Under the UCC section 3-307, the definition of fiduciary, a corporate officer owing a fiduciary duty with respect to an instrument is a fiduciary. So we're giving him the instruments based off of the Trading with the Enemy Act and the banking emergencies. Before making the presentment, you need to request copies of the surety bond, right? Here is an example of the letters that we use. You can click these templates if you have access.
the letters. I'm not sure if all, okay, we went through that. You know, the commissioner of insurance, licensing insurance claims, surety bonds.
Okay. All right. So I want to show you that. And then we talked about under section 3-603B of the UCC, if tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument. That's why I was showing you the CFO is your fiduciary with respect to an instrument.
And why else is he entitled to enforce the instrument? Because he is one of the people who the banking emergency acts apply to. You know, even some of those acts talk about the national banks or the bank or the national banks, which the national associations are.
So. Again, the thing to remember is when the CFO, if the CFO of the bank rejects it, it's the certificate of protest that you want to acquire. The security agreement means an agreement that creates a security interest.
So your acceptance of their oath of office is a security agreement. It creates a security interest in the proceeds of the collateral, which is the surety bond. This is why I just put all these codes in here so you can see conceptually. what we're doing with these processes, how we're creating a binding and enforceable contract. Because ultimately, if we don't get performance, we're going to have to go after the surety bond.
And it's not so much about the money, but the way I understand it is if you put a claim on someone's surety bond, it's going to be hard for them to remain in office if it's done the right way. And even if it's done in numbers. You know, when claims start being made on surety bonds for lack of performance and breach of fiduciary duty for failing to give full, true and honest disclosure, then there's going to be a change somewhere along the way.
So let's finish going through the UCC codes. UCC 9-315 is security interest in proceeds is a perfected security interest if the security interest in the original collateral was perfected. UCC section 2-20618, an offer to make a contract shall be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances.
So our acceptance with our fiduciary appointment authorization contract, you're going to see that in there we say, I accept your oath of office dated, et cetera, or recorded in such and such county under document number whatever, right? That's your... acceptance.
Again, it says an offer to make a contract shall be construed as inviting and acceptance. We're talking about their pledge as an offer. It's an offer to enforce the Constitution and the laws of the United States so that when I'm giving you this memorandum of law and these instructions based off of the laws of the United States, you have to perform because I accepted your offer and I did it by fiduciary appointment. contract, registered mail, proof of delivery that you or your agent signed for, right?
So again, you have to remember, it's not that you could just send a contract to somebody and they have to respond and perform. But if this person already, based off of some other relationship, has a fiduciary duty, obligation, and responsibility, then you may have a binding enforceable contract with them. And you can read more about that.
by going under this link on the right side. It says fiduciary appointment and authorization. You can click that link and it'll give you more references about the nature of a fiduciary relationship, right?
So now that I kind of went through that, proceeds, whatever is collected on or distributed on account of collateral. Remember, the oath is the collateral, right? So the proceeds is whatever is collected on or distributed on account of the collateral. What's collected or distributed upon on account of the oath, it would be the surety bond. Those are the proceeds.
So I'm just showing you that your acceptance of their oath of office and the presentment of the contract in this type of way can perfect the security interest in collateral and proceeds, which is a surety bond. Because ultimately, if we don't get performance, I want to take this contract and file a UCC1 financing statement. with the surety bond number in a collateral box. And that's not really what I want to do.
We just really want them to perform. The first presentment, actually, that's the county recorders. There's two presentments here. The first one is to the CFO of the bank, and it results in a notary certificate of dishonor, right? Because we need that evidence because we may go to the county.
And although the recording officer in the county is not supposed to give legal advice. So they're not supposed to look at what you're doing and make any legal determinations about, but you know, they may or may not, but they're not supposed to. So this is where the certificate of dishonor will come in because they may say, well, only the bank can do this, but the statute may say, you know, this must be done after the payment was received. So you have to make sense of all of that, but don't fall in the trap of using the statute as your authority.
Right. The authority to release the lien is, you know, under the banking emergency. Look in the memorandum of law to discharge the obligation that, you know, that's where that authority comes from. And you have to rely upon that because when you've accepted their oath of office, you're bringing in the jurisdiction under the national government with your memorandum of law because.
The Constitution and the Acts of Congress, those are the supreme law. So they can't use color of law, local policy to deprive you of a constitutional rights. That's deprivation of rights under color of law, which may also be one of the claims that is with your breach of fiduciary duty claim if you have to get enforcement. And all of those claims would be separate from the potential UCC-1 lien.
on the surety bond and opening up the claim with the insurance carrier, etc., etc., if it went to that.