45915314 Amicus Curiae NJ R2 Lr2

8/3/2019 45915314 Amicus Curiae NJ R2 Lr2

1/19


2/19

Table!of!Contents!1.!The!Creation!of!the!Mortgage!Note!and!Security!Instrument!

Uniform!

Commercial!

Code!

and!

Recordation!

Requirements!

2.!Tangible!!Personal!Property!versus!Real!Property!Failure!to!Maintain!Continuous!Perfection!

3.!Original!Obligee!(Lender)!Takes!Possession!of!the!Secured!Mortgage!Note!Proper!Parties!

4.!Original!Obligee!(Lender)!Sells!'he!Secured!Mortgage!Note!Obligee!Indorses!Mortgage!Note!to!In!Blank!Indorsee!

5.!Original!Obligee!(Lender)!Sells!an!Unsecured!Mortgage!Note!(MERS!as!Nominee)!MERS!Hides!the!Fraud!

6.!CONFUSION!Hiding!the!Fraud!

7.!Why!the!Investor!Does!Not!Own!the!Mortgage!Note!and!Security!Instrument!The!Mortgage!Note!Does!Not!Identify!the!Subsequent!

Owner!&!Holder!of!the!Mortgage!Note!or!the!Security!Instrument!

8.!The!First!Negotiation!in!Blank!!Or!How!Not!To!

9.!WHY!THE!CHAINS!DO!NOT!MATCH!MERS!


3/19

10.!The!Second!Negotiation!in!Blank!Unidentified!Indorsee!In!Blank!Indorses!In!Blank!Still!Using!the!First!In!Blank!Indorsement"Failure!to!Negotiate!

11.!MERS!and!Transferable!Records!15!USC!7003,!Excludes!Negotiable!Instruments!When!UCC!Governs!

12.!The!Third!and!Fourth!Negotiation!in!Blank!Subsequent!Negotiation!by!an!Unidentified!Subsequent!Indorsee!In!Blank!to!additional!

Subsequent!Purchasers!In!Blank!

13.!Holder,!Owner,!and!Holder!in!Due!Course,!Innocent!Purchaser!!

(A)!One

!can

!be

!the

!holder

!of

!the

!Mortgage

!Note

!and

!not

!be

!the

!owner

!or

!have

!rights

!as

!

! holder!in!due!course.!

! (B)!One!can!be!the!owner!of!the!note!and!not!be!the!holder!or!have!rights!as!holder!in!

! due!course.!

! (C)!!Holder!in!Due!Course!

! (D)!Innocent!Purchaser!

14.!Closing!Statement!!

!

!

!

!

!

!


4/19

.$-$/0$1!234!2565!

7*8*1%0#$!9*:1+!

;:!.,?,&,*84!@$8$1%#!AB:,+>!"%1+!

265!;*:+=!C1*%D!;+1$$+!

'1$8+*84!)$E!F$1&$>!5GH23!

! I$J!K8!'=$!L%++$1!*M!I$&,D$8+,%#!L*1+N%N$!O*1$-#*&:1$!"#$%D,8N!%8D!.*-:/$8+!

K11$N:#%1,+,$&!

7*8*1%0#$!L%1>!9P!F%-*0&*84!"PFP!9=P!!

F%/$&!L-@:,1$!1$&!&:0/,+&!+=,&!Q/,-:&!9:1,%$!R$++$1!+*!%,D!,8!!%?*,D$D!0>!+=$!M,8%8-,%#!&$-+*1P!

Background!! K!1$+,1$D!M1*/!8$%1#>!S5!>$%1&!,8!L$-=%8,-%#!A8N,8$$1,8N!%8D!.$&,N8P!!

Q!K8&+1:/$8+!0$,8N!:&$D!,8!

&$-:1,+,V%+,*8!N*?$18$D!0>!+=$!W8,M*1/!9*//$1-,%#!9*D$!*1!+=$!&+%+$&!$B:,?%#$8-$4!A;K@)!

XA#$-+1*8,-!;,N8%+:1$&!,8!@#*0%#!%8D!)%+,*8%#!9*//$1-$!Q-+4!2555Y4!WA'Q!XW8,M*1/!

A#$-+1*8,-!'1%8&%-+,*8!Q-+4!6ZZZY4!&+%+$!1$-*1D%+,*8!&+%+:+$&!X&!M*1!'$T%&!%8D!%!

N$8$1%#!:8D$1&+%8D,8N!,8!*+=$1!&+%+$&YP!K!=%?$!8*!N1%D:%+$!D$N1$$!,8!$,+=$1!+=$!#$N%#!*1!

