NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

NOTICE
NOTICE OF MEMORANDUM OF LAW-Points and Authorities in Support of Internationa !i of E"#han$e "Those who constit te !n !ssoci!tion n!tionwi"e o# $%i&!te' ninco%$o%!te" $e%sons en(!(e" in the ) siness o# )!n*in( to iss e notes a$ainst these o)+i(!tions o# the Unite" St!tes " e the,whose pri%ate $%o$e%t. is !t %is* to co++!te%!+i/e the (o&e%n,ent0s "e)t !n" c %%enc.' ). +e(!+ "e#initions' ! &nationa 'an(in$ asso#iation&- s ch notes' iss e" a$ainst these o' i$ations of the United States to that part of the pu' i# de't due its Prin#ipa s and Sureties are required by law to be accepted as "legal tender" of payment for all debts public and private' !n" !%e "e#ine" in +!w !s &o' i$ations of the United States&) on the s!,e $!% !n" c!te(o%. with Fe"e%!+ %ese%&e notes !n" othe% c %%enc. !n" +e(!+ ten"e% o)+i(!tions1" 2P!(e 34 RE* Ite+ tendered for Dis#har$e of De't, The instru+ent tendered to the 'an( and ne$otiated to the United States Treasurfor sett e+ent is an .O' i$ation of T/E UNITED STATES)0 n"e% Tit e 12USC Se#t,2) %e$%esentin( !s the "e#inition $%o&i"es ! .#ertifi#ate of inde'tedness 3,dra4n upon an authori5ed offi#er of the United States)0 2in this c!se the Sec%et!%. o# the T%e!s %.40issued under an A#t of Con$ress0 2in this c!se pu' i# a4 67-18) /9R-1:; of 1:77 !n" Tit e 71 USC 71;7) and 71 USC <187= and '- treat- >in this c!se the UNITED NATIONS CON?ENTION ON INTERNATIONAL !ILLS OF E@C/ANAE AND INTERNATIONAL PROMISSORB NOTES >UNCITRAL= !n" the Uni%ersa Posta Union headCuartered in !ern) S4it5er and=, TITLE 12 D PART I D C/APTER 1 D Se#, 1, D Se#, 2, Se#, 2, - O' i$ation or other se#urit- of the United States defined The ter+ EEo' i$ation or other se#urit- of the United StatesEE in# udes a )on"s' #ertifi#ates of inde'tedness) nationa 'an( #urren#-' Fe"e%!+ Rese%&e notes' Fe"e%!+ Rese%&e )!n* notes' co $ons' Unite" St!tes notes' T%e!s %. notes' (o+" ce%ti#ic!tes' si+&e% ce%ti#ic!tes' #%!ction!+ notes' ce%ti#ic!tes o# "e$osit' )i++s' chec*s' o% "%!#ts #o% ,one.' dra4n ). o% upon authori5ed offi#ers of the United States) st!,$s !n" othe% %e$%esent!ti&es o# &!+ e' o# wh!te&e% "eno,in!tion' issued under an- A#t of Con$ress' !n" c!nce+e" Unite" St!tes st!,$s1 The Inte%n!tion!+ Bi++ o# E5ch!n(e is +e(!+ ten"e% !s ! n!tion!+ )!n* note' o% note o# ! N!tion!+ B!n*in( Associ!tion' ). +e(!+ !n"6o% st!t to%. "e#inition >UCC F-18<) 1;CFRSe#, ;;:,;) ;18,;) 1; USC 12174 ' iss e" n"e% A tho%it. o# the Unite" St!tes Co"e 71 USC 7:;) <187) which o##ici!++. "e#ines this !s ! st!t to%. +e(!+ ten"e% P!(e 7 o# 78

NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

o)+i(!tion o# THE UNITED STATES' !n" is iss e" in !cco%"!nce with 71 USC 71;7 !n" /9R- 1:;>1:77= which est!)+ish !n" $%o&i"e #o% its iss !nce !s 9P )+ic Po+ic.: in %e,e". #o% "isch!%(e o# e; it. inte%est %eco&e%. on th!t $o%tion o# the $ )+ic "e)t to its P%inci$!+s' !n" S %eties )e!%in( the O)+i(!tions o# THE UNITED STATES1 This is ! st!t to%. %e,e". #o% e; it. inte%est %eco&e%. " e the $%inci$+es !n" s %eties o# the Unite" St!tes for dis#har$e of a4fu de'ts in #o++er#e in #onGun#tion 4ith US o' i$ations to that portion of the pu' i# de't it is intended to redu#e, D %in( the #in!nci!+ c%isis o# the "e$%ession' in 7<== s )st!nce o# (o+"' si+&e% !n" %e!+ ,one. w!s re+o%ed !s ! #o n"!tion #o% o % #in!nci!+ s.ste,1 In it s $+!ce the su'stan#e o# the A,e%ic!n citi/en%.> their %e!+ $%o$e%t.' we!+th' !ssets !n" $%o" cti&it. that 'e on$s to the+ w!s' in e##ect' Hp ed$edI ). the (o&e%n,ent !n" p a#ed at ris( !s the #o atera #o% US de't) #redit and #urren#- #o% co,,e%ce to # nction1 This is we++ "oc ,ente" in the !ctions o# Con(%ess !n" the P%esi"ent !t th!t ti,e !n" in the Con(%ession!+ "e)!tes th!t $%ece"e" the !"o$tion o# the %eo%(!ni/!tion!+ ,e!s %es> Senate Do#u+ent No, F7) 67rd Con$ress) 1st Session) st!te"' "Un"e% the new +!w the ,one. is iss e" to the )!n*s in return #o% Ao%ern+ent o' i$ations' 'i s of e"#han$e) drafts) notes) trade a##eptan#es) and 'an(erIs a##eptan#es1 The +one- 4i 'e 4orth 188 #ents on the do ar) 'e#ause it is 'a#(ed '- the #redit of the nation, It 4i represent a +ort$a$e on a the ho+es and other propert- of a the peop e in the Nation,& 2Which a4fu - 'e on$s to these $%i&!te citi/ens14 The N!tion!+ De)t is "e#ine" !s 9+ort$a$es on the 4ea th and in#o+e of the peop e of a #ountr-,0 >Enc.c+o$e"i! B%it!nnic!' 7<8<14 Their we!+th' ?1 their inco,e1 The %eo%(!ni/!tion is e&i"ence" ).> the E,e%(enc. B!n*in( Act' M!%ch <' 7<==' Ho se @oint Reso+ tion 7<A' @ ne 8' 7<== 2$ )+ic +!w B=C7D4 An" the Se%ies o# E5ec ti&e O%"e%s th!t s %%o n"e" the,> EDB=C Reo$enin( o# B!n*s1 E,)!%(o on Go+" P!.,ents !n" E5$o%ts' !n" Li,it!tions on Fo%ei(n E5ch!n(e T%!ns!ctions1 M!%ch 7D' 7<== E777CT%!ns!ctions in #o%ei(n e5ch!n(e !%e $e%,itte" n"e% Go&e%n,ent!+ S $e%&ision1 A$%i+ AD' 7<== E7DA C Fo%)i""in( the ho!%"in( o# (o+" coin' (o+" ) ++ion !n" (o+" ce%ti#ic!tes1 A$%i+ 8' 7<== On Dece,)e% A=' 7<7=' Con(%ess h!" $!sse" "An Act to $%o&i"e #o% the est!)+ish,ent o# Fe"e%!+ %ese%&e )!n*s' to # %nish !n e+!stic c %%enc.' to !##o%" ! ,e!ns o# %e"isco ntin( co,,e%ci!+ $!$e%' to est!)+ish ! ,o%e e##ecti&e s $e%&ision o# )!n*in( in the Unite" St!tes' !n" for other purposes&, The Act is co,,on+. *nown !s the &Federa Reser%e A#t&, P!(e A o# 78

NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

One o# the $ %$oses #o% en!ctin( the Fe"e%!+ Rese%&e Act w!s > 2=4 to authori5e &h-pothe#ation& of o' i$ations in# udin$ &United States 'onds or other se#urities 4hi#h Federa reser%e !an(s are authori5ed to ho d& n"e% Section 7F2!41; USCJ #h, K) 72 Stat, ;<1 Se#t 1F>a= The te%, &h-pothe#ation& !s st!te" in Section 7F2!4 o# the Act is "e#ine"> "71 B!n*in(1 Offer of stoc*s' )on"s' o% othe% assets o4ned '- a part- other than the 'orro4er as #o atera for a oan' 4ithout transferrin$ tit e1 I# the )o%%owe% t %ns the $%o$e%t. o&e% to the +en"e% who ho+"s it #o% s!#e*ee$in(' the !ction is %e#e%%e" to !s ! p ed$e1 If the 'orro4er retains possession) 'ut $i%es the ender the ri$ht to se the propert- in e%ent of defau t' it is a true h-pothe#ation1 A1 Sec %ities1 The $+e"(in( o# ne(oti!)+e sec %ities to co++!te%!+i/e ! )%o*e%Gs +ar$in +o!n1 The )%o*e% $+e"(es the s!,e sec %ities to ! )!n* !s co++!te%!+ #o% ! )%o*e%Gs +o!n' the $%ocess is %e#e%%e" to !s reh-pothe#ation1" LDi#tionar- Of !an(in$ Ter+s) Fit#h) p$, ;;2 >1::64H As seen #%o, the "e#initions' in h.$othec!tion the%e is eCuita' e %is* to the a#tua owne%1 Section 7E o# the c %%ent Fe"e%!+ Rese%&e Act' which is co"i#ie" !t 7A USC F77' "ec+!%es th!t &Federa Reser%e Notes& are &o' i$ations of the United States&, So we see the &fu faith and #redit& of the United States* which is the su'stan#e o# the A,e%ic!n citi/en%.> their %e!+ $%o$e%t.' we!+th' !ssets !n" $%o" cti&it. th!t 'e on$s to the+) is the%e). h-pothe#ated and reh-pothe#ated ). the Unite" St!tes to its o)+i(!tions !s we++ !s to the Fe"e%!+ Rese%&e for the issuan#e and 'a#(in$ of Federa Reser%e Notes as e$a tender "#o% !++ t!5es' c sto,s' !n" othe% $ )+ic " es"1 TITLE 1; D C/APTER 7 D SU!C/APTER @II D Se#, F11,

Se#, F11, - Issuan#e to reser%e 'an(sJ nature of o' i$ationJ rede+ption Federa Reser%e notes' to )e iss e" !t the "isc%etion o# the Bo!%" o# Go&e%no%s o# the Fe"e%!+ Rese%&e S.ste, #o% the $ %$ose o# ,!*in( !"&!nces to Fe"e%!+ %ese%&e )!n*s th%o (h the Fe"e%!+ %ese%&e !(ents !s he%ein!#te% set #o%th !n" #o% no othe% $ %$ose' !%e ! tho%i/e"1 The said notes sha 'e o' i$ations of the United States and sha 'e re#ei%a' e '- a nationa and +e+'er 'an(s and Federa reser%e 'an(s and for a ta"es) #usto+s) and other pu' i# dues,

P!(e = o# 78

NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

The co,,e%ce !n" c%e"it o# the n!tion contin es on to"!. n"e% #in!nci!+ %eo%(!ni/!tion 2B!n*% $tc.4 !s it h!s since 7<==' sti )!c*e" ). the !ssets !n" we!+th o# the A,e%ic!n citi/en%.> at ris( #o% the $o%ern+entIs o)+i(!tions !n" c %%enc.1 Un"e% the 7Fth !,en",ent !n" n ,e%o s S $%e,e Co %t $%ece"ents' !s we++ !s in e; it.' Pri%ate propert- #an not 'e ta(en or p ed$ed for pu' i# use 4ithout Gust #o+pensation) or due pro#ess of a4 , The Unite" St!tes #an not p ed$e or ris( the propert- and 4ea th of its pri%ate #iti5ens) for an- $o%ern+ent purpose 4ithout e$a - pro%idin$ the+ re+ed- to re#o%er 4hat is due the+ on their ris(, This $%inci$+e is so we++ est!)+ishe" in En(+ish co,,on +!w !n" in the histo%. o# A,e%ic!n I %is$% "ence1 The 7Fth !,en",ent $%o&i"es> 9no person sha 'e depri%ed of3propert- 4ithout due pro#ess of a40, An" Co %ts h!&e +on( % +e" to h!&e one0s $%o$e%t. +e(!++. he+" !s co++!te%!+ o% s %et. #o% ! "e)t e&en when he sti++ owns it !n" sti++ h!s it is to depri%e hi, o# it since it is !t %is* !n" co +" )e +ost #o% the "e)t !t !n. ti,e1 The Unite" St!tes S $%e,e Co %t s!i"' in Unite" St!tes &1 R sse++ J7= W!++' EA=' EABH &Pri%ate propert-) the Constitution pro%ides) sha not 'e ta(en for pu' i# use 4ithout Gust #o+pensation,0 "The ri$ht of su'ro$ation is not #o n"e" on cont%!ct1 It is a #reature of eCuit-- is en#o%ce" so+e+. #o% the $ %$ose o# !cco,$+ishin( the en"s o# s )st!nti!+ I stice- and is independent of an- #ontra#tua re ations 'et4een the parties,& Me+phis M L, R, R, Co, %, Do4) 1;8 U,S, ;26) 781-78; >1226=, The ri$hts of a suret- to re#o%er- on his ris( or oss 4hen standin$ for the de'ts of another w!s %e!##i%,e" !(!in !s +!te !s 7<EA in Pe!%+,!n &1 Re+i!nce Ins1Co1' =B7 U1S1 7=A when the Co %t s!i"* 30sureties #o+pe ed to pa- de'ts for their prin#ipa ha%e 'een dee+ed entit ed to rei+'urse+ent) e%en 4ithout a #ontra#tua pro+ise 3And pro'a' - there are fe4 do#trines 'etter esta' ished3,,,0 ! a#(Is La4 Di#tionar- ) <th edition) defines .suret-0* .One who n"e%t!*es to $!. or to do an- other a#t in e%ent that his prin#ipa fai s therein, E&e%.one who inc %s a ia'i it- in person or estate for the 'enefit of another) witho t sh!%in( in the consi"e%!tion' stands in the position of a .suret-,0 Constit tion!++. !n" in the +!ws o# e; it.' the Unite" St!tes #ou d not 'orro4 or p ed$e the propert- and 4ea th of its pri%ate #iti5ens) put at ris( as #o atera for its #urren#- and #redit 4ithout e$a - pro%idin$ the+ eCuita' e re+ed- for re#o%erof 4hat is due the+, The Unite" St!tes (o&e%n,ent' o# co %se' "i" not &io+!te the +!w o% the Constit tion in this w!.' in o%"e% to co++!te%!+i/e its #in!nci!+ %eo%(!ni/!tion' ) t "i"' in fa#t) $%o&i"e s ch ! +e(!+ %e,e". so th!t it h!s )een !)+e to contin e on since 7<== to h.$othec!te the pri%ate we!+th !n" !ssets o# those c+!sses o# $e%sons ). who, it is owne"' ' at ris( P!(e F o# 78

NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

'a#(in$ the $o%ern+entIs o)+i(!tions !n" c %%enc.' '- their i+p ied #onsent) th%o (h the (o&e%n,ent h!&in( $%o&i"e" s ch re+ed-) !s "e#ine" !n" co"i#ie" !)o&e' #o% %eco&e%. o# wh!t is " e the, on thei% !ssets !n" we!+th !t %is*1 The $%o&isions #o% this !%e #o n" in the s!,e !ct o# 9P )+ic Po+ic.: /9R-1:;) pu' i# a4 67-18 th!t s s$en"e" the (o+" st!n"!%" #o% o % c %%enc.' !)%o(!te" the %i(ht to "e,!n" $!.,ent in (o+"' !n" ,!"e Fe"e%!+ Rese%&e notes #o% the #i%st ti,e +e(!+ ten"e%' 9'a#(ed '- the su'stan#e or .#redit of the nation01 A US c %%enc. since th!t ti,e is on+. #redit !(!inst the %e!+ $%o$e%t.' we!+th !n" !ssets )e+on(in( to the $%i&!te so&e%i(n A,e%ic!n $eo$+e' ta(en !n"6o% Kp ed$edI ). THE UNITED STATES to its se#ondar- c%e"ito%s !s se#urit- #o% its o)+i(!tions1 Conse; ent+.' those 'a#(in$ the n!tion0s c%e"it !n" c %%enc. #ou d not %eco&e% wh!t w!s " e the, '- an-thin$ dra4n on Federa Reser%e notes 4ithout e"pandin$ their ris( and o' i$ation to the+se %es1 An. %eco&e%. $!.,ents )!c*e" ). this c %%enc. wo +" on+. in#rease the pu' i# de't its #iti5ens 4ere #o atera for) 4hi#h an eCuita' e re+ed- 4as intended to redu#e' !n" in e; it. wo +" not s!tis#. !n.thin(1 An" the%e w!s no +on(e% a#tua +one- of su'stan#e to pa- an-'od-, The%e !%e othe% se%io s +i,it!tions on o % $%esent s.ste,1 Sin#e the institution of these e%ents) for pra#ti#a purposes of #o++er#ia e"#han$e) there has 'een no a#tua +one- in #ir#u ation '- 4hi#h de't o4ed fro+ one part- to another #an a#tua - 'e repaid, Fe"e%!+ Rese%&e Notes' !+tho (h ,!"e +e(!+ ten"e% #o% !++ "e)ts $ )+ic !n" $%i&!te in the %eo%(!ni/!tion' c!n on+. dis#har$e ! "e)t1 De)t , st )e .pa-ed0 with %a ue or su'stan#e 2i1e1 (o+"' si+&e%' )!%te%' +!)o%' o% ! co,,o"it.41 Fo% this %e!son H@RC7<A 27<==4' which est!)+ishe" the 9$ )+ic $o+ic.: o# o % c %%ent ,onet!%. s.ste,' %e$e!te"+. ses the technic!+ te%, o# 9"isch!%(e: in conI nction with 9$!.,ent: in +!.in( o t $ )+ic $o+ic. #o% the new s.ste,1 A "e)t c %%enc. s.ste, c!nnot $!. "e)t1 So #%o, th!t ti,e to the $%esent' co,,e%ce in the co%$o%!te UNITED STATES !n" !,on( s )Cco%$o%!te s )Iect entities h!s h!" on+. "e)t note inst% ,ents ). which "e)t c!n )e "isch!%(e" !n" t%!ns#e%%e" in "i##e%ent #o%,s1 The n$!i" "e)t' c%e!te" !n"6o% e5$!n"e" ). the $+!n now c!%%ies ! pu' i# ia'i it- #o% co++ection in th!t when "e)t is "isch!%(e" with "e)t inst% ,ents' 2i1e1 Fe"e%!+ Rese%&e Notes inc+ "e"4' ). o % co,,e%ce' "e)t is in!"&e%tent+. )ein( e"panded inste!" o# )ein( #an#e ed' th s in#reasin$ the pu' i# de't, A situation potentia - fata to an- e#ono+-, Con(%ess !n" (o&e%n,ent o##ici!+s who o%chest%!te" the $ )+ic +!ws !n" %e( +!tions th!t ,!"e the finan#ia reor$ani5ation !ntici$!te" the +on( te%, e##ect o# ! "e)t )!se" #in!nci!+ s.ste, which ,!n. in (o&e%n,ent #e!%e"' !n" which we #!ce to"!. in se%&icin( the inte%est on t%i++ions $on t%i++ions o# "o++!%s in US Co%$o%!te $ )+ic "e)t !n" in this s!,e !ct ,!"e $%o&ision not on+. #o% the re#o%er- re+ed- to satisf- eCuit- to its S %eties' ) t to si+u taneous - reso %e this pro' e+ as 4e , Since it is' in #!ct' the %e!+ $%o$e%t.' we!+th !n" !ssets o# th!t c+!ss o# $e%sons th!t is the su'stan#e )!c*in( a the othe% o)+i(!tions' c %%enc. !n" c%e"it o# THE UNITED STATES and su#h #urren#ies #ou d not 'e used to redu#e its o' i$ations for eCuitinterest re#o%er- to its Prin#ipa s and Sureties' P!(e 8 o# 78

NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

H@RC7<A # %the% ,!"e the .notes of nationa 'an(s 9!n" .nationa 'an(in$ asso#iations0 on ! $!% with its othe% c %%enc. !n" +e(!+ ten"e% o)+i(!tions'

