THE FRAUD

OF BANK
LOANS
&
THEFT OF LABOR
BY THE U.S.
BANKING SYSTEM

Mark Wasmuth
The Rabbit Hole Research Group
Consistently digging for the TRUTH

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 Appendix

1. DEFINITIONS Part 1
2. U.S. CODE AND CONSTITUTION ON DEBT Part 2
3. MODERN MONEY MECHANICS by the Federal Reserve Bank Of Chicago (1961) Part 3
4. MODERN MONEY MECHANICS by the Federal Reserve Bank Of Chicago (Revised 1991) Part 4
5. TWO FACES OF DEBT, Federal Reserve Bank of Chicago (rev. ed. September 1992) Part 5
6. MONEY AND BANKING Sixth Edition 1976 Part 6
7. I BET YOU THOUGHT by the Federal Reserve Bank of New York (December 1977) Part 7
8. MONEY, BANKING & MONETARY POLICY by the Federal Reserve Bank of Dallas (May, 2007) Part 8
9. YOUR MONEY AND THE FEDERAL RESERVE by the Federal Reserve Bank of Minneapolis (1960) Part 9
10. CASE LAW ON BANKING First National Bank of Montgomery vs. Jerome Daly. Part 10
11. NATIONAL CURRENCY ACT 1864 13 STAT 99 Part 11
12. HJR 192 / Public Law 73–10 June 5, 1933, Part 12
13. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) 2003 edition Part 13
14. SENATE DOCUMENT 43, April 17, 1933 Part 14
15. THE 7 REQUIREMENTS OF A VALID CONTRACT Part 15
16. FIRST BANK INC. FDIC Financial Report 10 Part 16
17. HUNTINGTON BANCSHARES INC FDIC Financial Report 10 Part 17

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 DEFINITIONS
Part 1
18. Barrower:
1) To obtain upon loan from the owner or other person having the right of disposition; to
engage the use of money by contract. State ex rel. Kimball v School Dist. 13 NEB 82,88
(Ballentines’s Law Dictionary)
19. Lender:
1) He from whom a thing is borrowed. The contract of loan confers rights, and imposes duties on the
lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns.
Rep. 432; 1 T. R. 480; 2 Campb. Rep. 464; and is deemed the owner or proprietor of the thing
during the period of the loan. (Bouvier’s)
20. Tenant:
1) One who occupies the premises of another in subordination to that other person’s title and
with his assent express or implied. 32 Am J1st L & T § 2. Broadly, any person having a tenancy.
2) A tenant, although having exclusive possession, charge and control, is not a owner of the
land within a statute making it unlawful for any person to hunt on the land of another
without first having obtained permission of the owner. Anno: 2 ALR 799,s 95 ALR 1099
(Ballentines’s Law Dictionary)
21. Owner:
1) One who has complete dominion over particular property. 42 Am J1st Prop § 37. The person
whom the legal or equitable title rests. Anno: ALR 779, s.95 ALR 1086. In common
understanding, the Person who, in case of destruction of property, must sustain the loss.
42 Am J1st Prop § 37
2) As to the Meaning of “owner” as used in statutes relating to the assessment and collection of
taxes, see Anno: 2ALR 792 (Ballentines’s Law Dictionary)
22. Money:
1) UCC 1-201 (24) means a medium of exchange currently authorized or adopted by a domestic
or foreign government. The term includes a monetary unit of account established by an
intergovernmental organization or by agreement between two or more countries.
2) I BET YOU THOUGHT David H. Friedman, Federal Reserve Bank of New York (4th ed. 1984),
states: Money is anything that has value that banks and people accept as money; money
does not have to be issued by the government. See Part 7 of this Affidavit.
23. Deposit: Title 12 U.S.C. Section 1813 (l)(1) (definition of “deposit under Federal Deposit Insurance Act)
1) the unpaid balance of money or its equivalent received or held by a bank or savings
association in the usual course of business and for which it has given or is obligated to give
credit, either conditionally or unconditionally, to a commercial, checking, savings, time, or
thrift account, or which is evidenced by its certificate of deposit, thrift certificate, investment
certificate, certificate of indebtedness, or other similar name, or a check or draft drawn against
a deposit account and certified by the bank or savings association, or a letter of credit or a
traveler’s check on which the bank or savings association is primarily liable: Provided, That,
without limiting the generality of the term “money or its equivalent”, any such account or
instrument must be regarded as evidencing the receipt of the equivalent of money when credited or
issued in exchange for checks or drafts or for a promissory note upon which the person obtaining
any such credit or instrument is primarily or secondarily liable, or for a charge against a deposit
account, or in settlement of checks, drafts, or other instruments forwarded to such bank or savings
association for collection.
24. Credit Banking: (3)Bookkeeping entry representing a deposit of funds into an account. Thomas P. Fitch,
Barron’s Business Guide Dictionary Of Banking Terms,

