Prakashkumar Chhotubhai Bhakta, Agent

For named Defendant: TERESITA BHAKTA [sic, misnomer]

care of: 15611 N Peak Lane
Rural Free Delivery
San Bernardino County, California
(no phone) all correspondences in writing from here forth
Pbhakta72@gmail.cmom
All Rights Reserved without Prejudice
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

) Case No. EDVC 14-02372-vap (spx)

)
et. al, in personam Plaintiff,
) Amendedcomplaint
V.
)
U.S. BANK NATIONAL ASSOCIATION,
)
AS TRUSTEE FOR THE SPECIALITY
UNDERWRITING AND RESIDENTIAL
)
FINANCE TRUST MORTGAGE LOAN
ASSET BACKED CERTFICATES SERIES )
2006-BC1
)
Named Defendant(s).
)
TERESITA BHAKTA [sic, misnomer],

Title42Section1983Lawsuit
PursuanttoPublicLawat42Stat1315asOriginalIntentofCongressprimafaciecodetitle
42,UnitedStatesCode(U.S.C.)section1983
Everypersonwhoundercolorofanystatute,ordinance,regulation,custom,orusage,ofany
StateorTerritoryortheDistrictofColumbia,subjects,orcausestobesubjected,anycitizenofthe
UnitedStatesorotherpersonwithinthejurisdictionthereoftothedeprivationofanyrights,
privileges,orimmunitiessecuredbytheConstitutionandlaws,shallbeliabletothepartyinjured
inanactionatlaw,Suitinequity,orotherproperproceedingforredress,exceptthatinanyaction
broughtagainstajudicialofficerforanactoromissiontakeninsuchofficer'sjudicialcapacity,
injunctivereliefshallnotbegrantedunlessadeclaratorydecreewasviolatedordeclaratoryrelief
wasunavailable.Forthepurposesofthissection,anyActofCongressapplicableexclusivelyto
AmendedComplaint
1

theDistrictofColumbiashallbeconsideredtobeastatuteoftheDistrictofColumbia

SummaryofIssue:
Thiscaseisacaseofpredatorylendingandpossiblefraud.I,TeresitaBhakta,allegethatthe
corporationMORTGAGE,ITnowU.S.BANKNATIONALASSOCIATIONisnottheholderof
anoteonherproperty.AstheyarenotaholderofthenoteI,TeresitaBhaktaallegesnoobligation
ofdebt.I,TeresitaBhakta,alsoallegethattheBankDirectorsparticipatedinanunlawfulscheme
inregardstoBankingpractices.Thesemattersaretakenupinthiscase.
TheissuesincludeviolationsofTitle15oftheUnitedStatesCodeinregardstounlawfulDebt
CollectionPractices.
SummaryII:
1. MORTGAGE,IT,ANDU.S.BANKNATIONALASSOCIATIONand/oranyandallassigneesor
nomineesandTeresitaBhakta,participatedincontractandcommercialactivityinrespecttoa
bondwhichisexpresslygovernedbyFederallawandtheUniformCommercialCodewhichare
uniformstatutorylawsofalloftheUnitedStatesofAmericaincludingtheDistrictofColumbia.,
TeresitaBhakta,maketheclaimthattheinstrument/obligationbecamevoidablewhenthe
MORTGAGE,IT,ANDU.S.BANKNATIONALASSOCIATIONand/oranyandallassignees
ornomineesparticipatedinfraudulentandillegalactivityviolatingtherulesofthelawsunder
whichthebondisexpresslygovernedandalsoviolatedtheirdutyasofficersswornstatutorilyto
ActwithintheparametersoftheNationalBankActandotherapplicablestatutes.
VERIFIED COMPLAINT
1)

COMPLAINT
MORTGAGE, IT now U.S. BANK NATIONAL ASSOCIATION, Directors, TFLG A LAW
CORPORATION and ERIC G. FERNANDEZ, AND NOAH M BEAN are attempting to collect
upon a debt by unlawful means through a security deed that has been rescinded under The Truth in
Lending Act. MORTGAGE, IT, AND U.S. BANK NATIONAL ASSOCIATION and/or any and all
assignees or nominees converted the note into a draft by endorsement by one of their authorized
representatives without the knowledge or consent of Teresita Bhakta, thereby altering
MORTGAGE, IT, AND, U.S. BANK NATIONAL ASSOCIATION and/or any and all assignees or
nominees capacity as the debtor to a surety on the contract which was not originally disclosed. In
this matter MORTGAGE, IT, now U.S. BANK NATIONAL ASSOCIATION and/or any and all
assignees or nominees mislead me, into believing that I, Teresita Bhakta, was the debtor when I,
Teresita Bhakta, am actually the creditor and surety in fact. MORTGAGE, IT, AND, U.S. BANK
NATIONAL ASSOCIATION and/or any and all assignees or nominees are currently trading my
unregistered securities in my name with authority and without consent and are benefiting at my
expense. MORTGAGE, IT AND, U.S. BANK NATIONAL ASSOCIATION and/or any and all
assignees or nominees, Institution and Associates concealed these material facts through deceptive
AmendedComplaint
2

