How To Secure A Bank Account From Levy 1
How To Secure A Bank Account From Levy 1
How To Secure A Bank Account From Levy 1
Guaranteeing Success
It is vital that you thoroughly understand that you are not the
account holder—and can never be the account holder. The name of
all account holders appears in all-capital letters in all bank records
and documents. All account holders are artificial persons, e.g. your
TRADE NAME. This policy is purely of the bank’s own choosing; all
you are doing is respecting the bank’s selection/designation of the
account holder. If bank personnel balk at all, have the girl/guy pull
out a sample personal check from her/his drawer and point out the
name of the account holder printed on the check. The name is set
in capital letters. If the secretary of state recognizes the distinction
between the two names on your financing statement, it is reasonable
to expect that the “New Accounts” officer will too. In the event there is
further resistance, have her/him examine what appears to be the
signature line on the sample personal check using the magnifying
glass that you produce(bring one with you, if possible). Even though
the check is a personal check, and therefore theoretically would have
only one signatory, said “line” is for any authorized signatory of the
account holder—i.e. an authorized representative—and you are such
an authorized signatory/representative.
How to Secure a Bank Account from Levy 3
These facts should quell any doubts on the part of bank
personnel. However, as always, the senior factor is your personal
certainty of what you are doing. The Federal Reserve literally owns
the U.S. Government, and covertly asserts ownership of all property
in Banks (Fed instrumentalities) do business only with artificial
persons whose names appear in all-capital letters; any party that
“volunteers” to act as a surety and give anomalous indorsements and
sign as an accommodation party 3 for the account holder, however, is
never turned away. It is also wise to familiarize yourself with the
section of the security agreement entitled “Event of Default,” which
can also be highlighted if desired. This paragraph appears just below
“Authorized Representative” at the bottom of page 7 of the security
agreement. Any attempt by any third party to remove any of the
debtor-account holder’s funds (your secured collateral) constitutes an
event of default on the part of the debtor and allows you to foreclose
on the collateral, i.e. withdraw the funds if necessary. Because you
provide the bank with certified documentary evidence of your
secured-party status at the time the signature card is signed, no other
party can have a prior security interest in those funds, and all bank
personnel must acknowledge this fact and honor your perfected
security interest or risk both civil and criminal charges.
As a final note on securing your position, a certified copy of your
UCC Financing Statement and security agreement left with bank
personnel could conceivably be misplaced/lost, although this is
unlikely based on the potential liability attendant with such oversight.
However, it is nevertheless a good idea to send the manager of the
bank an additional certified copy of both financing statement and
security agreement by Registered Mail (Restricted Delivery), with an
Affidavit of Mailing. A cover letter confirming your perfected security
interest in the collateral in the account and the bank’s responsibility in
protecting this secured collateral should also be enclosed. As long as
you can prove that the manager received the above cover letter and
the certified copies of the documents (evidence), the bank is liable for
any pilferage of the account
2 Senate Document No. 43, 73rd Congress, 1st Session. (March 9 – June
16, 1933) “…The 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.”
3 If these terms are not readily understood, it is vital that you re-read
“How to Sign Your Signature Without Liability,” beginning on page 315 of
CTC3 and get them cleared up.