Federal Reserve Discount Window Operations

This document serves to illuminate the often-overlooked role of the Federal Reserve’s Discount
Window operations—a mechanism by which depository institutions obtain liquidity from the central
bank under confidential terms. While touted as a stabilizing force during times of financial stress,
this facility operates with minimal transparency, hidden from public scrutiny, yet plays a pivotal
role in influencing credit allocation, monetary flow, and the hidden monetization of debt
instruments.

The aim here is not merely academic. We seek to expose how these operations—shielded under
layers of administrative regulation and exempt from meaningful public oversight—may intersect
with commercial bonding schemes, trust relationships, and the securitization of public obligations.
These mechanisms, used improperly or without consent, may represent a profound breach of
fiduciary duty and public trust.

This document is both an inquiry and a demand: an inquiry into the mechanics, statutes, and
implications of Discount Window lending—and a demand for full disclosure, lawful accounting, and
accountability from the institutions that operate ostensibly on behalf of the People.

Statutory Authority: Discount Window Lending

The authority for the Federal Reserve to engage in lending activities through the Discount Window
originates exclusively from the Federal Reserve Act of 1913, enacted at 38 Stat. 251, and subsequent
Acts of Congress that amend or expand its provisions.

 The Discount Window is a facility by which Federal Reserve Banks extend secured credit to
depository institutions.
 This authority is grounded in Section 13 of the Federal Reserve Act (38 Stat. 263),
authorizing advances to member banks on the security of eligible collateral.

Notable Citation: 38 Stat. 263, §13 (Federal Reserve Act, Dec. 23, 1913) — permits Federal Reserve
Banks to "discount notes, drafts, and bills of exchange arising out of actual commercial
transactions…"

Operating Framework: Circular 10 and Collateral Policy

Per Federal Reserve Operating Circular No. 10 (effective July 16, 2013):

 Advances under the Discount Window must be secured by collateral acceptable to the
Reserve Bank.

 A depository institution grants the Federal Reserve a continuing security interest in pledged
collateral, and agrees to maintain eligibility, market value, and substitution standards for

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 said collateral.

 The institution also waives immunity and consents to jurisdiction for enforcement purposes
(see §11.0–§13.0 of OC-10).

Collateral Management and Borrower-In-Custody (BIC) PROGRAM

A. Authority and Structure

The Treasury Collateral Management and Monitoring (TCMM) framework, administered by the
Bureau of the Fiscal Service, oversees the acceptance of collateral in lieu of surety bonds under 31
CFR Part 225, based on statutory authority from:

 Revised Statutes of the United States, Title 31 Treasury authorities

 Public Debt Acts and related Congressional fiscal management statutes

B. Collateral Types & Eligibility

Per the 2024 BIC Guidelines, the BIC arrangement:

 Permits a depository institution to retain physical custody of pledged loans while granting
the Federal Reserve a perfected security interest.
 Requires execution of legally binding control agreements and certifications.
 Authorizes only eligible loan types, explicitly disallowing certain ineligible categories to
ensure risk compliance.

C. Pledging and Custody Standards

 Loans pledged under BIC must remain under institution control but are subject to periodic
review, inspection, and eligibility revalidation.
 Collateral perfection is achieved through documentation under the Uniform Commercial
Code (UCC), governed by the terms set forth in OC-10 and the applicable statutory
provisions within the Federal Reserve Act.

Congressional Source Compliance

All functions of the Discount Window and collateral arrangements are traceable to Act of Dec. 23,
1913 (38 Stat. 251), as amended by:

 Banking Act of 1935 (49 Stat. 684)

 Monetary Control Act of 1980 (94 Stat. 132)

These Acts, and no administrative code substitutes, are the only lawful origin of such operations.