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 U.S. CONSTITUTION ON DEBT
25. THE U.S. CONSTITUTION Article 1 Section 10 of the US CONSTITUTION states:
1) No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of
Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but
gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder,
ex post facto Law, or Law impairing the Obligation of Contracts, or grant any
Title of Nobility.
2) It is impossible to pay a debt using Federal Reserve Notes:
i. Federal Reserve Notes are debt instruments as evidence by the word
NOTE [as in Federal Reserve Note] that is on the dollar bill,
(1) NOTE: “is a Debt instrument” Blacks Law 4th edition
(2) Federal Reserve Notes come into existence only by creating
Debt.
(a) The sale of T Bills, T Notes, T Bonds
(b) Fractionalized Banking on Deposits
(c) Creating Loans

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 MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3
The full document is available up on request
26. The UCC 3-102 (c) "Regulations of the Board of governors of the Federal Reserve System and
operating circulars of the Federal Reserve Banks supersede any inconsistent provision of this
Article to the extent of the Inconsistency."
27. page 3 states:
1) The actual process of money creation takes place primarily in banks.
2) They are book entries which result from the crediting of deposits of currency and checks
and the proceeds of loans and investments to customers accounts.
3) Banks can build up deposits by increasing loans and investment...
28. page 4 states:
4) …bankers discovered that they could make loans merely by giving borrowers their
promises to pay (bank notes). In this way banks began to create money.
29. page 6 states:
5) Of course, they do not really make loans out of money they receive as deposits. If they did
this, they would be acting just like financial intermediaries and no additional money would
be created.
6) What they do when they make loans is to accept promissory notes in exchange for credits
they make to the borrowers’ deposit accounts’
30. page 7 states:
7) (3) Expansion take place only if the banks which hold these excess reserves increase
their loans or investments. Loans are made by crediting the borrower’s deposit account
i.e., by creating additional deposit money.
31. page 8 states:
8) The lending banks, however, do not expect to retain the deposits they created through
their loan operations.
9) …loan-created deposits may be transferred to other banks, but they remain somewhere in
the banking system.
10) Any deposit he receives is new Money to him, regardless of its ultimate source.
11) Deposits expansion can proceed from investments as well as loans.
32. page 11 shows a chart and states:
12) Thus through stage after stage of expansion “money can grow to a total of 6 2/3 times
the new reserves supplied to the banking system…
13) …. As the new deposits created by loans at each state are added to those created at all
earlier stages and those supplied by the initial reserve-creating action.
33. Page 26 states:
14) These new loans add to banks deposits.

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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MODERN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(1961)
Part 3

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 MODEREN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(Revised 1992)
Part 4
The full document is available up on request
34. page 8 states:
1) The total amount of expansion that can take place is illustrated on page 11. Carried through to
theoretical limits, the initial $10,000 of reserves distributed within the banking system gives rise to
an expansion of $90,000 in bank credit (loans and investments) and supports a total of $100,000 in
new deposits under a 10 percent reserve requirement. The deposit expansion factor for a given
amount of new reserves is thus the reciprocal of the required reserve percentage (1/.10 = 10).
35. page 11 states
1) Thus through stage after stage of expansion “money can grow to a total of 10 times the new
reserves supplied to the banking system…

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MODEREN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(Revised 1992)
Part 4

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MODEREN MONEY MECHANICS
by the FEDERAL RESERVE BANK OF CHICAGO
(Revised 1992)
Part 4

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 TWO FACES OF DEBT
by the Federal Reserve Bank of Chicago
(rev. ed. September 1992)
Part 5
The full document is available up on request
36. page 19 states:
1) But a depositor's balance rises when the depository institution extends credit either by granting a
loan to or by buying securities from the depositor. page 11 states
2) In exchange for the note or security, the lending or investing institution credits the depositors
account or gives a check that can be deposited at yet another depository at yet another institution.
3) In this case no one loses a deposit the money supply is increased. New money has been brought into
existence,"
4) "Such newly created funds are in addition to funds that all financial institutions provide in their
operations as intermediaries between savers and users of savers”
5) "A deposit created through lending is a debt that has to be paid on demand of the depositor, just the
same as the debt rising from a customer's deposit of checks in a bank”

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 TWO FACES OF DEBT
by the Federal Reserve Bank of Chicago
(rev. ed. September 1992)
Part 5

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 TWO FACES OF DEBT
by the Federal Reserve Bank of Chicago
(rev. ed. September 1992)
Part 5

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 MONEY AND BANKING
Sixth Edition 1976
Part 6
The full document is available up on request
37. Chapter 6 page 144 states:
1) Most people suppose that a bank lends the deposits of its customers. In fact, however, no bank ever
lends its deposits.

