Expert Affidavit Template

STATE OF _______________
COUNTY OF _______________

WALKER F. TODD, being first duly sworn, deposes and says:

I am over 18 years of age and competent to testify. I have personal knowledge of the matters stated herein.

I worked as an attorney for the Federal Reserve System for over 20 years, including positions at the Federal Reserve Banks of Cleveland (1985-1994) and New York (1994-1998). My duties included research, analysis, and legal opinions on banking practices, monetary policy, and the creation of money through the lending process.

I have studied monetary systems, banking practices, and the mechanics of money creation for over 35 years. I have written extensively on these topics and am recognized as an expert in the field.

Banks Do Not Lend Their Own Money or Depositors' Money. It is a common misconception that banks lend out their depositors' money or their own capital. This is categorically false. When a bank makes a loan, it creates new money through accounting entries.

The Loan Creation Process. When a borrower signs a promissory note, the bank does the following:

1. Records the promissory note as an asset on its books
2. Creates a matching deposit liability in the borrower's account
3. The deposit is new money that did not exist before
4. No money is transferred from any existing account

Federal Reserve Confirmation. The Federal Reserve has publicly acknowledged this process. In their publication "Modern Money Mechanics," they state: "Of course, banks do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created."

No Consideration Provided. In the traditional sense of contract law, the bank provides no consideration for the borrower's promissory note. The bank does not give up anything of value that it possessed before the transaction. Instead, it monetizes the borrower's promise to pay.

The Note as the Source of Funds. The borrower's promissory note is not merely evidence of a debt. It is the actual source of the funds that appear to be "loaned" to the borrower. The borrower's signature creates the value.

Accounting Treatment. Under Generally Accepted Accounting Principles (GAAP), the bank must record the promissory note as an asset. Simultaneously, it creates a deposit liability. This is not a loan in any traditional sense - it is an exchange of assets.

The Deception. Banks do not disclose to borrowers that:

• The borrower's signature creates the money
• No pre-existing money is lent
• The bank risks nothing of its own
• The promissory note will be sold or securitized
• The transaction is an exchange, not a loan

Lack of Full Disclosure. The failure to disclose the true nature of the transaction constitutes a material omission that voids informed consent. Borrowers cannot make informed decisions without understanding that they are creating the money, not borrowing it.

Consideration in Contract Law. A valid contract requires consideration - something of value given by each party. Since the bank gives nothing of value that it possessed before the transaction, there is arguably no valid consideration, which would void the contract.

RICO Implications. The systematic nature of this deception across the banking industry, combined with the use of mail and wire communications to perpetrate it, potentially constitutes a pattern of racketeering activity under RICO.

Separation of Note and Mortgage. It is a fundamental principle of mortgage law that the note and mortgage must remain together. When banks securitize loans through MERS or otherwise, they often separate the note from the mortgage, which voids the security interest.

Multiple Sales. Through securitization, the same promissory note is often sold multiple times to different investors. This is securities fraud and creates competing claims that cloud title.

Destruction of Original Notes. To hide the multiple sales and the true nature of the transactions, original promissory notes are routinely destroyed. Banks then claim the notes are "lost" when challenged to produce them.

Based on my review of the documents in this case involving [YOUR NAME] and [BANK NAME], it is my expert opinion that:

• The bank provided no lawful consideration for the promissory note
• The money was created from the borrower's signature
• The true nature of the transaction was not disclosed
• The mortgage/deed of trust is void for lack of consideration
• The bank cannot demonstrate any actual loss if the loan is not repaid

Industry-Wide Practice. These practices are not unique to this bank. They represent standard operating procedure throughout the banking industry.

It is my professional opinion, based on my decades of experience within the Federal Reserve System and my extensive study of banking practices, that what is commonly called a "loan" is not a loan at all. It is the purchase of a promissory note by creating bookkeeping entries. The borrower is the creditor, and the bank is the debtor in the initial transaction.

The entire mortgage system, as currently practiced, is based on deception, lack of disclosure, and absence of real consideration. Courts that allow foreclosures without requiring proof of consideration are enabling this fraud.

I am available to testify in court regarding these matters and to answer any questions about banking practices, money creation, and the Federal Reserve System.

FURTHER AFFIANT SAYETH NOT.

I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct based on my professional knowledge, experience, and expertise.

Executed on this [DAY] day of [MONTH], [YEAR].

_________________________________
Walker F. Todd
Former Attorney, Federal Reserve System
Expert Witness on Banking and Monetary Systems