M,8%8-,%#!M,$#D!%8D!&:-=!%!D$N1$$!,&!8*+!8$-$&&%1>!*1!1$B:,1$D!+*!-*/


5/19

*+=$1&!1$N%1D,8N!+=,&!&:0]$-+!%1$!E,+=!?$1>!#$%18$D!!K8&+1:/$8+P!!W!K8&+1:/$8+!%8D!0>!*!K8&+1:/$8+!,&!

%:+*/%+,-%##>!%++%-=$D!+*!+=$!L*1+N%N$!)*+$!%8D!+$/!!K8&+1:/$8+!%MM$-+&!+,+#$!+*!I$%#!"1*4!%8D!%&!

&:-=4!+=$!#%E&!*M!#*-%#!]:1,&D,-+,*8!N*?$18!%8D!&:-=!1$B:,1$/$8+!+*!-*/!E,+=!#*-%#!#%E&!

*M!]:1,&D,-+,*8!,&!-*8+%,8$D!E,+=,8!+=$!;$-:1,+>!K8&+1:/$8+!,+&$#MP!'=$!M,#,8N!*M!1$-*1D!&$1?$&!

%!&$-*8D!%8D!D,&+,8-+,?$!


6/19

/$8+!K8+%8N,0#$!,&!+=$!1,N=+!+*!-*##$-+!/*8,$&!M1*/!+=$!XL*1+N%N$!)*+$!

&$-:1$D!0>!+=$!;$-:1,+>!K8&+1:/$8+!%&!-*##%+$1%#YP!'=:&4!+=$!XL*1+N%N$!)*+$!%8D!;$-:1,+>!

K8&+1:/$8+!%&!-*##%+$1%#Y!,&!&$-:1,+>!M*1!+=$!"%>/$8+!K8+%8N,0#$!%8D!,+!,&!+=,&!&$-:1,+>!+=%+!

M*##*E&!+=$!L*1+N%N$!X"%>/$8+!K8+%8N,0#$Y!E=$1$!+=$!L*1+N%N$!,&!+=$!*E8$1!*M!+=$!


7/19


8/19

! A?$8!E,+=!%!8:##,M,$D!;$-:1,+>!K8&+1:/$8+4!,M!%!?%#,D!L*1+N%N$!)*+$!E,+=!%!-*/!M*1!+=$!"%>/$8+!K8+%8N,0#$!M*##*E&!+=$!"%>/$8+!K8+%8N,0#$!E,+=*:+!M,#,8N!*M!1$-*1D,!

%8D!+=$1$M*1$,!+=$!:8D$1#>,8N!L*1+N%N$!)*+$!E*:#D!0$!M*##*E$D!0>!%!?%#,D!-*8+,8:*:&!

!K8&+1:/$8+!,M!+=$1$!E$1$!-*/


9/19

1$-*1D!+=$!8%/$!*M!+=$!&:0&$B:$8+!

0$-*/$!+=$!*E8$1!*M!+=$!8*+$!%8D!=%&!8*+!%-=,$?$D!=*#D$1!,8!D:$!-*:1&$!E,+=!1,N=+&!+*!

$8M*1-$!+=$!L*1+N%N$!)*+$&!+$1/&!*1!+=$!+$1/&!E,+=,8!+=$!;$-:1,+>!K8&+1:/$8+P!

QDD,+,*8%##>4!M%,#:1$!+*!M,#$!*M!1$-*1D!+=$!Q&&,N8/$8+!*M!+=$!;$-:1,+>!K8&+1:/$8+!M%,#&!+*!

+1%8&M$1!#,$8!1,N=+&!%8D!+=,&!M%,#:1$!+*!+1%8&M$1!#,$8!1,N=+&!=%&!1$8D$1$D!%!*8-$!&$-:1$D!

L*1+N%N$!)*+$!+*!_W8&$-:1$DP`!

5.!Original!Obligee!(Lender)!!Sells!an!Unsecured!Mortgage!Note!(MERS!as!Nominee)!MERS!Hides!the!Fraud!

! \=$1$!LAI;!,&!M,#$D!*M!1$-*1D!%&!+=$!L*1+N%N$$!%&!)*/,8$$!M*1!%!#$8D$1!%8D!

#$8D$1U&!%&&,N8&4!%8D!E=$1$!+=$!M,1&+!8$N*+,%+,*8!*M!+=$!L*1+N%N$!)*+$!,&!$T$-:+$D!_K8!

C#%8(,`!*8$!=%&!+*!,8B:,1$!=*E!LAI;!E*:#D!1$!+1:&+!%8D!

/%>!8*+!=%?$!$T,&+$D!:


10/19

&:0&$B:$8+!:8,D$8+,M,$D!K8D*1&$$&!E*:#D!-*8&+,+:+$!%!01$%(!,8!+=$!_9=%,8&P`!!'=$1$!%1$!+E*!

