Turning In The Keys

One of the sadder effects of the Bush/Obama Depression has been the phenomenon of numerous families losing their homes to foreclosure. The direct causes for the losses have been varied. Some have lost employment and have had to choose between eating and meeting their mortgage payments. Some have been transferred to a different location in order to keep their jobs, and not being able to pay for both the home in the old location and that in the new, have abandoned the old. Some have realized that the home they purchased at a high price has devalued and that they are paying on a mortgage loan which, in terms of the value ratio that once was and the one that now is, has an exorbitant and punitive effective interest rate.

The reasons are numerous. Walking away from a house and its attached debt, however, is a poor solution, and should be avoided at all costs. Granted, there are financial advisors who would argue differently, but the picture should be examined not just as an economic one but also as a moral, ethical, and spiritual one.

It is possibly true that the most egregious sin (if you don't like that word, I would advise that you stop reading now) in America is covetousness. That is an old-fashioned word that loosely translates into English Vulgate as "greed". It is the driving factor in the American economy. It is the desire to have what someone else has. Prohibited by the 10th Commandment, it is there stated as wanting one's neighbor's specific belongings.

That is a narrow reading of the Law. The underlying principle has to do with the fact that God is the giver of all good gifts. America in general rejects that concept. In the modern American economy, it is believed that those who work hard and smart get rich, and those who are lazy or weak remain poor. A man's wealth is evidence of his brains and brawn, a major factor in his self-steem and pride. Thus "keeping up with the Joneses" or better yet a little ahead of them, has become the American dream and greased the path to further sin. It matters not how often he goes to church; a little leaven does a great puffy amount of damage, and few are immune to the lure and ravages of such sin.

A consequence of this rampant covetousness is the willingness to sell one's self into slavery. There is a certain segment of our society that believes it has a corner on the discussion of slavery. Because their long-dead ancestors were abused by people also long-dead, they carry a grudge against anyone who does not belong to their culture group, all the while tolerating (and even encouraging) a form of slavery more insidious and debilitating. They have no monopoly on being slaves. The great majority of the American populace has joined them.

The concept of credit in a capitalistic culture has a number of nuances. At it's core, credit is used to facilitate trade. Trader A has a stock of widgets which he is offering at a set price, but will sell them in bulk with a discount if he can liquidate his stock. Trader B needs the widgets, but has left his gold at home. Trader A agrees to sell all his widgets right now, with Trader B promising to send the gold as soon as he gets home. He signs a note to that effect. On his way out of the market, Trader A spots a fat sheep for sale by Trader C. He has no money, but his family is hungry. He trades the note from Trader B to Trader C for the sheep. As long as Trader B keeps his promise to pay, everyone is happy. This is the essence of a banking economy.

There is no condemnation of such an economy in the Scripture. There are warnings, though. The borrower is the slave of the lender (Prov. 22:7). Failure to pay what is owed is considered to be fraud (Lev. 19:13, Rom. 13:7). Further, failure to keep a promise is a sin (Num. 30:2, Matt. 5:33) and the warning is given that promises should always be conditional (Matt.5:34-37, Jas. 5:12, Jas. 4:13-17).

In our society we rarely consider these things, carelessly agreeing to Terms and Conditions, whether in a software download or a loan, often without reading thoroughly what it is we are agreeing to. Thus, in my career, I have come across people like the lady who was having her house appraised for a HELOC, not even knowing that her fully paid-for home would become the collateral (the loan officer, she said, had told he it was a good idea to take out the loan). Or like the man who became angry when told that his home would be compared to homes that had recently sold. He saw no sense in that, because as he put it, he was not selling his home; he was blithely unaware that he would be signing a mortgage deed selling his home to the bank until the loan was paid.

In the past 6-7 years there have been hundreds of thousands of home foreclosures across the land. In some places, like California, if a debtor returns the collateral (hands the keys back to the bank), the debt is extinguished. In most other places, though, returning the keys, or worse yet just walking away from the property, creates headaches and potential headaches to follow a person for years and perhaps the rest of his or her life.

