AFFIDAVIT OF COMMERCIAL TRUTH

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Recording Requested When Recorded Return To:

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SPACE ABOVE LINE FOR RECORDER’S USE

Comes now Affiant: John Doe, I am of legal age, am competent for stating the matters set forth
herewith, have personal knowledge about the facts stated herein, have full subject matter
jurisdiction over the below Regarding, everything stated is the Truth, the Whole Truth, and
nothing but the Truth under the pains and penalties of perjury.

I make this Affidavit based on information and belief and documentations, publications I have
relied entirely on provided to and available to me as of the legal, economic, and historical
principles stated herein, except that, including the Note, regarding certain facts at issue in this
area.

Regarding:

FACT 1:The mortgagor has the right to bring an affirmative claim, at least to the extent of a
right to have title quieted and the mortgage removed. Chicago City Bank & Trust Co. v. Garvey,
supra.

FACT 2: On page 6 of Modern Money Mechanics, the Federal Reserve Bank of Chicago
tells us that the banks DO NOT "pay out" the funds for loans from money they received from
other depositor's accounts. What they do is "accept" promissory notes( mortgages) in "exchange"
for, credits to the "borrower's" transaction accounts - called "liabilities." This is how the bank
legally created money for the mortgage known as _____. By the transactional method of mere
"bookkeeping" entries (debits and credits), the bank is able to create money (or what is called
money today.) And here's how they do it. When the bank receives a deposit of funds, either in
federal reserve notes (cash) or some other form of a promise to pay, like a "check", or a
"promissory note", they will open a "demand deposit account", or make a deposit in an account
already opened, in the name of the "depositor."
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The following is the example from the fed publication, Modern Money Mechanics, and reflects
a typical bank deposit transaction. For every deposit entry on the "asset" side of the ledger, there
must be a corresponding and matching "liability" entry. The liability is there because it is a
Demand Deposit Account, which means you could withdraw it all at any time. The two ledgers,
"assets" and Liabilities" must always balance out to "zero." THIS IS KNOWN AS THE
"TRANSACTION" CONCEPT OF MONEY You take it to the bank, deposit it, bank has an
asset and a liability, and the bank balance is "zero." At this point, the new money has been
created, but it is not in circulation.

The bank has it in a Demand Deposit Account. If you have opened a checking account, you may
write checks on that account, and buy goods or services. When the person to whom you wrote
the check, deposits that check in their Demand Deposit Account, at their bank, that account is
credited for the amount on the face of the check. The check you wrote (your promise to pay), is
returned to your bank, and the Demand Deposit Account, that has your name and the Account
Number attached to it, will be debited, for the amount you assigned to the check. Goods and
services have been purchased, but no new money has been created. So new money was created
when I ____ applied for a loan.

Modern Money Mechanics goes on to tells us that if the banks were to take their own money,
or other depositor's money, and loan it to you they would never be able to create any "new"
money and birth it into the economy. So, they are allowed to take your note (which is new
money, based on your promise to pay) and birth it into the economy through their access to the
clearing houses for negotiable instruments and loan you "credit." When I went to the bank to
apply for a loan I was made to believe that I was being loan other depositor’s money. The facts
presented here as stated in the federal Reserve Publication “ Modern Money Mechanics” was
not disclosed to me.

Banks cannot loan out their own money (assets) nor can the banks loan you other depositor's
money (credits in a Demand Deposit Account) they could only if they requested and received
written permission of every single depositor, from whose account they would be using to make
the loan. But that would defeat the effort to create new money, since they would just be
recycling a certain amount of currency.

FACT 3: Mortgage companies often claim to be holders in due course. They rarely are. The first
problem is that mortgage loan documents are generally not transferred by endorsement on the
note. This is essential to make one a "holder." Adams v. Madison Realty & Development, Inc.,
853 F.2d 163 (3d Cir. 1988) ("holder" is one who receives by endorsement on the note /
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mortgage or "allonge" physically affixed thereto; usual practice of executing assignment does not
make recipient a "holder"). If any transferee did not take by endorsement, it and later owners are
not "holders." Lopez v. Puzina, 239 Cal.App.2d 708, 49 Cal.Rptr. 122 (1966).

