Originally Posted by
Michael Joseph
In regard to a Trust that I PROTECT, not as Trustee, but as Agent to Beneficiary who has power of direction, when setting up the account for the NAME OF TRUST, a honest friendly conversation occurred whereby the Trustee said it is our intention to only handle Lawful Money per 12USC411 so that we can remain without the Federal Reserve districts and cities; however, we are setting up a General Account whereby we know that the law that governs banking allows you to MIX the funds received with other types of deposits into a sort of General Fund. However, let us now be clear, when we come to withdraw the deposit, we expect to receive Lawful Money per 12USC411.
The banker had her manager oversee what we were doing, she called Legal - no problems. Confidence most times wins the day.
Analysis and Summary:
We deposit an instrument - redeeming it in Lawful Money - but we put it in General Deposit. The bank LOVES this. Why? Because they do not have to take the Lawful Money from their reserves and they get to employ Fractional Reserve Banking. Also, when we come to withdraw the money in Lawful Money- Cash - the banker is happy because he now has the Cash to pay and then some.
Win - Win all around. I suppose we could open a Special Deposit account and maybe one day we will, but how is that a win for the bank? A worker is worthy of his hire, yes? How does the bank receive compensation for money held, in Special Trust, on account? They can't do anything with it - nothing. I like the agreement where both sides win. So do others.