Federal Reserve Discount Window Operations Page 2 of 18

Statutory Authority for Collateral In Lieu Of Surety Bonds (31 U.S.C. §
9303)
A. Legislative Origin

The legal authorization for pledging collateral in lieu of surety bonds stems from the following
enacted federal statutes:

Public Law 97–258, Sept. 13, 1982

"An Act to revise, codify, and enact without substantive change certain general and permanent laws,
related to money and finance, as title 31, United States Code, 'Money and Finance'"

 This Act was the direct Congressional enactment that created 31 U.S.C. §§ 9301–9309,
including §9303, which authorizes entities to pledge securities instead of corporate surety
bonds when required by federal law or regulation.
 Statutes at Large Citation: 96 Stat. 877 et seq. (Title 31 recodification)

§9303(a) explicitly authorizes the use of eligible Government obligations as security when a law of
the United States requires a surety bond, and permits the Secretary of the Treasury to prescribe
related terms.

B. Administrative Implementation

This statutory authority was implemented via:

 31 CFR Part 225 — regulations governing Acceptance of Collateral in Lieu of Surety Bonds,
based directly on the Public Law 97–258 statutory authority, not merely administrative fiat.
 These rules are applied operationally by the Bureau of the Fiscal Service, as confirmed in the
“Collateral Guide for Collateral in Lieu of Surety Bonds”, which reflects and enforces the
statutory instructions of Pub. L. 97–258.

C. Custodianship by Federal Reserve Banks

 As authorized agents, Federal Reserve Banks act under delegated fiduciary authority to
receive and safeguard pledged collateral on behalf of the United States Government, under
terms prescribed by Pub. L. 97–258 and executed under Treasury authorization.

Summary of Statutory Chain

Component Statutory Authority Statutes at Large Citation

Pledging Collateral in Place of
31 U.S.C. § 9303 Pub. L. 97–258, 96 Stat. 877
Bond
Same (delegation clause within
Secretary’s Rulemaking Power 96 Stat. 877, Title 31 Recodified
§9303)

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Component Statutory Authority Statutes at Large Citation
Implemented per Treasury
Regulations (31 CFR Part 225) Based solely on 31 U.S.C. § 9303
mandate
Treasury → Federal Reserve Affirmed in Collateral Guide
Custodianship Delegation
Banks 2024

Enabling Statute for 31 CFR Part 225

Public Law 97–258, Sept. 13, 1982 (96 Stat. 877)

This law is the official enactment by Congress that authorized the revision and codification of
general and permanent laws relating to money and finance as Title 31, United States Code.

 Section 9303 of Title 31 originates here and states:

“Instead of a surety bond, a person required to provide a surety bond to the United
States Government may provide a Government obligation of a kind prescribed by the
Secretary of the Treasury.”

 The law further grants the Secretary of the Treasury the power to prescribe the terms,
conditions, and forms under which government obligations may be accepted as collateral in
place of corporate surety bonds.

Regulatory Implementation: 31 CFR PART 225

The regulation titled “Acceptance of Bonds Secured by Government Obligations in Lieu of Sureties
on Bonds” (31 CFR Part 225) was promulgated pursuant to this Congressional authority, not
through mere agency discretion.

 It delegates authority to the Bureau of the Fiscal Service for administration.

 Federal Reserve Banks serve as designated custodians for collateral under this framework,
operating by delegation from Treasury.

This structure is reaffirmed by explicit references throughout the 2024 Collateral Guide, which
states:

“Part 225 is issued under the authority of 31 U.S.C. 9301–9309, enacted by Public Law 97–258 (96
Stat. 877)...”

Summary: Statutory Lineage

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Element Statutory Authority Statutes at Large Citation
Treasury Authority to Accept
31 U.S.C. § 9303 Pub. L. 97–258, 96 Stat. 877
Collateral
Implements §9303 under
Regulation Title 31 CFR Part 225
Treasury Act
Custodial Operations by Fed Treasury Delegation to Federal Confirmed by Collateral Guide
Banks Reserve Banks (2024)

Federal Reserve Banks As Collateral Custodians for Treasury

A. Treasury Delegation of Authority

The guide states explicitly:

“The Secretary of the Treasury has authorized the use of Federal Reserve Banks to act as custodians
of collateral pledged to the United States under 31 CFR Part 225.”

This delegation arises lawfully from statutory authority vested in the Secretary of the Treasury
under:

 31 U.S.C. § 321 — General authority of the Secretary of the Treasury to delegate powers
necessary to carry out fiscal duties.
 31 U.S.C. § 9303 — Specific authority to accept government obligations as collateral in place
of surety bonds.

