Certified Mail Number: Common Law Trust A Mortgage Is A Security Instrument Grantor/Administrator Pledged (Bailment) Public Notice/Public Record

Every contract on a negotiable instrument is incomplete and revocable until delivery of the instrument for the purpose of giving effect thereto. As between immediate parties, and as regards a remote party other than holder in due course, the delivery, in order to be effectual, must be made either by or under the authority of the party making, drawing, accepting, or indorsing, as the case may be; and, in such case, the delivery may be shown to have been conditional, or for a special purpose only, and not for the purpose of transferring the property in the instrument. But where the instrument is in the hands of a holder in due course, a valid delivery thereof by all parties prior to him, so as to make them liable to him, is conclusively presumed until the contrary is proved. Security interest defined: Interest in property obtained pursuant to security agreement. In re Wilson, Bkrtcy.Pa., 25 B.R. 61, 63. A form of interest in property which provides that the property may be sold on default in order to satisfy the obligation for which the security interest is given. A mortgage is used to grant a security interest in real property. An interest in personal property or fixtures which secures payment or performance of an obligation, U.C.C. 1-201(37), 9-102, including the interest of an assignee of the proceeds of a letter of credit, 5-116(2). Lien created by an agreement. Bankruptcy Code 101.Often, the term "lien" is used as a synonym, although lien most commonly refers only to interests providing security that are created by operation of law, not through agreement of the debtor and creditor. Compare Lien. The term "security interest" means any interest in property acquired by contract for the purpose of securing payment or performance of an obligation or indemnifying against loss or liability. A security interest exists at any time, (A) if, at such time, the property is in existence and the interest has become protected under local law against a subsequent judgment lien arising out of an unsecured obligation, and (B) to the extent that, at such time, the holder has parted with money or money's worth. I.R.C. 6323(h). Purchase money security interest. A secured interest which is created when a buyer uses the money of the lender to make the purchase and immediately gives to the lender a security interest. U.C.C. 9-107. See Mortgage (Purchase money mortgage). Blacks Law Dictionary Sixth Edition (page 1357) Purchase money mortgage defined: A mortgage or security device taken back to secure the performance of an obligation incurred in the purchase of the property. A "purchase money" security interest for personal proper ty is controlled by Article 9 of the Uniform Commercial Code. See also Mortgage; Purchase money security interest. Blacks Law Dictionary Sixth Edition (page 1235) Purchase money security interest defined: One which is taken or retained by seller of item to secure its price or taken by person who advances funds to enable one to acquire rights in collateral. In re Damron, Bkrtcy.Ky., 5 B.R. 357, 358. A security interest is a "purchase money security interest" to the extent that it is: (a) taken or retained by the seller of the collateral to secure all or part of its price; or (b) taken by a person who by making advances or incurring an obligation gives value to enable the debtor to acquire rights in or the use of collateral if such value is in fact so used. U.C.C. 9-107. Blacks Law Dictionary Sixth Edition (page 1235) PLEDGE or PAWN defined: contracts. These words seem indifferently used to convey the same idea. Story on Bailm. Sec. 286. 2. In the civil code of Louisiana, however, they appear not to have exactly the same meaning. It is there said that pledges are of two kinds, namely, the pawn, and the antichresis. Louis'. Code, art. 3101. 3. Sir William Jones defines a pledge to be a bailment of goods by a debtor to his creditor, to be kept till the debt is discharged. Jones' Bailm. 117; Id. 36. Chancellor Kent, 2 Kent's Com. 449, follows the same definition, and see 1 Dane's Abr. c. 17, art. 4. Pothier, De Nantissement, art. prelim. 