FACT 4: The Federal Reserve Bank of Chicago also published the book Two Faces of Debt
(Federal Reserve Bank of Chicago , Public Information Center, P. O. Box 834 Chicago, IL
60690-0834) Page 19, Paragraph 3-5: "For an individual institution, they arise typically when a
depositor brings in currency or checks drawn on other institutions. The depositor's balance
rises, but the currency he or she holds or the deposits someone else holds are reduced a
corresponding amount. The public's total money supply is not changed. But a depositor's
balance also rises when the depository institution extends credit-either by granting a loan to or
buying securities from the depositor. In exchange for the note or security, the lending or
investing institution credits the depositor's account or gives a check that can be deposited at yet
another depository institution. In this case, no one else loses a deposit. The total of currency
and checkable deposits-the money-supply-is increased. New money has been brought into
existence by expansion of depository institution credit. Such newly created funds are in
addition to funds that all financial institutions provide in their operations as intermediaries
between savers and users of savings.

But individual depository institutions cannot expand credit and create deposits without limit.
furthermore, most of the deposits they create are soon transferred to other institutions. A
deposit created through lending is a debt that has to be paid on demand of the depositor, just the
same as the debt arising from a customer's deposit of checks or currency in a bank.”

FACT 5: One by which the covenanter affirms that a certain fact is in a particular way, as that
the grantor of land is lawfully seized; that it is clear of encumbrances, and the like. If the
assertion is false, these covenants are broken the moment that the instrument is signed. [see:
Material Misrepresentation of Fact] See 11 S. & R. 109, 112.

FACT 6: In Howard & Foster Co. v Citizens National Bank of Union, 133 S.C. 202; 130 SE
758, (1927) it was said:

"It has been settled beyond controversy that a national bank, under federal law, being limited in
its power and capacity, cannot lend its credit by guaranteeing the debt of another. All such
contracts being entered into by its officers are ultra vires and not binding upon the parties nor the
corporation. See also Merchants Bank of Valdosta v Baird, 160 F 642; 17 Lns 526 (1876).

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FACT 7: "A lawful consideration must exist and be tendered to support the note." See Anheuser
Busch Brewing Co. v Emma Mason, 44 Minn. 318, 46 NW 558 (1890).

In short, if there is no full disclosure and no consideration, there is no contract.

FACT 8: The Uniform Commercial Code (UCC) in article 3 - 505 lists the rights of a party
presented with a demand for payment.

1st Is the right to see the instrument that created the debt. ( original Promissory note with ink
signature; The document showing your liability)

2nd I have the right to reasonable identification of the party making the presentment.

3rd If he is presenting for another you have the right to see his delegated authority to make the
presentment.

4th You have the right to have all payments shown on the face of the instrument along with the
balance to be paid. (original note with all stamps, endorsements by bailee, without recourse etc
on its face, no copies)

5th I have the right to have this done at a reasonable time and place. I have these rights even if the
claimant is the United States of America.

6th I also have the right to demand evidentiary proof that the Offerror/Revenuer gave value to
possess an interest in the subject matter disputed, i.e., amount of the claim or charge, otherwise
they would have no legal standing before the court.

Any man or woman having firsthand knowledge of all the facts asserted herein and having
absolute power and authority to rebut this affidavit must rebut each and every point separately
with the rebutting party’s own signature, notarized, and signed under the penalty of perjury and
willing to testify as being true, correct, and complete with positive proof attached and willing to
subpoena the authors of any publication included herein as exhibit or proof thereof. Absent
positive proof, any rebuttal shall be deemed null and void having no force or effect, thereby
waiving any unscionable right to, expectation, or their successor in interests’ immunities or
defenses.

Notice to Agent is notice to Principal

Notice to Principal is Notice to Agent

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Any rebuttal shall be mailed to the address above within ten (10) business days of receipt of this
affidavit.

When the Affiant does not receive a rebuttal within ten (10) business days this entire Affidavit
shall be deemed true and correct.

All My Rights Reserved Without Prejudice

__________________________

STATE OF New York

COUNTY OF __________________

I, ______________________________________, a notary public for the state of New York do hereby

certify and affirm that the above named person(s) have appeared before me and, declaring the execution
thereof, being a true and correct document to the best of his/her own belief.

Subscribed and sworn affirmed to before me this ______ day of ______________, _________.

______________________________________
Notary Public

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