Ownership of real property is a privilege that is taken for granted in the United States. There are few other places in the world where it is so easy to become a land-owner with the rights and privileges available here. With those rights and privileges, though, come obligations. When a deed for title is recorded, the owner of the property becomes responsible for its upkeep, for paying the taxes, and for protecting visitors. When a loan against a property is made, the mortgage deed will spell out the need for the debtor to continue to do those things, or it will provide a means for the lender to do so.

Simply walking away from a home or other real estate because the burden of payment has become oppressive or the shine has worn off the ownership is a very bad idea. First and foremost is the aspect of sin. To promise to pay, and to renege on that promise, is sin. It matters not that one has lost the ability to pay, or that the interest rate suddenly appears usurious, or that the grass is simply greener elsewhere. To break a promise is sin.

There are other consequences that are generally not considered. The bank holding the mortgage will not usually allow the property to deteriorate, and for this reason most high LTV mortgages have escrow accounts to pay the taxes and insurance. If the debtor defaults on his payment, the bank simply continues to protect the property, and adds the cost to the loan. The debtor goes deeper into debt. If the bank does not have such an account, the debtor incurs even greater risk. If the insurance lapses and the house burns, the total cost of the damage becomes the debtor's. If someone trespasses on the property, is injured, and sues, the debtor becomes fully liable for the lawsuit. If the utilities are turned off and the pipes freeze, ultimately the cost of any repairs will accrue to the debtor. If the house is vacant and vandals enter it, damaging it or dealing or manufacturing drugs, the clean-up costs accrue to the debtor. Walking away and leaving the home empty is a recipe for disaster.

Ultimately, after default, the bank generally forecloses. That is not, however, always the case. If damage to the home is great, and taxes have accrued to a considerable extent, the bank may allow the home to be sold at tax sale. The title will transfer, but the debt will not go away. If the bank does foreclose, the house may be sold by the bank at a substantial loss. The proceeds of the sale may not be sufficient to cover the debt plus the legal costs to the bank; the debtor most likely did not read the mortgage papers carefully and may not realize that the debt has not gone away.

I have heard of advice given that there is nothing to worry about in such cases. A prevailing feeling seems to be that the bank will not do much beyond sending threatening notices. This has often been the case until recently. Lately there has been an uptick in suits to recover damages from defaulted borrowers, and suits to recover damages from appraisers who fraudulently inflated values on appraisals so that the loans could be made. There is no statute of limitations for fraud; some of those appraisals were done 6-8 years ago and are just now going to trial. A sleeping dog may look like it is just lying there, but beware that it is not plotting revenge.

My advice to any homeowner who is no longer able to pay on the mortgage is to stay put. Keep the home in good repair. Keep it insured, with the utilities on. If, ultimately, the bank evicts the homeowner in the foreclosure process, the eviction will come after the filing of the foreclosure deed and the bank will have to take the responsibility for upkeep. In some cases, it may even be possible to work out a rental agreement until the bank is able to sell the home. All these things will work to minimize the size of the balance remaining on the debt.

Meanwhile, if the problem is due to not having enough income to cover the mortgage, it will be worthwhile to seek legal counsel regarding filing bankruptcy. I do not recommend bankruptcy unless it is absolutely necessary. It is too often seen as a means of escaping debt. Never forget that even if a bankruptcy proceeding is successful, and protection from creditors is afforded, the debts are not erased. If someone has promised to pay, he is morally obligated to pay -- it is sin to not pay, even if the court states that only a percentage is required to be paid back. Never confuse what is legal with what is right.

Bankruptcy carries a stigma, and it is true that for a number of years it may affect a person's ability to purchase things on credit, or even to rent a home. Eventually, however, the bankruptcy is cleared off the credit records, and life can return to normal. The debtor is required to pay the amounts judged by the courts, and can also arrange to pay the debt in full as opportunity arises. It is not a good thing to endure, but the debtor is protected so he can do what is right in the course of time.

