The UCC Connection: Free Yourself from Legal Tyranny (2/3)

ubik_heisenberg at freedom.net ubik_heisenberg at freedom.net
Fri Mar 9 17:29:07 PST 2001



                       Remedy and Recourse

     Every system of civilized law must have two characteristics:
Remedy and  Recourse.  Remedy is a way to get out from under that
law.  The Recourse is if you have been damaged under the law, you
can recover your loss.  The Common Law, the Law of Merchants, and
even the  Uniform Commercial  Code all  have remedy and recourse,
but for  a long  time we  could not  find it.  If you go to a law
library and  ask to  see the  Uniform Commercial  Code, they will
show you  a shelf  of books  completely filled  with the  Uniform
Commercial Code.   When  you pick up one volume and start to read
it, it  will seem  to  have  been  intentionally  written  to  be
confusing.   It took  us a long time to discover where the Remedy
and Recourse  are found  in the UCC.  They are found right in the
first volume, at 1-207 and 1-103.


                             Remedy

     The making  of  a  valid  Reservation  of  Rights  preserves
     whatever rights  the person then possesses, and prevents the
     loss of  such rights by application of concepts of waiver or
     estoppel.  (UCC 1-207.7)


     It is important to remember when we go into a court, that we
are in  a commercial,  international jurisdiction.  If we go into
court and  say, "I  DEMAND MY  CONSTITUTIONAL RIGHTS,"  the judge
will most  likely say,  "You mention  the Constitution again, and
I'll find  you in  contempt of court!"  Then, we don't understand
how he  can do that.  Hasn't he sworn to uphold the Constitution?
The rule  here is:  you cannot be charged under one jurisdiction,
and defend  under another.  For example, if the French government
came to you and asked where you filed your French income tax in a
certain year,  do you  go to  the French  government and  say, "I
demand my  Constitutional Rights?"   No.   The  proper answer is:
THE LAW  DOESN'T APPLY  TO ME  --  I'M NOT A FRENCHMAN.  You must
make your  reservation of  rights under the jurisdiction in which
you are charged  --  not under some other jurisdiction.  So, in a
UCC court,  you must  claim your  reservation of rights under the
UCC 1-207.

     UCC 1-207 goes on to say:


     When a  waivable right  or claim is involved, the failure to
     make a  reservation thereof, causes a loss of the right, and
     bars its assertion at a later date. (UCC 1-207.9)


You have to make your claim known early.  Further, it says:


     The Sufficiency  of the  Reservation   --    Any  expression
     indicating an  intention to  reserve rights,  is sufficient,
     such as "without prejudice".  (UCC 1-207.4)


Whenever you sign any legal paper that deals with Federal Reserve
Notes   --  in any way, shape or manner  --  under your signature
write:  Without Prejudice UCC 1-207.2  This reserves your rights.
You can  show, at  1-207.4, that  you have  sufficiently reserved
your rights.

     It is  very important  to understand  just what  this means.
For example,  one man who used this in regard to a traffic ticket
was asked  by the  judge just  what he  meant by writing "without
prejudice UCC  1-207" on  his statement to the court.  He had not
tried to understand the concepts involved.  He only wanted to use
it to  get out  of the  ticket.   He did  not know what it meant.
When the judge asked him what he meant by signing in that way, he
told the  judge that  he was  not prejudiced  against anyone ....
The judge  knew that  the man  had no  idea what it meant, and he
lost the case.  You must know what it means.


                   Without Prejudice UCC 1-207

     When you  use "Without  Prejudice UCC  1-207" in  connection
with your signature, you are saying:


     I reserve  my right not to be compelled to perform under any
     contract or  commercial  agreement  that  I  did  not  enter
     knowingly,   voluntarily,    and   intentionally.       And,
     furthermore, I  do not accept the liability of the compelled
     benefit of any unrevealed contract or commercial agreement.