business practices and non-disclosure to me at closing of this investment scheme which qualifies for
rescinding the contract.
2. 2)
Thepromissorynoteisanonnegotiableinstrumentandisrepresentedasthepropertylisted
undertheSecurityDeedandundertrustlawandwhenMORTGAGE,IT,AND,U.S.BANK
NATIONALASSOCIATIONand/oranyandallassigneesornomineesdestroyedthepromissory
notetheydestroyedthetrustpropertywhichnowrendersthesecuritydeedterminatedfor
unlawfulpurposes.MeaningthereisnovalidcontractbetweenMORTGAGE,IT,AND,U.S.
BANKNATIONALASSOCIATIONand/oranyandallassigneesornomineesandTeresita
Bhakta,inwhichMORTGAGE,IT,AND,U.S.BANKNATIONALASSOCIATIONand/orany
andallassigneesornomineeshasnorightsorclaimstoenforceanyremediesunderthevoid,
terminatedSecurityDeed.MORTGAGE,IT,nowU.S.BANKNATIONALASSOCIATION
andAssociateshavemadenumerousclaimsthroughtheiractionstoenforceanonexistentsecurity
interestinanonnegotiableinstrumentthattheyhavemateriallychangedandconvertedintoan
investmentsecurityaftersecuritizationandconvertingTERESITABHAKTAintothesurety.
MORTGAGE,IT,AND,U.S.BANKNATIONALASSOCIATIONand/oranyandallassignees
ornomineesandtheirAssociatesarenotlendersastheyareclaiming,butarepoolingand
servicingcompaniesaswellasloansellersasevidencedbytheirUnitedStatesSecuritiesand
ExchangeCommissionfilingswhichshowTeresitaBhakta,asasuretyontheinvestment
contractsandthatMORTGAGE,IT,AND,U.S.BANKNATIONALASSOCIATIONand/orany
andallassigneesornomineesis/aresellingthepaymentstheyhaveinducedthePlaintiffbyfraud
topayasadebtorasthecashflowpaymenttotheseinvestorswhohavepurchasedthesefuture
paymentsasinvestments.ThisisadirectSECviolationondisclosure,fraudagainstinvestorsand
filingoffraudulentreportstotheSECwhichcontradictthevalidityandtruenatureofthesecurity.
MORTGAGE,IT,AND,U.S.BANKNATIONALASSOCIATIONand/oranyandallassignees
ornomineesandtheirAssociatespoolingandservicingagreementswillidentifyTeresitaBhakta,
asthetruelenderandwillalsoshowthattherearezeroloansoutstandinginthequarterinwhich
theallegedloanwascontracted.
3)

COUNT 1- FRAUD IN THE INDUCEMENT

MORTGAGE, IT, AND, U.S. BANK NATIONAL ASSOCIATION and/or any and all
assignees or nominees use of deceit and trickery caused me to act to my disadvantage by
signing an agreement and deeding away real property under a security deed that immediately
became unlawful when they destroyed the original promissory note but not before they
converted me from a debtor to a surety.
4) COUNT2FRAUDINFACT
MORTGAGE,IT,AND,U.S.BANKNATIONALASSOCIATIONand/oranyandall
assigneesornomineesconcealedthefactthattheyweregoingtoconvertmetoasuretyon
aninvestmentcontractandmadeafalserepresentationthatI,TeresitaBhakta,wasadebtor
andthatI,TeresitaBhakta,receivedaloanandamresponsibleforitsrepaymentwiththe
intenttobenefitfrommyignorance.
5) COUNT3MATERIALMISREPRESENTATION
MORTGAGE,IT,AND,U.S.BANKNATIONALASSOCIATIONand/oranyandall
assigneesornomineesdeliberatelyhidandfalsifiedmaterialfactsaboutthetruenatureof
AmendedComplaint
3

theloanagreementsandconcealedthosematerialfactstherebydeprivingmethe
opportunitytoabortthecontractsoonerthanlater.
ApplicableLawsandStatutes
PursuanttoPublicLawat42Stat1315asOriginalIntentofCongress,title42,United
StatesCode(U.S.C.)section1983,ChapterXXIIanActtoenforcetheProvisionsofthe
FourteenthAmendmenttotheConstitutionoftheUnitedStates,andforotherpurposes
CivilRightsProtections
62Stat932,title28,U.S.C.section1343,(positivelaw)CivilRightsViolations
62Stat934,title28,U.S.C.section1352,(positivelaw)BondsExecutedunderFederal
Law
Chapter106,13Stat99NationalBankActStatutesatLargeSuperiorToTitle12,U.S.C.
Banks&Banking,primafacieevidenceofthelaw
62Stat938,title28,U.S.C.section1442,(positivelaw)FederalOfficersSued
AffidavitofFacts
Theissuesinthiscasethatserveasthebasisfortheclaimsare:
1) MORTGAGE,IT,AND,U.S.BANKNATIONALASSOCIATIONand/oranyandall
assigneesornomineesenteredintonegotiableinstrumentcontractwithTeresitaBhakta.
2) TeresitaBhakta,assertsrealdefenseremedyincontractagainstMORTGAGE,IT,AND
U.S.BANKNATIONALASSOCIATION,and/oranyandallassigneesornomineesfor
FraudinthefactumillegalityofTransactionthatrenderstheunderlyingclaimsoflienvoid,
andfailuretoprovethattheyarethelawfulholderofalienonthepropertyafterproper
discoverywillnullifyallofMORTGAGE,IT,ANDU.S.BANKNATIONAL
ASSOCIATION,and/oranyandallassigneesornomineesclaims.
3) MORTGAGE,IT,ANDU.S.BANKNATIONALASSOCIATION,and/oranyandall
assigneesornomineesaresubjecttoTheNationalBankAct(Chapter106,13STAT99).
4) TheDirectorsinvolvedinthetransactionsofMORTGAGE,IT,ANDU.S.BANK
NATIONALASSOCIATION,and/oranyandallassigneesornomineeshereinnotedas
theholdersofanote/bondareoathedtoabidebythelawsgoverningMORTGAGE,IT,
ANDU.S.BANKNATIONALASSOCIATION,and/oranyandallassigneesornominees
statedinTheNationalBankAct(Chapter106,13STAT99)andhaveviolatedtheiroaths
ofofficewhichareheldattheOfficeoftheComptrollerofCurrencyoftheUnitedStates.
5) I,TeresitaBhakta,issuedbondstotheabovementionedDefendantsandtheUnitedStates
ComptrolleroftheCurrencyhasregisteredthebondstotheDirectorsofMORTGAGE,IT,
ANDU.S.BANKNATIONALASSOCIATIONand/oranyandallassigneesornominees.
AmendedComplaint
4

6) DirectorsofthepreviouslystatedMORTGAGE,IT,ANDU.S.BANKNATIONAL
ASSOCIATION,and/oranyandallassigneesornomineescannotconverttheexchangeof
mybondsforapropertytoaloan.

