Negotiable Instruments: Where Are We Headed? 🤔 — Summary
In this video, the host—a legal/financial educator—explains how to use negotiable instruments to pay bills and previews new tools, including a promissory-note template and a federal case.
The "Problem": Paying Bills with Drafts and Notes
- Only two instruments exist under UCC 3-104: notes (unconditional promises) and drafts (unconditional orders). A bill is a draft; receiving it makes you holder/person entitled to enforce.
- You can pay a draft with other drafts or notes. Credit cards create new notes; checks are drafts with Article 4/state-division rules. Use state commercial code, not "UCC."
The 4 Avenues of Payment
- Traditional: Pay with Federal Reserve notes, checks, or credit-card-generated notes.
- Endorse and return: Endorse the original bill and tender it back under 3-603. Technically valid, but courts avoid it.
- Issue a new note: Create a fresh promissory note as maker/issuer and tender it.
- Force the drawer to pay: If unpaid for 30 days, the bill is dishonored; the original drawer becomes liable. The holder sends notice of dishonor, a copy of the draft marked "non-negotiable" (3-104(d)), and a cover letter citing 3-414, threatening suit if unpaid.
The Promissory Note Template
- It replaces "BOE generators" and bad templates. Users print, sign, and issue a new note from scratch.
- It states purpose, "relativity points," and the cause of action if dishonored/not applied. A medallion stamp guarantee will be covered.
- The host says this solves the credit-card minimum-payment problem: a new note can be issued for the full amount of the month's charges.
Sole Proprietorship & Constitutional Angle
- The sole prop keeps state citizens from violating Article I, Section 10 (only gold/silver coin is tender). Signing for it gives exemption from liability.
Call to Action
- Watch for City of Glendale Round 5 federal complaint, usable as a template in any district court, with a final-page flowchart.
- Expect the promissory note template and a deeper medallion stamp guarantee video.
Final Takeaway: The host is moving from traditional payment to issuer-based notes and, ultimately, making the original drawer pay dishonored drafts—an experimental strategy.