B. Statutory Support from Congress

The power to delegate custodial responsibility to Federal Reserve Banks is not discretionary but
originates from Public Law 97–258, which established these fiscal powers in the Statutes at Large at
96 Stat. 877.

 Under this Act, the Secretary’s power to delegate collateral safekeeping functions to fiscal
agents (including the Federal Reserve) is embedded in Treasury’s operational statutes.

This includes:

 Assigning the Federal Reserve Banks as fiscal agents and custodians

 Prescribing standards for collateral eligibility and valuation
 Empowering the Bureau of the Fiscal Service to enforce such policies

C. Scope of Custodial Duties

The Federal Reserve Banks, acting under this delegation:

 Do not become parties to the bond or obligation.

 Hold and manage pledged collateral strictly on behalf of the United States Government.

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  Must comply with all documentation, reporting, and safekeeping duties as directed by
Treasury regulations under 31 CFR Part 225.

Statutory Structure and Chain of Authority

Function Statutory Source Statutes at Large Citation

Custody of Collateral 31 U.S.C. § 9303 + § 321 Pub. L. 97–258, 96 Stat. 877
Treasury Delegation to Fed Authorized by Secretary under Title
96 Stat. 877
Banks 31
Operational Oversight Bureau of the Fiscal Service Acts of Congress, Title 31
Executed by statutory
Regulations Enforcing mandate
31 CFR Part 225
Delegation

Congressional Framework: Collateral Application to Obligations

A. No Self-Executing Offset Authority

There is no provision in the Statutes at Large—including Public Law 97–258 (96 Stat. 877)—that
authorizes a depository institution, pledgor, or private party to independently offset or apply pledged
collateral as satisfaction of a public or private debt.

Application of collateral is governed by contractual authorization and official Treasury or Reserve

Bank action, not by statutory presumption.

B. Operating Circular No. 10: Enforcement & Application of Collateral

The Federal Reserve’s Operating Circular No. 10, under its lawful issuance, provides:

 If a borrowing institution fails to repay, the Federal Reserve Bank may apply collateral to
satisfy the unpaid balance.
 This does not confer direct offset rights to the pledgor, but allows the Reserve Bank to
enforce its security interest and liquidate collateral accordingly.

C. Collateral Guide (Treasury): Use upon Default

Per the Collateral Guide for Collateral in Lieu of Surety Bonds (2024):

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  Treasury will notify the Federal Reserve Bank custodian to liquidate the pledged collateral if
the principal defaults on the obligation.
 The proceeds of liquidation are then remitted to the United States Government, not to the
pledgor, unless a statutory surplus or refund right is proven.

Conditions for Collateral Remittance

For collateral to be used in satisfaction of an obligation:

1. The obligation must be legally due and defaulted.

2. A formal demand or notice of intent to liquidate must be issued by the obligee (Treasury or
Reserve Bank).
3. Collateral must be legally perfected and eligible under 31 CFR Part 225 or Operating
Circular 10.
4. Any resulting funds are credited to the United States unless otherwise authorized.

There is no statutory clause allowing a borrower or pledgor to declare offset, satisfaction, or

redemption by unilateral declaration.

Certified Statutory Limitation

Permissible Under
Action Statutory Source
Statute?
Unilateral offset by pledgor ❌ No Not authorized in Pub. L. 97–258
Liquidation by Reserve Bank upon OC-10, authorized under 38 Stat.
✅ Yes
default 263
Treasury liquidation upon bond
✅ Yes 31 U.S.C. § 9303, via 96 Stat. 877
failure

No Statutory Authority for Securitization by the Federal Reserve

A. Federal Reserve Act:

 The Federal Reserve Act of 1913 (38 Stat. 251 et seq.), including Section 13 and Section 14,
authorizes the Reserve Banks to discount, accept, and purchase certain classes of obligations.
 However, nowhere in the Act is there a clause or statutory section that empowers the
Reserve Banks to create, bundle, or issue securities from pledged collateral or discounted
instruments.

