Understanding Recoupment Rights: Why Your Promissory Note Makes You the Creditor

Categories
Business, Constitution, Education, Intangibles, Law/Legal, News, Realworldfare, Remedy, Securities, Sovereigns, Trust, Wealth

Under Title 12 U.S.C. § 1813(l)(1), when the purported borrower deposits or surrenders a promissory note, it is considered a cash item. In this context, a financial institution, such as Chase or other entities, are legally obligated to treat the note as a cash equivalent and issue a cash receipt acknowledging the deposit of this asset.