1, defines it to be a contract by which a debtor gives to his creditor a thing to detain as security for his debt. The code Napoleon has adopted this definition, Code Civ. art. 2071, and the Civil Code of Louisiana has followed it. Louis. Code, 3100. Lord Holt's definition is, when goods or chattels are delivered to another as a pawn, to be security for money borrowed of him by the bailor and this, he adds, is called in Latin vadium, and in English, a pawn or pledge. Ld. Raym. 909, 913. 4. The foregoing definitions are sufficiently descriptive of the nature of a pawn or pledge but they are in terms limited to cues where a thing is given as a security for a debt; but a pawn may well be made as security for any other engagement. 2 Bulst. 306; Pothier, De Nantissement, n. 11. The definition of Domat is, therefore, more accurate, because it is more

Certified Mail Number: comprehensive, namely, that it is an appropriation of the thing given for the security of an engagement. Domat, B. 3, tit. 1, Sec. 1, n. 1. And, according to Judge Story, it may be defined to be a bailment of personal property, as security for some debt or engagement. Story on Bailm. Sec. 286. 5. The term pledge or pawn is confined to personal property; and where real or personal property is transferred by a conveyance of the title, as a security, it is commonly denominated a mortgage. 6. A mortgage of goods is, in the common law, distinguishable from a mere pawn. By a grant or a conveyance of goods in gage or mortgage, the whole legal title passes conditionally to the mortgagee; and if not redeemed at the time stipulated, the title becomes absolute at law, though equity will interfere to compel a redemption. But in a pledge a special property only passes to the pledges, the general property remaining in the pledger. 1 Atk. 167; 6 East, 25; 2 Caines' C. Err. 200; 1 Pick. 889; 1 Pet. S. C. B. 449 2 Pick. R. 610; 5 Pick. R. 60; 8. Pick. R. 236; 9 Greenl. R. 82; 2 N. H. Rep. 13; 5 N. H. Rep. 545; 5 John. R. 258; 8 John. R. 97; 10 John. R. 471; 2 Hall, R. 63; 6 Mass. R. 425; 15 Mass. R. 480. A mortgage may be without possession, but a pledge cannot be without possession. 5 Pick. 59, 60; and see 2 Pick. 607. 7. Things which are the subject of pledge or pawn are ordinarily goods and chattels; but money, negotiable instruments, choses in action, and indeed any other valuable thing of a personal nature, such as patent-rights and manuscripts, may, by the common law, be delivered in pledge. 10 Johns. R. 471, 475; 12 Johns. R. 146; 10 Johns. R. 389; 2 Blackf. R. 198; 7 Greenl. R. 28; 2 Taunt. R. 268; 13 Mass. 105; 15 Mass. 389; Id. 534; 2 Caines' C. Err. 200; 1 Dane's Abr. ch. 17, art. 4, Sec. ii. See Louis. Code, art. 3121. 8. It is of the essence of the contract, that there should be an actual delivery of the thing. 6 Mass. 422; 15 Mass. 477 14 Mass. 352; 2 Caines' C. Err. 200; 2 Kent's Com. 452; Bac. Abr. Bailment, B; 2 Rolle R. 439; 6 Pick. R. 59, 60; Pothier, De Nantissement, n. 8, 9; Louis. Code, 3129. What will amount to a delivery, is matter of law. See Delivery. 9. It is essential that the thing should be delivered as a security for some debt or engagement. Story on Bailm. Sec. 300. And see 3 Cranch, 73; 7 Cranch, 34; 2 John. Ch. R. 309; 1 Atk. 236; Prec. in Ch. 419; 2 Vern. 691; Gilb. Eq. R. 104; 6 Mass. 339; Pothier, Nantissement, n. 12; Civ. Code of Lo. art. 3119; Code Civ. art. 2076. 10. In virtue of the pawn the pawnee acquires, by the common law, a special property in the thing, and is entitled to the possession of it exclusively, during the time and for the objects for which it is pledged. 2 Bl. Com. 396; Jones' Bailm. 80; Owen R. 123, 124; 1 Bulst. 29; Yelv. 178 Cro. Jac. 244; 2 Ld. Raym. 909, 916; Bac. Abr. Bailment, B; 1 Dane's Abr. ch. 17, art. 4, SSSS 1, 6; Code Civ. art. 2082; Civ. Code of Lo. art. 3131. And he has a right to sell the pledge, when there has been a default in the pledger in complying with his engagement. Such a default does not divest the general property of the pawner, but still leaves him a right of redemption. But if the, pledge is not redeemed within the stipulated time, by a due performance of the contract for which it is a security, the pawnee has then a right to sell it, in order to have his debt or indemnity. And if there is no stipulated time for the payment of the debt, but the pledge is for an indefinite period, the pawnee has a right, upon request, to a prompt fulfillment of the agreement; and if the pawner refuses to comply, the pawnee may, upon demand and notice to the pawner, require the pawn to be sold. 2 Kent's Com. 452; Story on Bailm. 