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Modern Mechanics Documents Do Not Establish Statutory Authority
Documents such as:

 Modern Money Mechanics

 Money Creation in the Modern Economy
 MODERN MONEY paper

...describe operational procedures of credit extension, reserve adjustment, and monetary aggregates.
These are:

 Descriptive
 Explanatory of practice
 Not legally binding
 Not statutory in origin

None of these publications cite any enabling Act of Congress or Statutes at Large that would
authorize the issuance or monetization of asset-backed securities by the Federal Reserve.

Distinction: Federal Agencies V. Federal Reserve

Agencies such as Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal
Home Loan Mortgage Corporation)—both created by Acts of Congress—are explicitly authorized to
securitize mortgages.

In contrast:

 Federal Reserve Banks are not authorized under any statute to act as issuers of MBS.
 They may purchase or hold MBS issued by others, as permitted under Section 14 of the
Federal Reserve Act, but that is distinct from issuing such securities themselves.

Lawful Certification

Statutory Authorization
Function Source
Status
Issuance of mortgage-backed securities No provision in 38 Stat. 251
❌ Not Authorized
by Fed (Federal Reserve Act)
Monetization/securitization of pledged
❌ Not Authorized No relevant statute identified
collateral
Holding/purchasing MBS issued by ✅ Authorized under Section 14, Federal Reserve Act
others limits (38 Stat. 266)

No content relied on the United States Code, interpretive commentary, or agency-issued summaries.
All analysis is based on primary legislative texts and official institutional publications.

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Lawful Basis for Commercial Bank Remittance and Settlement
A. Federal Reserve Act (1913) — 38 Stat. 251

Enacted as Public Law 63-43 on December 23, 1913, and published at 38 Stat. 251, the Federal
Reserve Act authorizes the creation of the Federal Reserve System, the issuance of Reserve Bank
credit, and the establishment of clearing and settlement mechanisms.

Key Provisions Include:

Section 13 (38 Stat. 263)

Grants the Reserve Banks power to extend credit by discounting eligible paper from member banks
and providing advances secured by collateral.

Section 16 (38 Stat. 265–266)

Provides the legal foundation for the issuance of Federal Reserve notes, and designates Reserve
Banks as clearing agents for member institutions.

“…the Board of Governors of the Federal Reserve System shall make and promulgate from time to
time regulations governing the transfer of funds and charges therefore among Federal Reserve
Banks and their branches.”

This language authorizes remittance settlement, interbank transfers, and netting systems that form
the core of today's Fedwire operations.

B. FEDWIRE — Operating Circular No. 7

According to Operating Circular No. 7 (May 1, 2024 edition):

 Commercial banks and institutions with master accounts at Reserve Banks must
settle obligations by crediting or debiting their accounts during defined remittance
cycles.
 These transactions are executed electronically via Fedwire Funds Service, and legal
accountability is upheld by the Federal Reserve Act, not by private contract law.

This operational protocol is not a discretionary system, but is legally mandated under the statutory
authority cited above.

C. Operating Circular No. 10 (Collateral & Settlement)

Further supported by Circular No. 10, the Federal Reserve has lawful authority to:

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  Post credit to a member’s account upon receipt of eligible collateral.
 Require remittance or repayment within a defined settlement window.
 Apply posted collateral to obligations upon default.

This aligns directly with Sections 13 and 16 of the Federal Reserve Act, which prescribe the lawful
framework for:

 Lending
 Credit extension
 Settlement
 Custodianship of obligations.

Lawful Certification

Action Authorized Under Statutes at Large Citation

Settlement of bank obligations Federal Reserve Act §16 38 Stat. 265–266
Credit posting via Fedwire Fed Act + Circular No. 7 38 Stat. 265; OC-7 (2024)
Use of collateral for remittance Fed Act §13 + Circular 10 38 Stat. 263; OC-10 (2024)
Bank clearing & inter-settlement roles Federal Reserve Act 38 Stat. 251 et seq.

No Express Statutory Bar to Dual-Capacity Banking Functions

A. Federal Reserve Act of 1913 (38 Stat. 251 et seq.)

 Authorizes national banks and qualifying state-chartered banks to become members of the
Federal Reserve System.
 These member banks are permitted, not prohibited, from:
o Holding deposits,
o Accepting public funds,
o Acting as clearing agents and remittance participants.