7) I,TeresitaBhakta,usingtheabovelistedStatutesatLargewhichexpresstheOriginalIntent
ofCongressinregardstothedutiesoftheabovelisteddirectorofMORTGAGE,IT,AND
U.S.BANKNATIONALASSOCIATION,and/oranyandallassigneesornomineesand
nottitle12,U.S.C.BanksandBankingwhichisonlyprimafacieevidenceofthelaw.The
StatutesatLargehavebeencontinuouslyadjudicatedaslawandsuperiortothecodethatis
primafacieandwhenaquestionoftheauthenticityofthelawariseseachoftheCircuit
courts,appealscourtsandSupremeCourthaveruledthattheStatutesatlargehold
lawful/legalprecedenceovertheUnitedStatesCode.Theissueofthiscasewhichisthe
originalwetsignaturenote,thebondattachedandtheissueofitsauthenticitycannotbe
testedwithoutusingtheoriginalintentofCongressasexpressedthroughthe
aforementionedStatutesatLargeasenactedbytheCongressoftheUnitedStatesof
America.I,TeresitaBhakta,willusethatdejurebodyoflawtomakemyclaimsupon
MORTGAGE,IT,ANDU.S.BANKNATIONALASSOCIATION,and/oranyandall
assigneesornomineeswithanoteofstrictproofofthecaselawstatingthelegal
precedenceoftheStatutesatLargeovertheCode:

AFFIDAVITOFFACTSINSUPPORTOFMYCLAIMS&REALDEFENSES
1) I,Bhakta,isrequestingtoinspecttheoriginalwetsignaturepromissorynoteallegedtobe
heldbyMORTGAGE,IT,ANDU.S.BANKNATIONALASSOCIATION,and/orany
andallassigneesornominees.
2) RespondentsarefullyawarethatTeresitaBhakta,turnedoverabondasanassetexchange
inwhichI,TeresitaBhakta,islistedastheissueroftheBond.I,TeresitaBhakta,allegethat
thisbondwasthenexchangedwithotherinstrumentsfromtheUnitedStatesDepartmentof
Treasury.Discoveryisrequiredtosubpoenatheinformation
3) TheBondisspecificallygovernedbyFederallawandNegotiableInstrumentsLawofthis
state[CaliforniaCommercialCode3305]asisthevalidityoftheallegedlienallegedlyheld
byMORTGAGE,IT,ANDU.S.BANKNATIONALASSOCIATION,and/oranyandall
assigneesornominees.
4) MORTGAGE, IT, and U.S. BANK NATIONAL ASSOCIATION, through its agent(s)
Richard K. Davis, CEO, on behalf of its assignees or nominees at the time violated the
NationalBankActandtheUniformCommercialCodesection3305(a)1,inthathe
materiallyalteredabondwiththeintentofdefraudingTeresitaBhakta.Heactedwithout
theconsentofTeresitaBhakta,committedFraudinthefactum,renderingthetransaction
illegal,andthusstandsasfraudwhichinducedTeresitaBhakta,toberesponsibleforthe
contractupontermsandconditionsotherthanagreedupon.TheLawatCalifornia
CommercialCode3305isexpressedas,3305.RealDefensesandclaimsin
recoupment.
AmendedComplaint
5

(a) General Rule.--Except as stated in subsection (b), the

Right to enforce the obligation of a party to pay an instrument
Is subject to the following:
(1) A defense of the obligor based on:
(ii) Lack of legal capacity or illegality of
The transaction WHICH UNDER OTHER LAW, nullifies the
Obligation of the obligor;
(iii) Fraud that induced the obligor to sign the
Instrument with neither knowledge nor reasonable
Opportunity to learn of its character or its essential
Terms; or
5) Thisistheimplementationofarealdefenseandiseffectiveevenagainstaholderindue
courseasstatedinCommercialCode3305(b)inthiscasetheHolderinduecourseor
holderisallegedtobeMORTGAGE,IT,ANDU.S.BANKNATIONALASSOCIATION,
AND,U.S.BANKNATIONALASSOCIATIONand/oranyandallassigneesornominees.
6) ThelawthatGovernsthisnote/bond/istheNationalBankActalsocalledtheNational
CurrencyAct
7) TheissuesherearethatIwe,TeresitaBhakta,isassertingrealdefensesagainstthe
validityoftheoriginalnegotiableinstrumentcontractbondwhichhasbeenaltered.
8) Thefirstissueofwhichisapersonaldefenseisconsideration.Therehasbeennoloanor
considerationinthiscontractintheamountof$490,651.00.Thisistheoriginalamountof
thebondofcollateralheldbytheissuerTeresitaBhakta.
9) AccordingtotheaboveFederallawMORTGAGE,IT,AND,U.S.BANKNATIONAL
ASSOCIATIONand/oranyandallassigneesornomineesinthiscaseMORTGAGE,IT,
ANDU.S.BANKNATIONALASSOCIATIONand/oranyandallassigneesornominees
cannotloanthecapitalstockoftheirdirectors,norcantheyloanthemoneyoftheir
depositors,andtheycanonlyloanmoneypursuanttoPublicLawVolume1338thCongress
Stat99118TheNationalBankActwhichholdsprecedentoverU.S.C.Title12whichis
onlyprimafacielawandNOTpositivelaw.Theyhavenotfollowedanyoftheprovisions
ofthismonetarylawoftheUnitedStatesofAmericanorhavetheyhonorednegotiable
instrumentlawsofthisstateandtheDistrictofColumbia[UnitedStates].
10) AlsoaccordingtotheNationalBankActBank,MORTGAGE,IT,ANDU.S.BANK
NATIONALASSOCIATION,and/oranyandallassigneesornomineescannotenterinto
mortgageagreementsforrealestatebeyonda5yearperiod

.
11) Thefraudulentnotewhichwasconvertedfrommylawfullytenderedbondwasfora30
yearmortgagewhichbyoperationoflawisfraudulentaccordingtoStatute.
12) TheBanksorFINANCIALINSTITUTION,alldirectors,cannotclaimignoranceofthis
becauseeachDirectorhasanOathtoFollowPublicLawVolume1338thCongressStat99
118whichisrecordedattheUnitedStatesOfficeoftheComptrollerofCurrency.
13) SoDirector(s)/ChiefExecutiveOfficer(s)/CEO(s)ofMORTGAGE,IT,ANDU.S.BANK
NATIONALASSOCIATION,and/oranyandallassigneesornomineeshasparticipatedin
thisfraudthroughtheirendorsementontheassignmentfromMORTGAGE,IT,ANDU.S.
BANKNATIONALASSOCIATION,and/oranyandallassigneesornomineesandthus
throughrealdefensesimplementedhereinMORTGAGE,IT,ANDU.S.BANK
AmendedComplaint
6

NATIONALASSOCIATION,and/oranyandallassigneesornomineeshasnolegitimate
claimasaholderofanotenorcantheyforceTeresitaBhakta,topayanyinstrumentsthat
areFraud.
ItisafactthatI,TeresitaBhakta,wasundertheimpressionthatthroughconveying,
abondthattherewasalawfulexchangetakingplace.Ihadnoideathistransactionwas
beingprocessedasaloan.

