The UCC Connection

At the request of several reader’s, I am posting an excerpt from a larger document by Howard Freeman called “The UCC Connection” with lots of great information in it. The section I have posted here deals with different types of law, Universal Commercial Code, and the reservation of those rights. After I read Mr. Freeman’s article, I created a small card to remind me exactly why I reserve my rights under UCC 1-308 (NOTE: UCC 1-207 was repealed in 2004 and is now replaced with UCC section 1-308), and carry it in my wallet so it is always handy. Here it is in a PDF file. ucc1308.pdf

An excerpt from The UCC Connection
By Howard Freeman
(from www.usa-the-republic.com)

JURISDICTION

The Constitution of the united States mentions three areas of jurisdiction in which the courts may operate:

Common Law
Common Law is based on God’s Law. Anytime someone is charged under the Common Law, there must be a damaged party. You are free under the Common Law to do anything you please, as long as you do not infringe on the life, liberty, or property of someone else. You have a right to make a fool of yourself provided you do not infringe on the life, liberty, or property of someone else. The Common Law does not allow for any government action which prevents a man from making a fool of himself. For instance, when you cross over state lines in most states, you will see a sign which says, “BUCKLE YOUR SEAT BELTS–IT’S THE LAW.’ This cannot be Common Law, because who would you injure if you did not buckle up? Nobody. This would be compelled performance. But Common Law cannot compel performance. Any violation of Common Law is a CRIMINAL ACT, and is punishable.

Equity Law
Equity Law is law which compels performance. It compels you to perform to the exact letter of any contract that you are under. So, if you have compelled performance, there must be a contract somewhere, and you are being compelled to perform under the obligation of the contract. Now this can only be a civil action–not criminal. In Equity Jurisdiction, you cannot be tried criminally, but you can be compelled to perform to the letter of a contract. If you then refuse to perform as directed by the court, you can be charged with contempt of court, which is a criminal action. Are our seatbelt laws Equity laws? No, they are not, because you cannot be penalized or punished for not keeping to the letter of a contract.

Admiralty/Maritime Law
This is a civil jurisdiction of Compelled Performance which also has Criminal Penalties for not adhering to the letter of the contract, but this only applies to International Contracts. Now we can see what jurisdiction the seatbelt laws (and all traffic laws, building codes, ordinances, tax codes, etc.) are under. Whenever there is a penalty for failure to perform (such as willful failure to file), that is Admiralty/ Maritime Law and there must be a valid international contract in force. However, the courts don’t want to admit that they are operating under Admiralty/Maritime Jurisdiction, so they took the international law or Law Merchant and adopted it into our codes. That is what the supreme Court decided in the Erie Railroad case–that the decisions will be based on commercial law or business law and that it will have criminal penalties associated with it. Since they were instructed not to call it Admiralty Jurisdiction, they call it Statutory Jurisdiction.

COURTS OF CONTRACT
You may ask how we got into this situation where we can be charged with failure to wear seatbelts and be fined for it. Isn’t the judge sworn to uphold the Constitution? Yes, he is. But you must understand that the Constitution, in Article I, Section 10, gives us the unlimited right to contract, as long as we do not infringe on the life, liberty or property of someone else. Contracts are enforceable, and the Constitution gives two jurisdictions where contracts can be enforced–Equity or Admiralty. But we find them being enforced in Statutory Jurisdiction. This is the embarrassing part for the courts, but we can use this to box the judges into a corner in their own courts. We will cover this more later.

CONTRACTS MUST BE VOLUNTARY
Under the Common Law, every contract must be entered into knowingly, voluntarily, and intentionally by both parties or it is void and unenforceable. These are characteristics of a Common Law contract. There is another characteristic–it must be based on substance. For example, contracts used to read, “For one dollar and other valuable considerations, I will paint your house, etc.” That was a valid contract–the dollar was a genuine, silver dollar. Now, suppose you wrote a contract that said, -For one Federal Reserve Note and other considerations, I will paint your house….’ And suppose, for example, I painted your house the wrong color. Could you go into a Common Law court and get justice? No, you could not. You see, a Federal Reserve Note is a “colorable” dollar, as it has no substance, and in a Common Law jurisdiction, that contract would be unenforceable.