308. 11. The pawnee is bound to use ordinary diligence in keeping the pawn, and consequently is liable for ordinary neglect in keeping it. Jones' Bailm. 75; 2 Kent's Com. 451; 1 Dane's Abr. ch. 17, art. 12; 2 Ld. Raym, 909, 916; Domat B 1, tit. 1, Sec. 4, n. 1. 12. The pawner has the right of redemption. If the pledge is conveyed by way of mortgage, and thus passes the legal title, unless he redeems the pledge at a stipulated time, the title of the pledge becomes absolute at law; and the pledger has no remedy at law, but only a remedy in equity to redeem. 2 Ves. Jr. 378; 2 Caines' C. Err. 200. If, however, the transaction is not a transfer of ownership, but a mere pledge, as the pledger has never parted with the general title, he may, at law, redeem, notwithstanding he has not strictly complied with the condition of his contract. Com. Dig. Mortgage, B; 1 Pow. on Mortg. by Coventry & Land. 401, and notes, ibid. See further, as to the pawner's right of redemption, Story on Bailm. Sec. 345 to 349. 13. By the act of pawning, the pawner enters into an implied agreement or warranty that he is the owner of the property pawned, and that he has a good right to pass the title. Story on Bailm. Sec. 354. 14. As to the manner of extinguishing the contract of pledge or mortgage of personal property, see Story on Bailm. 359 to 366. A Law Dictionary Adapted to the Constitution and Laws of The United States of America and of The Several States of the American Union by: John Bouvier Revised Sixth Edition, 1856 BAILMENT defined: contracts. This word is derived from the French, bailler, to deliver. 2 Bl. Com. 451; Jones' Bailm. 90 Story on Bailm. c. 1, Sec. 2. It is a compendious expression, to signify a contract resulting from delivery. It has been defined to be a delivery of goods on a condition, express or implied, that they shall be restored by the bailee to the bailor, or according to his directions, as soon as the purposes for which they are bailed shall be answered. 1 Jones' Bailm. 1. Or it is a delivery of goods in trust, on a contract either

Certified Mail Number: expressed or implied, that the trust shall be duly executed, and the goods redelivered, as soon as the time or use for which they were bailed shall have elapsed or be performed. Jones' Bailm. 117. 2. Each of these definitions, says Judge Story, seems redundant and inaccurate if it be the proper office of a definition to include those things only which belong to the genus or class. Both these definitions suppose that the goods are to be restored or redelivered; but in a bailment for sale, as upon a consignment to a factor, no redelivery is contemplated between the parties. In some cases, no use is contemplated by the bailee, in others, it is of the essence of the contract: in some cases time is material to terminate the contract; in others, time is necessary to give a new accessorial right. Story,on Bailm. c. 1, Sec. 2. 3. Mr. Justice Blackstone has defined a bailment to be a delivery of goods in trust, upon contract, either expressed or implied, that the trust shall be faithfully executed on the part of the bailee. 2 Bl. Com. 451. And in another place, as the delivery of goods to another person for a particular use. 2 Bl. Com. 395. Vide Kent's Comm. Lect. 40, 437. 4. Mr. Justice Story says, that a bailment is a delivery of a thing in trust for some special object or purpose, and upon a contract, express or implied, to conform to the object or purpose of the trust. Story on Bailm. c. 1, Sec. 2. This corresponds very nearly with the definition of Merlin. Vide Repertoire, mot Bail. 5. Bailments are divisible into three kinds: 1. Those in which the trust is for the benefit of the bailor, as deposits and mandates. 2. Those in which the trust is for the benefit of the bailee, as gratuitous loans for use. 3. Those in which the trust is for the benefit of both parties, as pledges or pawns, and hiring and letting to hire. See Deposit; Hire; Loans; mandates and Pledges. 6. Sir William Jones has divided bailments into five sorts, namely: 1. Depositum, or deposit. 