Banks Can't Own Property

CASE LAW
Official source for United States laws is the Statue at Large and the United States Code is
only prima facie eidence of such laws! "oyer#s $nc! United States
Statue at Large are %Legal eidence& of laws contained therein and are accepted proof of
these laws in any court of the United States! Bear United States '()*+ ,C -e./ 0((
Unless Congress affir1atiely enacts title of United States Code into law2 title is only
pri1a facie eidence of law! Preston 3eckler '()*4 CA) Alaska/ 564 78d2 (6+)2
64CC3 7P,644662 later proceeding '()*4 ,C Alaska/ +)0 7 Supp ((+*
Where title has not .een enacted into positie law2 title is only pri1a facie or re.utta.le
eidence of law2 and if construction is necessary2 recourse 1ay .e had to original statue
-ational .anking corporations are agencies or instru1ents of the general goern1ent2
designed to aid in the ad1inistration of a i1portant .ranch of the pu.lic serice2 and are
an appropriate constitutional 1eans to that end! Pollard State2 Ala (**92 0+ Ala 08*
See2 also2 :arrant ! Besse1er -at Bank ()(62 0( So 4525 Ala App 8*+
A national .ank cannot lend its credit or .eco1e the guarantor of the o.ligation of
another unless it owns or has an interest in the o.ligation guaranteed especially where it
receies no .enefits therefro1! Citi;ens# -at Bank of Ca1eron <ood "oads <rael
Co! :e= Ci App! ()8( 860 SW (+6 dis1issed w!o!>
A national .ank has no power to guarantee the perfor1ance of a contract 1ade for the
sole .enefit of another! 7irst -ational Bank Crespi ? Co!:e= Ci App ()89 8(5 SW
59+
-ational .anks hae no power to negotiate loans for others! Pollock Lu1.er1an#s -at
Bank of Portland Or ()(5 (0* P 0(0 *0 Or 684
A national .ank cannot act as a .roker in lending its depositors# 1oney to third persons!
Byron 7irst -at Bank of "ose.urg2 Or ()+ (40 P +(0 5+ Or 8)0
A national .ank is not authori;ed to act as a .roker in loaning the 1oney of others! <row
Cockrill2 Ark! (*)52 6) S W 092 06 Ark 4(*! See2 also2 @eyser 3it; ,ist of Col (**6
8 Aackey +(6
Officers of a national .ank in handling its funds are acting in a fiduciary capacity 2 and
cannot 1ake loans and furnish 1oney contrary to law or in such i1proident 1anner as
to i1peril its funds! 7irst -at Bank 3u1phreys Okla ()(5 (0* P 4(92 00 Okla (*0
"epresentations 1ade .y .ank president to proposed surety as to .orrower#s assets2 in
connection with proposed loan .y .ank2 held .inding on the .ank! Boung <oetting2
CCA! + ':e=/ ()802 (0 7 8d 84*
Bank is lia.le for its ice president#s participation in sche1e to defraud depositor .y
facilitating pro1pt withdrawal of his 1oney! -ational City Bank Carter CCA0 ':enn/
()80 78d )49
Wheeler Soh1er2 Co1ptroller of the State of -ew Bork
Pro1issory notes are only eidences of de.t not de.t the1selesC
(8 USC 65+4
+) CDS E 8 Aortgages ,efinitions
%:he literal 1eaning of the word %1ortgage& is %dead pledge& a 1ortuu1 adiu1! :he
ter1 1ortgage 1ay .e e1ployed as 1eaning the de.t secured .y the 1ortgage2 .ut in its
true sense an ordinary 1ortgage is not a de.t as the de.t is the principle o.ligation2 and
the 1ortgage is generally regarded as 1erely an incident or accessory to the de.t! A
1ortgage is an interest in the land created .y a written instru1ent proiding security for
the perfor1ance of a duty or pay1ent of de.t and is usually eidenced .y a note!
