Brandon Adams February 7-8, 2010 Audios (8) and Docs: http://www.creditorsincommerce.com/audio-living-temple-2010-02.php NOTICE: These Creditors in Commerce Workshop Sessions, hereinafter Sessions, are the private exchange of ideas and concepts between the providers and the recipients. The content is not meant as legal advice. The use or attempted use of any idea or procedure discussed in these sessions as applied to the recipient’s own personal transactions, cases or controversies, or applied to other cases may or may not result in a favorable outcome or the same outcome as is discussed in these sessions. Each transition or transaction, case or controversy may be different as a result of unique actions or unique statements made by the parties therein, and each different act or statement in any transaction affects or may affect whether any procedure or idea discussed in this session is relevant to the recipient’s transaction or that the outcome thereof will be depicted as in these sessions. The discussion of ideas or procedures in these sessions are not exhaustive of the subject being discussed. Many ideas and concepts that can affect the outcome of any legal or commercial procedure are not discussed in these sessions, and the fact that recipient may not be aware of these issues may have an adverse effect on the outcome of recipient’s procedure. It is the responsibility of each party to understand his own transactions and to apply the appropriate and complete concepts necessary for a procedural and substantive remedy thereto. These sessions may be redistributed privately by any recipient to another recipient requesting them, conditional upon the fact that this Notice is provided therewith. If recipient has any questions, CiC may be contacted by email at
[email protected]. Session 1 Sacred Creditors Session 2 Accepted for Value Session 3 Administrative Procedure I Session 4 Administrative Procedure II Session 5 Original Issue I Session 6 Original Issue II Session 7 Administrative Procedure III Session 8 Practical Applications Session 1 Sacred Creditors Creditors don’t take positions that have to be defended; we ask questions that lead to remedy for both sides. Opportunities exist, but there isn’t any need to fight. No one is a victim. We take 100% responsibility for our lives. We accept our power. In a sense, everything is commerce; business, law, all relating or exchanging, even personal, is commerce. The prefix com- denotes more than one party: commerce, communication, community, compact. Maxims of Law: self-evident truths. Con-tract = with intention. There are no signatures in 99% of the contracts one enters into; they occur by conduct, performance, action. Contract = Law. So far, 4 principals of the sacred creditor: 1) 2) 3) 4) Honoring contract (full or conditional acceptance) Authoring my experience; In service for others; Without a position. One has 72 hours to refuse or reject any offer to contract. One can accept, using one’s internal re-venue service. We are constantly converting (re-venuing) our private money (labor, thought, energy, will) into public money (FRNs and other debt instruments). The STRAWMAN (interface into the public) is a for profit corporation – that’s why it is taxed. Not for profit means one is serving others. John 18: 33-38: Trial of Jesus – confession & avoidance – Pilate acts as a creditor too. Three Useful Tools We want to establish facts for the record, but it is best to be careful making positive statements (that may have to be proven); instead, whoever is making demands, put it on them to make positive statements make them prove it. 1) Negative Averment: An averment that is negative in form but affirmative in substance that must be proved by the alleging party. “There is no evidence that I am not correct in this matter and there is no evidence that you are not wrong in this matter, and I don’t believe that any such evidence exists.” You’re stating what is not; not what is. 2) Confession & Avoidance: A response in which the accused admits (via passive acquiescence) the allegations but asks for additional facts that deprive the admitted facts of an adverse legal effect. Accusation: "Is this your signature on this document?" Response(s): "Is there a defect in that instrument?" “Well tell me the defect is and I’ll correct it.” “Well, if there is no defect in the instrument, then why are you here?” “Why should I answer your question when you can’t even answer mine?” “Are you telling me that you are not even qualified to make any determinations on that negotiable instrument?" “Why are you here?” 3) Conditional Acceptance: A response, in honor without argument, that is a counter-offer. The only offer that is ever relevant is the one on top. Offer: "Let's go to town and go shopping." Counter-offer(s) – (changing from being trustee in the created