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MONEY AND BANKING
Sixth Edition 1976
Part 6

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MONEY AND BANKING
Sixth Edition 1976
Part 6

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 I BET YOU THOUGHT
by the Federal Reserve Bank of New York
(December 1977)
Part 7
The full document is available up on request
38. page 5 states:
1) Money is anything generally accepted medium of exchange. Not simply coin and
paper currency. Money doesn’t have to be intrinsically valuable (valuable in itself).
Be issued by a government or be in any special form.
2) Demand deposits are the nation’s most common form of money. Comprising about
three-quarters of all money in circulation.
39. page 7 states:
1) But that approval doesn’t make cash any more real than checkbook balances.
40. page 19 states:
1) Checkbook money is “created” by currency deposits.
2) Commercial banks create checkbook money whenever they grant a loan. Simply by
adding new deposit dollars to account on their books in exchange for a borrower’s
IOU.

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 I BET YOU THOUGHT
by the Federal Reserve Bank of New York
(December 1977)
Part 7

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 I BET YOU THOUGHT
by the Federal Reserve Bank of New York
(December 1977)
Part 7

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 I BET YOU THOUGHT
by the Federal Reserve Bank of New York
(December 1977)
Part 7

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 I BET YOU THOUGHT
by the Federal Reserve Bank of New York
(December 1977)
Part 7

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 MONEY, BANKING & MONETARY POLICY
by the Federal Reserve Bank of Dallas
(May, 2007)
Part 8
The full document is available up on request
41. page 11 states:
1) Banks actually create money when they lend it.

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MONEY, BANKING & MONETARY POLICY
by the Federal Reserve Bank of Dallas
(May, 2007)
Part 8

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MONEY, BANKING & MONETARY POLICY
by the Federal Reserve Bank of Dallas
(May, 2007)
Part 8

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 YOUR MONEY AND THE FEDERAL RESERVE SYSTEM
by the Federal Reserve Bank of Minneapolis
(1959,1960)
Part 9
The full document is available up on request
42. page 8 states:
1) Commercial banks, however, when providing additional funds to borrowers, also
add to the total amount of money available for spending.
43. page 9 states:
1) When the borrower receives cash or deposit credit, the amount of money available
for spending is increased by the amount of the loan.
2) A promise to pay has, in fact, created new spending money.

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YOUR MONEY AND THE FEDERAL RESERVE SYSTEM
by the Federal Reserve Bank of Minneapolis
(1959,1960)
Part 9

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YOUR MONEY AND THE FEDERAL RESERVE SYSTEM
by the Federal Reserve Bank of Minneapolis
(1959,1960)
Part 9

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YOUR MONEY AND THE FEDERAL RESERVE SYSTEM
by the Federal Reserve Bank of Minneapolis
(1959,1960)
Part 9

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 CASE LAW for CREDIT LOANS and VOID CONTRACTS
Part 10
Case Law for Credit Loans and Void Contracts:

The reference in the suit of any Statute, Code, Ordinance, and/or Act of LAW established or
ordained by the public officials who have taken an oath to serve as public trustee’s, shall be
used only for the purpose of clarifying to respondents the rules of engagement for their service
to the sovereigns.