No4 TITLE 71 ) SU!TITLE I? ) C/APTER <1 ) SU!C/APTER I ) Se#, <187, sa-s) Le(!+ ten"e% - Unite" St!tes coins !n" c %%enc. 2inc+ "in( Fe"e%!+ %ese%&e notes !n" ci%c +!tin( notes of Fe"e%!+ %ese%&e )!n*s !n" nationa 'an(s4 !%e e$a tender #o% !++ "e)ts' $ )+ic ch!%(es' t!5es' !n" " es1 2e,$h!sis !""e"4 B t this o##ici!+ "e#inition #o% H e$a tenderI w!s #i%st est!)+ishe" in /9R-1:; >1:77= in the s!,e !ct th!t ,!"e #e"e%!+ %ese%&e notes and notes of nationa 'an(in$ asso#iations +e(!+ ten"e%1 P )+ic Po+ic. H@RC7<A @OINT RESOLUTION TO SUSPEND THE GOLD STANDARD AND ABROGATE THE GOLD CLAUSE' @UNE 8' 7<== H1@1 Res1 7<A' B=%" Con(1' 7st Session @oint %eso+ tion to !ss %e ni#o%, &!+ e to the coins !n" c %%encies o# the Unite" St!tes1 2)4 As se" in this %eso+ tion' the ter+ .o' i$ation0 +eans an o' i$ation >in# udin$ e%ero' i$ation of and to the United States) e"#eptin$ #urren#-4 $!.!)+e in ,one. o# the Unite" St!tes- !n" the ter+ .#oin or #urren#-0 +eans #oin or #urren#- of the United States) in# udin$ Fe"e%!+ Rese%&e notes !n" ci%c +!tin( notes of Fe"e%!+ Rese%&e )!n*s !n" nationa 'an(in$ asso#iations, .A #oins and #urren#ies of the United States >in# udin$ Fe"e%!+ Rese%&e notes !n" ci%c +!tin( notes of Fe"e%!+ Rese%&e )!n*s !n" nationa 'an(in$ asso#iations= he%eto#o%e o% he%e!#te% coine" o% iss e"' sha 'e e$a tender #o% !++ "e)ts' #o% $ )+ic !n" $%i&!te' $ )+ic ch!%(es' t!5es' " ties' !n" " es': LUSC Tit e 1;,;;1 Definitions L 9The te%,s .nationa 'an(0 !n" .nationa 'an(in$ asso#iation:?1sh!++ )e he+" to )e s-non-+ous and inter#han$ea' e,0N .notes of nationa 'an(s0 or .nationa 'an(in$ asso#iations0 ha%e #ontinuous 'een +aintained in the offi#ia definition of e$a tender sin#e 9une <) 1:77 to the present da-) 4hen the ter+ had ne%er 'een used to define .#urren#- 0or . e$a tender0 'efore that, P%io% to 7<== the #o%,s o# c %%enc. in se th!t we%e +e(!+ ten"e% we%e ,!n. !n" &!%ie"> CUnite" St!tes Go+" Ce%ti#ic!tes L Unite" St!tes Notes L T%e!s %. Notes L Inte%est )e!%in( notes LGo+" Coins o# Unite" St!tes L St!n"!%" si+&e% "o++!%s L S )si"i!%. si+&e% coins L ,ino% coins CCo,,e,o%!ti&e coins L 'ut the ist did not in# ude federa reser%e notes or notes of nationa 'an(s or nationa 'an(in$ asso#iations "es$ite the #!ct n!tion!+ )!n* notes we%e ! co,,on ,e"i , o# e5ch!n(e o% 9c %%enc.: !n" h!" )een' !+,ost since the #o n"in( o# o % P!(e E o# 78

NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

)!n*in( s.ste, !n" we%e )!c*e" ). Unite" St!tes )on"s o% othe% sec %ities on "e$osit #o% the )!n* with the US T%e!s %.1 F %the%' fro+ the ti+e of their in# usion in the definition the- ha%e 'een phased out nti+ $%esent+. a $%o&isions in the Unite" St!tes Co"e $e%t!inin( to in#orporated federa - #hartered Nationa !an(in$ institutions issuin$) redee+in$) rep a#in$ and #ir#u atin$ notes h!&e !++ )een repea ed* USC TITLE 1; D C/APTER ; C NATIONAL BANMS SUBCHAPTER N C OBTAINING AND ISSUING CIRCULATING NOTES Sec1 7D7 to 77D1 Re$e!+e"1 P )1 L1 7D=C=A8' tit+e NI' Sec1 EDAe8C77' #ACFA' (<' Se$t1 A=' 7<<F' 7D3 St!t1 AA<A' AA<F SUBCHAPTER NI C REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES Sec1 7A71 Re$e!+e"1 P )1 L1 7D=C=A8' tit+e NI' Sec1 EDA#FB' Se$t1 A=' 7<<F' 7D3 St!t1 AA<A Sec1 7A7!1 Re"e,$tion o# notes ni"enti#i!)+e !s to )!n* o# iss e Sec1 7AA1 Re$e!+e"1 P )1 L1 <BCA83' Sec1 8)' Se$t1 7=' 7<3A' <E St!t1 7DE3 Sec1 7AA!1 Re"ee,e" notes o# ni"enti#i!)+e iss e- # n"s ch!%(e" !(!inst Sec1 7A= to 7AE1 Re$e!+e"1 P )1 L1 7D=C=A8' tit+e NI' Sec1 EDAe7A' 7=' #FC' E' Se$t1 A=' 7<<F' 7D3 St!t1 AA<A' AA<= Sec1 7AB1 Re$e!+e"1 P )1 L1 3<C88F' Sec1 3!' Se$t1 E' 7<EE' 3D St!t1 E== As stated in HMone- and !an(in$0) Fth edition) '- Da%id /, Fried+an) pu' , '- the A+eri#an !an(ers Asso#iation) $!(e B3' 9Toda- #o++er#ia 'an(s no on$er issue #urren#-) 3,. It is c+e!%' #e"e%!++. inco%$o%!te" )!n*in( instit tions s )Iect to the %est%ictions !n" %e$e!+e" $%o&isions o# Tit+e 7A' are not those pri+ari - referred to +aintained in the #urrent definition of . e$a tender0, The +e(!+ st!t to%. !n" $%o#ession!+ "e#initions o# .'an(0) .'an(in$0) and .'an(er0 se" in the Unite" St!tes Co"e !n" Co"e o# Fe"e%!+ Re( +!tions !%e not those co,,on+. n"e%stoo" #o% these te%,s !n" h!&e ,!"e the st!t to%. "e#inition o# .!an(0 !cco%"in(+.> UCC F-18< PART 7 &!an(& ,e!ns a person en$a$ed in the 'usiness of 'an(in$': 1;CFRSe#, ;;:,; De#initions 2e4 !an( ,e!nsO9the te%, )!n* !+so inc+ "es anperson en$a$ed in the 'usiness of 'an(in$)0 1;CFR Se#, ;18,; De#initions1 2"4: !an( +eans an- person en$a$ed in the 'usiness of 'an(in$,0 USC Tit e 1; Se#, 12171 LDefinitions of !an( and Re ated Ter+s1 L >1= B!n*1 C The te%, EE'an(EG L >A= .,e!ns an- nationa 'an(' St!te )!n*' !n" Dist%ict )!n*' !n" !n. Fe"e%!+ )%!nch !n" ins %e" )%!nch-: ! a#(Is La4 Di#tionar-) <th Edition) $!(e 7==' "e#ines ! 9!an(er0 !s' 9In $enera sense) person that en$a$es in 'usiness of 'an(in$, In narro4er +eanin$) a pri%ate person333J 4ho is en$a$ed in the 'usiness of 'an(in$ 4ithout 'ein$ in#orporated, Under so+e statutes) an indi%idua 'an(er) as distin$uished fro+ a .pri%ate 'an(er0) is a person 4ho) ha%in$ #o+p ied 4ith the statutorreCuire+ents) has re#ei%ed authorit- fro+ the state to en$a$e in the 'usiness of P!(e B o# 78