trust to being the beneficiary): "Sure, just come over and help me finish cleaning up the kitchen first." "I'll accept that upon proof of bona-fide claim in the form of a signed affidavit by you under penalty of perjury and under your own personal, unlimited commercial liability within 30 days." Session 2 Accepting for Value All (debt) money is an obligation. All obligations are money. We create currency by our acceptance of the obligation, which is an asset. You’re an authorized representative of the bank and it is the bank’s obligation. FRNs are U.S. obligations. A novation exchanges debt of one to debt of another. More debt is created. The utility company has faith in the U.S. that it is good for its promise to pay – they probably won’t take your IOUs. One can use the asset to set off the debt as opposed to discharging it with the novation of FRNs. Rather than moving the obligation from one party to another, a set off clears the debt. One way to set it off is to accept it for value. AfV, put a deposit order in on it and then write a money order off the asset that we just deposited to set off the debt. The company that sent the statement of account can’t do that – only we (people) can. They don’t have the capacity to access our asset, but we do. The statement has a positive face value. Exempt from Levy (on the private side). FRNs can be levied. Autograph shows will and intent. Exemption ID: If one is not depositing to the U.S. Treasury to charge an account, one does not need an exemption ID. But who can do anything with that? Only a skilled banker who can work on both the private and public side. The Internal Re-Venue Service understands the significance of this number. SSN in the form xxx-xx-xxxx is the public side of the account. Xxxxxxxxx is the private side. HJR-192. Restrictive (or Special) Endorsement: For Deposit Only, etc. limits what they can do with this asset that one has created. Another ex: Endorsing under ‘without recourse” eliminates liability. If one just signs the back of a check, one has abandoned interest and is totally granting and conveying one’s interest in the instrument and the new holder-in-due-course can negotiate it any way they want – they have all the rights to the instrument and the assets it represents. When we AfV we want our restrictions on the endorsement so that they can do with it only what we want them to do. “Deposit to the U.S. Treasury and charge the same to JOHN DOE, 123-45-6789.” This is a public accounting, charged by the deposit. John Doe is granting the instrument, but he is ordering what it is to be used for. “Exercise of ordinary care”: When one hands one’s AfVed judgment to the Judge and the Judge asks what you want him to to with it, you can say: “Do you not have the capacity to exercise ordinary care with that instrument?” “If you don’t, do you know who does?” “Who should I give this instrument to who can execute it?” The UCC is the standard for how business is run internationally. All legal codes conform to the UCC. The UCC Warehousing section is all about the prison system – warehousing property (bodies in whose interest was granted and conveyed) for the payment of a debt. “I conditionally accept granting & conveying to you an interest in my property upon the condition that you provide to me a bona-fide claim and/or consideration. If you cannot provide consideration or a bonafide claim, then you accept my terms of reserving my rights and interest in my property.” Exempt from Levy: It is your private asset and you assert your rights to it with this one statement. Not all CFOs know what to do with one’s AfV. Someone needs to be able to access both the private and the public, hence AfV to the IRS, even if it’s an electric bill. The IRS can grab the asset and pay the electric company. Banker’s acceptances are always either at a 45 degree angle or 90 degree angle relative to the language of the obligation. Bankers acceptances can be as simple as: ‘Accepted; Pay to the order of ___ (restriction);. Signature.” A coupon is money. Leave it attached. Top half: deposit (the asset) and charge an account with it. Bottom half: use as a draft to charge (draw from) the deposit you just made to make a payment. Write “Money Order”. We’re changing the form – everything in a box is an artificial fence – it doesn’t exist. The bank is a pass-through. It can access your credit. On the coupon, pay to: United States Treasury (even if it is an electric bill). U.S. Treasury operates on both sides (public & private). At the bottom of the coupon is the routing information. This is how the Treasury knows how to set off the debt. Public entities, Courts, Co. Treasurers, etc. don’t need routing info. The books of the grantor (you- paramount security interest holder you have control) legitimize the private instrument. Write out the amount in letters and