Thebondsomehowhasbeenconvertedintoanotewithoutagreementorauthorization
fromTeresitaBhakta.Whoconvertedthebondintoaloan?Whoistheholderofthe
originalcontractwithwetsignatures?Whoistheholder

induecourse?Whereisthe
bondregisteredandwithwhatofficialofficeroflaw?Istheconversionofthebondinto
anotematerialalterationofacontractwithoutconsentnullifyingthevalidityoftheoriginal
contract?Thesearesomeofthequestionsthatmustorwillbeansweredupondiscovery.

ProceedingcannotcontinueuntiltheMORTGAGE,IT,ANDU.S.BANKNATIONAL
ASSOCIATION,and/oranyandallassigneesornomineesdoesthefollowing:

DEMANDFORREMEDYANDIMPLEMENTATIONOFREALDEFENSES
A) MORTGAGE,IT,ANDU.S.BANKNATIONALASSOCIATION,and/oranyandall
assigneesornomineesmustsuccessfullyrebuttherealdefensesofI,TeresitaBhakta
whichare:
1) AllegedOriginalCreditorMORTGAGE,IT,ANDU.S.BANKNATIONAL
ASSOCIATIONprovidednoconsiderationinthiscontractthatisinaccordwiththe
governinglawat13STAT99andthereforecommittedfraudinthefactum,which
simplymeansthatAllegedOriginalCreditortooktheassetofTeresitaBhakta,and
attemptedtocreateanillegaltransactionandcontinuedbyassertingalienagainst
herproperty.
2) AllegedOriginalCreditorhasinjuredtheassigneesandisthusresponsibleforthem.
Thesource[oftheallegedloan]cannotbefromtheDirectorspursuanttothe
NationalBankAct,whichstatesspecifically,

AmendedComplaint
7

OATHOFTHEDIRECTORSFILEDWITHTHECOMPTROLLEROF
CURRENCYEachDirectorwhenappointedorElected,shalltakeanoaththathe
will,sofarasthedutydevolvesonhim,diligentlyandhonestlyadministerthe
affairsofsuchassociation,andwillnotknowinglyviolate,orwillinglypermittobe
violatedanyprovisionsofthisact,andthatheisthebonafideowner,inhisown
right,ofthenumberofsharesofstockrequiredbythisact,subscribedbyhim,or
standinginhisnameonthebooksoftheassociation,andthatthesameisnot
hypothecated,orinanywaypledged,assecurityforaloanordebt;whichoath
subscribedbyhimself,andcertifiedbytheofficerbeforewhomitistaken,shallbe
immediatelytransmittedtothecomptrollerofcurrency,andbyhimfiledand
preservedinhisoffice.13STAT102,Section9
3) AllegedOriginalCreditoralsocannotloanmoneyfromanyofitsotherstockor
depositorsassetsaccordingtoFederallawwhichstates,
NATIONALBANKINGASSOCIATIONCANNOTMAKELOANSON
THESECURITYOFTHESHARESOFITSSTOCK,Andbeitfurther
enacted,Thatnoassociationshallmakeanyloanordiscountonthesecurityofthe
sharesofitsowncapitalstock.13STAT110,Section35
4) AllegedOriginalCreditorandAssigneesmustanswertherealdefenseassertionthat
a30yearmortgagebyoperationoflawisfraudinthefactum[inviolationof
CaliforniaCommercialCode3305(a)realdefenses],fraudulent,illegal,and
unlawfulandinviolationofthelawsgoverningbanksandFINANCIAL
INSTITUTIONSwhichexpresslystatesat13STAT99,
RULESGOVERNINGHOLDINGOFREALESTATE:Andbeitfurther
enacted,Suchassociationsshallnotpurchaseorholdrealestateinanyothercaseor
foranyotherpurposethanasspecifiedinthissection.Norshallitholdthe
possessionofanyrealestateundermortgage,orholdthetitleandpossessionofany
realestatepurchasedtosecuredebtsduetoitforalongerperiodthanfiveyears.13
STAT108,Section28
AmendedComplaint
8

5) IfallegedoriginalcreditororassigneesdisagreewiththeFederallawsgoverning
thiscontractnegotiableinstrument,note/bondthenFINANCIALINSTITUTION
mustsuccessfullycontendthatallbankingandFinancialInstitutionsintheUnited
StatesofAmericaisnotsubjecttothefollowingrules,
LAWSGOVERNINGFORMINGOFNATIONALBANKING
ASSOCIATIONSAndbeitfurtherenacted,ThatAssociationsforcarryingonthe
BusinessofBankingmaybeformedbyanynumberofpersons,notlessinanycase
thanfive,whoshallenterintoarticlesofassociation,whichshallspecifyingeneral
termstheobjectforwhichtheassociationisformed,andmaycontainanyother
provisions,notinconsistentwiththeprovisionsofthisact.13STAT100,Section
5
6) IfAllegedOriginalCreditorMORTGAGE,IT,and/oranyandallassigneesor
nomineesinanymannerdidbusinesswithathirdpartywiththenote/bondentities
suchastheUnitedStatesDepartmentofTreasury,ortheComptrollerofthe
Currency,BureauofPublicDebt,aTrustee,U.S.BANKNATIONAL
ASSOCIATION,etcinordertogainaBond,stock,securitiesorBondsfromthe
saidentitiesPlaintiffsactionsareunlawfulandfraudulentbasedonthefollowing,
BANKSCANNOTUSEITSNOTESITCIRCULATESTOCREATEOR
INCREASEITSCAPITALSTOCK,Andbeitfurtherenacted,Thatno
associationshall,eitherdirectlyorindirectly,pledgeorhypothecateanyofits
notesofcirculation,forthepurposeofprocuringmoneytobepaidinonits
capitalstock,ortobeusedinitsbankingoperations,orotherwise;norshall
anyassociationuseitscirculatingnotes,oranypartthereof,inanymanneror
form,tocreateorincreaseitscapitalstock.13STAT110,Section37
7) AlsoAllegedOriginalCreditorMORTGAGE,IT,ANDU.S.BANKNATIONAL
ASSOCIATION,and/oranyandallassigneesornomineesandAssigneesmust
understandthatanyandallDirectors,Presidents,VicePresidentsoranyother
financialagentsorofficerswhohaveviolatedthegoverninglawofthis
instrumentmustandwillbepunishedaccordingtotheruleoflawincluding
possiblejailtimeandfinesandpossibleclosingofMORTGAGE,IT,ANDU.S.
BANKNATIONALASSOCIATION,and/oranyandallassigneesornominees,
AmendedComplaint
9