2. Mandatum, or commission without recompense. 3. Commodatum, or loan for use, without pay. 4. Pignori acceptum, or pawn. 5. Locatum, or hiring, which is always with reward. This last is subdivided into, 1. Locatio rei, or hiring, by which the hirer gains a temporary use of the thing. 2. Locatio operis faciendi, when something is to be done to the thing delivered. 3. Locatio operis mercium vehendarum, when the thing is merely to be carried from one place to another. See these several words. As to the obligations and duties of bailees in general, see Diligence, and Story on Bailm. c. 1; Chit. on Cont. 141; 3 John. R. 170; 17 Mass. R. 479; 5 Day, 15; 1 Conn. Rep. 487; 10 Johns. R. 1, 471; 12 Johns. R. 144, 232; 11 Johns. R. 107; 15 Johns. R. 39; 2 John. C. R. 100; 2 Caines' Cas. 189; 19 Johns. R. 44; 14 John. R. 175; 2 Halst. 108; 2 South. 738; 2 Harr. & M'Hen. 453; 1 Rand. 3; 2 Hawks, 145; 1 Murphy, 417; 1 Hayw. 14; 1 Rep. Con. Ct. 121, 186; 2 Rep. Con. Ct. 239; 1 Bay, 101; 2 Nott & M'Cord, 88, 489; 1 Browne, 43, 176; 2 Binn. 72; 4 Binn. 127; 5 Binn. 457; 6 Binn. 129; 6 Serg. & Rawle, 439; 8 Serg. & Rawle, 500, 533; 14 Serg. & R. 275; Bac. Ab. h. t.; 1 Bouv. Inst. n. 978-1099. A Law Dictionary Adapted to the Constitution and Laws of The United States of America and of The Several States of the American Union by: John Bouvier Revised Sixth Edition, 1856 BAILOR defined: contracts. He who bails a thing to another.2. The bailor must act with good faith towards the bailee; Story's Bailm. Sec. 74, 76, 77; permit him to enjoy the thing bailed according to contract; and, in some bailments, as hiring, warrant the title and possession of the thing hired, and probably, to keep it in suitable order and repair for the purpose of the bailment. Id. Sec. Vide Inst. lib. 3, tit. 25. A Law Dictionary Adapted to the Constitution and Laws of The United States of America and of The Several States of the American Union by: John Bouvier Revised Sixth Edition, 1856 BAILEE defined: contracts. One to whom goods are bailed. 2. His duties are to act in good faith he is bound to use extraordinary diligence in those contracts or bailments, where he alone receives the benefit, as in loans; he must observe ordinary diligence of those bailments, which are beneficial to both parties, as hiring; and he will be responsible for gross negligence in those bailments which are only for the benefit of the bailor, is deposit and mandate. Story's Bailm. Sec. 17, 18, 19. He is bound to return the property as soon as the purpose for which it was bailed shall have been accomplished. 3. He has generally a right to retain and use the thing bailed, according to the contract, until the object of the bailment shall have been accomplished. 4. A bailee with a mere naked authority, having a right to remuneration for his trouble, but coupled with no other interest, may support trespass for any injury, amounting to a trespass, done while he was in the actual possession of the thing. 4 Bouv. Inst. n. 3608. A Law Dictionary Adapted to the Constitution and Laws of The United States of America and of The Several States of the American Union by: John Bouvier Revised Sixth Edition, 1856 Delivery defined: The act by which the res or substance thereof is placed within the actual or constructive possession or control of another. Poor v. American Locomotive Co., C.C.A.Ill., 67 F.2d 626, 630. What constitutes delivery depends largely on the intent of the parties. It is not necessary that delivery should be

Certified Mail Number: by manual transfer, Jones v. Young, Tex.Civ.App., 539 S.W.2d 901, 904; e.g. "deliver" includes mail. Rev. Model Bus. Corp. Act, 1.40. See also Drop shipment delivery; Misdelivery. Commercial law. Delivery with respect to instruments, documents of title, chattel paper or securities means voluntary transfer of possession. U.C.C. 1-201(14). The act by which seller parts with possession and buyer acquires possession. Delivery occurs whenever seller does everything necessary to put goods completely and unconditionally at buyer's disposal. Crowder v. Aurora Co-op. Elevator Co., 223 Neb. 704, 393 N.W.2d 250, 256. Deed. The final and absolute transfer of a deed, properly executed, to the grantee, or to some person for his use, in such manner that