44. “In the federal courts, it is well established that a national bank has not power to
lend its credit to another by becoming surety, endorser, or guarantor for him.”
‘Farmers and Miners Bank v. Bluefield Nat 'l Bank, 11 F 2d 83, 271 U.S. 669.
45. "A national bank has no power to lend its credit to any person or corporation . . .
Bowen v. Needles Nat. Bank, 94 F 925 36 CCA 553, certiorari denied in 20 S.Ct 1024, 176
US 682, 44 LED 637.
46. “A bank may not lend its credit to another even though such a transaction turns out
to have been of benefit to the bank, and in support of this a list of cases might be
cited, which-would look like a catalog of ships.” [Emphasis added] Norton Grocery Co.
v. Peoples Nat. Bank, 144 SE 505. 151 Va 195.
47. “. . . checks, drafts, money orders, and bank notes are not lawful money of the United
States ...” State v. Neilon, 73 Pac 324, 43 Ore 168.
48. "Neither, as included in its powers not incidental to them, is it a part of a bank's
business to lend its credit. If a bank could lend its credit as well as its money, it
might, if it received compensation and was careful to put its name only to solid
paper, make a great deal more than any lawful interest on its money would amount
to. If not careful, the power would be the mother of panics . . . Indeed, lending credit
is the exact opposite of lending money, which is the real business of a bank, for while
the latter creates a liability in favor of the bank, the former gives rise to a liability of
the bank to another. I Morse. Banks and Banking 5th Ed. Sec 65; Magee, Banks and
Banking, 3rd Ed. Sec 248." American Express Co. v. Citizens State Bank, 194 NW 429.
49. "It is not within those statutory powers for a national bank, even though solvent, to
lend its credit to another in any of the various ways in which that might be done."
Federal Intermediate Credit Bank v. L 'Herrison, 33 F 2d 841, 842 (1929).
50. "There is no doubt but what the law is that a national bank cannot lend its credit or
become an accommodation endorser." National Bank of Commerce v. Atkinson, 55 E
471.
51. "A bank can lend its money, but not its credit." First Nat'l Bank of Tallapoosa v. Monroe
. 135 Ga 614, 69 SE 1124, 32 LRA (NS) 550.
52. ".. . the bank is allowed to hold money upon personal security; but it must be money
that it loans, not its credit." Seligman v. Charlottesville Nat. Bank, 3 Hughes 647, Fed
Case No.12, 642, 1039.
53. "A loan may be defined as the delivery by one party to, and the receipt by another
party of, a sum of money upon an agreement, express or implied, to repay the sum
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 CASE LAW for CREDIT LOANS and VOID CONTRACTS
Part 10
with or without interest." Parsons v. Fox 179 Ga 605, 176 SE 644. Also see Kirkland v.
Bailey, 155 SE 2d 701 and United States v. Neifert White Co., 247 Fed Supp 878, 879.
54. “A bank is not the holder in due course upon merely crediting the depositors
account.” Bankers Trust v. Nagler, 229 NYS 2d 142, 143.
55. "Any false representation of material facts made with knowledge of falsity and with
intent that it shall be acted on by another in entering into contract, and which is so
acted upon, constitutes 'fraud,' and entitles party deceived to avoid contract or
recover damages." Barnsdall Refining Corn. v. Birnam Wood Oil Co.. 92 F 26 817.
56. "Any conduct capable of being turned into a statement of fact is representation.
There is no distinction between misrepresentations effected by words and
misrepresentations effected by other acts." Leonard v. Springer 197 Ill 532. 64 NE 301.
57. “If any part of the consideration for a promise be illegal, or if there are several
considerations for an unseverable promise one of which is illegal, the promise,
whether written or oral, is wholly void, as it is impossible to say what part or which
one of the considerations induced the promise.” Menominee River Co. v. Augustus
Spies L & C Co., 147 Wis 559. 572; 132 NW 1122.
58. “The contract is void if it is only in part connected with the illegal transaction and
the promise single or entire.” Guardian Agency v. Guardian Mut. Savings Bank, 227 Wis
550, 279 NW 83.
59. “It is not necessary for rescission of a contract that the party making the
misrepresentation should have known that it was false, but recovery is allowed even
though misrepresentation is innocently made, because it would be unjust to allow
one who made false representations, even innocently, to retain the fruits of a
bargain induced by such representations.” Whipp v. Iverson, 43 Wis 2d 166.
60. "A contract ultra vires being unlawful and void, not because it is in itself immoral,
but because the corporation, by the law of its creation, is incapable of making it, the
courts, while refusing to maintain any action upon the unlawful contract, have
always striven to do justice between the parties, so far as could be done consistently
with adherence to law, by permitting property or money, parted with on the faith of
the unlawful contract, to be recovered back, or compensation to be made for it. In
such case, however, the action is not maintained upon the unlawful contract, nor
according to its terms; but on an implied contract of the defendant to return, or,
failing to do that, to make compensation for, property or money which it has no
right to retain. To maintain such an action is not to affirm, but to disaffirm, the
unlawful contract." Central Transp. Co. v. Pullman, 139 U.S. 60, 11 S. Ct. 478, 35 L. Ed. 5:
61. "When a contract is once declared ultra vires, the fact that it is executed · does not
validate it, nor can it be ratified, so as to make it the basis of suitor action, nor does
the doctrine of estoppels apply." F& PR v. Richmond, 133 SE 898; 151 Va 195.
62. "A national bank ... cannot lend its credit to another by becoming surety, indorser, or
guarantor for him, such an act; is ultra vires . . ." Merchants' Bank v. Baird 160 F 642.
63. "It has been settled beyond controversy that a national bank, under federal Law
being limited in its powers and capacity, cannot lend its credit by guaranteeing the

