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Promissory Notes – Purpose of meeting at neutral business premises
Meeting at neutral business premises (e.g. coffee shop)
From the instructions in the Promissory Note (PN) module, Mark has written:
“If anyone attends, it is EITHER to return your PNs (that discharges the liability against the maker and the company) or to present the PNs for payment. You are permitted up to 3 days to deliver to the Payee another PN for each of the presented PNs as payment. They will not turn up at the meeting because the PNs get securitised.”
Given the above, what would be expected of the payer (maker) of the PN when meeting the payee at a neutral business venue in the scenario where the payee did actually show up to present the PN for payment to the payer/maker where:
1. The payee returns the PN to you (payer/maker)?
If the liability was for example, a personal loan or home loan, then the liability would be discharged wouldn’t it since the payee held the PN for more than 72 hours? Is this correct?
2. The Payee presents the PNs for payment
In this hypothetical situation, this would mean that the payee hasn’t securitized the PN but is expecting payment directly from you (payer/maker) in cash (i.e Reserve Bank notes) or gold/silver coins) I assume? As the debt can only be discharged in gold and silver (which is not in circulation), it cannot be discharged, only the liability can be discharged. So this means that the payer has to have the ability to discharge the liability at the meeting which means you need to have the funds in your bank account at the time of the meeting in case the payee shows up with the PN(s) in order to make payment to the payee (e.g. do an electronic funds transfer (EFT) or have a cheque made out to payee) to discharge the liability of the personal loan or home loan in this example. Is my understanding correct?
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This discussion was modified 1 year, 9 months ago by
rtw711.
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This discussion was modified 1 year, 9 months ago by
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8 Replies
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1. Short answer, yes (is my understanding).
2. If they present it for payment you could ask if gold and silver is currently in circulation and used as Australian Currency? It isn’t so how can debt ever be paid? Hypothetically, if they show up with a $100 promissory note and you paid them in cash with a $100 note, you are essentially giving them another promissory note (Cash). I have used a promissory note and they didn’t show up to the neutral meeting place. Mind you this wasn’t for a huge amount of money. If they do show up, you could just say you will tender payment in the next 72hours and send another promissory note.
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What is the purpose of sending the payee another promissory note (PN) in the hypothetical situation of them showing up and presenting the PN(s) for payment? As I posted above, Mark puts this in his instructions “You are permitted up to 3 days to deliver to the Payee another PN for each of the presented PNs as payment”. However, what is the reasoning behind this and telling the payee you will tender payment again in the next 72 hours and send another PN?
However, this is pushing the limits of Australia Post Express Post delivery service as this service could possibly take upto 96 hours (4 days). The payee would be nice and peaved off if they travelled from another state as in my situation where my loan lender is in another state to my residence and be told you will send them another PN within 3 days. I know this won’t happen as they won’t show up. Just trying to understand the process.
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Mark has said in all of the times he has done this NO ONE has ever shown up. Do you think if they did it might set a precedent and enable us to show up and ask for the gold they owe us on their Promissory Notes aka bank notes? Do you think they want that to happen?
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No, obviously they wouldn’t want you asking for the gold they owe us if they showed up to present the promissory note(s). However, to clarify my understanding about doing this, are you saying that where you have a loan (from a bank or private lending instituion) and have previously made loan repayments on that loan (e.g. personal/home loan) and you send the Lender/Manager of the loan a Promissory Note to clear the liability of the loan, you could ask them in the hypothetical situation of them showing up and presenting the PN for payment, to pay to you the gold for the previous repayments made on the loan (debt) because they (payee) know the debt cannot ever be paid because there is no gold/silver in circulation, only notes (promissory) and so no money was actually loaned at all? Is my understanding correct and this is the reason behind asking them for the gold if they showed up?
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I don’t believe you could ask them for the gold in that case, but if they showed up to ask YOU for the gold for YOUR promissory note it would then set a precedent for anyone to take the plastic promissory notes we are issued with for our labour to the bank and ask for the gold to be given in exchange for the promissory notes they issued (with them calling the plastic notes money or cash when in fact they are only a promise to pay the bearer). So it is very doubtful that they will turn up as they probably don’t fancy people turning up to their premises asking for gold in exchange for THEIR promissory notes.
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Very good point! I never thought about it this way! Thanks for all your responses. You have helped me out a great deal with my undertakings.
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Yes, I had not thought of that either. Very good point. Yes, it certainly would set a precedent and the elite certainly wouldn’t want that to happen.
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This is a test reply. Please disregard.