it cannot be recalled by the grantor. Controlling factor in determining if there has been delivery of a deed is the intention of the grantor; to constitute "delivery" the deed must be placed in the hands of the grantee or within his control, with the intention that it is to become presently operative as a conveyance. Jones v. Young, 539 S.W.2d 901, 904. Blacks Law Dictionary Sixth Edition (page 428-429) Standing defined; Among the essential elements of what the Court considers a case or controversy is an injured plaintiff. The requirement that a plaintiff show that he or she has suffered "injury in fact" is a key requirement of the Court's doctrine of standing. (Note: Since standing is necessary to establish jurisdiction, courts will undertake to examine the issue even if not raised by either of the parties.) Purchase price defined: Price agreed upon as a consideration for which property or goods are sold and purchased. Blacks Law Dictionary Sixth Edition (page 1235) Purchaser defined: One who acquires real property in any other mode than by descent. One who acquires either real or personal property by buying it for a price in money; a buyer; vendee. One who has contracted to purchase property or goods. Also, a successful bidder at judicial sale. In re Spokane Sav. Bank, 198 Wash. 665, 89 P.2d 802, 806. A person who orders and pays for goods when the sale is for cash or who is legally obligated to pay for them if the sale is on credit. L. M. Berry & Co. v. Blackmon, 129 Ga.App. 347, 199 S.E.2d 610, 612. Term may be employed in broad sense to include anyone who obtains title otherwise than by descent and distribution but is more commonly used to refer to a vendee or buyer who has purchased property for valuable consideration. Smith v. Enochs, D.C.Miss., 233 F.Supp. 925, 927. One who takes by purchase which includes taking by sale, discount, negotiation, mortgage, pledge, lien, issue or re-issue, gift, or any other voluntary transaction creating an interest in property. U.C.C. 1-201(32)(33). The term "purchaser" means a person who, for adequate and full consideration in money or money's worth, acquires an interest (other than a lien or security interest) in property which is valid under local law against subsequent purchasers without actual notice. 1.R.e. 6323(h). Transferee of a voluntary transfer, and includes immediate or mediate transferee of such a transferee. Bankruptcy Code 101. Blacks Law Dictionary Sixth Edition (page 1235) Estoppel by Silence defined: Such estoppel arises where a person is under duty to speak or failure to speak is inconsistence with honest dealings. An agreement inferred from silence rests upon principles of "estoppel." Letres v Washington Co-op Chick Assn, 8 Wash 2d 64, 111 P2d 594 at 596. Silence to work" estoppel, must announce to bad faith, Wise v US, D.C. Ky. 38 F Supp 130 at 134; and elements or essentials of such estoppel include: change of position to prejudice a person claiming estoppel, Sherlock v Greaves, , 106 Mont206, 76 P2d 87 at 91; damages if the estoppel is denied, James v Nelson, C.C.A. Alaska , 90 F2d 910 at 917; duty & opportunity to speak, Merry v garibaldi, 48 Cal App 2d 397, 119 P2d 768 at 771; ignorance of facts by person claiming estoppel , Nelson v Chicago Mill & Lumber Corp, C.C.A. Ark 76 F2d 17; inducing person claiming estoppel to alter his position; knowledge of facts & of rights by person estopped, Consoldiated Frieght Lines v Groenen, 10 Wash 2d 672, 117 P2d 966 at 968, misleading of party claiming estoppel, Lincoln v Bennit, Tex Civ App 135S W 2d 632 at 636; reliance upon silence of party sought to be estopped, New York Life Ins Co v Talley, C. C. A. Iowa, 72 F2d 715 at 718 "Silence can only be equated with fraud where there is a legal or moral duty to speak, or where an inquiry left unanswered would be intentionally misleading. . . We cannot condone this shocking behavior by the IRS. Our revenue system is based on the good faith of the taxpayer and the taxpayers should be able to expect the same from the government in its enforcement and collection activities." U.S. v. Tweel, 550 F.2d 297, 299. See also U.S. v. Prudden, 424 F.2d 1021, 1032; Carmine v. Bowen, 64 A. 932. "Fraud destroys the validity of everything into which it enters," Nudd v. Burrows, 91 US 426; NUDD v.