But what if the debtor decides to not seek bankruptcy? What if the debtor allows the lender to proceed with a suit for judgment? Some people say this is not likely to happen. I say, it is more likely than not to happen. In such a case, without the protection of a bankruptcy judgment, the lender is free to garnish the wages of the debtor until the debt is paid. There may never be enough money left in such cases for the debtor to start over and get back on his feet. The judgment may follow him all his life; it will also touch the lives of any people who might enter into contracts or relationships with him. Deficiency judgments are meant to be punitive. Avoid them if at all possible.

Striking back at The Empire

One of the unique aspects of America has been her historic position, based in the Torah, of "Equal justice under the law." (viz. Ex. 23:2-3,6; Lev. 19:15, 24:22; Dt, 16:18-20). There are those of us who have bound ourselves to uphold our Constitution, defending it against all enemies, foreign and domestic. Here is an example of some folks taking that seriously, and making a stand against some domestic enemies of the Constitution :

The Police Loophole

I wonder if the makers of defensive tools, like body armor, will have similar dedication to the rule of law.

Liberalism = Mental Illness

Liberalism has been described as a form of mental illness (Lyle H, Rossiter, Jr., MD, The Liberal Mind : The Psychological causes of Political Madness, Free World Books LLC, St. Charles IL, 2006). [n.b. There are other books out with similar titles and conclusions, but to mention them here would immediately cause manifestation of psychotic symptoms in people whom I wish to cause to think rationally.]

One of the hallmarks of the modern liberal movement has been the concept of political correctness, that is,

1. Of, relating to, or supporting broad social, political, and educational change, especially to redress historical injustices in matters such as race, class, gender, and sexual orientation.
2. Being or perceived as being overconcerned with such change, often to the exclusion of other matters.

(Christine Ammer, The American Heritage Dictionary of Idioms, Houghton Miflin Company, NY, 1997)

In attempting to redress perceived injustices, it is argued by those subscribing to the concept that censorship is good if it is controlled by people who have a more righteous mindset (i.e, similar thinking liberals).

Enter the selective use of certain words. At this point it is appropriate to postulate a null hypothesis that God did not confuse the languages at Babel to try to prevent political correctness. I welcome any and all tests which might tend to cause that null hypothesis to be rejected at, say, a confidence level of 10%. In any event, the PC (politically correct) crowd has moved with great success to take out of literature those things which they deem offensive; they specialize in tare removal (viz. Matthew 13: 24-30). That this is a good thing is possibly linked to the belief that people with sensitivity to gluten won't miss the wheat anyway.

Here we have poor Huckleberry Finn on the cutting room floor (New edition of 'Huckleberry Finn' to lose the N-word) where the term that Huck uses throughout the story to describe his friend Jim is converted to a form that is less offensive to Certain People.

Language is a means of transporting thoughts from one person's mind to the mind of another. It may be through the use of words; the term has also been logically extended to drawings (the alphabet is a type of abstract art), gestures ("body language"), actions (kisses and punches come to mind), or smells (some people are deliberately raunchy). What is most important, however, appears to be context. Pushing a person into the path of a car has a completely different meaning from pushing a person out of the path of a car -- both actions are communicating a thought by pushing, but the context makes the message.

So I would ask, what is the difference between the term that Mark Twain placed in Huck Finn's conversation, and the use of "n-word", "n*****", or some other euphemism, as used by good liberals, if the intended meaning is the same? For that matter, as a descendant of Slavs, I should be able to claim that the term "slave" needs to be banned, since it is a derogatory word that is derived from the language of my ancestors, and besides, sláva roughly translates as "glory" (moc a sláva = power and glory, or, sláva Kristu veliká = glory to Christ the great).

