Lecture Notes: TDA Class Part Two

Class Structure

• Part Two of the TDA class, discussing secondary and primary markets.
• Part Three will follow due to scheduling conflicts.
• Held as a Q&A session to address uncertainties from Part One.

Key Announcements

• Lecture replay was delayed due to the instructor’s litigation schedule.
• Emphasis on taking personal notes over relying on replays, akin to college settings.

Discussion Points

Market Research and Understanding

• Primary Market: Government (U.S.), uses bills to fund securities.
• Secondary Market: Essentially the stock market.
• Importance of differentiating between the two markets.

Understanding Securities and Contracts

• Security Usage: Corporations use securities backed by full faith and credit of the U.S.
• Discounted Rates: Initial discounted rate of $100 per thousand for securities.

Contracts and Permissions

• Contracts often allow corporations to keep proceeds from securitized items.
• Rescind security interest permissions to change terms in existing contracts.
• 80/20 Rule: You should receive 80% of proceeds; corporations keep 20%.

Tools and Techniques for Financial Growth

Treasury Direct Account (TDA)

• Savings Bonds: Suggestion to buy to show account activity and legitimacy.
• Use of TDA for payroll and tax returns to securitize funds.
• Auctions: Participating in auctions can double your money over time.

Brokerage Accounts

• Open accounts with Fidelity, Charles Schwab, or Edward Jones.
• Use brokerage accounts to trade personal securities.

Medallion Signature

• Powerful tool for securing transactions and authenticating securities transfers.

Legal and Administrative Strategies

Arbitration and Litigation

• Use arbitration clauses to challenge judgments in state courts.
• Securities Fraud Claims: File against corporations not complying with transfer instructions.

Contracts and Security Interests

• Importance of rescinding unnecessary permissions in contracts.
• Use restrictive endorsements to direct payments to TDA accounts.

Mortgage and Quiet Title

• Filing a quiet title to challenge or affirm property ownership.
• Handling liens and satisfying mortgage documents through proper legal channels.

Practical Applications

Vehicle and Mortgage Examples

• Strategies for leveraging auto loans and mortgage contracts to secure titles and finances.
• Example of how to acquire a vehicle through Navy Federal without turning over titles.

Using Financial Tools

• Understanding and utilizing concepts like bearer securities, marketable securities, and QSIPs to navigate and benefit from financial systems.

Additional Notes

• The instructor advises students to revisit previous lectures and notes for better comprehension.
• Encouragement for students to open accounts and begin practical applications by the next class.
• Next class will include practical demonstrations on auctions and security trading.