Certified Mail Number: BURROWS, 91 US 426 (1875) -- US Supreme Court Cases from ... NUDD v. BURROWS, 91 US 426 (1875) ... NUDD ET AL. v. BURROWS, ASSIGNEE. October Term, 1875. [ Nudd v. Burrows 91 US 426 (1875) ...www.justia.us/us/91/426/ - 11k - Cached - Similar pages "Fraud vitiates everything," Boyce v. Grundy, 3 Pet. 210; Volume 1830 -- US Supreme Court Cases from Justia & Oyez Boyce's Executors v. Grundy,, 28 US 210, 3 Pet. 210 (1830) [ Full Text ] Patapsco Ins. Co. v. Coulter,, 28 US 222, 3 Pet. 222 (1830) [ Full Text ] Shanks v. ... www.justia.us/us/year/1830.html - 13k - Cached - Similar pages "Fraud vitiates the most solemn contracts, documents and even judgments." U.S. v. Throckmorton, 98 US 61 Standing defined; Among the essential elements of what the Court considers a case or controversy is an injured plaintiff. The requirement that a plaintiff show that he or she has suffered "injury in fact" is a key requirement of the Court's doctrine of standing. (Note: Since standing is necessary to establish jurisdiction, courts will undertake to examine the issue even if not raised by either of the parties.) Any false representation of material facts made with knowledge of falsity and with intent that it shall be acted on by another in entering into contract, and which is so acted upon, constitutes fraud, and entitles party deceived to avoid contract or recover damages. Barnsdall Refining Corn, v. Birnam Wood Oil Co., 92 F 26 817. Nemo est snpra leges defined: No one is above the law. Lofft; 142; Nemo alieno nomine lege age re potest defined: No one can sue in the name of another. Dig. 50, 17, 12a. In my Private Capacity as General Administrator (CEO) Principal of said account, serves Notice this property is Exempt from Levy. Please Adjust this Account for the Proceeds, Products, Accounts and Fixtures and Release The Order(s) of The Court to Me Immediately. Make adjustment and close this account immediately, with prejudice. I accept your Oath, Oath of Office as Security Agreement, Constitutions as by-laws, and Malfeasance Bond and place you in the Private commencing this self-executing binding contract between you and I. Further, I appoint you trustee on your honor and solemn Oath to perform your obligations and duties to Protect My un-a-lien-able Rights in your Fiduciary Capacity, against any and all claims, legal actions, orders, warrants, judgments, demands, liabilities, losses, foreclosure, depositions, summonses, lawsuits, costs, fines, liens, levies, penalties, taxes, damages, interests, and expenses whatsoever, both absolute and contingent, as are due and as might become due, now existing and as might hereafter arise, and as might be suffered by, imposed on, and incurred by Debtor for any and every reason, purpose, and cause whatsoever. Please honor Obligation of Good Faith in Performance of your Duties. Quid Pro Quos, an equal exchange or substitution. This my free will, voluntary act and deed true and lawful attorney-in-fact to make, execute, seal, acknowledge and deliver under my hand and seal, explicitly reserving all rights without prejudice; By:____________________________________________________________ Sui Juris known as; John of the genealogy of Doe Bailor for JOHN DOE Bailee _____________________________________________________________ Jane, Roe Third Party Witness "Sealed and delivered in the presence of us."
STATE OF ILLINOIS ) ) SS: COUNTY OF COOK ) CERTIFICATE OF ACKNOWLEDGMENT On this date the individual named above, in his/her stated capacity, personally appeared before me to execute this acknowledgement that this instrument was signed, sealed, and delivered as their free will, voluntary act and deed to make, execute, seal, acknowledge and deliver under their hand and seal verified and authenticated for the uses and purposes therein mentioned. _____________________ DATE AFFIX NOTARY SEAL IF REQUIRED _________________________________ Signature of NOTARY PUBLIC Date Commission Expires __________________

NOTICE: Public Acts defined: are those which have a public authority, and which have been made before public officers, are authorized by a public seal, have been made public by the authority of a magistrate, or which have been extracted and been properly

Certified Mail Number:

authenticated from public records. Blacks Law Dictionary Sixth Edition (page 26)