Further, the word "slave", which is to be used instead of "n-word" in this new PC re-write of Twain's classic is quite imprecise. The classic Latin term servus, or "slave" is the origin of our English word "servant", but servitude is broken down into both voluntary and involuntary servitude. The latter is what most people mean when they say "slavery". However, voluntary slavery -- indentured servitude -- was the means by which a substantial number of Europeans were brought to America. Thus, to be precise, if Huck's companion is to be called Slave Jim, he should really be retitled Involuntary Slave Jim to differentiate him from some immigrant Irishman of the time who would properly be called Voluntary Slave Jim.

There is another consequence to this whole flapdoodle. Let us say that another generation passes, indoctrinated in the new PC ignorance. The only people who use the "n-word" are people privileged by birth and skin color to do so. Students reading history will have the impression that the involuntary servitude of people of African descent was really not such a bad thing after all, since, based on rewritten PC literature, the slave owners politely called their slaves "Slave ***", and whenever they see the "n-word" used in a historical context, it will have been laundered to mean that the person so tagged was viewed as a fraternal comrade. So much for the corruption of history.

Indeed, liberalism is a mental illness.

Sick Semper Tyrannosaurus

What is this plot by the British to control free speech in the United States? Undoubtedly the American media is too busy with election results to post the following:

White House Must Shut Down Hate Videos on You Tube

In it, we read that, "Baroness Neville-Jones, the security minister, called on President Barack Obama's administration to 'take down this hateful material' in cases where servers were based in the US. She said websites that 'incite cold-blooded murder' would 'categorically not be allowed in the UK'". As well, we read, "The Home Office confirmed yesterday that pressure was being put on the White House to remove the sermons. A spokesman for the US State Department would say only that it had 'significant legal authorities' to act 'where activities on the internet pose a clear threat to the public'".

Two hundred thirty some years ago 13 colonial legislatures and their armies rejected the things that would not be allowed in the UK.

Once upon a time, in a newly formed nation that styled itself The United States of America, the representatives of the people put forward a Constitution that was designed to prevent the government from having power over the people. One of the first things the young nation did was reinforce the chains on government by instituting a law that Congress -- the only authority in the United States which could legitimately pass rules for all the people of all the States -- "shall make no law … abridging the freedom of speech …"

Freedom is at best an uncomfortable luxury. It requires the exercise of responsibility, both personal and communal. A free people must practice self control, and self denial, of desires to force others to view thoughts, expressions, and events in the same manner as does the majority. Personal freedom is the antithesis of democracy.

In the desire to be comfortable we, as a nation, have sunk to pitiful degradation of our liberties in that we commonly discuss what are viewed as necessary restrictions on speech. Congress has seen fit to put limits on political speech through "campaign finance reform", and on unpleasant -- perhaps humiliating or aggravating or frightening to the hearers -- speech through "regulation of hate speech". Let it be remembered that no man is free unless all are free; free to believe and express their beliefs freely no matter how offensive the expression.

The only legitimate limitation we have historically placed on the freedom of expression is the requirement that each person be responsible for his or her actions. In the Christian tradition, each individual makes the decision to carry out a good or an evil deed. "The Devil made me do it" is not a valid defense before the Judgement Seat of God, and was never held to be a valid defense by our Founding Fathers. The Paganization of America has brought us to the point where it is acceptable to think that someone or something else is responsible for a person's lack of self control.

If indeed a "spokesman for the US State Department would say only that it had 'significant legal authorities' to act 'where activities on the internet pose a clear threat to the public'", then that spokesman has committed treason against the Constitution of the United States by giving them "Aid and Comfort" (Article 4, Section 3) and needs to be punished by Congress as stated in that section. No such "significant legal authorities" exist in our Constitution.

The mutterings and screechings of Al Quaeda may be incitement to mayhem when weak-minded people listen to them. The British Members of Parliament, however, have every power under their own laws to cut off access to You Tube in Great Britain. That they are too cowardly to do so against the wishes of their constituencies is no reason for the government of the United States to violate its own charter of legitimacy.

