SPC Vocabulary

Question 1

What is a Secured Party Creditor?

Answer 1

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.

Question 2

contract

Answer 2

To enter into a legally binding agreement.

Question 3

adhesion contract

Answer 3

A contract prepared by one party, to be signed by the party in a weaker position

Question 4

express contract

Answer 4

A contract whose terms the parties have explicitly set out, written or viva voce

Question 5

implied-in-fact contract

Answer 5

A contract that the parties presumably intended as their tacit understanding, as inferred from their conduct via signs, acts, or silence.

Question 6

implied-in-law contract

Answer 6

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

Question 7

tacit

Answer 7

Implied but not actually expressed; implied by silence or silent acquiescence

Question 8

equity

Answer 8

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

Question 9

court of equity

Answer 9

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

Question 10

court

Answer 10

A governmental body consisting of one or more judges who sit to adjudicate disputes and administer justice

Question 11

chancery

Answer 11

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

Question 12

presentment

Answer 12

The formal production of a negotiable instrument for acceptance or payment

Question 13

negotiable instrument

Answer 13

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).

Question 14

trust

Answer 14

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)

Question 15

constructive trust

Answer 15

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.

Question 16

trustee

Answer 16

One who, having legal title to property, holds it in trust for
the benefit of another and owes a fiduciary duty to that beneficiary.

Question 17

trustor

Answer 17

One who creates a trust

Question 18

securitize

Answer 18

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

Question 19

security

Answer 19

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.

Question 20

surety

Answer 20

A person who is primarily liable for the payment of another’s debt or the performance of another’s obligation.

Question 21

bond

Answer 21

1. An obligation; a promise. 2. A written promise to pay money or do some act if certain circumstances occur or a certain time elapses

Question 22

bail bond

Answer 22

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.

Question 23

indemnity bond

Answer 23

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.

Question 24

performance bond

Answer 24

A bond given by a surety to ensure the timely performance of a contract.

Question 25

guarantor

Answer 25

One who makes a guaranty or gives security for a debt

Question 26

debtor

Answer 26

One who owes an obligation to another, esp. an obligation to pay money.

Question 27

bill of exchange

Answer 27

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

Question 28

Written rules for using BOE:

Answer 28

1. it must be unconditional
2. in must be an order
3. it must be in writing
4. it must be addressed to another
5. it must be signed
6. it must order payment of a sum certain in money

Question 29

Unwritten rules for using BOE:

Answer 29

1. you must have authority to sign it
2. you must have assets sufficient to back it
3. it must be dated
4. it must be a dollar for dollar sum certain exchange
5. it must apply to an existing public debt
6. it must be a non-cash item
7. it is not collectable
8. it is pre-paid
9. it is an accrual item (always a zero balance - GAAP)
10. it must have a letter of credit to go with it
11. know how to enforce your BOE

Question 30

Account number used on BOE?

Answer 30

Registered mail number used to send the original bond to the treasury.

Question 31

How to use UCC 3 Amendment with BOE?

Answer 31

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

Question 32

What is the purpose of the administrative process?

Answer 32

To give notices, nobody can claim that you defrauded them if you gave them notice of what you are doing.

Question 33

What is a Letter of Credit?

Answer 33

Notice of Preauthorized Use of Credit, sent to Secretary of Treasury to authorize the use of your exemption on a bill of exchange

Question 34

surplusage

Answer 34

Words or allegations in a legal document or pleading that do not have any legal value.

Question 35

Indemnity

Answer 35

security or protection against a loss or other financial burden.

Question 36

Indictment

Answer 36

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

Question 37

Escrow

Answer 37

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

Question 38

Tort

Answer 38

a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act

Question 39

Mens rea

Answer 39

Latin “Guilty mind”

Question 40

Corpus delicti

Answer 40

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

Question 41

Failure of consideration

Answer 41

Meaning you did not accept any benefit the other party offered

Question 42

Bill of Attainder

Answer 42

Three definitional elements:
1. Specificity in Identification; and
2. Punishment; and
3. Lack of judicial trial.

Question 43

DEBENTURE

Answer 43

A debt secured only
by the debtor’s earning power, not by a lien on any specific asset.

Question 44

indenture

Answer 44

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

Question 45

account

Answer 45

one has received goods or money for another in a fiduciary capacity, to ascertain and recover the balance due

Question 46

pledge

Answer 46

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

Question 47

pignus

Answer 47

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.

Question 48

bailment

Answer 48

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

Question 49

hypotheca

Answer 49

A mortgage of property in which the debtor was allowed to keep, but not alienate, the property

Question 50

hereditament

Answer 50

Any property that can be inherited; anything that passes by intestacy.

Question 51

Holder in due course

Answer 51

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).