COLORABLE MONEY/COLORABLE COURTS
The word “colorable” means something that appears to be genuine, but is not. Maybe it looks like a dollar, and maybe it spends like a dollar, but if it is not redeemable for lawful money (silver or gold) it is colorable.’ If a Federal Reserve Note is used in a contract, then the contract becomes a “colorable” contract. And “colorable” contracts must be enforced under a “colorable” jurisdiction. So by creating Federal Reserve Notes, the government had to create a jurisdiction to cover the kinds of contracts which use them. We now have what is called Statutory Jurisdiction, which is not a genuine Admiralty jurisdiction. It is “colorable” Admiralty Jurisdiction the judges are enforcing because we are using “colorable money.” Colorable Admiralty is now known as Statutory Jurisdiction. Let’s see how we got under this Statutory Jurisdiction.

UNIFORM COMMERCIAL CODE
The government set up a “colorable” law system to fit the “colorable” currency. It used to be called the Law Merchant or the Law of Redeemable Instruments, because it dealt with paper which was redeemable in something of substance. But, once Federal Reserve Notes had become unredeemable, there had to be a system of law which was completely “colorable” from start to finish. This system of law was codified as the Uniform Commercial Code, and has been adopted in every state. This is “colorable” law, and it is used in all the courts. I explained one of the keys earlier, which is that the country is bankrupt and we have no rights. If the master says “Jump!” then the slave had better jump, because the master has the right to cut his head off. As slaves we have no rights. But the creditors/masters had to cover that up, so they created a system of law called the Uniform Commercial Code. This -colorable’ jurisdiction under the Uniform Commercial Code is the next key to understanding what has happened.

CONTRACT OR AGREEMENT
One difference between Common Law and the Uniform Commercial Code is that in Common Law, contracts must be entered into: (1) knowingly, (2) voluntarily, and (3) intentionally. Under the U.C.C., this is not so. First of all, con-tracts are un-necessary. Under this new law, -agreements’ can be binding, and if you only exercise the benefits of a -agreement,’ it is presumed or implied that you intend to meet the obligations associated with those benefits. If you accept a benefit offered by government, then you are obligated to follow, to the letter, each and every statute involved with that benefit. The method has been to get everybody exercising a benefit, and they don’t even have to tell the people what the benefit is. Some people think it is the driver’s license, the marriage license or the birth certificate, etc. I believe it is none of these.

COMPELLED BENEFIT
I believe the benefit being used is that we have been given the privilege of discharging debt with limited liability, instead of paying debt. When we pay a debt, we give substance for substance. If I buy a quart of milk with a silver dollar, that dollar bought the milk, and the milk bought the dollar–substance for substance. But if I use a Federal Reserve Note to buy the milk, I have not paid for it. There is no substance in the Federal Reserve Note It is worthless paper given in exchange for something of substantive value. Congress offers us this benefit: Debt money, created by the federal United States, can be spent all over the continental united States, it will be legal tender for all debts, public and private, and the limited liability is that you cannot be sued for not paying your debts. So now they have said, “We’re going to help you out, and you can just discharge your debts instead of paying your debts.” When we use this -colorable’ money to discharge our debts, we cannot use a Common Law court. We can only use a “colorable” court. We are completely under the jurisdiction of the Uniform Commercial Code–we are using non-redeemable negotiable instruments and we are discharging debt rather than paying debt.

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 U.C.C. 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. 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 are 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 Anderson 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 complimentary 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 seatbelt, 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 the 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 the 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.

Posted in Patriotic Dissent & Redress, Regaining Sovereignty.