     What  is   the  compelled   performance  of   an  unrevealed
commercial agreement?  When you use Federal Reserve Notes instead
of silver  dollars, is  it voluntary?   No.   There  is no lawful
money, so  you have to use Federal Reserve Notes  --  you have to
accept the  benefit.  The government has given you the benefit to
discharge your  debts with  limited liability, and you don't have
to pay  your debts.   How  nice they  are!   But, if  you did not
reserve your  rights under  1-207.7, you  are compelled to accept
the benefit,  and therefore  obligated  to  obey  every  statute,
ordinance and  regulation of  the government,  at all  levels  of
government  --  federal, State and local.

     If you  understand this,  you will  be able to explain it to
the judge  when he  asks.   And he  will ask,  so be  prepared to
explain it  to the  court.   You will also need to understand UCC
1-103  --  the argument and recourse.

     If you  want to  understand this  fully, go to a law library
and photocopy  these two  sections from the UCC.  It is important
to get  the Anderson3  edition.   Some of  the law libraries will
only have  the West  Publishing version, and it is very difficult
to understand.  In Anderson, it is broken down with decimals into
ten parts and, most importantly, it is written in plain English.


                            Recourse

     The Recourse  appears in  the  Uniform  Commercial  Code  at
1-103.6, which says,


     The Code  is complementary  to the Common Law, which remains
     in force,  except where  displaced by  the Code.   A statute
     should be  construed in  harmony with the Common Law, unless
     there is  a clear  legislative intent to abrogate the Common
     Law.


This is the argument we use in court.

     The Code recognizes the Common Law.  If it did not recognize
the Common  Law, the  government would have had to admit that the
United States  is  bankrupt,  and  is  completely  owned  by  its
creditors.   But, it  is not expedient to admit this, so the Code
was written  so as  not  to  abolish  the  Common  Law  entirely.
Therefore, if  you have  made a  sufficient, timely, and explicit
reservation of your rights at 1-207, you may then insist that the
statutes be construed in harmony with the Common Law.

     If the  charge is  a traffic ticket, you may demand that the
court produce  the  injured  person  who  has  filed  a  verified
complaint.   If, for  example, you  were charged  with failure to
buckle your seat belt, you may ask the court who was injured as a
result of your failure to "buckle up."

     However, if  the judge  won't listen  to you  and just moves
ahead with  the case,  then you will want to read to him the last
sentence of 1-103.6, which states:


     The Code cannot be read to preclude a Common Law action.


Tell the judge:


     Your Honor,  I  can  sue  you  under  the  Common  Law,  for
     violating my  right under  the Uniform  Commercial Code.   I
     have a remedy, under the UCC, to reserve my rights under the
     Common Law.   I  have exercised the remedy, and now you must
     construe this statute in harmony with the Common Law.  To be
     in harmony  with the  Common Law, you must come forth with a
     damaged party.


If the  judge insists  on proceeding  with  the  case,  just  act
confused and ask this question:


     Let me see if I understand, Your Honor:  Has this court made
     a legal  determination that  sections 1-207 and 1-103 of the
     Uniform Commercial  Code, which is the system of law you are
     operating under, are not valid law before this court?


Now, the  judge is  in a  jamb!   How can the court throw out one
part of  the Code  and uphold another?  If he answers "yes," then
you say:


     I put  this court  on notice  that I am appealing your legal
     determination.


Of course,  the higher court will uphold the Code on appeal.  The
judge knows this, so once again you have boxed him into a corner.


            Practical Application  --  Traffic Court

     Just so  we can understand how this whole process works, let
us look at a court situation such as a traffic violation.  Assume
you ran through a yellow light and a policeman gave you a traffic
ticket:


1.   The first  thing you  want to  do is  to delay the action at
     least three  weeks.   This you  can do by being pleasant and
     cooperative with  the officer.   Explain to him that you are
     very busy  and  ask  if  he  could  please  set  your  court
     appearance for about three weeks away.


(At this point, we need to remember the government's trick:  "I'm
from the government.  I'm here to help you."  Now, we want to use
this approach with them.)


