HOW THE MONEY SYSTEM WORKS
Would you like learn your legal
rights regarding your perceived credit card, auto and mortgage loans? If you
don’t know your rights, then you don’t have any! You can eliminate all of these
debts legally this year! You don’t believe this? Then I suggest you learn how
the money system really works and how it affects you.
To give you a clear picture of how
the Credit card and Federal Reserve System works and affects your life, lets
start at the beginning with a simple illustration. Let's say Capital One, or
some other credit card company sends you an application offering you a credit
card with a $5,000 limit. All you have to do is fill out the application, sign
your name, and send it in. A couple weeks later you receive your credit card,
call the toll free number to activate your card, and now you have an extra
$5,000 spending money that you didn't have before.
Let's stop here a moment. Where do
you think that the credit card companies or the banks come up with the money to
back-up your credit card you just received? Well, 99% of the people you ask this
question to would say that the bank or the credit card company is using its own
money to back the credit card. This is in fact far from the truth. So, who backs
the money? As unbelievable as it may sound, it is you who
backs the money.
Confused? Let me explain. The moment
that you signed the application to receive your credit card, your signature
became the value of that $5,000. In other words, under the federal banking laws,
the piece of paper that you signed has now BECOME A COMMERCIAL PAPER
INSTRUMENT that has been monetized because of your signature. It is a
promissory note stating that you will pay up to $5,000. That piece of
paper is now worth the same amount as if you have $5,000 in cash money in your
hands. When the bank or credit card company receives your signed application,
under federal banking laws, they are allowed to add $5,000 worth of assets into
their bank account because your signed application that you just gave to them is
At this point there is no real
money that has changed hands, just a piece of paper they keep locked up
somewhere, stating that you will pay up to $5,000 in the future. (Just as the
Federal Reserve Notes in your wallet are promissory notes that
promise to pay in the future when you have gold the promised obligation of
whatever is on that particular FR note.)
So, the $5,000 the bank entered into
its bank account does not really exist yet, until you pay the bank. They
have just created money out of thin air and entered it into the bank’s
account. So let's take it a step further. Let's say you go to Wal-Mart and buy
$100 dollars worth of clothes. You use your credit card. Wal-Mart gets $100
transferred to its bank account electronically from your bank. Wal-Mart just got
paid so they're happy. You go home with your clothes, you're happy. Is the bank
happy? The bank is very, very happy. Why? First, the bank got to enter $5,000
into the bank’s account because you signed a piece of paper that said you would
pay them $5,000 in the future.
There is no gold or silver or
anything backing up this money the bank entered into its bank account! It is
money created out of thin air. They just credited Wal-Mart $100. Now
the bank has $4,900 left in its bank account thanks to you. Has the bank spent
any of its own money yet? No! Then on top of that, the bank sends you a notice
stating that you owe them $100 for your purchases at Wal-Mart and charge you
anywhere from an extra 4% to 21% for using the credit card. In essence, you gave
the bank $5,000 to put into its own bank account. The bank takes the $5,000 you
gave them and pay out whatever purchases you make on your credit card, then turn
around and charge you interest on it.
I don't know about you, but if I
were a bank I would be very happy with this type of return. It would be the same
as if you gave your friend $100 of your money to hold on to and then to use to
pay for your bills. You buy $25 worth of flowers at AAA flower shop and tell
them to bill your friend who has your money.
Your friend receives the bill from
AAA flower shop and sends them $25.00. He then in turn sends you a bill for the
$25.00 he paid out and charges you a $2.00 surcharge on the transaction. This
doesn't sound quite fair does it? It isn't! In fact it is illegal,
yet the banks and credit card companies do this on a regular basis paying small
fines and reap big rewards.
The major laws the credit card
companies and banks are breaking are Usury Law and Contract Law. Usury Law
states that no interest can be charged for a loan that never
existed. The credit card companies never gave you a loan.
If you think they did ask yourself this question: Did your credit card company
ever send you money for the amount of your credit card limit along with your
credit card when you first received your card? Most likely not! Another
law they are breaking is Contract Law. This is a very powerful law that
applies in the US, Canada, and just about every country. Contract Law states
that when you sign an agreement or a contract, you must be given full
disclosure of the transaction, yet the credit card company or
bank never told you how they were going to fund your credit card, did they?
Because the bank or credit card company never gives you honest full
disclosure, under the law of contracts, the contract is null and
void because you were mislead. You assumed that the lender was loaning
you the money when in fact that is not true. It was in essence you who
funded the “loan” with your signature on the promissory note. The
bank only acts as a vehicle to make that happen for you. The lender never lends
Not only do the banks use your
promissory note to fund your credit cards, auto loans, mortgage
loans and any other loan you might receive, the lending institutions can
also use your promissory note to create 9 times the amount of money they receive
to make loans up to the limit of your credit card. So for a $5,000 credit card,
the banks are allowed to create $45,000, out of thin air, to use
as they wish. This is called Fractional Reserve Banking.
For more information, go to any search engine and plug in “Modern
Money Mechanics” by the Federal Reserve, which is a book that
explains how money works.
Just thinking about it can make your
stomach churn. The Federal Reserve System is creating money out of thin air,
called fiat money, and this “elastic” Fiat Money has nothing of value to back it
up except signed pieces of paper. (Our Constitution requires gold or silver to
back up our money, so the current money system is un constitutional at best, and
deceptive and fraudulent at worst!)