The N_B_L Prize

I've heard tell that Biblical Hebrew has no vowels. I learned today that the President of the World won a prize for talking about Hope and Change. The N_B_L Prize. I looked it up in the Bible. I Samuel 25:25. 'Nuff said.

Today's twisty thinking looped around the commonality of fraud in our society. Strangely enough, the sequence of neuronal activity began with a statement by a spokesman for someone whom I respect quite a bit for his clear insight into spiritual matters. The statement that "For a gift of any amount we will send you ..." triggered musing about fraudulent activity by those who purport that honesty is the only policy they will subscribe to.

I realize that the writing of books is a serious and time consuming process, and I fully respect the concept of wanting to be paid for one's labors. I also respect and defend the idea that a person may sell his property for any amount which the market might bear, or even give it away, as he so chooses. While I have not sent that particular person any "gifts", I have sent donations to other such entities (without any expectation of a "gift" in return), and have received a receipt from the donee for tax deduction purposes.

IRS regulations require that when claiming a deduction for a charitable or other non-profit or political contribution, if any item of value has been received in return, the Fair Market Value of that item must be disclosed on the receipt, and only the amount of the donation greater than the value of the item given to the donor can be claimed as a deductible contribution. Well and good.

That Fair Market Value can often be easily established because the item returned to the donor as a gift is an item regularly sold by the donee. In any event, by IRS standards, a "gift" that is received in return for a solicited "contribution" of money is an exchange. Any amount above the Market Price of the item is then recognized by the IRS as a contribution. However, if the exchange takes place on acceptance of a "gift of any amount", the possibility exists that the donor will receive a "gift" worth more than what he "gave" for it. Such an exchange leaves the donor with what is clearly a taxable gain by IRS standards.

In fact, when the solicitation leads a donor to believe that he is getting a "gift" in return for his donation, should the donee actually give the item at no cost to someone who has made no contribution, and then turn around and report on the IRS-required receipt that the value of the "gift" is $X.xx to the donor responding to the solicitation, the donee has clearly lied to the publican. By IRS standards, if the item can be obtained for free, its Market Value is $0.00, but if the Market Value is truly $X.xx and he has given it away, then the only equitable course of action is to inform the person getting the item that he has just been given a "gift" the value of which must be reported on his income tax form as taxable income.

Just as evil is the situation for the person who gave a "gift of any amount". If the item to be given in return is actually worth $0.00 because it can be had for free by somebody who has no money to give, then any Market Value stated on the receipt defrauds the donor of a possible tax deduction amount.

Similarly, when a church holds a fund-raising dinner and there is a "suggested donation" amount indicated for the meal, only the amount donated that is above the "suggested donation" is legally tax deductible for the donor, and technically, if such a meal is given free to someone who cannot afford the "suggested donation", the "suggested donation" amount is taxable income to the poor person.

Aha, says you, Grandpa Jim is a LEGALIST without care for the unfortunate. Such accusers may well deserve the N_B_L Prize. To lawyer one's way around the IRS regulations is legalism at its finest.

My position is simply this : a "gift" should be given with no expectation of anything in return.

The bottom line is that when you sign that income tax return, you state that everything you wrote down in it is true. In order to fill it out properly, you have to follow the directions that came with it, and accept the definitions that the government uses for the questions and statements on the form. Anyone who signs the form using their own definitions and not altering the form to insert those definitions, is a liar.

Of course, some brave soul might cross off the affidavit just above his signature on the tax return. That produces other kinds of problems. Honesty may be expensive and inconvenient, but when the people of any nation set aside their individual integrity, that nation is ripe for judgment.

Congress Proposes Hate Crime(against citizens)

How many Chicago politicians does it take to start a new American Revolution?

Notice the power given to the Attorney General, an appointed official, to determine who can own a firearm, how much his license will cost, and any additional regulations he deems necessary.

