Promissory Note

An unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order.

Yeah you know what time it is disclaimer i am not an attorney nor do i offer or give legal advice so please understand that all information that we talk about in any of my webinars are strictly information and educational purposes and the most of it is just personal experiences with things anyway so please understand this is not legal advice and may you be blessed

On your journey to find your power within these laws peace now we’re going to look at the third document in relationship to a mortgage this is the promissory note and this is on investopedia promissory note what it is different types pros and cons what does a promissory note a promissory note is a dead instrument that contains a written province by one party the no

The enough issuer or maker this is also known as the pay or to pay another party the notes pay e a definite sum of money either on demand or at a specified future date a promissory note typically contains all the terms pertaining to the indefiness such as the principal amount interest rate maturity date date and place of issuance in the issuer’s signature although

Financial institutions may issue them for instance you might be required to assign a promissory note in order to take out a small personal loan but sarah notes usually allow companies and individuals to get financing from a source other than a bank this source can be an individual or a company willing to carry the note and provide the financing under the agreed

Upon’s terms in effect promissory notes can be can enable anyone to be a lender okay crazy information right there let’s scroll down see the key takeaways pretty much what we just interviewed said all right how promissory notes work promissory notes as well as bills of exchange let’s click on that bills of exchange when you click on these type of links someone’s

Gonna load and it’s gonna load bills of exchange difference examples of how they work bills of exchanges written orders used primarily in the international trade that binds one party to pay if it’s sum of money to another party on demand or at a predetermined date bills of exchange are similar to checks and promissory notes they can be drawn by individual or banks

And are generally transferable by endorsements uh endorsements we’re gonna come back all right so promissory notes as well as bills of exchange which is what we just covered are governed by the 1930 geneva convention of uniform law of bills of exchange and promissory notes its rules also stipulate that the term promissory note should be inserted in the body of the

Instrument and should contain an unconditional promise to pay in terms of the legal enforceability promissory notes lies somewhere between the informality of an iou and the rigidity of a loan contract a promissory note includes a specific promise to pay and the steps required to do so like the repayments here while an iou merely acknowledged and acknowledges that

A debt exists and the amount one party owes another a loan contract on the other hand usually states the lender’s right to recourse such as foreclosure in the event of default by the borrower such provisions are generally absent and a promissory note while the paper might make note of the consequences of non-payment or untimely payments such as late fees it does

Not usually explain methods of recourse if the issuer does not pay on time promissory notes that are unconditional and syllable become negotiable instruments that are extensively used in business transactions in numerous countries let’s click on negotiable instruments shall we all right let’s go to negotiable instruments all right what is a negotiable instrument

A negotiable instrument is a signed document that promises a sum of payment to a specified person or the assignee in other words it’s a formalized type of iou so what are we talking about negotiable instruments what were we talking about before that promissory notes it’s promissory notes are a form of a negotiable instrument which is also formalized in the type

Of a iou okay a transferable signed document that promises to pay the bearer a sum of money at a future date or on demand the payee who is the person receiving the payment must be named or otherwise indicated on the instrument because they are transferable and assignable some negotiable instruments may trade on a secondary market all right we’re gonna go ahead

And bounce back but you see how when we start looking at these definitions they build on each other all right now let’s see where will we edge here negotiable instruments all right so now it’s going to start talking about student loan problem search now we’re not going to go into all of that let’s let’s look at the ucc on negotiable instruments now now we’re at

The ucc this is 3-104 negotiable instruments universal commercial code which has also been adapt adopted by each state so i strongly suggest you find your state statutes and codes that corresponds with these ucc statutes all right except as provided in subsection c and d c which is an order that means that d is a promising one okay cool negotiable instrument means

An unconditional promise or order to pay a fixed amount of money with or without interest or other charges described in the promise or order if it one is payable to the bearer or to order at the time it is issued or first come into the possession of a holder two a payee on demand or at a definite time and three does not state any other undertaking or instruction

By the person promising or ordering payment to do any act in addition to the payment of money now if you see one of my previous videos uh i think it was titled according satisfaction i spoke on restrictive endorsements well this is the language that they’re referring to in this negotiable instrument okay but the promise or order may contain all right an undertaking

Or power to give maintain or protect collateral to secure payment to an authorization or power to the holder to confess judgment or realize on a dispose of collateral or three a waiver of the benefit of any law intended for the advantage or protection of obligor all right instrument instrument means negotiable instruments it’s also c an order that meets all of

The requirements of subsection a accept paragraph one and others fail within the definition of check and subsection f is a negotiable instrument and a check hmm a promise or order other than a check is not an instrument if at the time it is issued or first comes into possession of a holder it contains a conspicuous statement hmm conspicious statement however

Expressed to the extent that the promise or order is not negotiable or is not an instrument governed by this particle instrument is a it is a promise and a draft if it’s in order an instrument is a note if it’s a promise and it’s a draft if it’s in order if an instrument falls within the definition of both node and a draft a person entitled to enforce the

Instrument may treat it as either um in these definitions check means the draft other than a documentary draft payable on demand and drawn on a bank or a cashier’s check a teles check an instrument may be a check even though it is described on its face by another term such as money order cashier’s check means a draft okay tell this check needs a draft travelers