This all started back in 1914 with
the creation of the Federal Reserve Act, creating a system that is neither
Federal nor does it have any reserves. The Federal Reserve Corporation is not
owned by or part of the federal government, but is a private for profit
corporation owned by 13 wealthy international banking families, and it is
interesting to note that 80% of those families are not even US citizens nor do
they reside in the United States.
If you would like to learn how the
banking system really works, I would like to encourage you to read a book by G.
Edward Griffin called “The Creature From Jekyll Island”, the story about how the
Federal Reserve system was founded on fraud and deceit, who is behind it, who
benefits from this partnership between the Federal Reserve
Corporation and the United States Government and why the government allows the
partnership between the government and the Fed to continue, even thought it is
an unconstitutional system that is bankrupting the United States. Most of the
increasing national debt is owed to this system! President John Kennedy
understood this and wanted to eliminate the Federal Reserve System. Could this
be one reason he was killed?
Here is the audio version from:
Creature from Jekyll
(requires Real Audio player -
Understanding the Federal Reserve
Money system, the commercial paper process, and the above information can help
you to legally discharge not only your perceived credit card debts, but your
auto loan and mortgage debts as well. For further information, I invite your
ADDITIONAL INFORMATION ON THE
Reserve System is in partnership with the United States Corporation. Why? How
does each corporation benefit? How does this partnership help or hurt America.
Let’s take an additional look at this for profit Private Corporation known as
the Federal Reserve System:
One type of bank
asset is the "deposit" which actually consists of the check you just transferred
to your account. It was a loan, an IOU from the bank. Banks will count the small
amount of vault cash on hand as a type of asset, also. But most of the bank's
"assets" are all the promises to pay, in other words, it’s the banks loans that
are considered to be its assets.
Thus, both the
banks assets and its liabilities are virtually all on paper. And, this being the
case, the expression from the book Modern Money Mechanics, published by the
Federal Reserve Bank of Chicago, that "deposits are merely book entries" is now
easier to understand. It is suggested all Americans read the books “Modern
Money Mechanics” by the Federal Reserve and “The Creature From Jekyll Island,”
by G. Edward Griffin, to really learn how the system works and how it impacts
your life and the stability and future of your country.
Now, it is also
easier to understand what the electronic transfer of money is all about. All
this amounts to is a transfer of numbers, or book entries, from
one bank account to another. The same
thing happens when you write a check. Numbers called dollars are transferred as
a bookkeeping entry from your checking account to someone else. When a credit
card is used, bank credit or book entries are created and transferred to another
Hence, our money
system can be described as a "debt usury" money system. For every dollar of
credit that comes into existence, a debt is created to the banks and interest
(usury) is charged. Under our present money system, the Federal Government will
never be able to balance its budget, and the national debt will continue to grow
by leaps and bounds. However, every bank loan made in the United States today is
also completely illegal, as all bank loans are based on credit instead of
View below a copy of:
Affidavit_of_WalkerTodd_Aff_1_20_041 (you must have Microsoft Word)
The words "ultra
vires" are important words. They mean that "a contract made by a corporation
beyond the scope of its corporate powers is “unlawful." (See Blacks Law
Dictionary .) The courts have consistently ruled that banks cannot lend their
credit, but can only lend their money, and that all loans of credit are ultra
Because no bank
or credit card company charter (all of which are Corporations) gives them
permission to lend credit, and Congress never
Authorized the banks to create money,
all such loans of credit are ultra vires, or unlawful. By lending credit they
have unjustly enriched themselves. They pay no interest for the use of the
credit, but charge their customers the same amount of interest as if they had
lent out their own money.
DECEPTION AND FRAUD. THE COLLECTION OF
INTEREST ON CREDIT IS IN VIOLATION OF ALL USURY LAWS.
After all, they are collecting interest on
money which does not exist. It is little wonder that as more Americans are
beginning to understand this issue they are suing banks on fraud and usury
charges and winning!
Now that you
have been informed concerning what the United States Supreme Court has said, and
the Fraud the banks are committing, you have a decision to make. Do you want to
keep supporting this
If your answer is
than we can help you! Our Debt Elimination Program can be used to eliminate any
kind of unsecured debt where credit was extended such as credit cards. (It is
also possible to do the same with secured debt!)
DECISION IS YOURS!
Remember this is
of all unsecured debt,
We then can help cleanup your credit rating to an A+ status, if the Creditors
place a negative mark on your report.
This is an
instant pay raise, stop making all credit card payments. The whole elimination
process takes approximately 3 months to totally resolve all of your unsecured
debts. You will be working directly with experts to get this whole process
completed and we give you a valuable education at the same time. Now is the time
to educate yourself about the
and stop being a part of it.
services use U.S. Supreme Courts decisions, Title 15 United States Code (USC)
section 1692, the Fair Debt Collections Practices Act, section 1601, the Fair
Credit Billing Act, the Uniform Commercial Code (UCC), section 203, and numerous
Banking and Lending laws.
There are many
cases that have already been decided when it comes to the issues of "money,"
"credit," and "banking." The collection of interest on credit issued by a bank
or a credit card company is in direct violation of all usury laws! The laws are
very specific concerning the corporate authority of banks and credit
CANNOT LAWFULLY ISSUE CREDIT!
When you tell them you discovered their
THEY HAVE TO LISTEN AND RESPOND!
It is your
to have them certify a lawful debt exists.