2.   The next step is to go to the clerk of the traffic court and
     to say:


     "I believe  it would  be helpful if I talk to you, because I
     want to  save the  government some  money (this will get his
     attention).  I am undoubtedly going to appeal this case.  As
     you know, in an appeal, I have to have a transcript, but the
     traffic court  doesn't have a court reporter.  It would be a
     waste of  taxpayer's money  to run me through this court and
     then to  have to  give me  a trial  de novo  in a  court  of
     record.   I do  need a transcript for appealing, and to save
     the government  some money,  maybe you  could schedule me to
     appear in a court of record."


You can  show the  date on  the ticket and the clerk will usually
agree that  there is  plenty of time to schedule your trial for a
court of  record.   Now, your  first appearance  is in a court of
record and not in a traffic court, where there is no record.

     When you  get into  court, there  will be  a court  reporter
there who  records every  word the  judge speaks, so the judge is
much more  careful in  a court  of record.  You will be in a much
better situation  there than  in a traffic court.  If there is no
record, the  judge can say whatever he wants  --  he can call you
all sorts  of names  and tell you that you have no rights, and so
on  --  and deny it all later.


3.   When you  get into  court, the  judge will read the charges:
     driving through  a yellow  light, or whatever, and this is a
     violation of ordinance XYZ.  He will ask, "Do you understand
     the charge against you?"4


4.   "Well, Your  Honor, there  is a question I would like to ask
     before I  can make a plea of innocent or guilty.  I think it
     could be  answered if  I could  put the officer on the stand
     for a moment and ask him a few short questions."

     Judge:   "I don't  see why  not.  Let's swear the officer in
     and have him take the stand."


5.   "Is this the instrument that you gave me?"  (handing him the
     traffic citation)

     Officer:   "Yes, this  is a  copy of  it.  The judge has the
     other portion of it."

     "Where did  you get  my  address  that  you  wrote  on  that
     citation."

     Officer:  "Well, I got it from your driver's license."

     (Handing the  officer your  driver's license)   "Is this the
     document you copied my name and address from?"

     Officer:  "Yes, this is where I got it."

     "While you've  got that  in your  hand, would  you read  the
     signature that's  on that  license?"  (The officer reads the
     signature)   "While you're  there, would  you read  into the
     record what it says under the signature?"

     Officer:  "It says, 'Without Prejudice UCC 1-207'."

     Judge:  "Let me see that license!  (He looks at it and turns
     to the  officer.) "You didn't notice this printing under the
     signature on  this license,  when you  copied his  name  and
     address onto the ticket?"

     Officer:   "Oh, no.   I  was just getting the address  --  I
     didn't look down there."

     Judge:     "You're  not   very  observant   as  an  officer.
     Therefore, I  am afraid  I cannot  accept your  testimony in
     regards to the facts of this case.  This case is dismissed."


6.   In this  case, the  Judge found a convenient way out  --  he
     could say  that the officer was not observant enough to be a
     reliable witness.   He did not want to admit the real nature
     of the jurisdiction of his court.  Once it was in the record
     that you  had written  "Without Prejudice UCC 1-207" on your
     license, the judge knew he would have to admit that:


     a.   you had reserved your Common Law rights under the UCC;

     b.   you  had   one  it  sufficiently  by  writing  "Without
          Prejudice UCC 1-207" on your driver's license;

     c.   the statute  would now  have to be read in harmony with
          the Common  Law, and  the Common  Law says  the statute
          exists, but there is no injured party;  and

     d.   since there is no injured party or complaining witness,
          the court has no jurisdiction under the Common Law.


7.   If the  judge tries  to move  ahead and try the facts of the
     case, then you will want to ask him the following question:


     Your Honor,  let me  understand this  correctly.   Has  this
     court made a legal determination that it has authority under
     the jurisdiction  that it  is operating under, to ignore two
     sections of  the Uniform  Commercial Code  which  have  been
     called to its attention?


If he  says "yes," tell him that you put the court on notice that
you will  appeal that  legal determination,  and that  if you are
damaged by  his actions,  you will sue him in a common law action
--   under the  jurisdiction of  the UCC.  This will work just as
well with  the Internal Revenue Service.  In fact, we can use the
UCC with the IRS before we get to court.


