Understanding Promissory Notes and Bank Transactions

Introduction

• Main Idea: Banks turn signed promissory notes into financial assets, profiting from them without actually lending their own money.
• Purpose: To explain what happens to a promissory note after it's signed, how banks treat it, and the legal implications.
• Call to Action: Encouragement to like, subscribe, and turn on notifications for more content.

What is a Promissory Note?

• A promissory note is a written promise to pay a lender a specific amount of money at a specified time.
• Classified as a negotiable instrument under UCC Article 3.
  • Defined as an unconditional promise to pay a fixed amount of money.
• Often misunderstood as a loan agreement, but it's actually a financial product for banks.

How Banks Treat Your Note

• Banks record the signed note as an asset on their books.
• They create a matching loan in your name based on your promise.
• Misconception: You think you are borrowing money, but your signature funds the transaction.

The Concept of Securitization

• Definition: The process of converting non-marketable assets into marketable securities.
• Promissory notes are sold to investors and often transferred to trust structures.
• Implications: Your note is turned into profit and sold multiple times without your knowledge.

Legal Implications

• Once a note is sold or securitized, the original lender may not own the debt.
• Consequences:
  • The original lender or debt collectors may not have the rights to collect the debt.
  • Payments often go to a servicer, not the original creditor.
• Importance of asking for proof of debt ownership and transactions.

What You Can Do

• Request proof of ownership over the note.
• Use debt validation or a qualified written request to ask for documentary evidence.
• Challenge the source and terms of the debt.
  • Ask if the loan was securitized and how it was funded.
  • Shift the burden of proof onto the lender.

Realizations and Actions

• Understand that your signature was the asset that funded the loan.
• Reclaim your power by understanding your rights and challenging wrongful debt claims.

Conclusion

• Key Takeaway: Your signature is a financial asset that banks use for profit.
• Action: Engage with content that helps you understand these financial truths.
• Call to Action: Subscribe for more insights and engage in learning about financial sovereignty.