numbers just like on any draft. The date is the moment in time of the intent. If you give them 10 days and they write back they need 45 days, it’s just a counter-offer – one can refuse for cause or state that it is an improper, insufficient frivolous response. Give them the terms of response that are sufficient. If you submit an affidavit, the only sufficient response is an affidavit that rebuts your affidavit; otherwise it’s frivolous. If you don’t say anything about it, you’ve re-contracted and abandoned your own process. Don’t let them ignore your terms – they’re showing their intent just as your conduct shows your intent. Conditionally accept. In private banking, 72 hours are allowed to exercise ordinary care; otherwise good faith is violated. On the public side, it’s 30 days (3 days x 10). UCC-1 is not a pre-requisite. Do you need a public notice to assert your rights? No. In a court: “Does anyone here have an interest in the defendant? Does anyone here have a claim against the defendant? There being no other claims for interest on the defendant or the defendant’s property, I, as the paramount security interest holder in the defendant and his property, order…”. They won’t challenge your interest. They have none. They represent fictions. If they dare say they’ve got a claim, tell them then send the U.S. here to make the claim. Can U.S. or Oregon or Lane County show up in court? No, only people can. People can’t represent dead things and make claims. Attorneys swear under penalty of perjury only to superficial things: “I swear my client alleges these things.”, etc. They won’t sign an affidavit saying that for certain they have a claim. By: signature, exemption #, with “Authorized Representative” underneath (if you want – “By:” already indicates this). Regarding contract is more important than signature. 3 IRS addresses: see Riddle. IRS debt to Ogden; IRS debt with lien to Covington. Traffic Ticket: With checkbook in hand - “Your Honor, I’m here to plead guilty to the facts and wish to effect payment immediately. How much is the penal sum or the sum certain on those charges?” Paying it, you’re in honor and there are no points on the record. Session 3 Administrative Procedure I Law = Contract. Law is by agreement and consent. Contracts are established via administrative procedures. Make responses relevant to the offers – respond to every allegation. Ex: IRS send a a frivolous filing fee: 1) CAfV their offer via a notice: “I got your letter, dated ___, stating that my 2007 tax return is frivolous. I’m conditionally accepting the terms of your offer, upon proof of claim that a) there is a defect in my 2007 1040 as it was filed; b) proof of claim that any supporting informational return filed, pursuant to that return, have defect; and c) upon proof of claim that…” [see docs]. The date establishes the security interest. Lien right: first in time; first in line. Any breach of contract and/or obligation creates a lien right. If they respond outside of the terms you stipulated, they’ve breached the contract and you have a lien right as of the date of your letter they responded to – in 1 CAfV IRS3176C document, that date is 6/24/10. The clock started on the date you received their response so it is mentioned - the 72 hour rule started on 6/22/10. If their offer was dated June 22nd, but you didn’t receive it until August, put (nunc pro tunc = now for then) after your date. If they rebut, make them prove that you didn’t receive it in August. Like a notary witness who can provide you with a private judgement, judges and courts do the same, say, with MasterCard bringing suit against someone. The judge is a witness too – that’s why they never bring up law in the courtroom. It’s up to the parties involved to do that. Like the notary, the judge is just watching who is in honor and who is in dishonor. In the 3176C, they’re not fining you; they’re merely threatening to (depending upon your response – CafV). They say your position [really, you have a position?] is frivolous according to the code they allude to. They didn’t say why you’re particular filing was frivolous. What is the defect in your 1040? They don’t say. You set the terms of your response – this is what will be used to ascertain if they’re eventual response is frivolous or not. When they tell you they’re not going to respond to you, they’re really noticing you that they are going to default from now on. Fine. They can’t take away your right to contract. Involuntary servitude was outlawed under the Lincoln administration, but we’ve got voluntary servitude (voluntary compliance) all over the place. You choose to be bound, or not. Authority is established by agreement – authority is granted and/or conveyed. If you expressly reserve your rights, interests, authority, interest and/or sovereignty, not only with your words but also