D,&+,8-+!9=%,8&P!a8$!-=%,8!,&!+=%+!*M!,8D*1&$/$8+&!8*+$D!*8!+=$!M%-$!*M!+=$!L*1+N%N$!)*+$!

%8D!+=$!!1$-*1D$D!-=%,8!*M!+,+#$!+=%+!+1%8&M$1&!#,$8!,8N!%!"%>/$8+!K8+%8N,0#$!X"$1&*8%#!"1*Y!%8D!%&!&:-=!,&!+=$!

*E8$1!%8D!=*#D$1!*M!+=%+!"%>/$8+!K8+%8N,0#$!%8D!+=$!#%E&!+=%+!N*?$18!+=$!"%>/$8+!

K8+%8N,0#$!%##*E!M*1!8$N*+,%+,*8!0>!


11/19

*8#>!0*:N=+!%8!:8&$-:1$D!L*1+N%N$!)*+$P!'=$!%:+=*1!E,##!8*+!-*//$8+!*8!IALK9!KI;!+%T!

,&&:$&P!'*!M:1+=$1!-*//$8+!K8+%8N,0#$P!!

'=$!"%>/$8+!K8+%8N,0#$!*E8&!+=$!1,N=+!+*!-*##$-+!/*8,$&!*E$D!:8D$1!+=$!L*1+N%N$!)*+$X&YP!!

'=$!9$1+,M,-%+$&!%8D!"%>/$8+!K8+%8N,0#$&!%1$!


12/19

K8&+1:/$8+YY!+=%+!,&!

*1!+=$!&+%+$&!$B:,?%#$8-$!*M!+=$!W994!%8D!+=$!M%,#:1$!+*!M,#$!*M!1$-*1D!+=$!8%/$D!!


13/19

K8D*1&$$!4!_K8!C#%8(`!!%#&*!-1$%+$&!%!01$%(!,8!+=$!-=%,8!*M!+,+#$!,8!!K8&+1:/$8+!M,#$D!*M!1$-*1D!-*8?$1+&!%!

+$/!


14/19

+*!%!&:0&$B:$8+!:8,D$8+,M,$D!K8D*1&$$!_K8!C#%8(`!%8D!-*/!E,+=!#*-%#!#%E&!*M!]:1,&D,-+,*8!

N*?$18,8N!+=$!;$-:1,+>!K8&+1:/$8+!+=%+!E%&!+*!&$-:1$!+=$!L*1+N%N$!)*+$c!! O%,#:1$!+*!

M*##*E!+=$!+$1/&!E,+=,8!+=$!;$-:1,+>!K8&+1:/$8+!E*:#D!01$%-=!+=$!;$-:1,+>!K8&+1:/$8+!

-*8+1%-+!%8D!1$8D$1!+=$!L*1+N%N$!)*+$!:8&$-:1$DP!)*+!*8#>!E%&!+=$!L*1+N%N$!)*+$!8*+!


15/19

! O*1!%!/*/$8+!E$!=%?$!+*!&+$

/*?$/$8+!*M!+=$!L*1+N%N$!)*+$P!'=,&!%:+=*1!=%&!8*+$D!&*/$!-*//$8+%+*1&!%1$!%D%/%8+!

+=%+!+=$!L*1+N%N$!)*+$&!%1$!8*+!D$&+1*>$D!%+!%8>!&+$

+=%+!1$%&*8,8N!M*1!+=$!/*/$8+P!K8!-*8-$&&,*8!*M!-*8?$1&%+,*8!,+!,&!&*/$E=%+!%N1$$D!+=%+!

+=$!L*1+N%N$!)*+$&!%1$!!*M!%!.*-:/$8+!9:&+*D,%8P!\,+=!+=%+!&%,D4!E$!

=%?$!+*!%DD1$&&!/%8>!-*:1+!M,#,8N&!*M!-*!+=$!

M,8%8-,%#!,8&+,+:+,*8&!E=$1$!+=$!*1,N,8%#&!-%88*+!0$!M*:8D!%8D!,+!,&!-*//*8!+*!*8#>!&$$!%8!

_K8D*1&$/$8+!,8!C#%8(`!M1*/!+=$!a1,N,8%#!a0#,N$$P!a8$!=%&!+*!%&(!E=>!%8D!=*E!+=,&!

!*--:11$DP!;,/4!,M!+=$!a1,N,8%#!a0#,N$$!&+$/!+1%-($D!%!_'1%8&M$1%0#$!I$-*1D`!%##$N,8N!