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'an(in$) 4hi e a pri%ate 'an(er is a person en$a$ed in 'an(in$ 4ithout ha%in$ anspe#ia pri%i e$es or authorit- fro+ the state, . .!an(in$0C Is $!%t+. !n" o$tion!++. "e#ine" !s .The 'usiness of issuin$ notes for #ir#u ation33) ne$otiatin$ 'i s,0 ! a#(Is La4 Di#tionar-) <th Edition) $!(e 7==' "e#ines 9!an(in$0> .The 'usiness of 'an(in$) as defined '- a4 and #usto+) #onsists in the issue of notes 33intended to #ir#u ate as +one-33,, An" "e#ines ! 9!an(erIs Note0 !s> .A #o++er#ia instru+ent %ese,)+in( ! )!n* note in e&e%. $!%tic +!% e5ce$t th!t it is $i%en '- a pri%ate 'an(er or unin#orporated 'an(in$ institution1: Fe"e%!+ St!t te "oes not s$eci#ic!++. "e#ine .nationa 'an(0 and .nationa 'an(in$ asso#iation0 in those sections 4here these uses are e$is ated on to e"# ude a pri%ate 'an(er or unin#orporated 'an(in$ institution1 It does "e#ine these te%,s to the e"# usion o# s ch $e%sons in the ch!$te%s !n" sections whe%e the iss e !n" ci%c +!tion o# notes ). n!tion!+ )!n*s h!s )een repea ed or for'idden, &In the a'sen#e of a statutor- definition) #ourts $i%e ter+s their ordinar- +eanin$, &B!ss' Te%%i L1 &1 Sto+$e%' Mo%it/ins*.' 777 F1=" 7=A8'BthCir, Apps, >1::K=, As the U,S, Supre+e Court noted) &We ha%e stated ti+e and a$ain that #ourts +ust presu+e that a e$is ature sa-s in a statute 4hat it +eans and +eans in a statute 4hat it sa-s there1: See' e1(1' Unite" St!tes &1 Ron P!i% Ente%$%ises' Inc1' F3< U1S1 A=8' AF7 CAFA 27<3<4- Unite" St!tes &1 Go+"en)e%('7E3 U1S1 <8' 7DA C7D= 273<B4&The e$is ati%e purpose is e"pressed '- the ordinar- +eanin$ of the 4ords used, .Rich!%"s &1 Unite" St!tes) 7K: U,S,1 >1:K;=, The%e#o%e' !s note" !)o&e' the +e(!+ "e#initions %e+!tin( to H e$a tenderI h!&e )een w%itten ). Con(%ess !n" ,!int!ine" !s s ch to )e )oth e"# usi%e) whe%e necess!%.' !n" in# usi%e) whe%e !$$%o$%i!te' to $%o&i"e in its st!t to%. "e#initions o# e$a tender #o% the in# usion o# !++ those' who ). "e#inition o# $%i&!te' ninco%$o%!te" $e%sons en(!(e" in the ) siness o# )!n*in( to iss e notes a$ainst the o)+i(!tion o# the Unite" St!tes #o% %eco&e%. on thei% %is*' whose pri%ate !ssets !n" $%o$e%t. !%e )ein( se" to co++!te%!+i/e the o)+i(!tions o# the Unite" St!tes since 7<==' !s co++ecti&e+. !n" n!tion!++. constit tin( ! +e(!+ c+!ss o# $e%sons )ein( ! .nationa 'an(0 or 9nationa 'an(in$ asso#iation0 4ith the ri$ht to issue su#h notes a$ainst The O' i$ation of T/E UNITED STATES for eCuit- interest re#o%er- due and a##rued to these Prin#ipa s and Sureties of the United States 'a#(in$ the o' i$ations of US #urren#- and #reditJ as a +eans for the e$a tender dis#har$e of a4fu de'ts in #o++er#e as re+ed- due the+ in #onGun#tion 4ith US o' i$ations to the dis#har$e of that portion of the pu' i# de't) 4hi#h is pro%ided for in the present finan#ia reor$ani5ation sti in effe#t and on$oin$ sin#e 1:77, J7A USC F77' 73 USC 3' 7A USC- ch1 E' =3 St!t1 A87 Sect 7F2!4' =7 USC 8773' =7A=1 with %i(hts $%otecte" n"e% the 7Fth A,en",ent o# the Unite" St!tes Constit tion' ). the U1S1 S $%e,e Co %t in Unite" St!tes &1 R sse++ 27= W!++' EA=' EAB4' Pe!%+,!n &1 Re+i!nce Ins1 Co1' =B7 U1S1 7=A'7=E'7=B 27<EA4' The Unite" St!tes &1 Hooe' = C%!nch 2U1S14B=273D84' !n" in P!(e 3 o# 78

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con#o%,it. with the U1S1 S $%e,e Co %t B< U1S1 A3B 273BD4' 7BA U1S1F3 2 73<34' !n" !s con#i%,e" !t =DB U1S1 AFB27<=<41H H@RC 7<A # %the% "ec+!%e" 33,,.e%er- pro%ision3,4hi#h purports to $i%e the o' i$ee a ri$ht to reCuire pa-+ent in $o d or a parti#u ar (ind of #oin or #urren#-3, is de# ared to 'e a$ainst Pu' i# Po i#-J and no su#h pro%ision sha 'e 3,+ade 4ith respe#t to an- o' i$ation hereafter in#urred,: M!*in( w!. #o% "isch!%(e !n" %eco&e%. on US Co%$o%!te $ )+ic "e)t " e the P%inci$!+s !n" S %eties o# THE UNITED STATES $%o&i"in( !s .pu' i# po i#-0 #o% the "isch!%(e o# .e%er- o' i$ation0) .in# udin$ e%er- o' i$ation OF and TO T/E UNITED STATES0' .do ar for do ar0) !++owin( those )!c*in( the US #in!nci!+ %eo%(!ni/!tion to %eco&e% on it ). dis#har$in$ !n o)+i(!tion the. owe" TO T/E UNITED STATES o% its s )Cco%$o%!te entities' a$ainst that sa+e a+ount of o' i$ation OF T/E UNITED STATES o4ed to the+J thus pro%idin$ the re+ed- for the dis#har$e !n" order re#o%er- o# e; it. inte%est on US Co%$o%!te $ )+ic "e)t " e the S %eties' P%inci$!+s' !n" Ho+"e%s o# THE UNITED STATES) "isch!%(in( that $o%tion o# the $ )+ic "e)t 4ithout e"pansion of #redit) de't or o' i$ation on T/E UNITED STATES or these its pri+e-#reditors it w!s inten"e" to s!tis#. e; it!)+e %e,e". to' 'ut (!inin( #o% e!ch )e!%e% o# s ch note' "isch!%(e o# o)+i(!tion e; i&!+ent in &!+ e K"o++!% #o% "o++!%0 to !n. !n" !++ . a4fu +one- of the United States01 Those who constit te !n !ssoci!tion n!tionwi"e o# $%i&!te' ninco%$o%!te" $e%sons en(!(e" in the ) siness o# )!n*in( to iss e notes a$ainst these o)+i(!tions o# the Unite" St!tes " e the,- whose pri%ate $%o$e%t. is !t %is* to co++!te%!+i/e the (o&e%n,ent0s "e)t !n" c %%enc.' ). +e(!+ "e#initions' ! &nationa 'an(in$ asso#iation&- s ch notes' iss e" a$ainst these o' i$ations of the United States to that part of the pu' i# de't due its Prin#ipa s and Sureties !%e %e; i%e" ). +!w to )e !cce$te" !s "+e(!+ ten"e%" o# $!.,ent #o% !++ "e)ts $ )+ic !n" $%i&!te' !n"' !s we h!&e seen' !%e "e#ine" in +!w !s &o' i$ations of the United States&) on the s!,e $!% !n" c!te(o%. with Fe"e%!+ %ese%&e notes !n" othe% c %%enc. !n" +e(!+ ten"e% o)+i(!tions1 This is wh!t is !sse%te" in the ten"e% $%esente" to the )!n* #o% "e$osit !n" the (o&e%n,ent h!s s!i" nothin( to the cont%!%.1 Wo +" we ; estion th!t this is e5!ct+. wh!t Con(%ess h!s $%o&i"e" #o% in these st!t tes !n" co"es on the $ )+ic "e)t !n" o)+i(!tions o# the Unite" St!tes !n" th!t this is the %e,e". co"i#ie" in st!t to%. +!w !n" "e#inition we h!&e cite" he%eP E&en tho (h it is ne&e% "isc sse"1 Un"e% this %e,e". #o% dis#har$e o# the $ )+ic "e)t and re#o%er- to its P%inci$!+s !n" S %eties' TWO de'ts th!t wo +" h!&e )een "isch!%(e" in Fe"e%!+ Rese%&e "e)t note inst% ,ents o% chec*s "%!wn on the s!,e' e; !++. e"pandin$ the $ )+ic "e)t ). those t%!ns!ctions' !%e "isch!%(e" !(!inst a SINALE pu' i# de't of the Corporate UNITED STATES and its su'-#orporate entities to its $%i,eCc%e"ito% 4ithout the e"pansion and use of Federa Reser%e de't note instru+ents as #urren#- and #redit' !n" so' 4ithout the e5$!nsion o# "e)t !n" "e)t inst% ,ents in the ,onet!%. s.ste, !n" the P!(e < o# 78

NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

e"pansion of the pu' i# de't !s ) %"en $on the enti%e #in!nci!+ s.ste, !n" its P%inci$!+s' !n" S %eties the %eco&e%. %e,e". w!s inten"e" to %e+ie&e1 A$$!%ent+. thei% se is #o% the "isch!%(e !n" non-#ash a##rua redu#tion o# US Co%$o%!te $ )+ic "e)t to the P%inci$!+s' P%i,e C%e"ito%s !n" Ho+"e%s o# it !s $%o&i"e" in +!w !n" the inst% ,ents wi++ +ti,!te+. )e sett+e" ). !"I st,ent !n" setCo## in "isch!%(e o# ! )e!%e%0s o)+i(!tion TO THE UNITED STATES !(!inst the o)+i(!tion OF THE UNITED STATES #o% the !,o nt o# the inst% ,ent to the o%i(in!+ c%e"ito% it w!s ten"e%e" to o% who,e&e% o% wh!te&e% instit tion ,!. )e the #in!+ )e!%e% !n" ho+"e% in " e co %se o# it' !(!in' th s "isch!%(in( that $o%tion o# the $ )+ic "e)t 4ithout e"pansion of #redit) de't or note on the pri+e-#reditors of T/E UNITED STATES it w!s inten"e" to s!tis#. e; it!)+e %e,e". to' ) t (!inin( #o% e!ch en"o%se" )e!%e% o# it "isch!%(e o# o)+i(!tion e; i&!+ent in &!+ e K"o++!% #o% "o++!%0 o# c %%enc.' ,e!s %!)+e in . a4fu +one- of the United States01 A+tho (h this h!s )een $ )+ic $o+ic. !s ! %e,e". #o% the "isch!%(e o# "e)t in conI nction with %e,o&!+ o# (o+"' si+&e% !n" %e!+ ,one. !s +e(!+ ten"e% c %%enc. ). the s!,e !ct o# $ )+ic $o+ic. in 7<==' it h!s )een ! diffi#u t conce$t to co,, nic!te #o% othe%s to !cce$t !n" to *now wh!t to "o with it' so its ne&e% (!ine" co,,on se !n" #o% o)&io s %e!sons the (o&e%n,ent h!s dis#oura$ed $ )+ic n"e%st!n"in( o# the %e,e". !n" %eco&e%. n"e% it !n" the%e#o%e it is itt e (no4n !n" not (ene%!++. !ccesse" ). the $ )+ic1 B t it is sti++ !n o)+i(!tion the Unite" St!tes h!s 'ound itse+# to !n" h!s $%o&i"e" #o% in st!t to%. +!w !n" the Unite" St!tes sti++ !cce$ts these nonCc!sh !cc% !+ e5ch!n(es to"!. !s ! ,!tte% o# +!w !n" e; it.1 So is the e5$e%ience o# ,!n. who h!&e !tte,$te" to !ccess the %e,e".1

Th!t the 9$ )+ic $o+icies: o# Ho se @oint Reso+ tion 7<A o# 7<== !%e sti++ in e##ect is e&i"ence" ). the othe% $%o&isions o# 9$ )+ic $o+ic.: it est!)+ishe" th!t we c!n see !+on( with these "isc sse"1 No one wo +" !tte,$t to "e,!n" $!.,ent in (o+" o% ! $!%tic +!% *in" o# coin o% c %%enc. in se o% thin* to w%ite s ch !n o)+i(!tion into ! cont%!ct' 'e#ause the $o d standard for #urren#- is sti suspended and the ri$ht to a H$o d # auseI to reCuire pa-+ent in $o d is sti a'ro$ated, !oth are a so part of .pu' i# po i#-0 esta' ished in /9R-1:;, The $%!ctic!+ e&i"ence !n" #!ct o# the Unite" St!tes0 #in!nci!+ %eo%(!ni/!tion 2)!n*% $tc.4 is sti++ on(oin( to"!.' &isi)+e !++ !%o n" s to see !n" n"e%st!n"1 When T%e!s %. notes co,e " e' the.0%e not $!i"1 The. !%e refinan#ed ). ne4 TCBi++s !n" notes to )!c* the c %%enc. !n" co&e% the "e)ts1 11so,ethin( th!t c!nnot )e "one with "e)t ??un ess)3, the de'tor is prote#ted fro+ #reditors in a 'an(rupt#reor$ani5ation th!t is %e( +!%+. )ein( restru#tured to *ee$ it (oin(1 E&e%. ti,e the Fe"e%!+ "e)t cei+in( is %!ise" ). Con(%ess the- are restru#turin$ the 'an(rupt#- reor$ani5ation of the $o%ern+entIs de't so #o++er#e #an #ontinue on,

Fo% o)&io s %e!sons the Unite" St!tes (o&e%n,ent "oes not +i*e h!&in( to %eco(ni/e !++ this1 It is ! &e%. sensiti&e !n" "e+ic!te ,!tte%1 An" #ew c!n s$e!* o% 4i s$e!* ! tho%it!ti&e+. !)o t it' !s the )!n* h!s #o n" o t1 P!(e 7D o# 78

NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

The %eco&e%. %e,e". is ,!int!ine" in +!w )ec! se it h!s to )e to s!tis#. e; it. to its $%i,e c%e"ito%s1 At this +!te ti,e' the Unite" St!tes is neithe% e5$ectin( no% inten"in( it to )e (ene%!++. !ccesse" ). the $ )+ic1 Re(!%"in( s ch inst% ,ents ten"e%e" to the Sec%et!%.' when $ )+ic o##ici!+s !%e $ t in ! $osition to +e(!++. !c*now+e"(e o% "en. the ! tho%it. o% &!+i"it. o# the inst% ,ents' those in %es$onsi)i+it. 4i not den- or dishonor it) or an instru+ent of dis#har$e proper - su'+itted for that purpose, The iss e is wh!t h!s the (o&e%n,ent s!i" !)o t it no4O Wh!t is its $o+ic. in pra#ti#eP An" how does it #in!++. %es$on" to s ch c+!i,s o# which it %ecei&es tho s!n"s e&e%. "!.P It is a fa#t* Tit+e =7 USC =7A= ,!*es ! st!t to%. $+e"(e o# the Unite" St!tes (o&e%n,ent to $!.,ent o# o)+i(!tions !n" inte%est on the $ )+ic "e)t1 TITLE 71 ) SU!TITLE III ) C/APTER 71 ) SU!C/APTER II ) Se#, 71;7, Pa-+ent of o' i$ations and interest on the pu' i# de't >a= The #!ith o# the Unite" St!tes Go&e%n,ent is $+e"(e" to $!.' in e$a tender' $%inci$!+ !n" inte%est on the o)+i(!tions o# the Go&e%n,ent iss e" n"e% this ch!$te%1 .>'= The Se#retar- of the Treasur- sh!++ $!. inte%est " e o% !cc% e" on the $ )+ic "e)t1: It is a fa#t* Tit+e =7 Section =7=D # %the% "e+ine!tes in its "e#initions ! $o%tion o# the tot!+ $ )+ic "e)t which is he d '- the pu' i# !s the 9Net $ )+ic "e)t: TITLE 71 D SU!TITLE III D C/APTER 71 D SU!C/APTER II D Se#, 7178,

