E-Sign Act

15 U.S.C. § 7001 : US Code - Section 7001: General rule of validity
(a) In general Notwithstanding any statute, regulation, or other rule
of law (other than this subchapter and subchapter II of this chapter), with respect to any transaction in or affecting interstate or…
(1) a signature, contract, or other record relating to such transaction may not be denied legal effect, validity, or...
15 U.S.C. § 7003 : US Code - Section 7003: Specific exceptions
(a) (3) the Uniform Commercial Code, as in effect in any State, other than sections 1–107 and 1–
206 and Articles 2 and 2A.

UETA
UETA - SECTION 3. SCOPE.

(a) Except as otherwise provided in subsection (b), this [Act] applies to electronic records and
electronic signatures relating to a transaction.
(b) This [Act] does not apply to a transaction to the extent it is governed by:
(2) [The Uniform Commercial Code other than Sections 1-107 and 1-206, Article 2, and Article 2A.

Electronic Promissory Notes
Electronic Security Instruments

A Promissory Note can either be a Negotiable Instrument or Non-Negotiable Instrument. E-Sign and UETA both exclude Negotiable Instruments governed by UCC Article 3.
The Security Instrument securing the Negotiable Instrument is governed by UCC Article 9 which is also listed as excluded under E-Sign and UETA.

The process of converting a paper negotiable instrument into an electronic negotiable instrument
lacks basic laws to support its existence. Same is true for an electronically created Negotiable
Instrument. (Henceforth Electronic Promissory Note or as MERS refers, “E-Notes”)

Common practice involves MERS being named as Nominee for a lender and lender assigns on the
Security Instrument in public records and to remain as such while the Electronic Negotiable Instrument is conveyed through multiple parties to be offered as collateral to a Secondary Market offering.

Two facts emerge from these actions; Investors that purchase Certificates backed by Electronic
Promissory Notes as collateral have in fact purchased a Certificate in which the Electronic
Promissory Note’s do not lawfully exist.

The second fact is the Security Instrument that once secured the Original Paper Note at the conception of the indebtedness has been rendered nullity by actions of the lenders and therefore even if the Electronic Negotiable Instrument did exist, a Null Security Instrument has been offered up as part of the Collateral purchased by Investors.