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In rejecting his appeal, the United States Court of Appeals for the Eighth Circuit noted. Such groups argue the case demonstrates that the Federal Reserve System is unconstitutional.īecause the Credit River decision was nullified, the case has no value as precedent. However, the bank appealed the next day, and the decision was ultimately nullified on the grounds that a justice of the peace did not have the power to make such a ruling. The jury returned a verdict for the defendant, and the justice of the peace declared that the mortgage was. The jury and the justice of the peace, Martin V. Daly based his defense on the argument that the bank had not actually loaned him any money but had simply created credit on its books.ĭaly argued that the bank had thus not given him anything of value and was not entitled to the property that secured the loan. The plaintiff was the First National Bank of Montgomery, which had foreclosed on Daly's property for nonpayment of the mortgage, and was seeking to evict him from the property. The decision in that case is sometimes cited by opponents of the United States banking system. Justice Court, Credit River Township, Scott County, Minnesota), also known as the Credit River Case, was a case tried before a justice of the peace in Minnesota in 1. First National Bank of Northern California opened in 1963 to serve the credit and deposit needs of Daly City.įirst National Bank of Montgomery v. First Desktop Banker Business Credit Cards Business Credit Card Rewards International Services. Jerome Daly had a mortgage with the First National Bank of Montgomery. The first is the reference to a publication called. III, No.5 of The Libertarian Forum in the article "Jerome Daly Once More" published June, 1971, and accessible at. Mahoney died soon after the court case, as reported on page 4 of Vol. The defendant, Jerome Daly, was a longtime tax protester and attorney who was later disbarred by a decision of the Minnesota Supreme Court. According to a statement published at the Minnesota State Law Library web site, the Credit River decision is not legal precedent, since it was undertaken by a justice of the peace (see also Subject-matter jurisdiction), and was eventually overruled by other court decisions. This case has been cited by various conspiracy theorists and anti-Federal Reserve System protesters as authority for the proposition that foreclosure is illegal. 9, 1968 ( Justice Court, Township of Credit River, Scott County, Minnesota), also known as the Credit River case. 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