                   Using the Code with the IRS

     If the  IRS sends you a Notice of Deficiency, this is called
a "presentment"  in the Uniform Commercial Code.  A "presentment"
in the  UCC is  very similar  to the  Common Law.  First, we must
understand just how this works in the Common Law.

     Suppose I  get a man's name from a phone book  --  someone I
have never  met.   And I  send him  a bill  or  invoice  on  nice
letterhead which  says, "For  services rendered:  $10,000.00."  I
send this  by Certified Mail to him at the address taken from the
phone book.  The man has to sign for it before he can open it, so
I get  a receipt that he received it.  When he opens it, he finds
an invoice for $10,000 and the following statement:  "If you have
any questions  concerning this bill or the services rendered, you
have thirty days to make your questions or objections known."

     Of course,  he has  never heard of me, so he just throws the
bill away  and assumes that I'm confused or crazy.  At the end of
thirty days,  I go  to court  and get  a default judgment against
him.   He received  a bill  for $10,000, was given thirty days to
respond.   He failed  to object  to it or ask any questions about
it.  Now, he has defaulted on the bill and I can lawfully collect
the $10,000.

     That's Common  Law.   The UCC  works on  the same principle.
The minute  you get  a Notice  of Deficiency  from the  IRS,  you
return it immediately with a letter that says:


     The presentment  above  is  dishonored.    [Your  name]  has
     reserved all  of his/her rights under the Uniform Commercial
     Code at UCC 1-207.


This should  be all  that is  necessary, as there is nothing more
that they  can do.  In fact, I recently helped someone in Arizona
who received  a Notice of Deficiency.  The man sent a letter such
as this,  dishonoring the "presentment."  The IRS wrote back that
they could  not make  a determination  at that  office, but  were
turning it  over to  the Collections  Department.   A letter  was
attached from  the Collections  Department which  said they  were
sorry for  the inconvenience  they had  caused him  and that  the
Notice of  Deficiency had  been withdrawn.  So, you can see that,
if it is handled properly, these things are easily resolved.


                      Impending Bankruptcy

     On my way here, I had a chance to visit with the Governor of
Wyoming.   He is  very concerned  that if he runs for office this
November, that  there won't  be a  State of Wyoming at the end of
four years.   He  believes that  the International  Bankers might
foreclose on  the nation  and officially  admit that they own the
whole world.   They could round up everybody in the State Capitol
building,  put   them  in   an  internment  camp  and  hold  them
indefinitely.  They may give them a trial, or they may not.  They
will do  whatever they  want.  As I explained earlier, it has not
been expedient  to foreclose  on the  nation until they could get
everything ready.  This is where the Federal Emergency Management
Agency comes  in.  It has been put in place without anyone really
noticing it.


                              FEMA

     F E M A, or the Federal Emergency Management Agency has been
designed for  when America is officially declared bankrupt, which
would be  a national  emergency.   In a  national emergency,  all
Constitutional Rights  and all law that previously existed, would
be suspended.   FEMA  has created large concentration camps where
they would  put anyone  who might  cause trouble  for the orderly
plan and process of the new regime to take over the nation.

     Even a governor could be thrown into one of these internment
camps, and  kept there  indefinitely.   This is all in place now,
and they are just waiting to declare a national emergency.  Then,
even State  governments could  be dissolved.   Anybody  who might
oppose the new regime could be imprisoned until a new set of laws
could be written and a new government set up.  The Governor knows
all this,  and he  is very  concerned.   He doesn't want to be in
office when all this happens.

     I visited  with him  and told  him that  there  are  certain
actions we should take right now.  I think we should consider the
fact that,  according to  the Uniform Commercial Code, Wyoming is
an accommodation  party5 to  the national  debt.   To  understand
this, we  must realize that there are two separate entities known
as the United States.