When you entered
into a loan or credit contract, you signed a note or contract promising to pay
them back, and you agreed to provide collateral that could be seized if you did
not repay the loan. This contract supposedly qualified you to receive the money
But did they
provide 'full disclosure' of all of the terms of this agreement? Answer the
following questions and decide for yourself if the bank or credit card company
was acting in 'good faith,' that you received 'valuable consideration,' and that
your 'signature' on that agreement is valid.
Were you told
that the Federal Reserve Policies and Procedures and the Generally Accepted
Accounting Principles (GAAP) requirements imposed upon all Federally insured
(FDIC) banks in Title 12 of the United States Code, section 1831 , prohibit them
from lending their own money from their own assets, or from other depositors?
Did anyone tell you where the money was coming from?
Were you told
that the contract you signed (your promissory note) was going to be converted
into a "negotiable instrument" by the bank or credit card company and become an
asset on their accounting books?
Did they tell
you that your signature on that note made it "money," according to the Uniform
Commercial Code (UCC), sections 1-201(24) and 3-104?
Were you told
that your promissory note (money) would be taken, recorded as an asset, and be
sold for cash - without "valuable consideration" given to obtain your note?
Did they give
you a deposit slip as a receipt for the money you gave them, just as a bank
would normally provide when you make a deposit to the bank?
U.S. SUPREME COURT,
BANKING LAWS & FRAUD
bank.. cannot lend its credit to another by becoming surety, endorser, or
guarantor for him, such an act being ultra vires.."
v. Baird 160 F. 642
There are many
more cases to prove that banks are participating in deceptive banking practices,
which is why we request a "zero balance due" statement. Many banking and credit
institutions are happy to comply because Fraud is a criminal offense.
WHAT IS CREDIT?
Credit is the
opposite of money. Money, which is legal tender for the payment of debts, is
defined by Congress in 31 USCA Sec 392. This section basically describes all
coins and currency issued by the United States Government as legal tender for
all debts, public and private.
For purposes of
this article, we will call money either coins or currency. Also, no effort will
be made to argue that Federal Reserve notes are
unconstitutional. That is beyond the
scope of this article.
Now, if you went
to a motorcycle dealer to buy a new Harley Davidson with no money down, you
would say that "your credit is good." What exactly does that mean? It means that
your promise to pay money is good. In other words, they trust you. You sign a
loan agreement to pay the motorcycle dealer a certain sum of money with
interest, and you also sign a security agreement in which you pledge the
motorcycle as collateral for the security agreement.
motorcycle dealer has accepted your credit, or promise pay a sum of money, in
exchange for the motorcycle. Consider how different a bank loan is. When you
apply for a bank loan, you sign a loan agreement pledging to pay the bank so
many dollars, with interest. When the bank accepts your promise to pay in
exchange for a loan, it means your credit is good. However, the next question is
the most interesting. What does the bank lend you?
The bank will
invariably give you a check, which is a promise to pay you so many dollars. In
effect, what you and the bank have done is exchange a promise to pay. In other
words, you have accepted each others credit, yet no money has exchanged hands!
Now what do you do with the check?
Probably one of
two things: either you deposit it into your checking account, or you take it to
a merchant for instance, a car dealer. In either case, the check, when deposited
goes directly to the bookkeeping department where the numbers are transferred
from the check and are added to your account as a bookkeeping entry. Once this
entry is made a bank will say that its deposits have increased.
How can a
transfer of numbers increase the deposits?
increase is all on the books as there is no increase in the actual amount of
money in the bank's vault. All of these bookkeeping entry deposits are called
"demand deposits," which means that the customer can literally walk into the
bank and demand the deposit. These figures are placed into the banks liabilities
column as money, which the bank owes people.
It is a great
system for the international bankers that own the Federal Reserve System. Not
so great for you or your country. The system is bankrupting America. We have a
national debt that grows exponentially each year and can never mathematically be
paid off! To learn more, we invite your inquiry.
We Thought We Were Getting A Loan!
Dear fellow Americans,
I’ve recovered my composure, but I’m still dazed. A
friend called me to ask if my wife and I had a conventional mortgage and if we
did, did we realize that we were being badly misled? That’s a serious charge and
I didn’t understand, so he explained that our lender used the promissory note we
signed at closing to pay off the former property owner, never loaned us money
out of his own pocket, did not tell us, and still requires monthly payments!
But, I protested, how can he do that? We’ve paid
more than $140,000 so far, keeping our agreement at the risk of default and
foreclosure. And wasn’t he taking a big risk with us for 30 years by lending us
the purchase price of our home? No, he wasn’t, isn’t, and never will be.
Little did I know that the lender deposited our
note in his account just like cash, and listed it as a new asset. He then
“bought” money from the Federal Reserve with this “asset”, expanded that money
anywhere from 2-9 times, used some of the money to pay off the previous property
owner, and kept the rest. He never loaned us a dime! In fact, we loaned him
money and he literally carries our promissory note on his books as a liability,
just as if we had deposited cash in his account that he would then be obliged to
give back to us if we demanded it. We literally paid for our house on the spot
with that promissory note, but we’re paying again, over 30 years, for the same
house! This is crazy, I said! I thought we were getting a loan.
In fact it was an exchange.
Value for value. Our note for the house.
No loan that
passes the “sniff test” was made to us at any time.
In an honest loan agreement, the lender’s supply of
money would shrink by the amount that he loaned us. He’d be earning his profit
(interest) by risking money that was really his. In our case, the lender’s pool
of money exploded when he took advantage of his status as a Federal Reserve
lender and created money out of thin air with our note. If a private lender
tried this, it’d be counterfeiting and he’d end up in the slammer.