Check means any instrument that is payable on demand so we’ve learned some terms of what negotiable instruments all right so now that we got a better understanding and background on what negotiable instruments is which the promissory note falls into that category right let’s look at a promissory note in action and now now i reached out to the lender and asked them

To send me a copy of the note that they have so that i can you know view it for its authenticity and this is what they sent uh send me a document see they have a copy certain factory copy now understand people this doesn’t mean anything at all okay it’s all ready to scroll down through here you see the date on this document now you see the amounts hey man the

Address where they want you to send payment to here goes the maturity date the first date the payment’s supposed to begin or we’re supposed to be due on every month uh borrowers right to repay loan charges uh all this good information right you got a little signature over here initial i mean i’ll give a notice blah blah blah blah blah uniform security no then we

Get to the signatures right here you see me okay they have the all caps name with a signature general account’s name now you know that something is not on this document right outside of the the all caps name signatures right here this document is not notarized right so what does that mean the other documents are all notarized right so there was a notary present

You’re verified that whoever this all caps name is right was there to sign so think about that for a second they’re sending you a document a legend that this secures their interests the legend did you sign it but there’s no proof that anybody outside of whoever was here scientists or was actually physically present on this date all right and this is two of

Three so we keep scrolling down this document let’s see what else is at the end oh what is that okay this is the last page 303 it says pay to the order of without recourse bayshore more respected wow buy then whatever this scribble scrabble is right they’re running around they’re forcing a document like them or trying to enforce a document like this ask yourself

What other types of documents do you see this type of language on okay to the order of we thought this was a promissory note a promise to pay well with this language they took this document and endorsed it and created an order the definition say in order to pay is a draft or a check they turn this document into a check so wouldn’t that be logical to think that

They get paid i don’t know that’s something you might want to think about they get paid with a document that wasn’t even authenticated or certified of his office assistant authenticity right because no notary was present hmm so ask yourself you think they can enforce this big to differ think about that for a little bit i’m gonna pick back up so i already have

Pulled up here let’s look at the note is actually recorded in the county records wait did i say recorded and accounting records yes i say recording and counting records why because they were supposed to record the note but since they didn’t i went on and did it for them why because it’s my document and i have the power to do that and they were supposed to do that

So since they didn’t that’s technically a breach of contract but we’ll get to that later but here we go so here’s the note as you see it’s the unofficial copy you can see we’re on the dallas county website and uh okay page one page two you know same languages before page three there’s something different under that signature what do we have here we have an

Acknowledgment of a third-party bear witness to the parties being president involved on this document you have the all caps name here’s the borrowers and then you have the notary signature and then you have this endorsement of acceptance signature which is actually the settler all right yes so we have an actual recorded note but guess what this serves as evidence

That the obligation has been fulfilled so now ask yourself the document prior did we show that had the what endorsement on the back of it where it was cashed now which one do you think is going to be more enforceable something that does not have enough authentic signature it was witnessed by a third party or a document that could easily be forced and claimed to

Be an original or how did they label it as a certified copy i guess you could say checkmate let’s take a look at this quick video in 1969 i was a minnesota court case involving a man named jerome daly who was challenging the foreclosure of his home by the bank which provided the loan to purchase it his argument was that the mortgage contract required both parties

Being he and the bank each put up a legitimate form of property for the exchange in legal language this is called consideration mr daly explained that the money was in fact not the property of the bank for it was created out of nothing as soon as the loan agreement was signed remember what modern money mechanics stated about loans what did they do when they

Make loans is to accept promissory notes in exchange for credits reserves are unchanged by the loan transactions but deposit credits constitute new additions to the total deposits of the banking system in other words the money doesn’t come out of their existing assets the bank is simply inventing it putting up nothing of its own except for theoretical liability

On paper as the court case progressed the bank’s president mr morgan took the stand and in the judge’s personal memorandum he recalled that the plaintiff vice president admitted that in combination with the federal reserve bank did create a money and credit upon its books by bookkeeping entry the money and credit first came into existence when they created it

Mr morgan admitted that no united states law or statute existed which gave him the right to do this a lawful consideration must exist and be tendered to support the known the jury found that there was no lawful consideration and i agree he also poetically added only god can create something of value out of nothing and upon this revelation the court rejected the

Bank’s claim for foreclosure and daily kept his home the implications of this court decision are immense for every time you borrow money from a bank whether it is a mortgage loan or a credit card charge the money given to you is not only counterfeit it is an illegitimate form of consideration and hence voids the contract to repay for the bank never had the money

As property to begin with unfortunately such legal realizations are suppressed and ignored and the game of perpetual wealth transfer and perpetual debt continues all right now i hope this information has been beneficial thus far as well as the video that you just seen i hope it shared even more light on the situation so you can get a better understanding on just

How deep and serious this situation you may be in involved with these mortgages now there is ways to undo what these people have done to you but first we must gain a great understanding of who we are and what we can do which is our power in each one of these documents need a little bit of assistance feel free to reach out to me and schedule a consultation peace and prosperity

Transcribed from video
Promissory Note By Stand Strong