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Old 08-08-2007, 02:14 PM
Shoonra Shoonra is offline
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Join Date: Oct 2005
Location: Maryland
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The mere fact that the govt has titled FRNs with the word "Note" does NOT mean that they are promissory notes or other debt instruments as the UCC uses the word "note". Beery v. County of Los Angeles (1953) 116 Cal.App.2d 290, 253 P2d 1005; Hatfield v. Commissioner of Internal Revenue (1977) 68 Tax Ct. 895.

Courts have held that FRNs actually PAY, not merely "discharge", taxes and other debts. Rene v. Citibank (EDNY 1999) 32 F.Supp.2d 539; Nixon v. Individual Head of Saint Joseph Mortgage Co. (ND Ind 1985) 615 F.Supp 898; US v. Slater (D.Del 1982) 96 FRD 53.
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