Where did the 1oney co1e fro1 that they say is owedF
3ow does the .ank hae a right to say that there#s an o.ligationF
"eferencesG
Caddy Cortide -B
:esty Collons
Baker Citi;en State Bank of Louis Park
US Stanley
Cor.in on Contracts 'oid contracts/
Statue of 7rauds
Contract Cases
Nothing can be more material to the obligation than the means of enforcement,
without the remedy the contract may indeed, in the sense of law may be said to not
exist. And its obligation to fall within the class of those moral and social duties
which depend for their fulfillment wholly upon the will of the individual the ideas of
validity and remedy are inseparable and both are parts of the obligation which is
guaranteed by the Constitution against invasion. The obligation of a contract is the
law which binds the parties to perform their agreement"ed Cross Line Atlantic
7ruit Co1pany 804 US (9) L Ed +*82 44 S! Ct! 7e.ruary (*2 ()84
$t is essential to the creation of a contract that there .e a 1utual or reciprocal assent!
Sanford A.ra1s '(***/ 84 7l (*(2 So! 656! "oss Saage '()(6/ 00 7l (902 06 So!
(4*H Ac Cay Seer '()8)/ )* 7la 5(92 84 So! 44H United State "u..er Products2 $nc!
Clark '()4(/ (4+ 7la 06(2 899 So! 6*+2 Aann :ho1pson '()+*/ 7la! App ,( (99 So!
8d 064
:hat the assent .e to a certain and definite proposition! 7incher BelkISawyer Co!
'()0(/ 7la App ,6 (85 So! 8d (69! <off $ndian Lake Estates2 $n! '()0+ 7la! App ,8/
(5* So!8d )(92 3ewitt Price '()0)2 7la App ,6/ 888 So! 8d 845
ithout a meeting of the minds of the parties on an essential element, there can be
no enforceable contract !ettenbaugh v "eyes #$on % &incher 'ns. 'nc. ()*+ &la
App ,-. (/0 1o. +d -+2, 3off v 'ndian 4a5e 6states, 'nc. 7()*8 &la App ,+. (02 1o.
+d )(9
What are the elements? What is it? What does it do? How does it perform?
Whats going to happen later? Can it be used later? Was that fully disclosed? Each
and every element there has to be a meeting of the minds! UCC
'n order to form a contract, the parties must have a distinct understanding,
common to both, and without doubt or difference. :nless all understand ali5e,
there can be no assent, and therefore no contract. We.ster Lu1.er Co Lincoln
'()85/ )4 7la(9)52 ((+ So! 4)*2 Ainsky#s 7ollies of 7lorida2 $nc! Sennes '()+6 890
78d ( O#neil Corporate :rustees2 $nc! '()05/ 650 78d *(*!
:ntil the terms of the agreement have received the assent of both parties, the
negotiation is open and imposes no obligation on either. <off $ndian lake Estates
$nc! '()0+ 7la App ,8/ (5* So! 8d )(9! Car ,uall '(*49/ 6) US 552 (9 L! Ed 60(
The assent of each party must be freely given; a contract entered into as a result of
the exercise of duress or undue influence by the other party, or procured by the
fraud of one of the parties, lac5s the essential element of real assent and maybe
avoided by the in<ured party. Wall Bureau of Lathing and Plastering '()09 7la App
,6/ ((5 So! 8d 505!