Look at Section 601. It is time for the legislatures and governors of the States to stand up and declare that their States are not bound by any act of Congress which attempts to override the literal text of the United States Constitution.

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H.R.45

Blair Holt's Firearm Licensing and Record of Sale Act of 2009 (Introduced in House)

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HR 45 IH

111th CONGRESS

1st Session

H. R. 45

To provide for the implementation of a system of licensing for purchasers of certain firearms and for a record of sale system for those firearms, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

January 6, 2009

Mr. RUSH introduced the following bill; which was referred to the Committee on the Judiciary

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A BILL

To provide for the implementation of a system of licensing for purchasers of certain firearms and for a record of sale system for those firearms, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as `Blair Holt's Firearm Licensing and Record of Sale Act of 2009'.

(b) Table of Contents- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings and purposes.

Sec. 3. Definitions.

TITLE I--LICENSING

Sec. 101. Licensing requirement.

Sec. 102. Application requirements.

Sec. 103. Issuance of license.

Sec. 104. Renewal of license.

Sec. 105. Revocation of license.

TITLE II--RECORD OF SALE OR TRANSFER

Sec. 201. Sale or transfer requirements for qualifying firearms.

Sec. 202. Firearm records.

TITLE III--ADDITIONAL PROHIBITIONS

Sec. 301. Universal background check requirement.

Sec. 302. Failure to maintain or permit inspection of records.

Sec. 303. Failure to report loss or theft of firearm.

Sec. 304. Failure to provide notice of change of address.

Sec. 305. Child access prevention.

TITLE IV--ENFORCEMENT

Sec. 401. Criminal penalties.

Sec. 402. Regulations.

Sec. 403. Inspections.

Sec. 404. Orders.

Sec. 405. Injunctive enforcement.

TITLE V--FIREARM INJURY INFORMATION AND RESEARCH

Sec. 501. Duties of the Attorney General.

TITLE VI--EFFECT ON STATE LAW

Sec. 601. Effect on State law.

Sec. 602. Certification of State firearm licensing systems and State firearm record of sale systems.

TITLE VII--RELATIONSHIP TO OTHER LAW

Sec. 701. Subordination to Arms Export Control Act.

TITLE VIII--INAPPLICABILITY

Sec. 801. Inapplicability to governmental authorities.

TITLE IX--EFFECTIVE DATE

Sec. 901. Effective date of amendments.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings- Congress finds that--

(1) the manufacture, distribution, and importation of firearms is inherently commercial in nature;

(2) firearms regularly move in interstate commerce;

(3) to the extent that firearms trafficking is intrastate in nature, it arises out of and is substantially connected with a commercial transaction, which, when viewed in the aggregate, substantially affects interstate commerce;

(4) because the intrastate and interstate trafficking of firearms are so commingled, full regulation of interstate commerce requires the incidental regulation of intrastate commerce;

(5) gun violence in the United States is associated with the majority of homicides, over half the suicides, and two-thirds of non-fatal violent injuries; and

(6) on the afternoon of May 10, 2007, Blair Holt, a junior at Julian High School in Chicago, was killed on a public bus riding home from school when he used his body to shield a girl who was in the line of fire after a young man boarded the bus and started shooting.

(b) Sense of the Congress- It is the sense of the Congress that--

(1) firearms trafficking is prevalent and widespread in and among the States, and it is usually impossible to distinguish between intrastate trafficking and interstate trafficking; and

(2) it is in the national interest and within the role of the Federal Government to ensure that the regulation of firearms is uniform among the States, that law enforcement can quickly and effectively trace firearms used in crime, and that firearms owners know how to use and safely store their firearms.

