the "secret" of cpn's????

#1 04-24-2004, 09:15 AM

Everyone here now knows I have an absolute black-hole in my brain re cpn's.

Found something, however, that seems to answer my lingering dilemma, which has been/is/continues to be, this:

A CPN, by definition, is a "promise" to pay. Understood.

Question/dilemma: What happens if/when the other party accepts your "promise" to pay? After all, a "promise to pay" is NOT "payment."

So, here's a bit I found that hints, I think, at "an" answer, if not "the" answer:

http://www.lawguru.com/cgi/bbs/mesg.cgi?i=601684480

Thinking of promissory notes as a method for financing a business is akin to thinking about using a trust deed to buy a house. Sure, a trust deed will be used, but first you need to find a lender that believes you're qualified and is willing to make the loan the trust deed will secure. Your first job is to find the lender who will loan you cash in exchange for your note.

So, is it that the cpn is offered, in good faith, but it's the other party's responsibility to find an entity which will honor it? Lacking that (which isn't my/our problem, right?), one then continues with "Look, I tried to pay the thing, etc."

Thanks.

Okay. Off to Appomatox...Time to get Madison her own copy of Constitution, Bill of Rights, and other historical stuff.....

Randy

Jerseee · #2 04-24-2004, 09:50 AM

Your answer is in HJR 192.

#3 04-24-2004, 03:28 PM

as jerseee said...

your exemption is what finances the cpn.

also, what is an FRN?& (rhetorical question)

jon

wirlwind · #4 04-24-2004, 05:32 PM

Randy,

The way I understand it is the CPN is with conditions- that they provide verification and prove your liability-and then you will pay.&It is a good faith payment.& When they prove you owe it you will pay.&(And we are banking on the fact that they can't do that)&You have not refused to pay.& The way that I understand it is they then have something to put on the asset side of their "ledgers", and can discharge the debt as paid.& The money is not the issue.& It's what appears on paper.& Now&I may have that totally wrong, but I think that is the way it works-somehow.& I am just now starting to grasp the concept-I think.& Somebody-Jerseee, Ice, SJ- is that kind of the way it works?& Remember there is no money to pay debts, so according to HJR-192, all debts have to be discharged.& If payment is ever demanded, there is nothing to pay it with because FRN's are debt notes, and you cannot pay debt with a debt.

Then if they refuse the CPN, then the debt is voided because of refusal to accept payment.& And you haver remained in honor and haven't argued with them.& (Whew!& Did I get that right Jerseee?)

But wait for validation of everything I just said from some of the ones that really know this stuff!& If what I've said is wrong maybe SuiJuris can delete this so it doesn't confuse anyone.

Oh, I am so confused!

Donna

Jerseee · #5 04-24-2004, 10:48 PM

Donna,

You done good. That is it.

The only thing that gives FRNs the power that they have is because they are accepted. Imagine if no one accepted FRNs.

I was in Turkey one day and I went to a cafe that sat on the edge of the Med. In Turkey, one dollar (FRN) goes a really long way. So with this thinking, I ordered lots of food and drink. When it came time to pay the bill, I gave them 10 dollars (FRNs) and they refused it. They wanted to be paid in their form of currency which is Lira. Although the FRNs were worth more they didn't want FRNs in their economy. I had to exchange dollars with one of the other patrons.

Imagine if that happens in our country! Folks start to demand gold and silver.

wirlwind · #6 04-24-2004, 11:27 PM

I'm awfully afraid that that day is a lot closer than we think.& I think the day is coming when the only thing that will have any value will be gold, silver and land.& And I'm awfully afraid an awful lot of people will be totally unprepared.& We will really be at the mercy of the government, and people will find out how well the government won't take care of them.& But this is for a different thread, so I will hush.