It’s called fractional reserve banking and all lenders who are part of the
Federal Reserve System do the same thing. Only they don’t tell you what they do
with your note, and that’s dishonest. Why? Because by law, if the actions of
either party to an agreement significantly alter the cost or risk as originally
represented, he is obligated to inform the other party. Lenders NEVER tell
“borrowers” that their promissory notes are instant cash cows, that they use
your note to fund your own loan, or that they incur little risk. But you still
pay a second time, month after month, year after year for something you’ve
already paid for with that note
The lender is NOT telling you that:
• He’s funding the purchase of the property with
your promissory note and that no money comes out of his pocket to do that.
• He does not incur nearly the risk he says he does.
• Your note is a negotiable instrument, redeemable in cash for up to nine times
the face value of your note, exponentially increasing his profit potential.
And if you understood what your lender did with
your note and you had a law dictionary, you’d realize what your Deed of Trust or
Mortgage really says, which is that,
• You enter the Deed of Trust or Mortgage agreement
after signing the Promissory Note as the sole owner of that “Fee Simple”
property, paid for in full by your signature on the note, and then you sign it
away as collateral for the privilege of paying again, paying this “trickster”
principal and interest for the next 30 years.
Whereas, silly us,
• We thought we were taking out a loan.
• We had to qualify for the loan, establish
ourselves as a worthy risk.
• We had
to jump through hoops to provide all the documentation – tax statements, banking
references, income statements, cash balances, investments, other “loans”.
• We felt so grateful
to the lender for making it possible for us to have a home.
• We sweated the
possibility of foreclosure, loss of our home and our credit rating.
• We’ve made every payment on time.
Have we kept our side of the bargain? You bet we
have. I even feel like we should keep paying because I’m old fashioned and my
granddaddy told me you don’t get something for nothing. Well, did we get
something for nothing? No, but the lender did! Were we tricked? Yes we were.
The lender created the money to purchase our home
from the previous owner out of thin air with our promissory note, expanded it up
to nine times, invested this free money to get free interest, never paid taxes
on this extra money he created, then held hostage the title to our home that he
didn’t pay for while he began collecting 2 ˝ times the original purchase price
from us one month at a time for 30 years!
We gave that lender enormous value, value far
exceeding the purchase price of the home we live in. But, like millions of other
homeowners, we couldn’t see behind the curtain that was drawn when we handed
over the promissory note. We didn’t know how banking works. We didn’t understand
what constitutes value in our system these days, and the lender never told us.
Why would he? If he had, we’d have demanded a darn good reason why we were going
to have to pay him more than $500,000 over 30 years, for a house that we had
already paid for, not to mention the liberties he took with our note by
expanding its value without our permission.
What can be
doing something about it, and you can too.
You can submit your loan to a professional company
that has proven that it can “persuade” lenders to re-convey deeds of ownership
to homeowners free and clear through a proprietary non-judicial process. No more
mortgage payments ever again in as little as 5 months. And why are these lenders
quietly settling? Because they know we know what’s really going on and because
even if they lose our monthly payments, they still have all that money to play
with that they created out of thin air.
I’ve decided to help others, because now that I
know the truth, I can’t sit still. If you have a conventional (not private) loan
on commercial or residential property secured by a deed, you’re current with
your payments, and you accept our premise that what’s going on is wrong and can
be remedied, there’s a good chance you can be helped. Remember, when you sign
the promissory note, as we all have, it becomes a negotiable instrument, good as
cash to the bank, so you fund your own loan. And you thought they were lending
This true personal account accurately reflects the
experience of many people who finally understand the truth about mortgages.
Think this over and if you have questions, please call us at 888-879-5172,
or go to
www.ba-group.com and get in touch with us immediately.
We are looking forward to hearing from you soon.
P.S. Tell your friends. They’ll thank you forever.
P.P.S. Now that you know the truth, can you keep writing that monthly check?
New members ask about the tax and estate planning tools and
strategies available to them and they seek ideas that can
help them to legally reduce or avoid taxation, better their
financial privacy, and protect their personal and business
assets. One of the benefits of your membership in The Geneva
Institute is the state of the art planning strategies available
to you. As an example, one of the tools that we share with
our members is the knowledge of the Corporation Sole as a
means of organizing and managing their financial affairs.
We believe that you will find this information very interesting
as well as beneficial.
If you decide that the corporation sole is appropriate for
your needs, we will assist you with the composition and filing
of the documents. For more details on how to proceed, please
click our e-mail link at the bottom of this page. We look
forward to being of service to you.
The man who follows the crowd will usually get no further
than the crowd.
The man who walks alone, however, is likely to discover places
that few have ever been before.
In order to survive and prosper in today's economy and our
overly litigatious system, we must all learn to think outside
of the box. While the corporation sole is not a new kid on
the block in terms of strategies by which prudent moderns
protect their privacy and assets, it remains one of the best
- if not THE BEST - method by which to accomplish those goals.
Few have heard of the corporation sole as it has been one
of the best-kept secrets of the wealthy and powerful for over
500 years. But, now the opportunity is available to you.