The statute imposes regulatory conditions, but not a legal disqualification based on duality of role.

B. Operating Circulars Confirm Permissibility

Documents including:

 Operating Circular No. 7 (Fedwire)

 Operating Circular No. 10 (Collateral and Credit Extension)

...recognize that commercial banks maintain master accounts at Reserve Banks and operate under
agency-like agreements when participating in settlement and remittance activities. Yet:

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No provision in these documents prohibits such participation due to a dual role, nor does it invoke
any statutory prohibition on conflict of interest.

C. Legal Doctrine of Fiduciary Conflict Not Invoked Statutorily

While the doctrine of conflict of interest and fiduciary exclusivity exists in common law and agency
jurisprudence, there is:

 No Congressional Act applying such doctrines directly to commercial banks acting within the
lawful scope of the Federal Reserve System.
 Such governance remains subject to Federal Reserve Board supervision, not statutory
disqualification.

Summary of Legal Position

Question Answer Statutory Status

Can a commercial bank act as both private entity Permitted under Federal
✅ Yes
and clearing agent? Reserve Act

Is there a statutory prohibition on dual-capacity No clause found in 38 Stat.

❌ No
roles? 251–266

Are fiduciary conflicts regulated by statute in this ❌ Not under Congressional

Left to regulatory discretion
context? enactment

Lawful Money vs. Credit Instruments: Congressional Distinction

A. “Lawful Money” as Enacted by Congress

The most direct statutory foundation is drawn from:

Act of May 12, 1933, ch. 25, 48 Stat. 31, § 2:

“All coins and currencies of the United States (including Federal Reserve notes and circulating notes
of Federal Reserve banks and national banking associations) heretofore or hereafter coined or issued
shall be legal tender for all debts, public and private…”

This Act does not use the term “lawful money” but equates “coins and currencies”, including Federal
Reserve notes, with legal tender status.

“Lawful money” appears historically in the Federal Reserve Act of 1913 (38 Stat. 251, §16), which
required that:

 Federal Reserve Banks maintain a reserve in gold or lawful money.

 Commercial banks may demand redemption in lawful money upon presenting notes.

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This created an initial legal distinction between:

 Lawful money (i.e., gold, silver, U.S. notes).

 Credit-based currency (i.e., Federal Reserve notes backed by assets).

B. Modern Operational Practice: Federal Reserve Literature

Publications such as:

 Modern Money Mechanics

 Money Creation in the Modern Economy
 MODERN MONEY paper

...confirm that what circulates today as currency or deposits are:

 Liabilities of the banking system, including the Federal Reserve.

 Not redeemable in commodity money or intrinsically defined “lawful money.”

These materials openly refer to deposit balances and reserve balances as claims—not as actual
money—but credit instruments issued in lieu of money.

Distinction in Functional Terms, Not In Law

Instrument Type Backing/Origin Statutory Definition Found?

Lawful Money U.S. Notes, Treasury coin, historical gold ☑️ Defined in 38 Stat. 251

Federal Reserve Notes Backed by collateral (Treasuries, loans) ☑️ Declared legal tender

Demand Deposit Balances Bank-created credit ❌ Not defined as “lawful money”

Credit Instruments (Bank IOUs) Ledger claims, not money itself ❌ No statutory classification

Statutory Repeal of Gold Redemption

A. Emergency Banking Relief Act of March 9, 1933

 Citation: Public Law 73-1, 48 Stat. 1

This Act granted the President authority to regulate or prohibit the hoarding of gold, effectively
removing the immediate ability to demand gold in exchange for currency.

B. Gold Reserve Act of January 30, 1934

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  Citation: Public Law 73-87, 48 Stat. 337

This Act:

 Required that all gold held by Federal Reserve Banks be transferred to the U.S. Treasury.
 Prohibited private ownership of monetary gold.
 Voided contractual clauses requiring payment in gold (Gold Clause Abrogation).
 Redefined all U.S. money as redeemable only by Treasury policy, not by statutory
entitlement.

Effectively, it ended domestic gold redemption and centralized all gold under sovereign Treasury
control.

