SPC Vocabulary Flashcards
What is a Secured Party Creditor?
A US Citizen who has a US birth certificate/green card and a SSN but elected to become independent of these federal contracts that created the US Citizen and replace them with a Private Citizen status by taking control over their LEGAL NAME TRUST. Realizing the government is a private corporation and voluntary society, they underwent a series of paperwork filings to become liberated from the maritime admiralty jurisdiction under-which the US Corporation operates.
contract
To enter into a legally binding agreement.
adhesion contract
A contract prepared by one party, to be signed by the party in a weaker position
express contract
A contract whose terms the parties have explicitly set out, written or viva voce
implied-in-fact contract
A contract that the parties presumably intended as their tacit understanding, as inferred from their conduct via signs, acts, or silence.
implied-in-law contract
an obligation imposed by law because of some special relationship between them, or because one of them would otherwise be unjustly enriched. a.k.a. quasi contract
tacit
Implied but not actually expressed; implied by silence or silent acquiescence
equity
fairness, evenhanded dealings.
The system of law or body of principles originating in the English Court of Chancery and superseding the common and statute law when the two conflict
court of equity
A court that (1) has jurisdiction in equity, (2) administers and decides
controversies in accordance with the rules, principles, and precedents of equity, and (3) follows the forms and procedures of chancery
court
A governmental body consisting of one or more judges who sit to adjudicate disputes and administer justice
chancery
A court of equity; collectively, the courts of equity. * The
term is derived from the court of the Lord Chancellor, the original English court of equity
presentment
The formal production of a negotiable instrument for acceptance or payment
negotiable instrument
A written instrument that (1) is signed by the maker or drawer, (2) includes an unconditional promise or order to pay a specified sum of money, (3) is payable on demand or at a definite time, and (4) is payable to order or to bearer. UCC § 3-104(a).
trust
a property interest held in equity by one person (the trustee) at the request of another (the settlor) for the benefit of a third party (the beneficiary)
constructive trust
An equitable remedy that a court imposes against one who has obtained property by wrongdoing. * A constructive trust, imposed to prevent unjust enrichment, creates no fiduciary relationship. Despite its name, it is not a trust at all. Also termed implied trust; involuntary trust.
trustee
One who, having legal title to property, holds it in trust for
the benefit of another and owes a fiduciary duty to that beneficiary.
trustor
One who creates a trust
securitize
To convert (assets) into negotiable securities for resale in the financial market, allowing the issuing financial institution to remove assets from its books and thereby improve its capital ratio and liquidity while making new loans with the security proceeds
security
Collateral given or pledged to guarantee the fulfillment of an obligation.An instrument that evidences the holder’s ownership rights in a firm (e.g., a stock), the holder’s creditor relationship with a firm or government (e.g., a bond), or the holder’s other rights (e.g., an option).A security indicates an interest based on an investment in a common enterprise rather than direct participation in the enterprise.
surety
A person who is primarily liable for the payment of another’s debt or the performance of another’s obligation.
bond
- An obligation; a promise. 2. A written promise to pay money or do some act if certain circumstances occur or a certain time elapses
bail bond
A bond given to a court by a criminal defendant’s surety to guarantee that the defendant will duly appear in court in the future and, if the defendant is jailed, to obtain the defendant’s release from confinement.
indemnity bond
A surety bond that creates a financial contract between two parties. Indemnity bonds are designed to ensure that if one party doesn’t uphold their obligations, the other party can seek a remedy.
performance bond
A bond given by a surety to ensure the timely performance of a contract.
guarantor
One who makes a guaranty or gives security for a debt
debtor
One who owes an obligation to another, esp. an obligation to pay money.
bill of exchange
An unconditional written order signed by the drawer directing the drawee to pay a certain sum of money on demand or at a definite time to the payee or to bearer. Also termed- draft
Written rules for using BOE:
- it must be unconditional
- in must be an order
- it must be in writing
- it must be addressed to another
- it must be signed
- it must order payment of a sum certain in money
Unwritten rules for using BOE:
- you must have authority to sign it
- you must have assets sufficient to back it
- it must be dated
- it must be a dollar for dollar sum certain exchange
- it must apply to an existing public debt
- it must be a non-cash item
- it is not collectable
- it is pre-paid
- it is an accrual item (always a zero balance - GAAP)
- it must have a letter of credit to go with it
- know how to enforce your BOE
Account number used on BOE?
Registered mail number used to send the original bond to the treasury.
How to use UCC 3 Amendment with BOE?
To add collateral to the UCC 1, put a description of the negotiable instrument in the collateral add box, copy of this filing must be sent along with negotiable instrument to the recipient
What is the purpose of the administrative process?
To give notices, nobody can claim that you defrauded them if you gave them notice of what you are doing.
What is a Letter of Credit?
Notice of Preauthorized Use of Credit, sent to Secretary of Treasury to authorize the use of your exemption on a bill of exchange
surplusage
Words or allegations in a legal document or pleading that do not have any legal value.
Indemnity
security or protection against a loss or other financial burden.
Indictment
a formal written statement framed by a prosecuting authority and found by a jury (such as a grand jury) charging a person with an offense
Escrow
Money, property, a deed, or a bond put into the custody of a third party for delivery to a grantee only after the fulfillment of the conditions specified
Tort
a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act
Mens rea
Latin “Guilty mind”
Corpus delicti
Latin phrase that translates to “body of the crime.” The phrase generally refers to the principle that no one should be convicted of a crime without sufficient evidence that the crime actually occurred
Failure of consideration
Meaning you did not accept any benefit the other party offered
Bill of Attainder
Three definitional elements:
1. Specificity in Identification; and
2. Punishment; and
3. Lack of judicial trial.
DEBENTURE
A debt secured only
by the debtor’s earning power, not by a lien on any specific asset.
indenture
A formal written instrument made by two or more parties with different interests, traditionally having the edges serrated, or indented, in a zigzag
fashion to reduce the possibility of forgery
account
one has received goods or money for another in a fiduciary capacity, to ascertain and recover the balance due
pledge
The act of providing something as security for a debt or obligation. A bailment or other deposit of personal property to a creditor as security for a debt or obligation
pignus
Latin “pledge”,A bailment in which goods are delivered to secure the payment of a debt or performance of an engagement, accompanied by a power of sale in case of default.
bailment
A delivery of personal property by one person (the bailor) to another (the bailee) who holds the property for a certain purpose under an express or implied-in-fact contract
hypotheca
A mortgage of property in which the debtor was allowed to keep, but not alienate, the property
hereditament
Any property that can be inherited; anything that passes by intestacy.
Holder in due course
In simple terms, a Holder in Due Course is anyone who accepts a check for payment.
UCC 3-302 Holder in Due Course:
(1) the instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity; and
(2) the holder took the instrument (i) for value, (ii) in good faith, (iii) without notice that the instrument is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series, (iv) without notice that the instrument contains an unauthorized signature or has been altered, (v) without notice of any claim to the instrument described in Section 3-306, and (vi) without notice that any party has a defense or claim in recoupment described in Section 3-305(a).