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 CASE LAW for CREDIT LOANS and VOID CONTRACTS
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debts of another. All such contracts entered into by its officers are ultra vires . . ."
Howard & Foster Co. v. Citizens Nat'l Bank of Union, 133 SC 202, 130 SE 759(1926).
64. “The doctrine of ultra vires is a most powerful weapon to keep private corporations
within their legitimate spheres and to punish them for violations of their corporate
charters, and it probably is not invoked too often ...” Zinc Carbonate Co. v. First
National Bank, 103 Wis 125, 79 NW 229. American Express Co. v. Citizens State Bank,
194 NW 430.
65. “Bank cannot sue without personal knowledge and a copy of the note might not give
legal knowledge”. Monmouth County Social Serve. v P.A.Q 317 N.J Super 187, 193-194
App. Div 1998. See Also: United Stated Bankruptcy Court N.J. Investors and Lenders/
Debtors June 30, 1993 Bankruptcy no 92- 30754
66. “Banks must give us the bookkeeping entries with an affidavit or the banks
evidence is hearsay evidence. One cannot enter hearsay evidence into the
court”:Supreme Court of Hawaii, Pacific Concrete Federal Credit Union, Plaintiff
Appellee v Andrew J.S. Kauanoe, Defendant Appellant no 6362 July 17, 1980
67. “Banks must have Possession of the promissory note before the banker can collect”
Staff Mort. & Investment Corp., 550 F2d 1228 (9th Cir 1977)
68. First National Bank of Montgomery vs. Jerome Daly, The Justice Court State of
Minnesota County Of Scott Township Of Credit River Justice Martin V. Mahoney, the jury
stated the following:
1) That the Plaintiff is not entitled to recover the possession of Lot 19, Fairview
Beach, Scott County, Minnesota according to the Plat thereof on file in the
Register of Deeds office.
2) That because of failure of a lawful consideration the Note and Mortgage
dated May 8, 1964 are null and void.
3) That the Sheriff's sale of the above described premises held on June 26, 1967
is null and void, of no effect.
4) That the Plaintiff has no right title or interest in said premises or lien
thereon as is above described.
5) That any provision in the Minnesota Constitution and any Minnesota Statute
binding the jurisdiction of this Court is repugnant to the Constitution of the
United States and to the Bill of Rights of the Minnesota Constitution and is
null and void and that this Court has jurisdiction to render complete Justice
in this Cause.

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Part 10

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CASE LAW for CREDIT LOANS and VOID CONTRACTS
Part 10

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CASE LAW for CREDIT LOANS and VOID CONTRACTS
Part 10

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CASE LAW for CREDIT LOANS and VOID CONTRACTS
Part 10

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 NATIONAL CURRENCY ACT 1864
13 STAT 99
Part 11
69. SEC. 28. And be it further enacted, That it shall be lawful for any such association to
purchase, hold, and convey real estate as follows:
1) First. Such as shall be necessary for its immediate accommodation in the
transaction of its business.
2) Second. Such as shall be mortgaged to it in good faith by way of security for
debts previously- contracted.
3) Third. Such as shall be conveyed to it in satisfaction for debts previously
contracted in the course of its dealings.
4) Fourth. Such as it shall purchase at sales under judgments, decrees, or
mortgages held by such association, or shall purchase to secure debts due to
said association.
5) Such association shall not purchase or hold real estate in any other case or for
any other purpose than as specified in this section ; nor shall it hold the
possession of any real estate under mortgage, or hold the title and possession
of any real estate purchased to secure any debts due to it, for a longer period
than five years.
70. SEC. 53. And be it further enacted, That if the directors of any association shall
knowingly violate, or knowingly permit any of the officers, agents, or servants of the
association to violate any of the provisions of this act, all the rights, privileges,
and franchises of the association derived from this act shall be thereby forfeited.
Such violation shall, however, be determined and adjudged by a proper circuit,
district, or territorial court of the United States, in a suit brought for that purpose by
the Comptroller of the Currency, in his own name, before the association shall be
declared dissolved. And in cases of such violation, every director who participated
in or assented to the same shall be held liable in his personal and individual capacity
damages which the association, its shareholders, or any other person, shall have
sustained in consequence of such.