with your conduct, no one can touch you as long as you don’t actually damage any people. Dead corporations can’t be damaged – no one is going to attest to that via signed affidavit in a public capacity. Public personas have limited liability, but private human beings have unlimited liability. Allegations and mere declarations against you hold no weight unless you argue with them. We establish fact and law with our affidavit. If they can, we deserve facts and law that rebut ours; nothing less than that. Our facts are stated in a particular way. We know nothing and we don’t take positions. We use negative averments, confessions & avoidances and conditional acceptances. Counter-offers reverse the nature of the trust. Your initial CAfV sets the terms for the new contract. Rather than start over by CAfVing their frivolous response; instead, within 72 hours, you can refuse it for cause; everything in the envelope and even the envelope itself – Reason: Insufficient, frivolous response. Send them Notice of Fault/ Opportunity to Cure (step 2). With a red Sharpie marker, write “Refused for Cause” over everything. If it comes from another IRS office from the first one, send them copies of everything. You’re still in control of the trust and the contract. Session 4 Administrative Procedure II Session 5 Original Issue I Every time you write a check or sign a promissory note or use a debit or credit card or sign a traffic ticket, you create debt money and you have an interest in it equal to the face value. When John signs a check over to Tom, John’s interest is paramount over Tom’s as it is prior to his, but when Tom endorses it, both John and Tom have an interest in the check. Both have created money. When you deposit a check at your bank, you depose yourself of the instrument. As an authorized representative of the bank, you’re transferring the instrument to the bank. The bank does its own series of endorsements and transfers and establishes an interest in the instrument as well, however everyone still has an interest. At some point in the ledgering of the various accounts, someone claims that interest. If the original issuer who has priority claim does not claim it within 3 years, it is considered abandoned (salvage law – the finder’s keeper’s rule). See Generally Accepted Accounting Principles and double entry bookkeeping and 2009 LT Class. Session 6 Original Issue II Kevin Dashner File 1099s electronically – this way there is a record. March 31, 2010 is the deadline for As and OIDs for 2006. 1099-A (red form): You’re the lender (not the borrower). Lender’s FIN: Your SSN. Borrower’s IN: Their EIN. Account#: Your account# with their institution. Abandonment dates can differ depending upon what you’re filing for. For a bank account, use the date of the last closing statement of the year, usually near the end of December. Balance of principal outstanding: Your total of what has exited your account during the year. Fair market value: Same as above. Was Borrower personally liable for repayment of the debt? If you’re OIDing, Yes. If you’re doing something else with the 1099-A, such as an AfV to return the funds to them, then No. Description: NAME of individual and account#. 1099-OID See pub 1212 (OID), pub544 (abandonments), Pub 577 (non-profits), Pub 1220 (electronic filing), Title 26 Payer: Bank. Recipient: You. OID: total amount that has exited account minus cash See 8a on the 1040 (interest income). Fed income tax withheld: OID amount – tip to the bank ($100?, 10%?) See 61 on 1040. Communicate with the banks and make sure they validate the OIDs with the IRS. Request that they do so, noting that in 30 days their silence is acquiescence that the OID is valid. 1040 1040-X can only be on paper. Schedule lists all interest income. Creditors don’t take deductions. Avoid double dipping. Receive return via check, not electronically. Signature card at bank demonstrated your incompetence and deposed your funds to the bank. The bank can yield even to rogue IRS agents. If you have an account without an SSN or it’s an LLC, they can’t come back and touch those funds. Privacy Act says you’re not required to disclose your SSN for anything other than tax matters; certainly not to open a non-interest bearing bank account. If a bank balks, ask, as there are no filing requirements on a non-interest bearing account, what could be a tax issue regarding this account. If you get a frivolous offer (3175c correspondence is frivolous, 3176, 3176c return is frivolous), question the reason. Was there an incorrect EIN? Did you claim too much? Otherwise, you can rescind your claim(s) and re-file. Session 7 Administrative Procedure III When an interloper assets themselves into your private process with someone, say another department of the same company or agency, there are ways to handle it such that you remain in