TheFinancialInstitution,iffoundinviolationoftheaforementionedlaws.Thisis
expresslystatedintheStatute,
PENALTYUPONDIRECTORSFORVIOLATIONOFTHISACTAnd
beitfurtherenacted,Thateverypresident,director,cashier,teller,clerk,oragentof
anyassociation,whoshallembezzle,abstract,orwillfullymisapplyanyofthe
moneys,funds,orcreditsoftheassociation,orshall,withoutauthorityfromthe
directors,issueorputincirculationanyofthenotesoftheassociation,orshall,
withoutsuchauthorityissueorputforthanycertificateofdeposit,drawanyorderor
billofexchange,makeanyacceptance,assignanynote,bond,draft,billof
exchange,mortgage,judgment,ordecree,orshallmakeanyfalseentryinanybook,
report,orstatementoftheassociation,withintent,ineithercase,toinjureordefraud
theassociationoranyothercompany,bodypoliticorcorporate,orindividual
person,ortodeceiveanyofficeroftheassociation,oranyagentappointedto
examinetheaffairsofanysuchassociation,shallbedeemedguiltyofa
misdemeanor,anduponconvictionthereofshallbepunishedbyimprisonment
notlessthanfivenormorethantenyears.13STAT116,Section55,
PENALTYUPONDIRECTORSFORVIOLATIONOFTHISACT,And
beitfurtherenacted,Thatifthedirectorsofanyassociationshallknowinglyviolate,
orknowinglypermitanyoftheofficers,agents,orservantsoftheassociationto
violateanyoftheprovisionsofthisact,alltheright,privileges,andfranchises
oftheassociationderivedfromthisactshalltherebybeforfeitedAndincases
ofsuchviolation,everydirectorwhoparticipatedinorassentedtothesameshallbe
heldliableinhispersonalandindividualcapacityforalldamageswhichthe
association,itsshareholders,oranyotherperson,shallhavesustainedin
consequenceofsuchviolation.13STAT116,Section53
8) AllegedOriginalCreditorMORTGAGE,IT,and/orU.S.BANKNATIONAL
ASSOCIATIONanyandallAssigneesetal,MUSTlawfullyrebutthesefactsand
pointsoflawinorderformydueprocessnotbeviolated
AmendedComplaint
10

9) I,TeresitaBhakta,iscompellingU.S.DepartmentofHousingandUrban
DevelopmenttoforceMORTGAGE,IT,ANDU.S.BANKNATIONAL
ASSOCIATION,and/oranyandallassigneesornomineestoanswerthequestion
onpage5inaccordancewiththeRulesofCivilProcedureinFederalCourt.
I,TeresitaBhakta,DeclareunderpenaltyofperjuryunderthelawsoftheUnitedStatesof
Americathattheforegoingistrueandcorrect.

___________________________________
[TeresitaBhakta,]
[MadePursuanttotheUnitedStatesConstitution&Title28USCASection1746]

CERTIFICATEOFSERVICE

IHEREBYCERTIFYthatatrueandcorrectcopyoftheaboveandforegoinghasbeen
FurnishedbyU.S.MailtoMORTGAGE,IT,AND,U.S.BANKNATIONALASSOCIATION
and/oranyandallassigneesornomineesCEORichard K. Davis, or assignee
C/O U.S. BANCORP CENTER
800 NICOLLET MALL
MINNEAPOLIS, MN 55402
PHONE 651-466-3000
And

c/o TFLG A LAW CORPORATION

ERIC G. FERNANDEZ (SBN: 269684)
NOAH M. BEAN (SBN: 257657)
202 COUSTEAU PLACE, SUITE 260, DAVIS, CALIFORNIA 95618
(530) 750-3700
CASE LAW IN ALL CIRCUITS AND THE SUPREME COURT OF THE UNITED
STATESSUPPORTINGUSEOFSTATUTESATLARGEASSUPERIORTOTITLE12,
U.S.C.BANKSANDBANKING
AmendedComplaint
11

TheofficialsourceoftheUnitedStatesLawisStatutesatLargeandtheUnitedStatesCodeis
onlyprimafacieevidenceofsuchlaws
RoyersInc.vs.UnitedStates1959CA3Pa265F.2d615,59USTC9371,3AFTR2d1137
StatutesatLargearelegal;evidenceoflawscontainedthereinandareacceptedasproofof
thoselawsinanycourtoftheUnitedStates.
Bearvs.UnitedStates(1985DCNeb)611supp589,affd(1987)(CASNeb)810F2d153
UnlessCongressaffirmativelyenactstitleofUnitedStatesCodeintolaw,titleisonlyprima
facieevidenceoflaw

Prestonvs.Heckler(1984CA9Alaska)734F2d135934CCHEPD34433laterproceeding
(1984DCAlaska)586F.supp1158
WheretheTitlehasnotbeenenactedintopositivelaw,titleisonlyprimafacieorrebuttable
evidenceoflaw,andifconstructionisnecessary,recoursemaybehadtooriginalstatutes
themselves
UnitedStatesvs.Zuger(1984)DCConn602Fsupp889affd
Evencodificationintopositivelawwillnotgivecodeprecedencewherethereisconflict
betweencodificationandStatutesatLarge
Warnervs.Goltra(1934)293US155,79LED25455SCt46Stephensvs.UnitedStates
(1943)319US423,87LEd1490,63SCt1135UnitedStatesvs.Weldon(1964)377US95,12L
2d152,84SCt1082
UnitedStatesCodedoesnotprevailoverStatutesatLargewhenthetwoareinconsistent
Stephensvs.UnitedStates(1943)319US423,87LEd1490,635Ct1135Peartvs.the
MotorVesselBeringExplorer1974,DCAlaska373F.supp927
AlthoughUnitedStatesCodeestablishesprimafaciewhatlawsoftheUnitedStatesaretothe
extentthatprovisionsoftheUnitedStatesCodeareinconsistentwithStatutesatLarge,Statutesat
Largewillprevail.BestFoodInc.vUnitedStates(1965)37CustCt.1,147FSupp.749.