(c) Purposes- The purposes of this Act and the amendments made by this Act are--

(1) to protect the public against the unreasonable risk of injury and death associated with the unrecorded sale or transfer of qualifying firearms to criminals and youth;

(2) to ensure that owners of qualifying firearms are knowledgeable in the safe use, handling, and storage of those firearms;

(3) to restrict the availability of qualifying firearms to criminals, youth, and other persons prohibited by Federal law from receiving firearms; and

(4) to facilitate the tracing of qualifying firearms used in crime by Federal and State law enforcement agencies.

SEC. 3. DEFINITIONS.

(a) In General- In this Act:

(1) FIREARM; LICENSED DEALER; LICENSED MANUFACTURER; STATE- The terms `firearm', `licensed dealer', `licensed manufacturer', and `State' have the meanings given those terms in section 921(a) of title 18, United States Code.

(2) QUALIFYING FIREARM- The term `qualifying firearm' has the meaning given the term in section 921(a) of title 18, United States Code, as amended by subsection (b) of this section.

(b) Amendment to Title 18, United States Code- Section 921(a) of title 18, United States Code, is amended by adding at the end the following:

`(36) The term `qualifying firearm'--

`(A) means--

`(i) any handgun; or

`(ii) any semiautomatic firearm that can accept any detachable ammunition feeding device; and

`(B) does not include any antique.'.

TITLE I--LICENSING

SEC. 101. LICENSING REQUIREMENT.

Section 922 of title 18, United States Code, is amended by adding at the end the following:

`(aa) Firearm Licensing Requirement-

`(1) IN GENERAL- It shall be unlawful for any person other than a licensed importer, licensed manufacturer, licensed dealer, or licensed collector to possess a qualifying firearm on or after the applicable date, unless that person has been issued a firearm license--

`(A) under title I of Blair Holt's Firearm Licensing and Record of Sale Act of 2009, which license has not been invalidated or revoked under that title; or

`(B) pursuant to a State firearm licensing and record of sale system certified under section 602 of Blair Holt's Firearm Licensing and Record of Sale Act of 2009, which license has not been invalidated or revoked under State law.

`(2) APPLICABLE DATE- In this subsection, the term `applicable date' means--

`(A) with respect to a qualifying firearm that is acquired by the person before the date of the enactment of Blair Holt's Firearm Licensing and Record of Sale Act of 2009, 2 years after such date of enactment; and

`(B) with respect to a qualifying firearm that is acquired by the person on or after the date of the enactment of Blair Holt's Firearm Licensing and Record of Sale Act of 2009, 1 year after such date of enactment.'.

SEC. 102. APPLICATION REQUIREMENTS.

(a) In General- In order to be issued a firearm license under this title, an individual shall submit to the Attorney General (in accordance with the regulations promulgated under subsection (b)) an application, which shall include--

(1) a current, passport-sized photograph of the applicant that provides a clear, accurate likeness of the applicant;

(2) the name, address, and date and place of birth of the applicant;

(3) any other name that the applicant has ever used or by which the applicant has ever been known;

(4) a clear thumb print of the applicant, which shall be made when, and in the presence of the entity to whom, the application is submitted;

(5) with respect to each category of person prohibited by Federal law, or by the law of the State of residence of the applicant, from obtaining a firearm, a statement that the individual is not a person prohibited from obtaining a firearm;

(6) a certification by the applicant that the applicant will keep any firearm owned by the applicant safely stored and out of the possession of persons who have not attained 18 years of age;

(7) a certificate attesting to the completion at the time of application of a written firearms examination, which shall test the knowledge and ability of the applicant regarding--

(A) the safe storage of firearms, particularly in the vicinity of persons who have not attained 18 years of age;

(B) the safe handling of firearms;

(C) the use of firearms in the home and the risks associated with such use;

(D) the legal responsibilities of firearms owners, including Federal, State, and local laws relating to requirements for the possession and storage of firearms, and relating to reporting requirements with respect to firearms; and

(E) any other subjects, as the Attorney General determines to be appropriate;

(8) an authorization by the applicant to release to the Attorney General or an authorized representative of the Attorney General any mental health records pertaining to the applicant;

(9) the date on which the application was submitted; and

(10) the signature of the applicant.

