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Law Supporting EFT Validity

This document discusses various laws and legal definitions related to negotiable instruments, payments, loans, and banking. It provides definitions for terms like "tender", notes that bank notes are considered a valid tender unless objected to, and discusses what constitutes consideration and value in a loan or negotiable instrument. The document aims to establish that electronic funds transfers and bank lending practices may not meet legal definitions of payment, value, or consideration. It cites several cases and statutes to support different elements of this argument over 3 paragraphs.

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835 views

Law Supporting EFT Validity

This document discusses various laws and legal definitions related to negotiable instruments, payments, loans, and banking. It provides definitions for terms like "tender", notes that bank notes are considered a valid tender unless objected to, and discusses what constitutes consideration and value in a loan or negotiable instrument. The document aims to establish that electronic funds transfers and bank lending practices may not meet legal definitions of payment, value, or consideration. It cites several cases and statutes to support different elements of this argument over 3 paragraphs.

Uploaded by

lyocco1
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Good Law to Use for EFTs to show validity of the EFT and Banks lending Fraud Payment is the

discharge of an obligation by the actual delivery of money or its equivalent. See: Chrysler Corp. v. Hanover Ins. Co., C.A. 7, Ind. 350 F.2d 652; 383 US 906. The USA has no inland jurisdiction Arndt v. Griggs, 134 US 316 and thus cannot compel one, upon one's proper objection, to obtain, use, tender, nor alienate any private negotiable instruments-- not excluding FRAUDS (Federal Reserve Accounting Unit Devices), and this was held so by the state supreme courts, even when federal gold and silver coins were in existence (see ALZR administrative agency related fines, taxes, bails, etc. See: Perry v. Washburn, 20 Cal 318; Lane County v. Oregon, 7 Wall 71.

Negotiable Instruments Law was designed to cover commercial paper and U.S. currency. See: LSA-R.S. 17; 1 et seq LSA-C.C. art 2139. The term "tender" as used in the books, denotes a legal OFFER, one which one party is under obligation to make and the other bound to accept. See: Duluth v. Knowlton, 42 Minn. 229; Patnote v. Sanders, 41 Vt. 66. Bank notes are promissory notes of a bank, payable to bearer. They are a good tender unless objected to at the time because not money. See: Parsons Laws of Business, Page 172. (Anything is acceptable as a tender unless objected to.)

A check, to be negotiable, must be payable in cash. See: Little v. Bank, 2 Hill 425. (Checks and notes are not cash.) An offer of performance which, if unjustifiably refused, places the refusing party in default and permits the party making tender to exercise his remedy for breach of contract. See: 17 P.2d 952, 953. _____________________________________________ A bill of credit is not a good consideration for a contract. See: Craig v. Missouri, 4 Pet 431; Bank v. Clark, 4 Mo 59; Linn v. Bank, 5 Ill 87.

Nothing is consideration for a note that is not regarded as such by both parties. See: Standly v. Western Mutual Life Ins., 95 Ind 254; Sterns v. Franks, 96 P.2d 802; 35 Cal App. 2d 676. A loan may be defined as the delivery by one party to, and the receipt by another of a sum of money. See: Kirkland v. Bailes, 155 S.E. 2d 701. (Yet the Federal Reserve Bank of Chicago says in Modern Money Mechanics that banks make loans by promising to lend.) (However a promise to lend cannot be enforced. In order to constitute a loan, money must be loaned, but banks make loans by promising to lend, and promises to lend cannot be enforced.) 5 MRSA. The extension of credit is not the giving of value. See: UCC 3-303:0; Atkinson v. Englewood State Bank, 141 Colo 436.

A loan is the creation of debt by the lenders agreement to pay MONEY TO THE DEBTOR . See: Maine Consumer Credit Code 9-A, Sec. 1.301 (23)(a)(1). Banks extend credit, not money. See: National Bank v. Atkinson, 55 Fed. Rep. 571. Federal Reserve Notes are not legal money. See: Jerome Daly v. First National Bank of Montgomery, Minn. Justice Martin v. Mahoney, Credit River Township, Neither the president nor the cashier of a bank has a right to accept anything but money in payment of an obligation due the bank. See: Aliquippa National Bank v. Harvey, 12 A.2d 409, 340 Pa 223; First National Bank of Mt. Holley Springs v. Cumbler, 21 A.2d 120; Re Bowen 46 F. Supp 631, 16 A.2d 409. Fair and reasonable value means the best price to be at once in money -- cash being the antonym of credit-- cash value importing value in money. See: State v. Woodward, 93 SO 826, 208 Ala 31. A holder who does not give value cannot qualify as a holder in due course. See: UCC 3303;1(1). (The bank holds a note but what did the bank give for the note; what thing of value did they part with?) Thus it is laid down by books of authority that if a man draw a bill of exchange, he is, for the purposes of that bill, a merchant. See: Comyns Digest; Merchant, A,1. (are we all, than merchants?)

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