An actual assent .y the parties upon e=actly the sa1e 1atters is indispensa.le to the
for1ation of the contract! Bullock 3ardwick '()45/ (+* 7la *642 69 So! 8d +6)G
3etten.augh ! @eyes O;onI7incher $ns! $nc! ()08 7la App ,6/ (45 So 8d 68*
<eneral 7inance Corp Stratton ()06 7la App ,(2 (+0 So 8d **4
:itle (8 Chap (5E(*4( and E(*(6
C7" 0999 7,$CIBank 3olding Co1pany Act
(8 C7" 8+2(8 BA-@S A-, BA-@$-<2 Sec! 8+!(8 ,efinitions
(8 USC Chap 6 Su.chap ( Sec! 888H (*(( and +9(aH 8(
Title *+ =evised 1tatues
Title (+> Chapter (0> 1ec. (2/(
Sec! (*4( J ,efinitions
'c/ ?an5 ,efined J
7or purposes of this chapter J $n generalI
'A/
An insured ban5 as defined in section 6'h/ of the 7ederal ,eposit $nsurance Act
(8 USC (*(6 'h/
'B/
An institution organi;ed under the laws of the United States2 any State of the United
States2 the ,istrict of Colu1.ia2 any territory of the United States2 Puerto "ico2 <ua12
the A1erican Sa1oas2 or the Kirgin $slands which bothI
'i/ accepts demand deposits or deposits that the depositor may withdraw .y checks
or si1ilar 1eans for pay1ent to third parties or others and J
'ii/ is engaged in the business of ma5ing commercial loans
Title (+> Chapter (0> 1ec. (2(- % ,efinitions
As used in this chapter J
'a/ ,efinition of Bank and "elated :er1s J
'(/ Bank J
:he ter1 %.ank&
7A. means any national ban5, 1tate, and ,istrict ban5, any &ederal branch and
insured branch;
'B/ includes any for1er saing association that J
'i/ has conerted fro1 saing association charterH and
'ii/ is a Saings Association $nsurance 7und 1e1.er
'S1ell test/
(! USC 1atches what $#1 thinking
8! Aake sure the courts agree on what $#1 thinking
6! UCC 1atches
4! Also want to 1ake sure that it 1atches with the intent of Congress
C&= % *999 ?AN" !#4,'N3 C#@AANB ACT
c. ?AN" ,6&'N6, % &#= A:=A#161 #& T!'1 ActC
(, 'N 36N6=A4 C 6xcept as provided in paragraph 7+., the
term ban5means any of the followingD
7A. An insured ban5 as defined in section -Eh. of the &ederal
,eposit 'nsurance Act.
7?. An insured organi$ation under the laws of the :nited 1tates
any 1tate of the :nited 1tates, the ,istrict of Columbia any territory of
the :nited 1tates, Auerto =ico, 3uam, the American 1amoa, or the Firgin
'slands which both %
'i/ Accepts demand deposits or deposits that the depositor may withdraw .y checks
or si1ilar 1eans for pay1ent to third parties or others and J
'ii/ 's engaged in the business of ma5ing commercial loans
(+ C&= +8.(+ ?AN"1 AN, ?AN"'N3 , 1ec. +-.(+ ,efinitions
7e. ?an5s means national ban5 7including a federal branch as defined in part +2 of
this chapter. with &ederally insured deposits, e=cept as proided in Sec! 8+!(('C/
(8 C7" Sec! 8+!((
'c/ Scope J '(/ <eneral2 :his part applies to all .anks2 except as proided in paragraphs
'c/'8/ and 'c/'6/ of this section!
'c/'8/ 7ederal .ranches and agencies! '(/ :his part applies to all insured 7ederal
.ranches and to any 7ederal .ranch that is uninsured that results fro1 acLuisiton
descri.ed in section + 'a/'*/ of the $nternational Banking Act of ()5* (8USC6(96'a/'*/
'c/'6/ '6/ Certain special purpose .anks! :his part does not apply to special purpose
.anks that do not perform commercial or retail ban5ing services by granting credit
to the public in the ordinary course of .usiness2 other than as incident to their speciali;ed
operations! :hese .anks include .anker#s .ank2 as defined in (8USC84'Seenth/2 and
the .anks engage only in one or 1ore of the following actiitiesG providing cash
management controlled ,isbursements services or serving as correspondent ban5s,
trust companies, or clearing agents.
(+ :1C Chapter - 1ubchapter ( 1ec +++
&ederal reserve districts; membership of national ban5s
:he continental United States2 e=cluding Alaska2 shall .e diide into not less than eight
no 1ore than twele districts! Such districts 1ay .e read>usted and new districts fro1
ti1e to ti1e .e created .y the Board of <oernors of the 7ederal "esere Syste12 not to
e=ceed twele in allG Proided that the districts shall .e apportioned with due regard to
the conenience and custo1ary course of .usiness and shall not necessarily coter1inous
with any State or States!