Se#, 7178, - Annua pu' i# de't report >e= De#initions1 C >;= Tot!+ $ )+ic "e)t1 C The te%, GGtot!+ $ )+ic "e)tGG ,e!ns the tot!+ !,o nt o# the o)+i(!tions s )Iect to the $ )+ic "e)t +i,it est!)+ishe" in section =7D7 o# this tit+e1 >7= Net pu' i# de't, The ter+ EEnet pu' i# de'tEE +eans the portion of the tota pu' i# de't 4hi#h is he d '- the pu' i#, It is a fa#t* Section =7D7 %e#e%ences $uaranteed o' i$ations he d '- the Se#retar- of the Treasur- which !%e e"#epted !n" e"e+pted #%o, 9the #!ce !,o nt o# o)+i(!tions whose $%inci$!+ !n" inte%est !%e ( !%!ntee" ). the Unite" St!tes Go&e%n,ent:

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NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

Se#, 7181, - Pu' i# de't i+it >'= The #!ce !,o nt o# o)+i(!tions iss e" n"e% this ch!$te% !n" the #!ce !,o nt o# o)+i(!tions whose $%inci$!+ !n" inte%est !%e ( !%!ntee" ). the Unite" St!tes Go&e%n,ent >e"#ept $uaranteed o' i$ations he d '- the Se#retar- of the Treasur-= ,!. not )e ,o%e th!n Q8'<8D'DDD'DDD'DDD' o tst!n"in( !t one ti,e' s )Iect to ch!n(es $e%io"ic!++. ,!"e in th!t !,o nt !s $%o&i"e" ). +!w It is a fa#t* E&e%. "!. the Unite" St!tes T%e!s %. "e$!%t,ent %ecei&es "o/ens o% h n"%e"s o# s ch inst% ,ents ,!*in( c+!i,s o# this t.$e1 O)&io s+. so,e !%e &!+i" !n" so,e !%e not1 It is a fa#t* The%e !%e on+. = o##ici!+ (o&e%n,ent "i%ecti&es o% !+e%ts th!t !""%ess s$ %io s' #%! " +ent' #ictitio s' o% othe%wise in&!+i"' inst% ,ents sent to the US T%e!s %. #o% $!.,ent' !n" on - one th!t o##ici!++. st!tes wh!t is to )e offi#ia US $o%ern+ent po i#- !n" t%e!t,ent o# the, i# the. !%e %ecei&e"' this is ALERT <<C7D> which is !+so $ )+ishe" on the (o&e%n,ent we)site #o% the Unite" St!tes T%e!s %.> www1$ )+ic"e)t1t%e!s1(o& n"e% F%! "s !n" Phonies' The O##ice o# the Co,$t%o++e% o# the C %%enc.' En#o%ce,ent R Co,$+i!nce Di&ision in ALERT <<C7D st!tes> 9T.$e> S s$icio s T%!ns!ctions TO> Chie# E5ec ti&e O##ice%s o# !++ N!tion!+ B!n*s- !++ St!te B!n*in( A tho%ities- Ch!i%,!n' Bo!%" o# Go&e%no%s o# the Fe"e%!+ Rese%&e S.ste,- Ch!i%,!n' Fe"e%!+ De$osit Ins %!nce Co%$o%!tion- Con#e%ence o# St!te B!n* S $e%&iso%s- De$ t. Co,$t%o++e%s 2Dist%icts4- Assist!nt De$ t. Co,$t%o++e%sDist%ict Co nse+ !n" E5!,inin( Pe%sonne+1 RE> Fictitio s Si(ht D%!#ts $!.!)+e th%o (h the U1 ST%e!s %. It h!s )een )%o (ht to o % !ttention th!t ce%t!in in"i&i" !+s h!&e )een ,!*in( !n" e5ec tin( wo%th+ess $!$e% "oc ,ents which !%e tit+e" "Si(ht D%!#t" 1These ite,s st!te th!t the. !%e $!.!)+e th%o (h the U1 S1 T%e!s %.' 78DD Penns.+&!ni! A&en e' NW' W!shin(ton' DC ADAAD1 These inst% ,ents !%e )ein( $%esente" #o% $!.,ent !t )!n*s !n" othe% ) sinesses th%o (ho t the Unite" St!tes1 An- of these instru+ents that are presented to the U, S, Treasur- for pa-+ent 4i 'e returned to the sender !n" co$ies wi++ )e $%o&i"e" to the !$$%o$%i!te +!w en#o%ce,ent !(encies1: Dishonored, This is in con#o%,it. with the Uni#o%, Co,,e%ci!+ Co"e th!t $!%ties ,!. %e+. on thei% $%esent,ent o# o)+i(!tions !s sett+e" n+ess (i&en ! Notice o# Dishono%' whethe% "i%ect+. !$$+ic!)+e to T%e!s %. De$t1 o##ice%s o% not1