                    The Rothschild Influence

     When America  was founded, the Rothschilds were very unhappy
because it  was founded  on the  Common Law.   The  Common Law is
based on  substance, and  this  substance  is  mentioned  in  the
Constitution as  gold or  silver.   America is  a  Constitutional
Republic   --    that  is,  a  union  of  the  States  under  the
Constitution.   When Congress  was working  for the Republic, the
only thing it could borrow was gold or silver, and the Rothschild
banks did  not loan gold or silver.  Naturally, they did not like
this new government.

     The Rothschilds  had a  deal with  the King  of England.  He
would borrow paper and agree to repay in gold.  But, these united
States, with their Constitution, were an obstacle to them, and it
was much  to the  Rothschild's advantage to get the colonies back
under the  King.  So, the Rothschilds financed the War of 1812 to
bring America  back under  England.  Of course, that didn't work,
so they had to find another way.


                  The Flaw in the Constitution:
                       Two Nations in One

     It was  around the  time of the American Civil War that they
discovered a  flaw in  the Constitution.  The flaw was Article 1,
Section 8, Clause 17.

     Remember that  there are two nations called "United States."
What is a nation?  See if you would agree to this definition:


     Whenever you  have a  governing body,  having  a  prescribed
     territory containing a body of people.


Is that a nation?  Yes.  We have a governing body in the Republic
--   the three-branch  government.  They are the legislative, the
executive, and the judicial branches, with a constitution.  There
is a prescribed territory containing a body of people.  This is a
Constitutional Republic.

     But, Article 1, Section 8, Clause 17 gave Congress, which is
the legislative  branch of the three-branch government, exclusive
rule over  a given  territory known  as the District of Columbia,
containing a  body of  people.   Here we  have a  nation within a
nation.   This is a Legislative Democracy within a Constitutional
Republic.

     When Congress  was a part of the Constitutional Republic, it
had the obligation of providing a medium of exchange for us.  Its
duty was  to coin gold or silver.  Anyone who had a piece of gold
or silver  could bring it in and have it freely minted into coin.
This was the medium of exchange for the Republic.

     But, in  the Legislative  Democracy (over Washington, D.C.),
Congress is  not limited  by  the  Constitution.    Congress  has
exclusive rule  over the  District of  Columbia.  The legislators
can make  the law  by a  majority vote   --    that  makes  it  a
democracy;  they have the authority to have administrative agents
to  enforce  their  own  law;    and  they  have  courts  in  the
legislative branch of government, to try their own law.  Here, we
have the legislature making the law, enforcing the law and trying
the law, all within the one branch of government.  This is a one-
branch government within a three-branch government.

     Under the  three-branch government,  the Congress passes law
which has  to be  in harmony with the Constitution, the executive
enforces the  law passed by the Congress, and the judiciary tries
the law, pursuant to the Constitution.

     THE THREE-BRANCH  CONSTITUTIONAL REPUBLIC and the ONE-BRANCH
LEGISLATIVE DEMOCRACY  are both called THE UNITED STATES.  One is
the federal  United States,  and the  other  is  the  continental
united States.


                Are You a United States Citizen?

     If you  say that  you are  a United  States  citizen,  which
United States  are you  referring to?   Anyone  who lives  in the
District of  Columbia is  a United States citizen.  The remaining
population in  the fifty  States is the national citizenry of the
nation.   We are domiciled in various sovereign States, protected
by the  constitutions of  those States  from any  direct rule  of
Congress over  us.   In the  democracy, anyone who lives in those
states known  as Washington,  D.C., Guam,  Puerto Rico, or any of
the other  federally held  territories is a citizen of the United
States (D.C.).

     We must  be careful with our choice of words  --  we are not
citizens of  the United  States.  We are not subject to Congress.
Congress has  exclusive rule  over a  given territory, and we are
not part of that territory.

     When did  Congress get  the authority  to write the Internal
Revenue Code?   It is found in Article 1, Section 8, Clause 17 of
the Constitution.   To pass that law, they only needed a majority
vote.   There is  no other way that they could pass laws directly
affecting individuals.   Title 26, the Internal Revenue Code, was
passed as  law for  another nation  (remember our  definition  of
"nation"), but  Title 26  is not  consistent  with  the  Bill  of
Rights.  If you try to fight the IRS, you have no rights  --  the
Code does  not give  you any  of your  constitutional rights.  It
simply says,  "You failed to file an income tax form.  You failed
to perform in some specific manner."

