move quantum volumes of mortgage loans to Wall Street at hyper speed, the stagecoach method of To

negotiating the paper negotiable instrument was replaced with an electronic Transferable Record to make hyper speed profits for those involved. 15 USC 7003 1, ESIGN excludes items governed by UCC Article 3 Negotiable Instruments. Scanning of the paper note into a transferable record, which creates only a binary datafileresidingwithinacomputersystem,doesnotmeettheUCCdefinitionofanegotiableinstrument. FloridaBankersAssociation2hasgonefurthertoexplaintheirprocessthatafterscanning,thepapernoteis routinelydestroyed.ThiswillfulintentionaldestructionisalarmingasundertheUCCthisdestructionisone methodfordischargingthedebt. June2001,theFederalTradeCommission(BureauofConsumerProtection)andtheDepartmentofCommerce (National Telecommunications and Information Administration) published Electronic Signatures in Global and National Commerce Act 3 and warned that fraud and deception were possible and that the ESIGN Act wouldpreventthecriminalacts.ESIGN,whenmisapplied,gavethebanksanentirelynewmethodtoroband steal on an unprecedented scale. Why rob a stagecoach when you can instead use a keyboard to sack the globaleconomy? Asenacted,ESIGNgivesappropriateconsiderationtothethreatthatfraudanddeceptionontheInternetpose tothegrowthandpublicacceptanceofelectroniccommerce.Itestablishessafeguardsthatcanavertmanyof the abusive practices that marked earlier technological innovations in the marketplace. Most laws protecting consumers against fraud and deception are implemented after fraud has been committed and documented. ESIGNattemptstoaddressfraudbeforeitoccurs.Nothingismorelikelytoundermineconsumerconfidencein the electronic marketplace than exploitation by unscrupulous marketers, who would take advantage of electronicrecordsandsignaturesasyetanotherwaytodeceiveconsumers. Therighthandcolumnonthechartreflectsthebankssecuritizationoftheunnegotiabletransferablerecord; theleftcolumnillustratesavaultedpapernote(ifnotdestroyed)thatisnotnegotiated,whichexplainswhy inmanycourtcases,onlytheoriginalindorsementstampbytheoriginatinglenderappearsonthefaceofthe note.DestructionalsoexplainsthemanyLostNoteAffidavits,whicharenotaddressedinthiswriting.MERS onlytracksthetransferablerecordandwhohasrightstocontrolthecustodianofthevaultedrecords. An Authoritative Copy of the paper note was created by scanning the paper note which contained an indorsementinblankfromtheoriginatinglenderappearingonthefaceofthepapernote.Thepapernoteis thenvaulted(ordestroyed)asthepapernoteisnolongerrequiredinthesecuritizationprocessandisnot furthernegotiatedbyindorsement.TheauthoritativecopyisthencompiledintoaTransferableRecordalong withalltheotherscannedclosingdocuments. SubsequentPurchaserspurchasethetransferablerecordrelyingupontheauthoritativecopytobethelawful negotiable instrument. The Alleged Negotiation is the purchase of the transferable record containing the authoritativecopy.Again,theMERSsystemprovidesnoticeastowhoownsthetransferablerecord,andwho hasrightsandcontroloverthecustodian,andreflectswhoownsthepapernote,ifsuchnotestillexists. If legal conditions warrant, one could reach into the custodial vault and retrieve the paper note, stand in court,waveitintheairandclaimtobeHolder;onecouldbeinphysicalpossessionofthepapernotebut lackrightsasHolder. OnecannotachieveHolder,orHolderinduecourseofapapernoteutilizingatransferablerecord.ESIGNdid not prevent crime as intended; the unscrupulous financial institutions that exploited ESIGN executed their crimesinnanoseconds.

FraudandDeceptionTransferableRecord

1 2

http://www.law.cornell.edu/uscode/15/7003.html http://www.scribd.com/doc/33631481/FloridaBankersAssociationLostNotes091460093009commentsFba1 3 http://www.ftc.gov/os/2001/06/esign7.htm

R601/23/2011

What they say they did and what they really did Investment Vehicle

Agent of an Unidentified Indorsee In Blank

Owner Authoritative Copy Controller Custodial Vault

MERS as Nominee Agent of Blank Registry Update

Trust Trustee
Alleged Negotiation
In Blank

Unidentified Indorsee
Electronic Note Electronic Security Subsequent Purchaser Transferable Record

Negotiated Unidentified Indorsee

In Blank

Trust Trustee
Negotiated Unidentified Indorsee
In Blank MERS as Nominee Agent of Blank Registry Update

Trust Depositor
Alleged Negotiation Unidentified Indorsee
Electronic Note Electronic Security Subsequent Purchaser Transferable Record In Blank

Trust Depositor

Owner Authoritative Copy Controller Custodial Vault

Negotiated Unidentified Indorsee

In Blank

Trust Securitizer
Negotiated
In Blank

MERS as Nominee Agent of Blank Registry Update

Trust Securitizer
Alleged Negotiation Unidentified Indorsee
Electronic Note Electronic Security Subsequent Purchaser Transferable Record In Blank

Loan Originator

Owner Authoritative Copy Controller Custodial Vault

MERS Registered

Paper Note Paper Security

MERS As Beneficiary Custodial VAULT

Paper Note

Owner Authoritative Copy Controller Custodial Vault

Step x Scan Copy

Loan Originator
Alleged Negotiation
In Blank

Electronic Note Electronic Security

Obligor
Copyrighted 2011

Paper Security

MERS As Beneficiary
j.mcguire@swbell.net (817) 4204151

P O Box 1352, Bedford, Texas, 760951352

Rating Agencies
Copy of Transferable Record

Credit Risk Insurance

Copy of Transferable Record

Investors
Copy of Transferable Record

(Electronic Digitized Graphic Image)

Scanned Digitized Copy of the Paper Note

Loan Originator

Originating Lender Indorsed In Blank

Alleged Negotiation

Scanned Digitized Copy of All Closing Documents

Scanned Digitized Copy of the Security Instrument

Transferable Record

Subsequent Purchase 1
Paper Note Paper Security

NON

MERS As Beneficiary Custodial VAULT Negotiated

Subsequent Purchase 2 Subsequent Purchase 3

Copyrighted 2011

j.mcguire@swbell.net

(817) 4204151

P O Box 1352, Bedford, Texas, 760951352