Additionally (or alternatively), adherents contend that the postage stamp itself constitutes binding consideration in lieu of repayment of the underlying loan.15 Regardless of the specific rationale, mainstream borrowers do not engage in this behavior; its presence should be treated as a significant warning sign that the borrower is a sovereign citizen. ALL CAPS or Unconventional Name Formatting Another common indicator is when the borrower signs their name in all capital letters (JOHN DOE), formatted with unusual punctuation (Doe;. John) or both (DOE;. JOHN).16 By signing the document in this manner, sovereign citizens believe that they have properly differentiated their “flesh-and-blood” selves from their strawman identity and that any signature they provide is as an agent for the strawman.17 Accordingly, to them, any agreement signed in such a manner is not binding upon their flesh-and-blood self.18 Although such formatting occasionally results from a confused but well-meaning borrower, these signatures should prompt heightened awareness from lenders, as they may indicate the borrower’s subscription to the sovereign citizen ideology. “Without Recourse” and “Without Prejudice” Language Perhaps the most widely used documentary marker is the addition of “Without Prejudice” and “Without Recourse” near or within the signature block. They believe these statements create a record that the sovereign signed under protest, did not consent to the court’s or lender’s authority, and cannot be held personally liable.19 While sovereign citizens draw these statements directly from UCC §1-308, they distort their meaning far beyond any legitimate interpretations, like magic talismans that protect those who invoke the phrases from any government jurisdiction.20 The presence of these phrases near a signature block should be treated as a strong indicator of sovereign citizen ideology. This is an anonymized recreation of a loan document Baird Holm LLP received, which depicts some of the symbols sovereign citizens use to attempt to avoid paying debts. Using this article as a reference, see how many red flags you can identify. Conclusion Although courts have uniformly rejected every sovereign citizen theory and scheme just described, these tactics remain disruptive and costly for lenders. Early identification is the most effective way for lending institutions to limit the expenses and threats created by sovereign citizens. By training frontline employees to recognize the indicators outlined in this article and to escalate promptly to legal counsel, lenders can better manage the risks posed by this small but ever-present menace at the fringes of American society. 1 A Quick Guide to Sovereign Citizens 1, UNC Sch. of Gov’t (rev. Nov. 2013), https://www.sog.unc.edu/sites/www.sog.unc.edu/files/Sov%20citizens%20 quick%20guide%20Nov%2013.pdf. 2 Id. at 1–2. 3 J.M. Berger, Without Prejudice: What Sovereign Citizens Believe 4–5, G.W.U. Program on Extremism (June 2016), https://extremism.gwu.edu/sites/g/files/ zaxdzs5746/files/downloads/JMB%20Sovereign%20Citizens.pdf. 4 FBI Domestic Terrorism Operations Unit II, Sovereign Citizens: An Introduction for Law Enforcement 6–7 (Nov. 2010) (unclassified/law enforcement sensitive). 5 Id. 6 Id. 7 Mellie Ligon, The Sovereign Citizen Movement: A Comparative Analysis with Similar Foreign Movements and Takeaways for the United States Judicial System, 35 Emory Int’l L. Rev. 297, 301–2 (2021). 8 Berger, supra note 3, at 5–6. 9 Id. 10 Anti-Defamation League, The Sovereign Citizen Movement: Common Documentary Identifiers & Examples 9–10 (2016). 11 Id. 12 FBI Domestic Terrorism Operations Unit II, supra note 4, at 6–7. 13 Donald J. Netolitzky, Organized Pseudolegal Commercial Arguments as Magic and Ceremony, 55 Alberta L. Rev. 1045, 1063–64 (2018). 14 Id. at 1058–59. 15 Id. at 1063–64. 16 Anti-Defamation League, supra note 10, at 2, 5. 17 Id. 18 Id. 19 Berger, supra note 3, at 5. 20 Anti-Defamation League, supra note 10, at 3. 20 NEBRASKA BANKER
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