other obligations of the United States or commercial paper of private corporations as bonds,
certificates, notes, or other security instruments commonly traded, exchanged and tendered in
this way by yourself, or received by your bank as an asset on deposit from you, held as an
obligation of THE UNTED STATES to your bank to be exchanged and negotiated in these ways
or by whomever may become the bearer of it.
Under this remedy for discharge of the public debt and recovery to its Principals and Holders,
TWO debts that would have been discharged in Federal Reserve debt note instruments or checks
drawn on the same, equally expanding the public debt by those transactions, are discharged
against a single public debt of the Corporate UNITED STATES and its sub-corporate entities to a
prime-creditor without the expansion and use of Federal Reserve debt note instruments as
currency and credit without the expansion of debt and debt instruments in the monetary system
and the expansion of the public debt as burden upon the entire financial system and its Principals
and Holders in Equity the recovery remedy was intended to relieve.
However used, if or when negotiated, it is our knowledge and belief that the original accepted for
value presentment of debt attached to the instrument needs to remain attached in any transfer to
another party.
As a statutory legal tender obligation of THE UNITED STATES, it does not require endorsement
for negotiation to another party, but due to its being unfamiliar in public commerce, space is
provided for such endorsement to make applicable certain laws regarding negotiable instruments
for your protection and to facilitate your ability to negotiate it as it is also negotiable by
definition; however, this does not change its status as a statutory legal tender obligation of THE
UNITED STATES.
If tendered to a bank, prepare a deposit slip. Make a copy of the entire package for your records,
and deliver all the original documents with the deposit slip and the incorporated
MEMORANDUM TO DEPOSITING INSTITUTION to your bank. Your bank should credit
your account immediately upon your deposit of this instrument. If your bank informs you that
they have dishonored this bankers acceptance note, please notify me immediately. If your bank
does not send you a notice of dishonor but fails to credit your account, notify me immediately.
Please note with regard to your bank:
12 CFR 229.21 Availability of Funds and Disclosure of Funds Availability Policies
Sec. 229.21 Civil liability.
(a) Civil liability. A bank that fails to comply with any requirement imposed under subpart B, and
in connection therewith, subpart A, of this part or any provision of state law that supersedes any
provision of subpart B, and in connection therewith, subpart A, with respect to any person is
liable to that person in an amount equal to the sum of:
(1) Any actual damage sustained by that person as a result of the failure;
(2) Such additional amount as the court may allow, except that(i) In the case of an individual action, liability under this paragraph shall not be less than $100
nor greater than $1,000.
It is your responsibility as a bank customer, to establish with your bank the points of banking law
requiring them to do this.
This instrument is tendered in good faith in discharge and settlement of this obligation to our
mutual benefit.
5.) Caveat: In the absence of a clear written contract between us as to the manner of discharge of
this debt, my statement of facts and its addendums will result in a clear understanding and
meeting of the minds of the parties clearly identified and will stand as truth in commerce.
6.) Statement of Account: By authority of law and federal regulation herein noted, the tender in
discharge of this obligation you have received is a statutory legal tender obligation of THE
UNITED STATES and upon proof of receipt constitutes immediate discharge of this debt up to
its face amount unless you or your banking institution can show you have cause to dispute this
with verifiable Federal or state statute or regulation.
Therefore, as of this date, upon tender to you the Respondent, the amount of unpaid obligations
for account #ACCOUNT NUMBER for all transactions with Respondent is zero.
Statement of Account date:___________________________
Balance of Charges thru $__________________
Tender in Discharge of this Obligation $_________________
Each business day, EFTPS provides summary files of ACH tax deposit or payment activity for
financial institutions and depositories to the NCSA. The NCSA processes this information
through TIP. For a Retainer or Investor depositary, NCSA credits the reserve account (or the
designated TT&L correspondents reserve account) and posts the funds to the depositarys TIP
main account balance in the amount of the ACH tax deposit or payment. This offsets the
resulting debit to the reserve account balance for the same ACH transaction.
These funds remain invested in the TIP main account balance until Treasury initiates a
withdrawal. In addition, the NCSA automatically will withdraw all funds in excess of a
depositarys capacity.
All pledged collateral must be:
Deemed acceptable by the Federal Reserve System to secure borrowings from an FRB for its
BIC collateral program. Held by the pledging depositary institution that retains possession of the
collateral on its own premises under an OPC arrangement.
Contact the local FRBs Credit Discount Department or the NCSA for specific information on
the acceptability of collateral pledged to secure SDI account balances. (See paragraph 2355.)
The local FRBs Credit Discount Department provides information on the acceptability of
specific collateral within the acceptable classes. Information regarding acceptable collateral for
the TT&L program is distributed periodically and posted to the BPDs website
(www.publicdebt.treas.gov) and the Federal Reserves Financial Services website
(www.frbservices.org). Unless specified otherwise by Treasury, the following are classes of
acceptable collateral:
Obligations issued and fully insured or guaranteed by the U.S. Government.
Or it may be exchanged, converted or monetized into other more common forms of currency in
any other way you choose.
CFR Sec. 229.21 Civil liability.
(a) Civil liability. A bank that fails to comply with any requirement imposed under subpart B, and
in connection therewith, subpart A, of this part or any provision of state law that supersedes any
provision of subpart B, and in connection therewith, subpart A, with respect to any person is
liable to that person in an amount equal to the sum of:
(1) Any actual damage sustained by that person as a result of the failure;
(2) Such additional amount as the court may allow, except that
(i) In the case of an individual action, liability under this paragraph shall not be less than
$100 nor greater than $1,000.
UCC 4-103. VARIATION BY AGREEMENT; MEASURE OF DAMAGES; ACTION
CONSTITUTING ORDINARY CARE. (a) The effect of the provisions of this Article may be
varied by agreement, but the parties to the agreement cannot disclaim a banks responsibility for
its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the
lack or failure. However, the parties may determine by agreement the standards by which the
banks responsibility is to be measured if those standards are not manifestly unreasonable. (b)
Federal Reserve regulations and operating circulars, clearing-house rules, and the like have the
effect of agreements under subsection (a), whether or not specifically assented to by all parties
interested in items handled (e) The measure of damages for failure to exercise ordinary care in
handling an item is the amount of the item reduced by an amount that could not have been
realized by the exercise of ordinary care. If there is also bad faith it includes any other damages
the party suffered as a proximate consequence.
The above citations are provided for your review. Again this item must be received by your
institution for deposit in accordance with your customer agreement unless your banking
institution can show you have cause to dispute it from Federal or state statute or regulation.
Please be advised if you cannot provide your customer in writing with statutory basis requiring
you to refuse this item for deposit as a legal tender obligation of THE UNITED STATES and
thereby coin or currency of the United States by statutory definition in accordance with your
customer agreement, your refusal may result in disciplinary action by appropriate investigatory
agencies and commissions of the Federal Reserve Board of Governors(see 12CFR229.3
Administrative Enforcement) and may leave the bank and its responsible employees open to
serious civil liabilities and damages for violation of its customer agreement, federal, state law
and Federal Reserve Bank regulations.(see 12 CFR 229.21 Civil liability, as noted above and
UCC-3-307,103, and 4-106).
NOTICE: This instrument is not intended to threaten, harass, hinder, or obstruct any lawful
operations. It is for the purposes of obtaining lawful remedy as is provided for by law.