Promissory Note Discharge/Offset
Commercial Instrument Under UCC Article 3
EXPERIMENTAL APPROACH - HIGH RISK
This strategy is based on the theory that if banks can monetize promissory notes, you should be able to discharge debt with your own promissory note.
SUCCESS IS NOT GUARANTEED - LIKELY TO BE REJECTED
Consider this a test of the system's consistency and a way to document their double standard.
The Underlying Theory
If banks create money by depositing your promissory note as an asset and creating offsetting liabilities (as confirmed by Federal Reserve publications), then logically:
- Your promissory note has value and can be monetized
- A promissory note IS payment, not just a promise to pay later
- You should be able to discharge debt with your own promissory note
- This tests whether the system applies rules consistently
This document creates a promissory note to discharge/offset the alleged mortgage debt, forcing them to either accept it (proving the theory) or reject it (exposing inconsistency).
Cover Letter
Date: [DATE]
TO:
[SERVICER/BANK NAME]
[ADDRESS]
[CITY, STATE ZIP]
RE: Account Number: [ACCOUNT NUMBER]
Dear Sir/Madam:
Enclosed please find my Promissory Note in the amount of $[AMOUNT] for full settlement and discharge of the above-referenced account.
As you are aware, under modern banking practice as acknowledged by the Federal Reserve in "Modern Money Mechanics" and the Bank of England in "Money Creation in the Modern Economy," banks routinely monetize promissory notes by recording them as assets and creating offsetting deposit liabilities.
Since you have demonstrated that promissory notes have value and can discharge obligations (as you did with my original note), I am tendering this promissory note as payment in full for any alleged debt.
Please apply this promissory note to my account immediately and provide written confirmation of discharge within 10 business days.
If you refuse to accept this lawful tender of payment, please provide:
- Written explanation of why my promissory note lacks value while yours has value
- Legal authority distinguishing between promissory notes
- Admission that you provided no actual consideration for my original note
Your acceptance or rejection will be very instructive regarding the true nature of money creation.
Sincerely,
[YOUR NAME]
Promissory Note
Date: [DATE]
Amount: $[AMOUNT]
FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to the order of
[SERVICER/BANK NAME]
("Payee")
the principal sum of [AMOUNT IN WORDS] DOLLARS ($[AMOUNT])
This Note is issued for the following purpose:
FULL SETTLEMENT AND DISCHARGE OF ALLEGED DEBT
Account/Loan Number: [ACCOUNT NUMBER]
TERMS AND CONDITIONS:
1. PAYMENT: This Note is payable in the same manner and medium that Payee accepts promissory notes, to wit: by deposit as an asset on Payee's books with creation of offsetting liability, as is standard banking practice.
2. CONSIDERATION: The consideration for this Note is the discharge and satisfaction of all claims relating to the above-referenced account.
3. NO INTEREST: This Note bears no interest, as it is tendered for immediate settlement.
4. APPLICABLE LAW: This Note is issued under UCC Article 3 as adopted in [STATE].
5. NEGOTIABILITY: This Note meets all requirements of negotiability under UCC § 3-104.
6. ACCEPTANCE: Retention of this Note for more than 10 days constitutes acceptance and accord and satisfaction.
_________________________________
[YOUR NAME], Maker
_________________________________
Signature of Maker
Address:
[YOUR ADDRESS]
[CITY, STATE ZIP]
Legal Authority Cited
- UCC § 3-104: This promissory note meets all requirements for a negotiable instrument
- UCC § 3-310: An instrument accepted for an underlying obligation discharges the obligation
- UCC § 3-603: Tender of payment discharges obligation to extent of amount tendered
- Federal Reserve - Modern Money Mechanics: "Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars to accounts on their books in exchange for a borrower's IOU."
- Bank of England Quarterly Bulletin 2014 Q1: "Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower's bank account, thereby creating new money."
- 12 U.S.C. § 411: Federal Reserve notes are obligations - promises to pay - not payment itself
If Accepted - Discharge Confirmation
If they accept your promissory note, request a written confirmation of discharge stating:
- The account is PAID IN FULL and DISCHARGED
- All liens, claims, and security interests are RELEASED
- Date of satisfaction
- Signature of authorized officer
Note: Acceptance is extremely unlikely, but documenting the attempt is valuable.
If Rejected - Required Admissions
If they reject your promissory note, demand they explain and admit:
- Double Standard: Why can banks monetize promissory notes but individuals cannot?
- Lack of Consideration: That they provided no actual consideration for your original promissory note
- Money Creation: That they created the "loan" amount through bookkeeping entries, not from pre-existing funds
- Fraud Admission: That the mortgage transaction was fraudulent as no money was actually lent
- Legal Distinction: The specific legal authority that allows only banks to monetize promises
Their rejection constitutes admission of these facts and may be used as evidence.
Why This Matters
This document forces the bank to confront the contradiction in their position:
- If promissory notes have value (as they claim when taking yours), they should accept this one
- If they reject it, they admit promissory notes don't have inherent value
- If notes don't have value, they provided no consideration for your mortgage
- Without consideration, the mortgage contract may be void
Either way, their response (or lack thereof) provides valuable evidence for your case.
Submission Checklist
- Fill in all blanks completely
- Make amount equal to alleged debt balance
- Have promissory note notarized
- Make multiple copies before sending
- Consider legal counsel review before sending
- Send via Certified Mail, Return Receipt Requested
- Send copies to: CEO, Legal Department, Accounting
- Keep proof of mailing
- Document any response (or non-response)
- Prepare follow-up for rejection scenario