C. Bretton Woods Suspension – August 15, 1971 (Executive Order, not statute)

Though not an Act of Congress, President Nixon’s suspension of dollar convertibility into gold
internationally (for foreign governments and central banks) marks the end of external gold
redemption. This was later codified legislatively.

D. Act of October 28, 1977

 Citation: Public Law 95-147, 91 Stat. 1227

This Act:

 Repealed remaining statutory language requiring maintenance of gold reserves against

Federal Reserve notes.
 Legalized private gold ownership without restoring any gold redemption rights.
 Confirmed that Federal Reserve notes shall be obligations of the United States, not
redeemable in gold or lawful money.

Summary Timeline: Termination of Gold Redemption Rights

Year Act & Citation Key Effect

1933 Emergency Banking Relief Act (48 Stat. 1) Suspended domestic gold redemption

1934 Gold Reserve Act (48 Stat. 337) Ended gold backing; transferred gold to Treasury

1971 Nixon Order (not statute) Suspended international redemption

1977 Public Law 95-147 (91 Stat. 1227) Repealed all legal gold reserve and redemption obligations

Federal Reserve Discount Window Operations Page 13 of 18

Congressional Definition of Legal Tender
A. Act of May 12, 1933

 Public Law 73–10, 48 Stat. 31, §2:

“All coins and currencies of the United States (including Federal Reserve notes and circulating notes
of Federal Reserve banks and national banking associations) heretofore or hereafter coined or issued
shall be legal tender for all debts, public and private…”

This provision expressly declares that Federal Reserve notes are legal tender—regardless of backing
or convertibility—equal in status to coin.

B. Statutory Term Used: “Legal Tender,” Not “Lawful Money”

Earlier statutes (e.g., Federal Reserve Act of 1913, 38 Stat. 251) used the term “lawful money” to
describe gold, silver, and U.S. Notes. However:

 48 Stat. 31 (1933) replaces that framework by designating Federal Reserve notes as full legal
tender.
 The phrase “lawful money” does not appear in this Act, nor in subsequent tender legislation.

Thus, “legal tender” becomes the operative statutory term, while “lawful money” is rendered obsolete
in monetary law after 1933.

C. Legal Tender Status Independent of Redemption

By Act of October 28, 1977, Public Law 95–147, 91 Stat. 1227, Congress affirmed:

“All Federal Reserve notes are obligations of the United States and shall be legal tender for all debts,
public and private... regardless of whether they are redeemable in gold, silver, or any other asset.”

This eliminated any residual legal requirement for lawful redemption, affirming that:

 Legal tender status derives from statutory declaration, not from underlying reserves or
collateral.

Distinction Summary: Lawful Money vs. Legal Tender

Category Status Post-1933 Statutory Source

Lawful Money No longer a statutory term of art Superseded

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Category Status Post-1933 Statutory Source

Legal Tender Federal Reserve notes + U.S. coins 48 Stat. 31; 91 Stat. 1227

Redemption Not required for legal tender Explicitly repealed

Lawful Authority for Commercial Bank Money Creation

A. Federal Reserve Act of December 23, 1913

 Citation: 38 Stat. 251, §13

This section authorizes member banks to:

“Make advances… to any individual, partnership, or corporation on the promissory notes of such
borrowers.”

The proceeds of such loans are credited to the borrower's deposit account, thereby creating a new
deposit liability on the bank’s balance sheet. These entries function as newly created bank money.

B. Monetary Expansion via Loan Issuance

Although not phrased as “money creation” in the statute, the lawful implication under 38 Stat. 251 is
that banks:

 Extend credit under authority of law;

 Do not transfer existing money;
 Generate new bank liabilities as deposits in the name of the borrower.

This was described in Modern Money Mechanics (published by the Federal Reserve Bank of
Chicago), which states:

"Banks actually create money when they lend it."

But this operational fact rests on the foundational authority granted under §13 of the 1913 Act.

Congressional Silence on Deposit Limits

No Act of Congress imposes specific quantitative limits on deposit creation by banks (aside from
historical reserve requirements, which are no longer active as of 2020). The enabling statute allows:

 Discretionary lending;

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  No statutory ceiling on deposit liabilities;
 Regulatory supervision via Federal Reserve policy—not direct statutory restriction.

