Quote:
Originally Posted by
David Neil
In my due diligence to ensure my Lawful Money demand is documented, I went to the bank to get a copy of one of my demands. My methodology for negotiating my checks is to place the lawful money demand, "Special Deposit", no signature of any kind. I normally deposit in the ATM to avoid questions but have used this same method with the teller face to face without issue.
Anyway when I received my check copy, it had been routed through the system and I see this stamped under my non-endorsement:
"Credited To The Account Of The Within Named Payee Endorsement Guaranteed Bank of America, N.A."
Can anyone deduce why the bank is guaranteeing an endorsement? My understanding is that I did not endorse private credit and that my deposit was made as "Special" and therefore the funds deposited have to be made in lawful money and returnable to me as lawful money
http://savingtosuitorsclub.net/attac...tid=1918&stc=1
Just caught this one a few minutes ago in doing a search for additional background information relating to Title 12 U.S.C. §95a(2) and Title 50 U.S.C. §4307(e) . . . .
Here is the "REAL DEAL" behind the bank's stamp wherein they have acted in place of the endorser to guarantee the check/draft "medium of exchange" was actually paid/credited before subsequently presented to the collecting/payor bank, or other such payor . . .
First: “The entire taxing and monetary system are hereby, placed under the UCC.” 80 Stat. 1125, Pub. L. 89-719, Nov. 2, 1966 - Federal Tax Lien Act of 1966
Second: Uniform Commercial Code › U.C.C. - ARTICLE 4 - BANK DEPOSITS AND COLLECTIONS (2002) › PART 2. COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS
(1) the depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item, and, if the bank satisfies the other requirements of Section 3-302, it is a holder in due course; and
(2) the depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item was paid to the customer or deposited to the customer's account.
So, under The U.C.C. Section 4-205 shown above, when the depositary bank submits an un-i/endorsed item for payment, it warrants to the payor bank or other payor, and to the drawer that the amount of the item was paid to the Payee customer or deposited to the customer's account. This is a statutory warranty. It does not need to be stamped upon the check; it applies automatically.
If it is later discovered that the funds were not paid to the payee customer or deposited to the customer's account, a breach of warranty action can be mounted against the depositary bank.
I hope this helps to clear up why the above stamp was placed on the back of the un-e/indorsed deposited check . . .
If it was me, I would make the above check/draft along with a copy of U.C.C. 4-205 into an exhibit and parade them both around as confirmation of my notice and demand already being properly made.
Notice to acting Fiscal Agent member bank is also notice to Federal Reserve System district principal(s)/U.S. Treasury, etc. and vice-versa . . .
Given that we've now learned about UCC 4-205 and how it works - it can now be employed to our own advantage when transacting such non-i/endorsed checks/drafts like so:
lawful money and full acquittance/discharge is demanded for all
transactions, Title 12 USC §411, §95a(2) and Title 50 U.S.C. §4307(e)
(transacting absent accommodation authorized per U.C.C. 4-205)
Etymology and meaning for the words "acquit", "discharge" and "demand":
acquit (v.) early 13c., "to satisfy a debt" (either for oneself or on behalf of another), from Old French aquiter "pay, pay up, settle a claim" (12c.), from a "to" (see ad-) + quite "free, clear" (see quit (adj.)). Meanings "set free from charges" and "to discharge one's duty" both recorded from late 14c. Related: Acquitted; acquitting; acquittance.
Note: An acquittance is a discharge of a party from an engagement to pay a sum of money.
discharge (v.) early 14c., "to exempt, exonerate, release," from Old French deschargier (12c., Modern French décharger) "to unload, discharge," from Late Latin discarricare, from dis- "do the opposite of" (see dis-) + carricare "load" (see charge (v.)).
demand (v.) late 14c., "ask, make inquiry," from Old French demander (12c.) "to request; to demand," from Latin demandare "entrust, charge with a commission" (in Vulgar Latin, "to ask, request, demand"), from de- "completely" (see de-) + mandare "to order" (see mandate). Meaning "to ask for as a right" is early 15c., from Anglo-French legal use. Related: Demanded; demanding.