Promissory Note v. Security

Today  June 15, 2012

Promissory Note v. Security  


Recoupment / Adverse Claim

Originally Jean Keating presented these concepts to a small group, and his teachings are meaningful for our understanding of Credit Application Transactions, in the case of home loans, auto loan, credit card, student loan, etc. and thus now presented to all in detail.   

There is always an elephant in the room when it comes to dealing with banks and their Attorney, mainly that Attorney want to identify the Promissory Note as our obligation, they call it a Note; and that is not really what it is, rather it is a "Security"!  Securities are governed under different codes than a Note.  After reading the blog, make a note of which UCC Article that Securities apply to, and have it handy to refer to in court. 

As the Donor, Issuer, Maker, Drawer of the First Payment Order, "NOT PAYMENT," you are not required to pay the taxes on the transfer as you donated the gift deposit at closing to the Escrow / Lender. The Lender is trying to stick the allege Borrower (donor/issuer) with the Lender's obligation to pay the taxes due on the transferor, they want the allege Borrower (donor/issuer) to pay their taxes on the skip transfer tax to the REMIC, and income tax on the Lender's off balance sheet transaction.  

This is one of the most powerful concepts when it comes to the obligation on the Security, don't fall for their trick, know your powers in this credit transaction, You Are the Creditor/Beneficiary if you do a recoupment - adverse claim on the security proceeds.

     PART 1. GENERAL PROVISIONS AND DEFINITIONS                                                     § 3-105.ISSUE OF INSTRUMENT

        § 77b. Definitions; promotion of efficiency,

           competition, and capital formation

         “Adverse Claim”

  • UCC 3-302, Holder in due course takes the note, free of all defenses or claim, that the payor, assignee, took it to your subject in defenses in claim, so they are not a holder in due course.

click on the picture to download the presentation

Thanks for visiting this blog...
Now you have the power to get your Security Interest,
Recoupment of the proceeds of the Security
back from the bank.

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  1. I looked at my car loan credit contract and it had the disclaimer on it but it had addion verbage after it is different font. it said
    The proceding NOTICE applies only if the "personal,family or household" boxin the Primary Use for Which Purchase" section of this contract is checked. In all other cases, Buyer will not assert against any subsequent holder or assignee of this contract claims or defenses the Buyer (debtor) may have against the Seller, or against the manufacture of the vehicle or equiptment obtain under this contract. This loan was sold. do I have claim.

    contact at

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  3. When you take out a loan from the Bank for a house, car, credit card, or student loan, in reality the bank is not lending you any of their money, because you are financing your own loan with your Promissory Note, which is a cash asst. Can you please do a video dedicated to explaining step by step who to write to in each case, and exactly what to say in your letter in order to Recoup the the money in your Transaction account, and the interest on your Promissory Notes which were fraudulently Secularized by the bank without your knowledge or consent. Please also give examples from your own experience, and the problems that you ran in to, and if you received any money?

    Thank you

    Kevin Quinn

  4. Thank you, Captain Jade for all of the time and energy you put in sharing this information. I would like to know if you will be teaching on what to do after you have filed an Adverse Claim and Recoupment? If you alreadyhave something available, please let me know where it can be found.

    Thank you and Many blessings!

  5. Thank you captain Jade for your info. You put this all together with such clarity it is refreshing. Thanks, Mike

  6. Hello this was a very good presentation. I was wondering if you can use UCC Filings for post foreclosure sale. Thanks.

    1. The UCC need a security agreement in order to be a valid lien. The security is more than likely still traded after the foreclosure, it would depend on the REMIC.