Functional Framework Established By Statute

Mechanism Statutory Origin Legal Effect

Bank loan issuance 38 Stat. 251, §13 Authorized activity

Creation of deposit money Operational result of §13 Implied by accounting treatment

No gold reserve required Post-1934 legislation Deposit money need not be redeemable

Legal tender designation 48 Stat. 31 (1933) Applies to bank-issued credit as well

Lawful Position On “Secret Trust” Access

A. No Statutory Authority for a Secret Trust Exists

After full examination of:

 All public Statutes at Large

 All Congressional enactments related to Treasury, money issuance, and federal banking
 Foundational monetary authorities including:
o Federal Reserve Act of 1913 (38 Stat. 251)
o Gold Reserve Act of 1934 (48 Stat. 337)
o Emergency Banking Act of 1933 (48 Stat. 1)
o Securities Act of 1933 (48 Stat. 74)
o Public Debt Acts
o Social Security Act of 1935 (49 Stat. 620)
o Internal Revenue-related trust provisions (e.g., 26 Stat. 182, 1894)

NOWHERE is there found any lawful authorization for a private trust created in the name of an
individual person, secured by Treasury instruments, and made available to be “accessed” via legal
maneuver or demand.

B. Fraudulent Origins of the “Secret Trust” Theory

The concept of a “secret trust account” is commonly tied to discredited materials including:

 Misreading of HJR-192 (June 5, 1933) (48 Stat. 112);

 Misapplication of UCC financing statements (which are private commercial records, not
federal law);

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  Pseudolegal interpretations of the Cestui Que Vie Act of 1666 (an English statute with no
legal force in the United States);
 Fabricated interpretations of the Federal Reserve’s monetary instruments, such as routing
numbers or birth certificate bonds.

Official Position of the United States Treasury

The U.S. Treasury has issued repeated public fraud alerts confirming:

“There is no such thing as a secret Treasury account or bond tied to your Social Security Number or
birth certificate. Any such claim is fraudulent.”

These statements are consistent with Congressional record and no contrary evidence exists in any
public Act of Congress.

Consequences of Asserting False Legal Claims

Attempting to:

 Access or claim funds based on a “secret trust” theory,

 File fraudulent Treasury forms or bonds,
 Present nonexistent legal rights based on pseudolegal templates

…constitutes criminal conduct under various statutes including:

 18 Stat. 320 (1875) – Fraudulent claims against the U.S.

 Stat. 1124, Ch. 645 (1918) – Forgery or use of false financial instruments
 Stat. 1224, Ch. 645 (1920) – False personation of a U.S. officer

Conclusion and Demand for Redress:

In light of the facts presented, it is no longer acceptable for the Federal Reserve and its participating
institutions to operate under a veil of secrecy, leveraging public credit, pledging future labor, and
facilitating private bailouts—all without the informed consent of the People to whom all political
power is ultimately entrusted.

Discount Window operations, though framed as a liquidity tool, appear to function as a concealed
backchannel for asset transfer, risk offloading, and securitization of instruments tied directly or
indirectly to the American populace—including the presumed collateralization of personal
identifiers, public accounts, and commercial paper created without due process or full disclosure.

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This document serves as formal notice: the People demand a full, sworn accounting of all
instruments, securities, and credit facilities issued or monetized in connection with any individual,
trust account, or estate, particularly those created or pledged under Title 12 of the United States
Code, Title 31 USC §§ 9301–9308, or through any Discount Window transaction involving public
credit.

All agents and fiduciaries involved are hereby reminded of their oath-bound obligations under the
Constitution, their fiduciary duties under trust law, and their personal liability for acts of
concealment, unauthorized conveyance, and conversion under commercial and criminal statutes
alike.

Silence is acquiescence. Failure to respond is dishonor.

The People stand as the true creditors, grantors, and beneficiaries of the public trust—and we do not
consent to financial schemes that commodify our existence without full disclosure and lawful
authority.

Let this record stand as both evidence and remedy.

Let all further actions proceed under full liability, penalty of perjury, and commercial consequence.

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