Windward Islands Bank sued for “invalid contract”POSTED: 09/25/13 5:52 PM
Plaintiff demands stop to auction and return of all payments
St. Maarten – The Court in First Instance is the stage on Friday afternoon for a lawsuit against the Windward Islands Bank, initiated by Elaine Christopher. In summary proceedings, the plaintiff seeks to stop the auction of a piece of property in Statia.
Notary Office SPS has scheduled the auction of the property for October 9. Christopher asks the court to put an immediate stop to the foreclosure proceedings and to the auction. She also demands the immediate release of the mortgage on the property, plus a full refund “of all money paid by me to the Windward Islands Bank in loan repayments, interest and fees.”
“It is my claim that the contracts that the Windward Islands Bank is now seeking to enforce by foreclosing on my property were never valid contracts,” Christopher’s wrote in her petition to the court.
This newspaper asked the Windward Islands Bank for a comment on the lawsuit but up to press time we had not received a reaction.
Christopher presents several arguments for her position to the court: “The contracts are void because the WIB did not own prior title to the money they claim to have loaned me, because WIB withheld information relating to the manner in which they managed my accounts.” The third reason according to Christopher is the foreclosure of the WIB on December 25 of last year. More about that further down.
Christopher says that for contracts to be valid, “there must be an offer, acceptance and consideration, which must pass both ways between the parties to the contract.”
When she applied for the mortgage, the bank required security, and to prove prior title to the property she put up as such. “This formed the consideration on my part. The money that the WIB claim to have loaned to me formed the consideration on their part but only if the WIB were also able to prove prior title to that money. No title = no consideration.”
Christopher says she discovered in February that banks do not lend out money they hold in customer deposits, but that “many banks create money out of thin air when they create loans.” The plaintiff refers to fractional reserve banking – a system whereby banks only have part of all deposits readily available.
“It occurred to me that the Windward Islands Bank did not provide me with proof of title to the money that they claim to have loaned to me under the aforementioned contracts and that what they had done was to monetize the secured IOU that I provided to them in the form of an agreement to pay them a certain amount each month for the duration of the loan,” Christopher says. “They created a debit account in US$ and balanced it with a credit account in US$. The money did not exist until I signed the secured IOU.”
The plaintiff furthermore argues that the only bank empowered to create US dollars is the federal Reserve Bank of America. “If the WIB are unable to prove title then they must have created the money out of thin air. Any loan made by the WIB in this way would be fraudulent and an illegal act. No consideration could have passed from the WIB to me if this was the case.”
Christopher asked the bank for proof that it had prior title to the money it loaned to her, but she received no response.
Christopher furthermore claims that her contracts do not state that the WIB applies the guidelines of the Central Bank to the management of customer accounts. “All terms and conditions relating to the contracts must be known by both parties in advance. The failure of the WIB to provide these details to me invalidates the contracts.”
Lastly, Christopher claims that, due to changes to international law using the Uniform Commercial Code (UCC) all government and banking corporations worldwide, including the WIB, were foreclosed. “As a foreclosed entity, the WIB has no authority to continue to demand payments on any contracts. All contracts are void and all debt is cancelled.”