control of your original contract; and, you can actually trun the interloper into a 2nd witness. Whatever the interloper sends you, it is an independent offer. Once you’ve gone through the three steps of perfecting your process, you have a judicial determiniation – the notary was your court. CAfV (your conditions are a rebuttal of their record – request evidence in the form of an affidavit that we do not already have an agreement) or Refuse for Cause (on the document and the envelope) as you already have a judicial determination through agreement of the CFO: You’ve already got the agreement of the facts of your process from Party A. Send their original offer back to them (Party B) as you’re not the trustee anymore along with copies of the complete record. You can send a Notice (off Refusal or Notice of Rejection of Offer) on top of that as to why you’re refusing. You of course always keep the originals of your Certificates of Service, Non-Response, etc. The notary’s record is copies of all your documents. You’ve just made the 3rd party interloper a witness to your process. Cc everything to Party A. When dealing with an attorney, you always have to send your responses to the attorney. You can still address it to them directly. As the attorney is actually making the offers, you can address both of them. “Mr. Attorney, you’re on notice; your law firm is on notice and the original party is on notice. All three are on notice through the attorney. You can send them a Fee Schedule – if you have to respond again you will charge them $10,000/ page; a phone call will be $500/ minute. Having to show up at a hearing will cost them $5000/ hearing + your normal hourly rate of $2500/ hour. If Dewey calls you on the phone, Cheatem & Howe are also liable. [See CAfV Smiths sample document] 7 enclosure: 1. Commercial Affidavit, Fee Schedule (You can charge even for frivolous responses), Original Construction Mgt. Agreement, 3 letters that were sent from the attorney and the notary’s Certificate of Service. Notice to the Agent is Notice to the Principal; Notice to the Principal is Notice to the Agent. CAfV their request for arbitration. Arbitration requires agreement to go from both parties. Perfect a lien: 1. Invoice; 2. Demand for Payment; 3. Notice of Fault/ Opportunity to Cure; 4. Notice to Default. The language in 2&3 give them the opportunity to rebut the stipulation that they are in agreement with you filing a UCC-1 on them with all their property and accounts as collateral. Do not file a Notice of Lien on anyone without their agreement. Treat a summons like a private offer. Establish your record and bring your record into the court. Session 8 Practical Applications For a tribunal, use Co. Notary rather than a notary public. If you’re two days, from foreclosure and have no process in the works, filing bankruptcy will stop the sale. You can drop the bankruptcy once you can get a private process in the works. It’s possible to do this multiple times, if need be, but obviously best to start perfecting your own process. Lien priority A tax lien is a higher priority lien than a commercial lien, regardless of the date. commercial lien mechanics lien mortgage lien You establish a commercial lien, after it is perfected, with a UCC-1 filing. It’s in the realm of private international law – it’s like a mechanics lien except that it is outside of statute. See Class 22 and Winston Shrout’s Commercial Lien video. Whoever is not receiving the property tax statements is not the superior lien holder. However, if all that’s so far been filed is a trustee’s deed upon sale, your grant deed supercedes that – it predates it and they have not conveyed anything. Actually, what gets conveyed (possession, after unlawful detainer) is what they achieve after they file the trustee’s deed upon sale, just like a quit-claim deed. Possession is interest. Possession is a perfection of a security interest; it is 9/10ths of the law – the other 10% is title or other documentary interest (grant deed, UCC filing). Possession + title = perfected security interest – that’s what they’ll have if they succeed at kicking you out. You can get possession the same way they did: 3 day notice; unlawful detainer; writ of possession; keys. To properly serve legal documents on a corporation: Check Sec’y of State website where they are incorporated. Find out who their agent of service is. Send 3 day notice c/o their agent of service through a process server or a notary; same with summons & complaint for unlawful detainer. [Kevin Dashner’s arrest is described in the middle of this audio – See Brandon’s description of this in the 2nd audio of the 2009 LA seminar.] At 1:04 he talks about B/C Bond. Winston also uses a non-negotiable BoE, a non-negotiable chargeback and a currency exchange with the AfV document and he references his set off bond.