A properly written and filed corporation sole can provide:
· Private and Personal control of all assets
· Simplified processes of asset management
· Protection from lawsuits and judgments
· Avoidance of probate, death and estate taxes
· Reduction or elimination of income taxes
· Protection from IRS seizure of assets or bank accounts
· Privacy of records and simplicity of record-keeping
· Recognition of status in all states and English-speaking
· Can work with other structures such as LLCs, IBCs,
· Lives in perpetuity
The Corporation Sole can provide all these benefits without
the entrapments and complications of traditional corporations
If you feel that the corporation sole may be of benefit to
you and your family, you may wish to read the Overview below.
And, please feel free to contact us if we may be of assistance
An Overview of the Corporation Sole.
What is a corporation sole and is it legal?
Corporations Sole are very real and very legal. They are
used primarily for holding and passing title for property
belonging to a church, religious or philosophical society,
or charitable association. Two examples of well-known Corporations
Sole are the Christian Brothers Winery and The Sierra Club.
The Queen of England and other royalty of Europe, the Pope,
the President of the Mormon Church, as well as many diplomats
and politicians…all use the corporation sole to manage
their affairs. There are many more that most people would
recognize but are not aware of due to the very private nature
of Corporations Sole.
We offer the service of providing a properly written and
filed corporation sole which offers real protection in real
After researching the Corporation Sole for several years,
and having studied the documents written by most of the current
Corporation Sole gurus, it has become apparent that there
is a lack of understanding regarding the true powers of the
Corporation Sole and of the statutes that might regulate it.
The result, in many cases, is that the writer of the sole
paperwork gives away the potential benefits gained by this
unique form of corporation by improper writing and filing
of the paperwork.
People use corporations when they need a means of limiting
liability. Normal corporations are a creation of the state
and begin their existence on the date that the state incorporates
them. Allegiance is owed to the state which created the corporation.
Corporations "live" forever unless limited by their
Articles of Incorporation. Normal corporations have several
offices, a board of directors, stockholders, annual fees,
annual reports, taxes, and operate under many statutory regulations.
People use trusts when they need a means of protecting assets.
Trusts are used when one person "entrusts" another
person with a valuable asset or a right. The asset or right
must be sufficiently identified for title to pass to the trustee
and it must actually pass to the trustee. The asset or right,
therefore, belongs to the trustee and is not returned into
the ownership of the original owner (trustor or designated
beneficiary) until the trust terminates on a stipulated date.
The assets placed in the trust are not liable for claims
made against the trustor or for taxes of the trustor because
the property now belongs to someone else. Trusts are not perpetual
and they are limited by statute to a certain number of years.
There are laws against perpetual trusts in virtually all jurisdictions.
The Corporation Sole provides the best of both worlds!
The Corporation Sole provides the advantages of limited liability
of the regular corporations without the regulation, without
the multiplicity of offices, record keeping and all the other
entrapments of corporations while living in perpetuity and
holds and protects assets, just like a trust, for benefit
of many generations. And the Corporation Sole may engage in
ANY lawful business activities just like any other corporation
or natural person even though the corporation sole is NON-commercial
Being a corporation, the Corporation Sole is by nature a
form of limited liability, tax-excluded, trust. In fact, the
statutes of some states specifically stipulate that assets
held by the Corporation Sole are held in trust for the members
and beneficiaries. And because a properly filed Corporation
Sole exist within a legal null, it is extremely difficult
for a court to establish jurisdiction over and bring action
against the Corporation Sole.
Bookkeeping is as simple as balancing your checkbook!
Unlike corporations aggregate, that is to say, the typical
business corporation, the Corporation Sole conducts its accounting
with simple reckoning of the weights and measures system rather
than the complex Generally Accepted Accounting Principles.
This makes the conduct of the financial affairs of the Corporation
Sole as simple as balancing a checkbook.
The Corporation Sole is tax Immune
Many financial advisors, accountants and attorneys confuse
the Corporation Sole with the traditional charitable or church
organization which is a tax-exempt entity as described at
26USC 501(c)(3). The question is then, if the corporation
sole is not a 501(c)3 "tax exempt" organization,
does it have any tax immunity? We find the answer at 26 USC
section 508(a) which indicates that new organizations must
notify the Secretary that they are applying for recognition
of 501(c)(3) status EXCEPT as provided in subsection (c).
Section 508(c)(1)(A) states: Exceptions - mandatory exceptions
- subsection (a) shall not apply to: (A) Churches, their integrated
auxiliaries, and conventions or associations of churches.."
So, the corporation sole is "mandatorially excepted"
from petitioning for status and from taxation as it is an
integrated auxiliary of the work it oversees. This makes the
corporation sole and its work tax immune.
Do I have to be a "church" to use the corporation
Some erroneously assume that one must be a church or charity
in order to use the corporation sole. While it is true that
is has traditionally been used by churches and charities,
the fact is, if you understand that the Family is, or should
be, the basic unit of philosophical exchange in our society,
then there is precedent in law to allow you to utilize the
Corporation Sole for the protection of family assets in perpetuity
without the trappings of traditional corporations or trusts.
How do I limit my personal tax liability?
One feature that we employ in writing the paperwork of the
Corporation Sole is the Vow of Poverty, which may be taken
by the Overseer (manager) of the Corporation Sole prior to
accepting the powers of the office. The IRS recognizes these
Vows of Poverty and according to IRS Publication 517 the taking
of such a vow by an Overseer of a Corporation Sole renders
the personal earnings of that member the earnings of the Corporation
Sole, thereby achieving complete tax immunity.