+*!0$!+=$!#%EM:#!8$N*+,%+,*8!*M!+=$!L*1+N%N$!)*+$!%8D!,M!%!8$$D!E%&!1$B:,1$D!M*1!!-#%,/,8N!1,N=+&!E*:#D!1$+1,$?$!E=%+$?$1!D*-:/$8+&!1$&,D$D!E,+=!+=$!*1,N,8%#!

-:&+*D,%8P!

12.!The!Third!and!Fourth!Negotiation!in!Blank!Subsequent!Negotiation!by!an!Unidentified!Subsequent!Indorsee!In!Blank!to!additional!

Subsequent!Purchasers!In!Blank!

! '=$!+=,1D!&+$

+1:&+!+*!+=$!'1:&+$$!*M!+=$!'1:&+4!0:+!%N%,84!,8!%-+:%#,+>!+=$!_O,1&+!K8D*1&$/$8+!,8!C#%8(`!,&!

:+,#,V$D!M*1!+=,&!8$N*+,%+,*8P!QN%,84!+=$1$!,&!%8!:8(8*E8!!%##$N,8N!+*!0$!+=$!7*#D$1!%8D!

aE8$1!*M!+=$!L*1+N%N$!)*+$!0>!%!8$N*+,%+,*8!_K8!C#%8(.`!


16/19

! '=$!M*:1+=!&+$

+1:&+!+*!+=$!'1:&+4!0:+!%N%,84!,8!%-+:%#,+>!+=$!_O,1&+!K8D*1&$/$8+!,8!C#%8(`!,&!:+,#,V$D!M*1!+=,&!

8$N*+,%+,*8P!QN%,84!+=$1$!,&!%8!:8(8*E8!!%##$N,8N!+*!0$!+=$!7*#D$1!%8D!aE8$1!*M!+=$!

L*1+N%N$!)*+$!0>!%!8$N*+,%+,*8!_K8!C#%8(.`!

13.!Holder,!Owner!and!Holder!in!Due!Course,!Innocent!Purchaser!(A)!One!can!be!the!holder!of!the!Mortgage!Note!

and!not!be!the!owner!or!have!rights!as!holder!in!due!course.!! ;$1?,-$1&!%8D!+1:&+$$s!!-*:#D!0$-*/$!+=$!=*#D$1!*M!+=$!8*+$!%8D!-#%,/!+=$>!

1$


17/19

! 7*#D$1!,8!.:$!-*:1&$!E=$1$!


18/19

&=*E!!8:/0$1!*M!M1%:D&!+*!!"%>-=$-(!%8D!91>&+%#!'*E$1!C*8:&$&P!

K+!/%>!0$4!]:&+!/%>!0$!:

1$-*?$1>!*M!%8!:8&$-:1$D!8*+$dd&:,+!M*1!/*8,$&J!_0:+!>*:!-%88*+!M*1$-#*&$P`!_'7Ag!QIA!

;WK)@!W).AI!Q!9QW;A!aO!Q9'Ka)!'7Q'!K;!)a'!QfQKRQCRA,`!,M!M,#,8N!M*1!M*1$-#*&:1$P!

)*0*D>!E,##!=%?$!N*++$8!%8>+=,8N!M*1!M1$$4!+=$!=*/$!,&!E,+=*:+!%!#,$8!&$-:1$D!+*!+=$!

L*1+N%N$!)*+$!%8D!+=$!0%8(!-%8!&+,##!&:$!:8D$1!+=$!D$M%:#+!*8!+=$!L*1+N%N$!)*+$!,M!&:-=!

8*+$!=%&!8*+!0$$8!D,&-=%1N$D!0>!E,##M:#!,8+$8+,*8%#!%-+!%&!8*+$D!,8!+=$!W99P!

a?$1!2555!>$%1&!%N*4!F$&:&!0$N%8!+=,&!M,N=+!E,+=!+=$!/*8$>!-=%8N$1&!%8D!+*D%>4!@*D!=%&!&$+!

M*1+=!+=$!&+%/


19/19

!

! ! ! ! ! ! ! ! F%/$&!L-@:,1$!

! ! ! ! ! ! ! ! "!a!C*T!6h32!

! ! ! ! ! ! ! ! C$DM*1D4!'$T%&!eH5Z3d6h32!

! ! ! ! ! ! ! ! ]P/-N:,1$i&E0$##P8$+!

! ! ! ! ! ! ! ! G6e!S25dS636!

! ! ! ! ! ! ! ! 7$DN$1*E!9*8&:#+,8N!;$1?,-$&!! ! ! ! ! ! ! ! L$/

45915314 Amicus Curiae NJ R2 Lr2

Documents

Transcript of 45915314 Amicus Curiae NJ R2 Lr2