REPORT #PCT04: THE PURE CONTRACT TRUST IN A NUTSHELL

© Copyright 1994 Sovereign Services ALL RIGHTS RESERVED

Caveat:
This publication is based on sources believed to be reliable. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or tax guidance service. If legal advice or other expert guidance is required, the services of a competent professional should be sought. This publication is for information only. The author and publisher assume no responsibility for the consequences of anyone acting in accordance with this information.

WHAT IS A PURE CONTRACT TRUST?

In this publication the term "Pure Contract Trust" refers to a particular form of Common-Law Contract that creates a Trust, also called a "Pure Trust."
Definition of Trust: Property held by one person for the benefit of another.

The Pure Contract Trust is a particular kind of trust. It is based on the U.S. Constitution, Common Law, and extensive case law, including many Supreme Court decisions.

The Pure Contract Trust provides these basic benefits:


THE MOST BASIC ASPECTS OF THE PURE CONTRACT TRUST

            /         Exchange         \
[PROPERTY]  ----------------------------  [CERTIFICATE(S) OF
            \                          /   CAPITAL UNITS]

A Pure Contract Trust can have special characteristics:

BENEFITS OF THE PURE CONTRACT TRUST STRUCTURE


THE PURE CONTRACT-TRUST IN MORE DETAIL

(A) CREATOR/EXCHANGOR _______\ (B) PURE CONTRACT
     & TWO TRUSTEES          /    TRUST DOCUMENT
           |                            |
(C) SEPERATE, PRIVATE               FILED WITH
    CONTRACT APPOINTS             COUNTY RECORDER
           |
           |
           |
          \|/
   (D) MANAGING   _____\ (E) TRUST  _____\ (F) CERTIFICATE
     DIRECTORS(S)      /    MINUTES      /      HOLDER(S)

  1. Creator and Exchangor (A) create basic Contract (Trust).
  2. Creator and Exchangor appoint two Trustees.
  3. Creator, Exchangor, and two Trustees (A) sign Pure Contract Trust Document (B).
  4. Pure Contract Trust Document (B) filed with County Recorder.
  5. Trustees (A), by means of separate private Contract, appoint Managing Directors (D).
  6. Above appointment also recorded in first (private) Trust Minutes (E).
  7. Pure Contract Trust Document (B) contains no references or links to Managing Directors (D).
  8. Pure Contract Trust Organization (created by B) has legal and equitable title to Trust assets.
  9. Managing Director(s) (D) has/have complete, practical control of Trust assets and affairs, and maintain(s) Trust Minutes (E).
  10. Trust Minutes (E) used to exchange assets into trust, and to appoint Certificate Holder(s) (F).
  11. The function of Certificate Holder(s) (F) is to ensure that the provisions of Trust Minutes (E) are executed upon the demise of Managing Director(s) (D). Certificate Holder(s) is/are not beneficiaries. His/their only claim is a demand that the terms and stipulations of the Contract (B) be carried out. The Role of Certificate Holder(s) (F) is similar to that of the Executor of a will.
  12. Someone who purchases the right to use the Pure Contract Trust - the Managing Director(s) - receives the following:
    (a) Creator, Exchangor, and Trustees are provided. They are Sovereign Individuals - meaning they have taken the necessary steps to eliminate "hidden" or "adhesion" contracts associated with birth certificates, social security numbers, driver's licenses, etc. In general, they are not subject to statutory control.
    (b) The Pure Contract Trust Document, signed by the above parties, notarized, and recorded by the County Recorder in Maricopa, Arizona.
    (c) The Minutes of the first Trustee meeting, where the Trustees pass a resolution to appoint the Managing Director(s).
    (d) The signed and notarized Contract appointing the Managing Director(s). As soon as the purchaser - the Managing Director(s) - receives the above documents, the Managing Director(s) only have to sign the Contract and get his/their signature(s) notarized, and the Pure Contract Trust is ready for use.

COMMON-LAW JURISDICTION V. STATUTORY JURISDICTION

Very few U.S. citizens know that they have a fundamental choice: To live their lives and conduct their businesses under common-law jurisdiction or statutory jurisdiction. Common Law is the law of the land, the law of the Constitution. Statutory law is the laws of the several States and the federal government.

The U.S. Constitution is a Common-Law Statement. In the U.S., Common Law is the law of the land

The IRS makes this distinction between the two kinds of law:
"1. Common law comprises the body of principles and rules of action relating to government and security of persons and property which derive their authority solely from usages and customs or from judgments and decrees of courts recognizing, affirming, and enforcing such usages and customs.
2. Statutory law refers to laws enacted and established by a legislative body." IRS Manual, page 5041.1 Section 222.1.

Much of the original U.S. common law has been codified in a single Federal statute, the Uniform Commercial Code. The UCC provides the mechanism for making the choice between common law jurisdiction and statutory jurisdiction. It also states that the failure to make the choice results in the loss of common law rights.

"When a waivable right or claim is involved, the failure to make a reservation thereof, causes a loss of the right, and bars its assertion at a later date." UCC 1-207.9.

"The Sufficiency of the Reservation - Any expression indicating an intention to reserve rights, is sufficient, such as "without prejudice."" UCC 1-207.4.

The specific method for reserving your common-law rights - for choosing to operate under common law jurisdiction - is to write below your signature "Without Prejudice UCC 1-207." You could use this phrase on your driver's license, on bank signature cards, on checks, and on contracts.

Case Law on Jurisdiction

WHAT MAKES THE PURE CONTRACT TRUST SUCH A POWERFUL INSTRUMENT

The Pure Contract-Trust is a Common-Law "Identity" ("legal person"), based on the unlimited right to contract, and not subject to statutory jurisdiction

The Pure Contract-Trust is a Contractual Agreement guaranteed by the US Constitution.

The Pure Contract Trust can engage in any lawful business in any State (and anywhere in the world)

The Pure Contract Trust may reduce its tax liability

The Pure Contract Trust may remunerate directors or other individuals, who may pay taxes on such remuneration

The Pure Contract Trust is not subject to probate or estate taxes

The Pure Contract Trust has no reporting obligations to any government or state

The Pure Contract Trust contains a clause forbidding the parties, including managing director(s) to reveal confidential information about the trust without the unanimous decision of the trustees.

The Pure Contract Trust has the constitutional protections of right to privacy, freedom from unwarranted search and seizure, to refrain from self-incrimination, and all other individual rights bestowed by the U.S. Constitution

The Pure Contract Trust provides limited liability protection


Other reports in this series:
#PCT01 - #PCT01A - #PCT02 - #PCT03 - #PCT04 - #PCT05 - #PCT06 - #PCT07 - #PCT07A - #PCT08 - #PCT09
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