There seems to be some misunderstanding regarding the effect
of taking this Vow as most people are so conditioned to thinking
that they must OWN the asset. But consider that when you see
a Catholic Bishop being moved between a cathedral and a golf
course in a limo he is under a vow of poverty. However, he
enjoys FULL CONTROL of that asset, although he doesn't actually
Are the assets held by the Corporation Sole really safe?
The property held in the custody of the Corporation Sole
cannot be taken by a court for satisfaction of personal claims
against the Overseer because the property is held ONLY in
the Overseer's fiduciary capacity. There are several court
cases which are referenced in our other literature on this
subject, in which the Court recognizes the authority and Tax
Excluded status of the Corporation Sole.
In a nutshell, the corporation sole can hold property, assets
and investments so they will be free from lien, levy or seizure,
receive monies, gifts, bequests, loans and all other manner
of valuables without repercussion and control of them may
pass to the family without probate or taxation.
We hope that this information has been helpful in bringing
you to an understanding of what the Corporation Sole is and
how it functions. For those of you who would like to research
the subject further more detailed information regarding the
Corporation Sole is included below.
If we may be of further assistance, please feel free to e-mail
us at email@example.com to schedule a private consultation.
We look forward to being of service to you.
If you would like another professional opinion regarding
the validity and legality of the corporation sole, we invite
you to contact Trioid International Group, Inc. www.trioid.com.
Trioid International Group, Inc. is one of the leading business
formation agencies in Nevada. While they specialize in the
formation of LLC's and traditional corporations, they possess
considerable knowledge of the corporation sole. Our members
utilize the resident agent services of Trioid International
Group, Inc. to file the corporation sole documents with the
Secretary of State of Nevada on their behalf.
*For educational purposes only. All information on this Working
Document is NOT intended as legal advice and is not intended
for distribution. No copies of any type are authorized. All
information contained hereon is deemed proprietary and private
and is protected by Copyright laws.
For those of you who may wish to learn more detailed facts
and law cites regarding the corporation sole, we provide the
What exactly is a Corporation Sole?
Black's Law Dictionary, Sixth Edition, Page 341, Corporations,
Aggregate and Sole
"A corporation sole is one consisting of one person
only, and his (or her) successors in some particular station,
who are incorporated by law in order to give them some legal
capacities and advantages, particularly that of perpetuity,
which in their natural persons they could not have had. In
this sense, the sovereign in England is a sole corporation,
so is a bishop, so are some deans distinct from their several
chapters, and so is every parson and vicar." The earliest
corporations were civil or ecclesiastical, rather than business
or profit. See generally Laski, The Early History of the Corporations
in England, 30 Harvard Law Review 561 (1917); Williston, History
of the Law of Business Corporations Before 1800 (pts. I and
II, 2 Harvard Law Review 109, 149 (1888).
Characteristics of a Corporation Sole, and Distinctions between
a Corporation Sole and a Corporation Aggregate:
A member of a corporation sole is one of a series of persons
succeeding one another in some official position." C.
Carr, The Law of Corporation s 14 (1905 & photo reprint
1984). For example Queen Elizabeth II, as a corporation sole,
is identical to Victoria; the present Archbishop of Canterbury
in his corporate form is one with his predecessors, Laud,
Benson and Lang. The corporation sole, unlike its business
counterpart, is only vertical in time
"There are a few points of corporation law applicable
to a corporation sole," according to Kent. [2J. KENT,
COMMENTARIES 273.] There are however, four legal characteristics
unique to it: All corporations sole are " either public
officers or dignitaries of the (or "an") established
church." In short the corporation sole is the incorporation
of an office. At common law, the corporation sole can claim
title to real property only. Property and powers of a corporation
sole are transferred on the death of an incumbent to successors
in office, not to heirs or through executors.
The corporation sole lacks the usual trappings of a corporation.
It does not have a board of directors, officers, stock, by-laws,
official minutes, or standard corporate name. The older corporations
sole are also devoid of a royal charter or other formal authorization,
characteristics that may be required of later corporations.
[Since state acknowledgment later became an alleged requirement,
or at least a state policy, a theory had to be developed to
justify the corporation sole existence of the ancient churches.
One such theory (not law) was based on the fiction that some
earlier king had issued a charter which was subsequently lost,
or at least the crown had no objection to continuing a corporate
existence. [See Williston, History of the Law of Business
Corporations Before 1800 (pts. I & II), 2 Harvard Law
Review 105 at 113-114.]
The landmark case in Corporation Sole law
In the Massachusetts case of The Overseers of the Poor of
the City of Boston v. David Sears 39 Mass (2Pick) 122 at 128
(1839) the Massachusetts Supreme Court there described some
of the distinguishing aspects between a corporation sole and
corporation aggregate as follows:". . .In all these aspects,
the distinction between an aggregate and sole corporation,
growing out of the different modes of constitution and forms
of action, is striking and obvious. A bishop or parsons (or
Overseer) acting in a corporate capacity and holding property
to him and his successor in right of office, has no need of
a corporate name, he requires no particular, he performs all
legal acts under his own seal, In his own name and name of
office; his own will alone regulates his acts and he has no
occasion for a secretary, for he need not keep a record of
his acts, need no treasurer, for he has no personal property
except the rents and proceeds of the corporate estate, and
these he takes to his own use when received. By-laws are unnecessary,
for he regulates his own action, by his own will and judgment,
like any other individual acting in his own right. But it
is not necessary to pursue the comparison into all its details;
the points suggested are sufficient to show the legal distinctions
between the two classes of corporations." (It can be
seen here that the corporation sole can definitely simplify
one's business affairs!)