AmendedComplaint
12

WherethereisconflictbetweencodificationandStatutesatLarge,StatutesatLargemust
prevail.AmericanExportLinesInc.vUnitedStates(1961)153CtCl201,290F2d925Abellvs.
UnitedStates(1975)207CtCl207,518F2d1369,certden(1976)929,US817,50LEd2d76,
97SCt.59
CaselawSupportingStatutesatLargeasholdinglawfulandlegalprecedenceoverUnited
StatesCodeisfoundinallCircuitsoftheFederalJurisdictionandtheSupremeCourtoftheUnited
States

UnitedStatesSupremeCourt
WarnervsGoltra(1934)293US155,79LEd25455SCt.46
StephensvsUnitedStates(1943)319US42387LEd.1490,63SCt.1135
NashvilleMilkCo.vs.CarnationCo.(1958)355US373,2LEd2d340785Ct352
UnitedStatesvs.Weldon(1964)377US95,12L.Ed2d152845Ct.1082
UnitedStatesvs.NeifertWhiteCo.(1968)390US228,19LEd.2d1061,88SCt.959
Goldsteinvs.Cox(1970)396US471,24L,Ed2d663,90SCt.671
UnitedStatesvs.Bornstein(1976)423US303,46L.Ed2d514,96SCt.523
AmericanBank&TrustCo.vs.DallasCounty(1983)463US85577L.Ed2d1072103SCt
3369

SecondCircuit
Leonardvs.ChaseNat.Bank(1936)CA2NY81F2d19,certden298US677,80LEd
1398,56SCt.941
UnitedStatesexrelKesslervs.MercurCorp.(1936,CA2NY)83F2d178certden299US
576,81L.Ed.42457SCt.40
UnitedStatesvs.Zuger(1984)DCConn602F.Supp889affd755F.2d915certden474US
805,88L.Ed.32106SCt.38
AmendedComplaint
13

ThirdCircuit
RoyersInc.vs.UnitedStates(1959,CA3Pa.)265F2d.615
Crillyvs.Septa(9175,CA3Pa)529F2d1355
UnitedStatesvs.Hibbs(1976EdPa)420F.Supp.1365vacatedonothergrounds56SF2d
347
FourthCircuit
UnitedStatesvs.Shively(1936DCVA)15F.Supp107

FifthCircuit
Murrellvs.WesternUnionTelCo.(1947,CASFla.)160F2d787

SixthCircuit
Rosevs.NationalCashregisterCorp(1983CA6Mich.)7032d225certden464US939,78
L.Ed2d317,104SCt.352(1983)
Maryvs.CentranCorp(1984CA6Ohio)747F2d1536.Certden471US1125,86L.Ed.2d
273,105SCt.2656(1985)
UnitedStatesexrelBoydvs.McMunty(1933,WDKY)5Fsupp.515

SeventhCircuit
UnitedStatesvs.Vivian(1955,CA7111)224F2d53
Lodevs.Leonardo(1982NDILL)557FSupp675
Youngvs.IRS(1984,NDInd.)596F.Supp141
UnitedStatesvs.Burgess(December11987NDILL)1987U.S.DistrictLEXIS112271987
WL39092
EighthCircuit
UnitedStatesvsWodtke(1985NDIowa)627F.Supp.1034

AmendedComplaint
14

NinthCircuit
Prestonvs.Heckler(1984,CAAlaska)734F2d135934CCHEPDP34433
Ryanvs.Bilby(1985,CA9Ariz.)764F2d1325
Wonervs.Lewis(1935,DCCal)13F.Supp.45
Peartvs.TheMotorVesselBeringExplorer(1974)DCAlaska373F.Supp927

DistrictofColumbiaCircuit
WherethelanguageoftheStatutesatLargeconflictswiththelanguageoftheUnitedStates
Codethathasbeennotenactedintopositivelaw,thelanguageoftheStatutesatLargeControls.
FireFlagSPipelineCovsDep.ofTransportation(1988)AppDC854FLd1438

ItisimportantatthispointtodetailaSummaryofLegalGuidelinesoftheNationalBankAct
(Chapter106,13STAT99),whicharethedejurelawsonBankingandFINANCIAL
INSTITUTIONintheUnitedStatesofAmerica.Thesearethestandinglawsthatwillprovethe
colorofauthorityactionscarriedoutbythelisteddefendants.

EXCERPTSFROMTHENATIONALBANKACTEXPRESS/SHOWCONGRESSIONALINTENTASIT
RELATESTOBANKSANDBANKING

LAWSGOVERNINGFORMINGOFNATIONALBANKINGASSOCIATIONS
Andbeitfurtherenacted,ThatAssociationsforcarryingontheBusinessofBankingmaybe
formedbyanynumberofpersons,notlessinanycasethanfive,whoshallenterintoarticlesof
association,whichshallspecifyingeneraltermstheobjectforwhichtheassociationisformed,
andmaycontainanyotherprovisions,notinconsistentwiththeprovisionsofthisact.
13STAT100,Section5

OATHOFTHEDIRECTORSFILEDWITHTHECOMPTROLLEROFCURRENCY
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15

EachDirectorwhenappointedorElected,shalltakeanoaththathewill,sofarastheduty
devolvesonhim,diligentlyandhonestlyadministertheaffairsofsuchassociation,andwillnot
knowinglyviolate,orwillinglypermittobeviolatedanyprovisionsofthisact,andthatheisthe
bonafideowner,inhisownright,ofthenumberofsharesofstockrequiredbythisact,subscribed
byhim,orstandinginhisnameonthebooksoftheassociation,andthatthesameisnot
hypothecated,orinanywaypledged,assecurityforaloanordebt;whichoathsubscribedby
himself,andcertifiedbytheofficerbeforewhomitistaken,shallbeimmediatelytransmittedto
thecomptrollerofcurrency,andbyhimfiledandpreservedinhisoffice.13STAT102,Sec.9

