III.   Rights

A Holder is a fictional concept whereby a person who possesses a document of an original instrument or facsimile is presumed to consent as surety to any associated obligations implied by the instrument, and therefore abide by the rules by which the instrument was issued, unless such surety is otherwise qualified.

When the rightful owner of certain property is also a holder of an instrument, then such possession of the document also represents their proof of ownership, consent and agreement to the validity of the rules by which the instrument was issued, as well as surety to any associated obligations, without physical need to demonstrate possession.

A person who is a holder of an instrument representing rights and obligations to certain property does not mean they are the rightful owner of the property, but consent to act as surety and abide by the rules of its issue.

The issue or record of issuing a document to a person does not imply a person is a holder. Nor does the presence of a particular document in close proximity to a person mean they are a holder. It is only when a person touches and “holds” a document in the presence of others do they become a holder.

The presumption of surety of a holder cannot be proven in law until a person confirms in the presence of at least two witnesses they are the holder. The absence of disclosure and knowledge to a holder of the obligations for which they have consented constitutes an act of deception and fraud.

It is immaterial whether a person holds an original or a facsimile of an instrument to be a holder.

As a holder implies acceptance of all associated obligations, a person has the right to qualify their consent by claiming to be only a Holder in Due Course. A Holder in Due Course is a Holder that accepts their surety and consent for any obligations and performance due over the time an instrument is in their possession, but rejects any implied consent for surety for any potential misdeeds or errors by one or more previous holders.

A person that does not affirm their position as a Holder in Due Course is assumed to accept the full obligations, responsibilities as well as any rights if owner of the property.

The assertion of a person to be a Holder in Due Course has no effect in diminishing any acceptance and surety of obligations and performance due during their time as holder. Nor does the assertion have any effect if the person is the first Holder of the Instrument and user of the Property.

A person who asserts their right to be known as a Holder in Due Course cannot be lawfully held liable for the misdeeds of previous holders. However, as the person is still a holder, they continue to consent and agree to the validity of the rules by which the instrument was issued.

A person who does not physically hold or possess an instrument or who openly rejects consent as surety in the presence of two or more witnesses cannot be held liable for any associated obligations and performance implied by the particular instrument alone, nor any conditions of the rules by which the instrument was issued.

The rejection of consent as holder or the absence of possession of an instrument does not excuse the obligations and performance of a person as a lawful owner or user of the particular property.

A lawful owner or holder that rejects the rules by which the instrument they hold was issued is by definition in dishonor and delinquent to the terms by which such an instrument is held and used.