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NATIONAL CURRENCY ACT 1864
13 STAT 99
Part 11

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NATIONAL CURRENCY ACT 1864
13 STAT 99
Part 11

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NATIONAL CURRENCY ACT 1864
13 STAT 99
Part 11

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NATIONAL CURRENCY ACT 1864
13 STAT 99
Part 11

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 HJR 192 - Public Law 73 – 10
June 5, 1933,
Part 12
71. That (a) every provision contained in or made with respect to any obligation which
purports to give the obligee a right to require payments in gold or a particular kind of
coin or currency, or in an amount in money of the United States measured thereby, is
declared to be against public policy;
72. All coins and currencies of the United States (including Federal Reserve notes and
circulating notes of the Federal Reserve bank and national banking associations)

73.

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HJR 192 - Public Law 73 – 10
June 5, 1933,
Part 12

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HJR 192 - Public Law 73 – 10
June 5, 1933,
Part 12

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 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
(GAAP)
Part 13
74. Title 12 USC. Sec. 1831n (a) (2) Banks must follow the Generally Accepted Accounting
Principles (GAAP). This includes but not limited to the matching principle
75. Wiley 2003 Section 41 state:
1) "Anything accepted by a bank for deposit would be considered as cash.”
2) Cash must be available for a demand withdraw.

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GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
(GAAP)
Part 13

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 SENATE DOCUMENT 43
73 Congress 1st Session
April 17, 1933
Part 14

76. Also known as Senate Resolution 62 page 9 states:

1) "The ultimate ownership of all property is in the State; individual so-called
"ownership" is only by virtue of Government, i. e., law, amounting to mere
user; and use must be in accordance with law and subordinate to the
necessities of the State”.

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SENATE DOCUMENT 43
73 Congress 1st Session
April 17, 1933
Part 14

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SENATE DOCUMENT 43
73 Congress 1st Session
April 17, 1933
Part 14

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SENATE DOCUMENT 43
73 Congress 1st Session
April 17, 1933
Part 14

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 THE 7 REQUIREMENTS OF A VALID CONTRACT
Part 15

77. Essentials of a valid contract

1) An agreement will be enforced when the following essential elements exist:
i. Offer and Acceptance. There must be an offer by one party and an
acceptance of it by the other.
ii. Intention to create lawful relations.
iii. Capacity of the parties. Each party must have the legal capacity to make
the contract.
iv. Consent must be genuine. The consent must not be obtained by fraud, or
duress (such as death threats if the contract is not entered into).
v. Consideration must be present.
vi. Legality of object. The object of the contract must not be one of which the
law disapproves.
vii. Possibility of performance.
2) All the above elements must be present. If one or more is absent the contract will
be either (i) void, (ii) voidable, or (iii) unenforceable.
3) Void contracts are destitute of lawful effect; that is, they are not contracts, and
agreements of this kind do not confer legal rights on the parties thereto.
78. America's Juror Prudence 2nd sections 50, 51 and 52 “Actions” on page 584
1) “No action will lie to recover on a claim based upon, or in any manner depending
upon, a fraudulent, illegal, or immoral transaction or contract to which Plaintiff
was a party”
79. There is a legal maxim of law (a self-evident truth) that says: "A THING SIMILAR IS NOT
EXACTLY THE SAME "

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 FIRST BANK INC
FDIC REPORT
Part 16
80. This FDIC report for First Banks shows:
1) They have $393,816,000.00 (line 26) in Total Capital but have loaned out $2,405,846,000.00
(line 7) to its customers.
i. They have loaned out 6.1 times more money than they have if they have if they
liquidated or mortgaged all their assets.
2) It shows that Net loans (line 7) are a part of Total Assets (line 2) which matched Total Liabilities
and Capital (line 15)

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 HUNTINGTON BANCSHARES INC
FDIC REPORT
Part 17
81. This FDIC report for Huntington Bancshares shows:
1) They have $4,444,128,000.00 (line 26) in Total Capital but have loaned out $38,146,356,000.00
(line 7) to its customers.
i. They have loaned out 8.5 times more money than they have if they liquidated or
mortgaged all their assets.
2) It shows that Net loans (line 7) are a part of Total Assets (line 2) which matched Total Liabilities
and Capital (line 15)

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