THECOUNTERSIGNINGANDDELIVERYOFCIRCULATINGNOTES,EXCEPT
ASPERMITTEDBYTHISACT,MADEUNLAWFULPENALTY
Andbeitfurtherenacted,Thatitshallbeunlawfulforanyofficeractingunderthe
provisionsofthisacttocountersignordelivertoanyassociation,ortoanyothercompanyor
person,anycirculatingnotescontemplatedbythisact,exceptashereinbeforeprovided,andin
accordancewiththetrueintentandmeaningofthisact.Andanyofficerwhoshallviolatethe
provisionsofthissectionshallbedeemedguiltyofahighmisdemeanor,andonconviction
thereofshallbepunishedbyfinenotexceedingdoubletheamountsocountersignedand
delivered,andimprisonmentnotlessthanoneyearandnotexceedingfifteenyears,atthe
discretionofthecourtinwhichheshallbetried.13STAT100,Sec.27

RULESGOVERNINGHOLDINGOFREALESTATE
Andbeitfurtherenacted,suchassociationsshallnotpurchaseorholdrealestateinanyother
caseorforanyotherpurposethanasspecifiedinthissection.Norshallitholdthepossessionof
anyrealestateundermortgage,orholdthetitleandpossessionofanyrealestatepurchasedto
securedebtsduetoitforalongerperiodthanfiveyears.13STAT107108,Section28

AmendedComplaint
16

NATIONALBANKINGASSOCIATIONCANNOTMAKELOANSONTHE
SECURITYOFTHESHARESOFITSSTOCK
Andbeitfurtherenacted,Thatnoassociationshallmakeanyloanordiscountonthesecurity
ofthesharesofitsowncapitalstock.13STAT110,Section35

SOLEMETHODFORMAKINGLOANS
SuchAssociationshallhavepowertoexerciseunderthisactallsuchincidentalpowersas
shallbenecessarytocarryonthebusinessofbankingbydiscountingandnegotiatingpromissory
notes,drafts,billsofexchange,andotherevidencesofdebt;byloaningmoneyonpersonal
security.

BANKSCANNOTUSEITSNOTESITCIRCULATESTOCREATEORINREASEITS
CAPITALSTOCK
Andbeitfurtherenacted,Thatnoassociationshall,eitherdirectlyorindirectly,pledgeor
hypothecateanyofitsnotesofcirculation,forthepurposeofprocuringmoneytobepaidinonits
capitalstock,ortobeusedinitsbankingoperations,orotherwise;norshallanyassociationuseits
circulatingnotes,oranypartthereof,inanymannerorform,tocreateorincreaseitscapitalstock.
13STAT110,Section37

PENALTYUPONDIRECTORSFORVIOLATIONOFTHISACT
Andbeitfurtherenacted,Thateverypresident,director,cashier,teller,clerk,oragentofany
association,whoshallembezzle,abstract,orwillfullymisapplyanyofthemoneys,funds,or
creditsoftheassociation,orshall,withoutauthorityfromthedirectors,issueorputincirculation
anyofthenotesoftheassociation,orshall,withoutsuchauthorityissueorputforthanycertificate
ofdeposit,drawanyorderorbillofexchange,makeanyacceptance,assignanynote,bond,draft,
billofexchange,mortgage,judgment,ordecree,orshallmakeanyfalseentryinanybook,report,
orstatementoftheassociation,withintent,ineithercase,toinjureordefraudtheassociationor
AmendedComplaint
17

anyothercompany,bodypoliticorcorporate,orindividualperson,ortodeceiveanyofficerofthe
association,oranyagentappointedtoexaminetheaffairsofanysuchassociation,shallbedeemed
guiltyofamisdemeanor,anduponconvictionthereofshallbepunishedbyimprisonmentnotless
thanfivenormorethantenyears.13STAT116,Sec.55

PENALTYUPONDIRECTORSFORVIOLATIONOFTHISACT
Andbeitfurtherenacted,Thatifthedirectorsofanyassociationshallknowinglyviolate,or
knowinglypermitanyoftheofficers,agents,orservantsoftheassociationtoviolateanyofthe
provisionsofthisact,alltheright,privileges,andfranchisesoftheassociationderivedfromthis
actshalltherebybeforfeitedAndincasesofsuchviolation,everydirectorwhoparticipatedinor
assentedtothesameshallbeheldliableinhispersonalandindividualcapacityforalldamages
whichtheassociation,itsshareholders,oranyotherperson,shallhavesustainedinconsequenceof
suchviolation.13STAT116,Section53

ESTABLISHMENTOFTHEOFFICEOFTHECOMPTROLLEROFCURRENCY
ThatthereshallbeestablishedinthetreasuryDepartmentaseparateBureau,whichshallbe
chargedwiththeexecutionofthisandallotherlawsthatmaybepassedbyCongressrespectingthe
issueandregulationofanationalcurrencysecuredbyUnitedStatesBonds.13STAT99

OATHOFTHECOMPTROLLER
Withinfifteendaysfromthetimeofnoticeofhisappointmentthecomptrollershalltakeand
subscribetheoathofofficeprescribedbytheConstitutionandlawsoftheUnitedStates.13STAT
100

UNITEDSTATESBONDSDEFINED

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18

Anditshallfurtherbeenacted,ThatthetermUnitedStatesBondsasusednthisact,shallbe
construedtomeanallregisteredbondsnowissued,orthathereafterbeissued,onthefaithofthe
UnitedStatesbytheSecretaryoftheTreasuryinpursuanceofLaw.13STAT100Section4

BANKSBYLAWSMUSTBECONSISTENTWITHTHISACT
ItsBoardofDirectorsshallalsohavepowertodefineandregulatebylaws,notinconsistent
withtheprovisionsofthisact.13STAT101102,Section8

SHUTDOWNOFBANKFORILLEGALACTIVITYOFSHAREHOLDERS
Thecomptrollershallhaveauthoritytowithholdfromanassociationhiscertificate
authorizingthecommencementofbusiness,wheneverheshallhavereasontosupposethatthe
shareholdersthereofhaveformedthesameforanyotherthanthelegitimateobjectscontemplated
bythisact.13STAT103,Section12