The Overseers case was decided in 1839. In a more recent
decision in 1983, the California Second Appellate District
decided County of San Luis Obispo v. Delmar Ashurst 146 Cal..
App.3d 380, 194 Cal. Rptr. 5 (1983) wherein it insightfully
stated: ". . .The issue as defined by the trial court,
"is whether the assets of its corporation sole are the
personal assets of its titular head, and thus subject to execution
for his or her debts." The answer on the basis of legal
authorities defining the corporation sole and its attributes
must be, as the trial court concluded, an unequivocal "no".
The corporation sole is about 500 years old, and is well
established under common law in California. (Santillan v.
Moses (1850) 1 Cal. 92; Archbishop v. Shipman (1889) 79 Cal.
283. California by statute has legitimized this tradition
and regulates the formalities attendant upon the creation
and continued existence of the corporation sole (Corp. Code
Section 10000 et seq.) One principal purpose of the corporation
sole is to insure the continuation of ownership (sic) [quiet
possession given by GOD under Abrahamic Covenant] dedicated
to the benefit of a religious organization which may be held
in the name of the titular head (sic) [The Office]. Title
[quiet possession by inheritance from GOD] will not then be
divested or passed to that person's heirs upon the death but
will be retained for the benefit of the religious group and
passed to the successors to his office.
The Vatican gave formal approval to the corporation sole
as one of the approved methods of holding title to church
property in a private letter sent to the American bishops
in 1911. For the text, see 2 T. BOUSCAREN, CANON LAW DIGEST
443 (1966) A. MAIDA & N. CAFARDL, CHURCH FINANCES AND
CHURCH RELATED CORPORATIONS 129 (1986)
More Examples of the Modern Use of a Corporation Sole, and
Recognition by Legislatures and Courts of the United States
The office of bishop in most dioceses in the U.S. is a corporation
sole. 4 New Catholic Encyclopedia, Corporation 337 (1967).
A current review as of 1988 reveals approximately one-third
of the diocesan bishops are corporations sole. The remainder
of the dioceses have small boards, usually appointed by the
bishop. See Maitland, The Corporation Sole, 16 Law Quarterly
Review 335 (1900), reprinted in F. Maitland, Selected Essays
73 (1936). There is however a biography entitled Corporation
Sole, a life of Cardinal Mundelein, See E. Kantowicz, The
Corporation Sole (1983).
The Office of the President of the Church of Jesus Christ
of Latter Day Saints is a corporation sole.
The Governor of Tennessee is regarded as a corporation sole.
Polk v. Plummer, 21 Tenn. (2 Hum.) 500 (1841); Governor v.
Allen, 27 Tenn. (8 Hum.) 176 (1847).
Probate judges have been accorded the status of a corporation
sole [Overseers of the Poor v. Sears, 39 Mass. (22 Pick.)
122, 126 (1839)., and in some cases town supervisors [Jansen
v. Ostrander 1 Cow. 670, 683 (N.Y. Sup. Ct. 1824)]. Under
the Governor General & rsquos Act of Canada at Chapter
G-9, Part 1, para. 2 it reads: "The Governor General
of Canada or other chief executive officer or administrator
carrying on the Government of Canada on behalf and in the
name of the Sovereign, by whatever title designated, is a
The Office of the Pope of the Roman Catholic Church is a
Most English speaking countries with a form of government
based on common or canon law (including the United States,
Canada, Latin America, and Caribbean Islands) recognize corporation
sole in two significant ways. In the first instance, states
acknowledge the office as prior existing, provided the articles
of incorporation are drafted so as to provide the pre-article
history of the office. In the second instance, states recognize
a newly created corporation sole by the simple filing of articles
of incorporation. In this latter instance, the articles do
not reference any pre-incorporation history of the office,
as indeed none exists.
In statutory form encompassing both types of corporations
sole seventeen states in the United States of America recognize
the corporation sole. They are: Alabama Code Section 10-4-1
to 9 (1975); Alaska Stat. Section 10.40.060 (1985);r Arizona
Revised Stat. Ann. Section 10-421 to 428 (1977); California
Corp. Code Sections 10000 to 10015 (West 1977); Colorado Rev.
Stat. 7-52-101 to 104; Hawaii Rev. Stat. Section 419-1to9;
Idaho Code Section 30-304; Michigan Comp. Laws Ann. Section
458. 1-2, 458.271-273 (West 1983); Montana Code Ann. 35-3-101
to 209 (1985); Nevada Rev. Stat. Section 84.010-080 (1985);
New Hampshire Rev. Stat. Ann. Section 306.6-8 (1984); North
Carolina Gen. Stat. Section 615 (1982); Oregon Rev. Stat.
Section 61.055 (1)-(3) (1983); South Carolina Code Ann. Section
33-31-140 (Law Co-op 1978); Utah Code Ann. Section 16-7-1
to 12 (1973); Washington Rev. Code ann. Section 24.12.010-040
(1969); Wyoming Stat. Section 17-8-109 to 113 (1977).
At least nine other states or jurisdictions have at least
one corporation sole created under special or private charter,
sometimes dating to before the time of the passage of a general
incorporation statute. They are the District of Columbia,
Illinois, Kentucky, Maine, \par Maryland, Massachusetts, Nebraska,
Rhode Island, and Texas. No authoritative listing has been
found listing the states which have corporations sole under
private law or special incorporation. The foregoing nine jurisdictions
were drawn from cases citing a corporation sole in a judicial
opinion, from the examination of sessions law, and from a
listing of corporate names of dioceses in the 1987 Official
Catholic Directory. Florida does not recognize Corporation
Sole. Neither does New York or New Jersey.