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UCC7-<87, NOTICE OF DIS/ONOR ?2)= Noti#e of dishonor +a- 'e $i%en ). !n. $e%son- +a- 'e (i&en ). !n. co,,e%ci!++. %e!son!)+e ,e!ns' inc+ "in( !n o%!+' w%itten' o% e+ect%onic co,, nic!tionand is suffi#ient if it reasona' - i"enti#ies the inst% ,ent and in"ic!tes th!t the inst% ,ent h!s )een "ishono%e" o% h!s not )een paid or !cce$te", Ret %n o# !n inst% ,ent $i%en to a 'an( for #o e#tion is s ##icient notice o# "ishono%1 c4 S )Iect to Section =C8DF2c4' 4ith respe#t to an instru+ent ta(en for #o e#tion notice o# "ishono% , st )e (i&en?1 4ithin 78 da-s fo o4in$ the da- on 4hi#h the person re#ei%es noti#e of dishonor, With respe#t to an- other instru+ent) noti#e of dishonor +ust 'e $i%en 4ithin 78 da-s fo o4in$ the da- on 4hi#h dishonor o##urs, These instru+ents are ne%er returned fro+ the Treasur- dishonored, It is a fa#t* The%e is no )!sis o% %e!son o% $+! si)+e e5$+!n!tion #o% s ch une"p ained si en#e with %e(!%" to these $!%tic +!% inst% ,ents1 E&e%. othe% )%!nch o# the Fe"e%!+ (o&e%n,ent inc+ "in( the De$t1 o# the T%e!s %. h!s "e&e+o$e" e+!)o%!te +i)%!%ies o# co,$ te% (ene%!te" #o%, +ette%s o# st!te,ents !n" %e$+ies "e!+in( with !+,ost e&e%. $ossi)+e ; estion o% c+!i, th!t co +" )e ,!"e o# !n. !(enc. o% "e$!%t,ent o# the Fe"e%!+ (o&e%n,ent1 The Unite" St!tes T%e!s %. h!s !n O##ice o# P )+ic Co%%es$on"ence whose so+e Io) it is to %es$on" to co,, nic!tions #%o, the (ene%!+ $ )+ic1 T/ERE IS NO COMMUNICATION SENT TO T/E UNITED STATES TREASURB T/AT CAN NOT !E RESPONDED TO AS IT MAB REPUIRE, M!n. s ch c!te(o%ies o# %e; ests c!++in( #o% %es$onse !%e far $reater in n ,)e% th!n c+!i,s in e; it. #o% %eco&e%. to ! P%i,eCc%e"ito% o&e% the Unite" St!tes !n" so,e c!te(o%ies !%e far fe4er in n ,)e%' !n" .et )e the %e; ests (%e!te% o% s,!++e% in n ,)e% o% in co,$+e5it. o# %es$onse %e; i%e"' a these of a #o++er#ia nature are re$u ar and ti+e - responded to, There is %irtua - no 4ritten response '- the Federa $o%ern+ent to this issue of re#o%er- to the pri+e-#reditors and ho ders in eCuit- o%er the United States, The fa#tua - o'ser%a' e position of the Se#retar- of the Treasur- and his depart+ent in response to T/IS t-pe of # ai+ has 'een A!SOLUTE SILENCE 'e the- fro+ 'an() 'usiness or pri%ate person* Not denia ) disa%o4a ) dishonor) or repudiation of su#h # ai+s OR their 'asis in a4 and fa#t if the- are not true) 4hi#h in e%er- other #ase of #orresponden#e to the Federa $o%ern+ent or the Depart+ent of Treasur- dea in$ 4ith an- Cuestion) reCuest or # ai+* ANB SUC/ FALSE CLAIM) MISCONCEPTION OR MISTAQEN UNDERSTANDINA ON T/E PART OF T/E AENERAL PU!LIC IS TIMELB DEALT WIT/ IN E?ERB CASE !B SUC/ FORM LETTERS, It is the dut- o# the Unite" St!tes T%e!s %. to the co,,e%ce o# the n!tion !n" in the inte%ests o# the (ene%!+ $ )+ic who, it se%&es to Cui#( - !n" #on# usi%e - Cuash and repudiate an- su#h fa se understandin$s or # ai+s of re+ed- in eCuit- on re#o%erof the pu' i# de't in the #o++er#ia rea + and it is easi - 4ithin their po4er to do so, P!(e 7= o# 78

NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

This despite the fa#t the on+. o##ici!+ US (o&e%n,ent "i%ecti&e #%o, the De$!%t,ent o# the T%e!s %. "e!+in( with $o+ic. o# the (o&e%n,ent tow!%" #ictitio s o% othe%wise in&!+i" inst% ,ents sent to the T%e!s %. #o% co++ection st!tes # ear - .the- 4i 'e returned to the sender,0

The%e is' the%e#o%e' no )!sis o% %e!son o% $+! si)+e e5$+!n!tion #o% s ch une"p ained si en#e with %e(!%" to this $!%tic +!% c+!ss o# inst% ,ent e"#ept th!t a re+ed- in eCuitfor re#o%er- to the pri+e-#reditors o%er the United States IS true and fa#tua and CANNOT !E DENIED or DIS/ONORED in eCuit-) and that su#h !i s of A##eptan#e in dis#har$e of +utua - offsettin$ o' i$ations 'et4een the United States and its ho ders in eCuit- as se#ured parties ARE) in fa#t) 'ein$ (ept) he d) and 4ithout return or dishonor) a##epted as o' i$ations of the United States in the dis#har$e and re#o%er- of the pu' i# de't as the- +a(e # ai+ on their fa#e to the Se#retar- of the Treasur- to 'e, /o4 the. !%e to )e %eco&e%e" on is $ to the $!%ties in&o+&e" ho+"in( s ch o)+i(!tions !n" is $%o&i"e" #o% in +!w !n" %e( +!tion !n" !",inist%!ti&e $%oce" %e ! ho+"e% o% its )!n*in( instit tion ,!. se1 In Con# usion* When a Co++er#ia !an( sends the instru+ent to the Se#retar- for dis#har$e of its o4n o' i$ations and a pro' e+ arises #on#ernin$ the instru+ent) a #o++er#ia response of so+e (ind is reCuired, There is a e$a ia'i it- of the $o%ern+ent to a ne$otia' e e$a tender o' i$ation upon the United States $o%ern+ent sent to the+ for a##eptan#e '- a +e+'er Federa Reser%e !an( after the- re#ei%ed it and 'e#a+e responsi' e for it, The T%e!s %. h!s !n o)+i(!tion !s ! "e$!%t,ent o# (o&e%n,ent se%&in( the $ )+ic inte%est to the )!n* which !s ! ,e,)e% o# the Fe"e%!+ Rese%&e S.ste, th!t h!s ! co,,e%ci!+ o)+i(!tion to !n !cco nt ho+"e% !n" ! = %" $!%t. who ten"e%e" the ite, in $!.,ent to te++ the, th!t its not !n. (oo" o% its not (oin( to )e hono%e"' e&en i# the. w!nte" to *ee$ it #o% $%osec tion o% in&esti(!tion1 This is in e##ect wh!t the "i%ecti&e s!.s the (o&e%n,ent wi++ "o i# its no (oo"1 What does statutor- a4) re$u ation) or #ase a4 te s us a'out 4hat that o' i$ation isO The. "o not "ishono% it in !n. w!. ). %et %n o# the ite, o% the sen"in( o# !n. notice to th!t e##ect' o% ,!*e %e; est #o% !""ition!+ in#o%,!tion o% ti,e #o% e5!,in!tion o# the inst% ,ent' o% (i&en ! st!te,ent o# e5$+!n!tion in"ic!tin( the ti,e #%!,e #o% its %e&iew !n" sett+e,ent i# it wo +" )e !n ino%"in!te+. +en(th. ti,e !s +on(e% th!n ED "!.s to #inish with it1 The inst% ,ents !%e )ein( *e$t' he+"' !n" witho t %et %n o% "ishono%' !%e !cce$te" !s !n o)+i(!tion o# the Unite" St!tes in the "isch!%(e !n" %eco&e%. o# the $ )+ic "e)t !s it ,!*es c+!i, on its #!ce to )e1 P t !nothe% w!.> I# the )!n* h!" h!" to $!. the ite, to hono% its c sto,e% !(%ee,ent !s i# it h!" )een ! chec*' 4hat 4ou d or #ou d the 'an( 'e tr-in$ to do 4ith it to fina P!(e 7F o# 78

NOTICE OF MEMORANDUM OF LAW POINTS AND AUTHORITIES IN SUPPORT OF INTERNATIONAL BILL OF EXCHANGE

sett e the a##ountO The 'an( needs to treat the Instru+ent tendered as an o' i$ation of the United States to the 'an(, , The tender of these instru+ents dis#har$e the o' i$ation of the de't for 4hi#h the- are de i%ered and the pa-ee 'e#o+es the ne4 ho der in due #ourse and #o e#tion a$ent on the instru+ents,

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