BONDSREGISTEREDWITHCOMPTROLLER
Andbeitfurtherenacted,Thatitshallbethedutyofthecomptrollerofthecurrencyto
countersignandenterinthebook,inthemanneraforesaid,everytransferorassignmentofany
bondsheldbythetreasurerpresentedforhissignature;andthecomptrollershallhaveatalltimes
duringofficehoursaccesstothebooksofthetreasurerforthepurposeofascertainingthe
correctnessofthetransferorassignmentpresentedtohimtocountersign;andthetreasurershall
havethelikeaccesstothebookabovementioned,keptbythecomptroller,duringofficehours,to
ascertainthecorrectnessoftheentriesinthesame;andthecomptrollershallalsoatalltimeshave
accesstothebondsondepositwiththetreasurer,toascertaintheiramountandcondition.13
STAT105,Sec.20

AMOUNTOFNOTESNOTTOEXCEEDTHREEHUNDEREDMILLION

AmendedComplaint
19

Andbeitfurtherenacted,Thattheentireamountofnotesforcirculationtobeissuedunder
thisactshallnotexceedthreehundredmillionsofdollars.13STAT105106,Sec.22

FEDERALRESERVENOTESARENOTMONEYBYLAW
Andnosuchassociationshallissuepostnotesoranyothernotestocirculateasmoneythan
suchasareauthorizedbytheforgoingprovisionsofthisact.13STAT106,Sec.23

BANKSNOTHOLDINGLAWFULMONEYMAYBESHUTDOWN
Anditshallbecompetentforthecomptrollerofthecurrencytonotifyandassociation,whose
lawfulmoneyreserveasaforesaid,tomakegoodsuchreserve;andifsuchassociationshallfailfor
thirtydaysthereaftersotomakegooditsreserveoflawfulmoneyoftheUnitedStates,the
comptrollermay,withtheconcurrenceoftheSecretaryoftheTreasuryappointareceivertowind
upthebusinessofsuchassociationasprovidedinthisact.13STAT109,Section31

BANKSMUSTREDEEMNOTESATAPPOINTEDNATIONALBANKING
ASSOCIATIONORBESHUTDOWN
Andbeitfurtherenacted,Ifanyassociationshallfaileithertomaketheselectionortoredeem
itsnotesasaforesaid,thecomptrollerofthecurrencymay,uponreceivingsatisfactoryevidence
thereof,appointareceiver,inthemannerprovidedforinthisact,towindupitsaffairs:Provided,
Thatnothinginthissectionshallrelieveanyassociationfromitsliabilitytoredeemitscirculating
notesatitsowncounter,atpar,inlawfulmoney,ondemand:Andprovidedfurther,Thatevery
associationformedorexistingundertheprovisionsofthisactshalltakeandreceiveatpar,forany
debtorliabilitytosaidassociation,anyandallnotesorbillsissuedbyanyassociationexisting
underandbyvirtueofthisact.13STAT109,Section32

BANKSCANNOTCIRCULATENOTESTHATARENOTREDEEMABLEIN
LAWFULUNITEDSTATESMONEY
AmendedComplaint
20

Andbeitfurtherenacted,Thatnoassociationshallatanytimeknowinglypayoutorputin
circulationanynotesissuedbyanybankorbankingassociationwhichatthetimeofsuchpaying
outorputtingincirculationisnotredeemingitscirculatingnotesinlawfulmoneyoftheUnited
States.

NATIONALBANKINGASSOCATIONSFINANCIALAGENTSOFTHE
GOVERNMENT
Andbeitfurtherenacted,Thatallassociationsunderthisact,whendesignatedforthat
purposebytheSecretaryoftheTreasury,shallbedepositoriesofpublicmoney;andtheymaybe
employedasfinancialagentsofthegovernment,andtheyshallperformallsuchreasonable
duties,asdepositoriesofpublicmoneysandfinancialagentsofthegovernment,asmayberequired
ofthemAndtheSecretaryoftheTreasuryshallrequireoftheassociationsthisdesignated
satisfactorysecurity,bythedepositofUnitedStatesBondsandotherwise,forthesafekeepingand
promptpaymentofthepublicmoneydepositedwiththem,andforthefaithfulperformanceoftheir
dutiesasfinancialagentsofthegovernment.13STAT113,Section45

IFNOTESARENOTREDEEMEDBANKCANBESHUTDOWNANDLAW
HOLDERSPAIDINLAWFULUNITEDSTATESMONEY
Andbeitfurtherenacted,Thatonreceivingnoticethatanysuchassociationhasfailedto
redeemanyofitscirculatingnotes,asspecifiedinthenextprecedingsection,thecomptrollerof
thecurrency,withtheconcurrenceoftheSecretaryoftheTreasury,mayappointaspecialagent(of
whoseappointmentimmediatenoticeshallbegiventosuchassociation)whoshallimmediately
proceedtoascertainwhethersuchassociationhasrefusedtopayitscirculatingnotesinthelawful
moneyoftheUnitedStates,whendemandedasaforesaid,andreporttothecomptrollerthefactso
ascertained;andiffromsuchprotestorthereportsomade,thecomptrollershallbesatisfiedthat
suchassociationhasrefusedtopayitscirculatingnotesasaforesaidandisindefault,heshall
withinthirtydaysafterheshallhavereceivednoticeofsuchfailure,declaretheUnitedStates
AmendedComplaint
21

bondsandsecuritiespledgedbysuchassociationforfeitedtotheUnitedStates,andthesameshall
thereuponbeforfeitedaccordingly.Andthereuponthecomptrollershallimmediatelygivenoticein
suchmannerastheSecretaryoftheTreasuryshall,bygeneralrulesorotherwise,direct,tothe
holdersofthecirculatingnotesofsuchassociationtopresentthemforpaymentattheTreasuryof
theUnitedStates,andthesameshallbepaidaspresentedinlawfulmoneyoftheUnitedStates;
whereuponsaidcomptrollermay,inhisdiscretion,cancelanamountofbondspledgedbysuch
associationequalatcurrentmarketrates,notexceedingpar,tothenotespaid.13STAT114,
Section47

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