     Remember, under  the Common Law, you are free to do whatever
you want  as long  as you do not infringe upon the life, liberty,
or property  of anyone  else.  If you do not want to perform, you
don't have  to.   The only  way you  can be  compelled to perform
under the  Constitution in  the continental  United States, is if
you have  entered a  contract.   But, if  you  are  not  under  a
contract, you  cannot be  compelled to  perform.   How can you be
compelled to file an income tax form, or any form?

     When Congress  works for  the Republic,  every law it passes
must be  in harmony with the Constitution and the Bill of Rights,
but when Congress works for the Legislative Democracy, any law it
passes becomes  the law  of the  land.   (Remember, Congress  has
exclusive legislative control over federal territory.)

     If you  are charged  with willful  failure to file an income
tax 1040  form, that  is a law for a different nation.  You are a
nonresident alien to that nation.  It is a foreign corporation to
you.   It is  not the  Republic of  the continental united States
coming after  you;   it is  a foreign nation  --  the legislative
democracy of a foreign nation coming after you.

     If you  get a  Notice of  Deficiency from  the IRS,  it is a
presentment from  the federal  United States, so then you can use
the UCC  to dishonor  it, and  you can  also mention that you are
among the  national citizenry  of the  continental united States,
and you  are a  nonresident alien  to the  federal United States.
You never  lived in  a federal  territory and never had an income
from the federal United States.

     Furthermore, you  cannot be  required to  file or  pay taxes
under the  compelled benefit  of using the Federal Reserve Notes,
because you  have reserved  your  rights  under  the  Common  Law
through the Uniform Commercial Code at 1-207.


                 Original Intent of the Founders

     The Founding  Fathers would  never have created a government
that was  going to  boss them  around!   There were  13 sovereign
States.    They  were  nations,  and  they  joined  together  for
protection from  foreign enemies.  They provided a means by which
the union of the sovereign States could fend off foreign enemies.
But, they  never gave  the Congress  of the federal United States
direct rule  over any  Citizen of any State.  They were not going
to be ordered around by that government they set up.


                         Federal Regions

     The supreme  Court has  declared that Congress can rule what
Congress creates.   Congress  did  not  create  the  States,  but
Congress did  create federal  regions.  So, Congress can rule the
federal regions,  but Congress  cannot rule the States.  How have
we been tricked into federal regions?


                       The ZIP Code Trick

     Remember how the government always come to us and says, "I'm
from the  government and  I'm here  to help you."  The government
went out  into the various States and said, "We don't want you to
go to  all that  trouble of  writing three  or  four  letters  to
abbreviate the  name of  the State   --    such  as  'Ariz.'  for
Arizona.   Just write  'AZ' instead  of 'Ariz.'  Or, you can just
write 'WY' for Wyoming, instead of 'Wyo.'"  So, all of the States
of the  union have  got a  new two-letter  abbreviation.   Even a
State such  as Rhode  Island has  a new abbreviation.  It is "RI"
instead of "R.I."  They have just left off the periods.  When you
use a  two-letter State  abbreviation, you are compelled to use a
ZIP code,  because there  are so  many States, for example, which
start with M.  ME is Maine.  MI is Michigan.  How many people dot
every "i"  or make  an "i"  that looks like an "e"?  With MA, MO,
MN, MS,  etc., and  some sloppy  writing, you  could not tell one
from another.   So,  we have to use the ZIP code in order to tell
them apart.   But,  if you  wrote "Mich."  or "Minn." or "Miss.",
there would be no real problem telling which State it was.

(continued in The UCC Connection: Free Yourself from Legal Tyranny  (3/3) )



________________________________________________________________________
Protect your privacy! - Get Freedom 2.0 at http://www.freedom.net





More information about the cypherpunks-legacy mailing list