Negotiable Instruments.

P Newton made this Freedom of Information request to Bank of England

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The request was partially successful.

Dear Bank of England,

Please, according to the recorded information you hold, kindly provide clarification on the use of Negotiable Instruments/Equitable Assets for offsetting alleged debt liabilities.

For example, a Bank Giro Credit is a recognised remedy at Law, by signing it and transferring title ownership, this must be accepted to offset any alleged debt. Please clarify this matter according to the recorded information you have.

Furthermore, could you provide the Bank of England’s policy on lending, specifically, what are the standard bank bookkeeping entries for granting loans or credit, according to the Bank of England policies and procedures?

Using the fiat monetary currency that we now use, it seems very evident that Commercial Banks are engaged in very dubious lending practices, securitising the Notes (Credit Agreements) people have signed thinking the bank was going to be loaning the banks own or that of their depositors currency. By construing a Trust with peoples property (Credit Agreement), the signatory effectively becomes Settlor and Beneficiary to the Trust. Please confirm this. Thank you.

Yours faithfully,

P Newton

Enquiries, Bank of England

Dear P Newton

We acknowledge receipt of your email dated 10 May below (our ref: CAS-08565-c8t8y3).

We will reply in due course

Yours sincerely

Information Access Team, Communications Directorate
Bank of England | Threadneedle Street | London EC2R 8AH | +44 20 3461 4878

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Enquiries, Bank of England

Dear P Newton,

Thank you for your enquiry. As you may be aware, the FoI Act provides a general right of access to recorded information held by a public authority. It does not require a public authority to answer general questions on a subject as is the case in this instance. As such, we have responded to this as a general enquiry.

Starting with your question about alleged debt. Although not specifically about bank giro credit, the phrase ‘legal tender’, has a very narrow meaning in relation to the settlement of debts. Quite simply, it means that if a debtor pays in legal tender the exact amount owing under the terms of a contract, he has a good defence in law if he is subsequently sued for non-payment of the debt. It follows that, in ordinary everyday transactions, the term ‘legal tender’ has very little practical application. People are also often willing to accept payment by cheque, standing order, debit or credit card for example – in fact, by any instrument that they are confident will deliver value – but these, too, are not actually legal tender items. Further information can be found on the Bank of England's Knowledge Bank website:

You may be interested to know that the relevant legislation governing the term ‘legal tender’ in the UK can be found in the following Acts of Parliament:
Banknotes: Currency and Banknotes Act 1954, section 1(2);
Coins: Coinage Act 1971, as amended by the Currency Act 1983.

On the Bank's specific policies relating to lending and banking practices, it may be helpful for me to explain the financial regulation arrangements for the United Kingdom.

The Bank of England’s Prudential Regulation Authority (PRA) is responsible for the ‘prudential’ regulation of deposit-takers (banks, building societies and credit unions), insurers and some major investment firms. As the prudential regulator, it is the PRA’s role to promote the ‘safety and soundness’ of these firms – that is, to promote their resilience against failure, and to help ensure that they avoid causing harm through any disruption to the continuity of their provision of financial services. The PRA works alongside the Financial Conduct Authority (FCA) creating a “twin peaks” regulatory structure in the United Kingdom. The FCA is a separate institution and not part of the Bank of England. It focuses on the interaction between customers and financial institutions, making sure that the institutions offer a reliable and fair service to their customers.

The PRA's rulebook sets out all the rules that we make that apply to the financial services firms that we authorise. The rulebook can be accessed here:

On your third point relating to fiat money, I suggest that you read the Quarterly Bulletin article 'Money creation in the modern economy' for more information about how the majority of money in the modern economy is created by commercial banks making loans. This should provide some clarity and further details that may be of interest. The article can be accessed here:

I hope this information is helpful.

Yours sincerely,

Public Communications Analyst
Bank of England | Threadneedle Street, London EC2R 8AH
+44 20 3461 4878

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Dear Thomas for the Bank of England,

Thank you for providing a response. I would be very appreciative if you could clarify the use of Bills of Exchange/Financial Instruments as a remedy to set-off alleged debt liabilities, in Equity.

It would appear after having further researched matters, that banks and other financial institutions do not actually lend or loan anything of substance and are engaged in the practice of usury, which is, the practice of issuing fiat currency and charging interest on something created by the Settlor. The lending of money is something completely different. Is it not true that - ‘he who brings liability must provide remedy’ (at Law) is applicable in such matters?

Is it also correct that banks are the facilitators of financial liquidity whilst Settlors are in fact the creators of their own credit?

Is it also correct that banks owe a Fiduciary duty and certain obligations to Beneficiaries?
The words ‘customer’ and ‘debtor’ are merely legal constructs, construed to plunder the sweat equity from the Beneficiary.

Many people now view Commercial banks as being engaged in inland piracy, conducting themselves as foreign mercenaries and fail to recognise common law or Equitable remedies.

Thank you,
P Newton