In Terret v. Taylor 13 U.S. (9Cranch) 43, 46 (1815), Town
of Pawlett v. Clark 13 U.S. (9 Cranch) 292 (1815), W. Trinidad
v. Sagrade Orden de Predicadores 263 U.S. 458 (1924) where
the Court states at page 460: \par ". . .The plaintiff
being a corporation sole, has no stockholders. It is the legal
representative of an ancient religious order the members of
which have among other vows, that of poverty." The existence
of a corporation sole is also analyzed by the Supreme Court
in deciding the exempt tax status in Northwestern University
v. People 99 U.S. 387 (1878).
Federal and State Tax Immunity
Finally, in determining the question of federal and state
tax excepted [distinguished from exempt] status of a hospital
and infirmary operated by the office of the corporation sole
called: "Sisters of Charity of the Incarnate Word",
the Texas appellate court discussed the exception status under
federal internal revenue statutes as follows: ". . .Under
a federal internal revenue statute, 4 Fed Stat. Ann (2d ed.)
Pp. 245-252; 38 Stat. At Large, chap. 16, pp. 172-180, exempting
the income of corporations sole organized and operated exclusively
for religious, charitable, scientific, or educational purposes,
no part of the net income of which inures to the benefit of
any private stockholder or individual."
It has just recently been held by the United States in the
case of Trinidad v. Sagrada Orden de Predicadores, 44 Sup.
Ct. 204, 68 L. Ed. 223, that a corporation sole, of an ancient
religious order of similar character to the one here under
consideration, does not forfeit its exemption by reason of
incidental earnings and profits arising from its general charitable
operations, where none of its members share in the profits."
Santa Rosa Infirmary v. City of San Antonio (Tex. Com. App.
1925) 259 S.W. 926 at 934.
Because we file documents in Nevada, which has no state income
tax, the Corporation Sole has no tax challenges. And the State
of Nevada has no tax treaty with the federal United States
and therefore provides no information regarding the corporation
sole or its activities to that jurisdiction.
Q: Is One Jurisdiction Favored Over Any Other As a State
or Country where The Corporation Sole Might be Recorded?
A: After reviewing all of the corporation sole statutes and
case law available on this subject, Nevada is our choice for
filing due to the very strict nature of its privacy laws and
lack of state income tax.
Q: Do Other Jurisdictions Recognize The Corporation Sole?
A: The doctrine of comity involves the recognition by all
states of that which one state allows. In general, the principle
of comity is that the courts of one state or jurisdiction
will give effect to the laws and judicial decisions of another
state or jurisdiction, not as a matter of obligation, but
out of deference and mutual respect. Brown v. Babbit Ford,
Inc. 117 Ariz. 192, 571. P.2d 689, 685.
Q: If I hire a Lawyer or Accountant, Will He or She Understand
the Corporation Sole?
A: In some instances yes, in most cases no. The corporation
sole is not taught in modern law school classes, despite the
fact that it is found in statute. Unless the lawyer has had
extensive experience with ecclesiastical or canon law, or
other ecclesiastical bodies using the corporation sole, and
is well versed and learned in corporation sole, the chances
are the lawyer, accountant, or advisor, will be entirely unfamiliar
with the corporation sole.
At best, the lawyer, accountant, or advisors unfamiliarity,
or limited knowledge, with the corporation sole will probably
cause him or her to confuse it with a 501(c)(3) "non
profit" or "not for profit" corporation. IT
MUST BE EMPHASIZED THE CORPORATION SOLE IS DIFFERENT FROM
a typical "non-profit" or "not-for-profit"
corporation with or without at 26 U.S.C.S. 501 (c)(3) status
IN ALMOST EVERY CONCEIVABLE WAY and is found at section 508(c)(1)A
of the Code.
Congratulations for having made it this far! You are now
far more knowledgeable about the Corporation Sole than 99%
of the people on the street - including attorneys. The information
that you now have is very unique and is very guarded by those
in the know. The power of the Corporation Sole has remained
one of the best-kept secrets of the wealthy and powerful for
over 500 years. If you choose to request assistance from us
in establishing a corporation sole, you will be required to
sign a Non-Disclosure statement. This will help assure that
this information remains Private and Proprietary to The Geneva
What's the next step?
You're probably wondering, "what is the next step?".
You may wish to contact the member who referred you to this
website or you may e-mail us directly via the e-mail link
below. We understand that you will probably have many more
questions that were not addressed in the information above
and we will be happy to answer them for you.
If you decide that the Corporation Sole is appropriate for
you, we will assist you by writing the documents which must
be filed, which include a Mission Statement. Our greatest
service, however, is bringing you to an understanding of your
position as the "Overseer" of the Corporation Sole
and how to effectively use this unique structure in real world
Because The Geneva Institute is Private, we may only assist
our members. If you are not a member of The Geneva Institute,
you may join by a simple request for membership. There are
no dues, no meetings, or any requirements of you except to
have a sincere desire to be a part of creating a better future
for our country and for all American citizens.
We look forward to the opportunity to be of service to you.
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Document is NOT intended as legal advice and is not intended
for distribution. No copies of any type are authorized. All
information contained hereon is deemed Proprietary and Private
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