I can't find anything from a truly reliable source about this mortgage case through Google. But the movie centers around a 1969 foreclosure case where a lawyer named Jerome Daly fought his 14,000 foreclosure by calling his bank manager to the stand where the bank manager admited that the credit that was given to Daly was created out of thin air via accounting entry so there was no true exchange of value because there should be no ability to create money out of thin air.
The judge in this case agreed that the creation of credit was not constitutional.
the bank tried to appeal and submitted the required appeal payment of $2.00 by submitting 2 American dollar bills, and I guess the judge dismissed the appeal before it got to the courts based on his perception that the two dollar bills were treasury notes and since they were not based on a backed value didn't represent proper payment for the appeal.
At that point the Bank packed it in and moved on.
However I think this was at a justice of the peace level, and wasn't a state or federally tried case so the veracity of its merits has never been tested at higher levels.
Supposedly the judge Martin Mahoney died serveral months later in a boating accident that some of these people believe was a deliberate poisoning by the bank in concert with the government.
Its important to note that this was jury trial and juries are notoriously un sympathetic towards banking institutes.
The appeal denial was very odd based on the judges refusal to hear it due to payment method.
The bank didn't follow through on appeals to the state and federal level, probably because it would have cost them more then the $14,000 value of the mortgage.
I don't know how valid this case was in setting future policies and bank procedures or if mortgage contracts were changed due to it.
http://boards.celebrityloop.com/arch...p/t-44446.html
If anyone cares to review this the documents are here
http://www.lawlibrary.state.mn.us/Cr...editRiver.html
Summary here
http://www.abovetopsecret.com/forum/thread383188/pg1