(b) Regulations Governing Submission- The Attorney General shall promulgate regulations specifying procedures for the submission of applications to the Attorney General under this section, which regulations shall--

(1) provide for submission of the application through a licensed dealer or an office or agency of the Federal Government designated by the Attorney General;

(2) require the applicant to provide a valid identification document (as defined in section 1028(d)(2) of title 18, United States Code) of the applicant, containing a photograph of the applicant, to the licensed dealer or to the office or agency of the Federal Government, as applicable, at the time of submission of the application to that dealer, office, or agency; and

(3) require that a completed application be forwarded to the Attorney General not later than 48 hours after the application is submitted to the licensed dealer or office or agency of the Federal Government, as applicable.

(c) Fees-

(1) IN GENERAL- The Attorney General shall charge and collect from each applicant for a license under this title a fee in an amount determined in accordance with paragraph (2).

(2) FEE AMOUNT- The amount of the fee collected under this subsection shall be not less than the amount determined by the Attorney General to be necessary to ensure that the total amount of all fees collected under this subsection during a fiscal year is sufficient to cover the costs of carrying out this title during that fiscal year, except that such amount shall not exceed $25.

SEC. 103. ISSUANCE OF LICENSE.

(a) In General- The Attorney General shall issue a firearm license to an applicant who has submitted an application that meets the requirements of section 102 of this Act, if the Attorney General ascertains that the individual is not prohibited by subsection (g) or (n) of section 922 of title 18, United States Code, from receiving a firearm.

(b) Effect of Issuance to Prohibited Person- A firearm license issued under this section shall be null and void if issued to a person who is prohibited by subsection (g) or (n) of section 922 of title 18, United States Code, from receiving a firearm.

(c) Form of License- A firearm license issued under this section shall be in the form of a tamper-resistant card, and shall include--

(1) the photograph of the licensed individual submitted with the application;

(2) the address of the licensed individual;

(3) the date of birth of the licensed individual;

(4) a license number, unique to each licensed individual;

(5) the expiration date of the license, which shall be the date that is 5 years after the initial anniversary of the date of birth of the licensed individual following the date on which the license is issued (or in the case of a license renewal, following the date on which the license is renewed under section 104);

(6) the signature of the licensed individual provided on the application, or a facsimile of the application; and

(7) centered at the top of the license, capitalized, and in boldface type, the following:

`FIREARM LICENSE--NOT VALID FOR ANY OTHER PURPOSE'.

SEC. 104. RENEWAL OF LICENSE.

(a) Application for Renewal-

(1) IN GENERAL- In order to renew a firearm license issued under this title, not later than 30 days before the expiration date of the license, the licensed individual shall submit to the Attorney General (in accordance with the regulations promulgated under paragraph (3)), in a form approved by the Attorney General, an application for renewal of the license.

(2) CONTENTS- An application submitted under paragraph (1) shall include--

(A) a current, passport-sized photograph of the applicant that provides a clear, accurate likeness of the applicant;

(B) current proof of identity of the licensed individual; and

(C) the address of the licensed individual.

(3) REGULATIONS GOVERNING SUBMISSION- The Attorney General shall promulgate regulations specifying procedures for the submission of applications under this subsection.

(b) Issuance of Renewed License- Upon approval of an application submitted under subsection (a) of this section, the Attorney General shall issue a renewed license, which shall meet the requirements of section 103(c), except that the license shall include the current photograph and address of the licensed individual, as provided in the application submitted under this section, and the expiration date of the renewed license, as provided in section 103(c)(5).

SEC. 105. REVOCATION OF LICENSE.

(a) In General- If an individual to whom a license has been issued under this title subsequently becomes a person who is prohibited by subsection (g) or (n) of section 922 of title 18, United States Code, from receiving a firearm--

(1) the license is revoked; and

(2) the individual shall promptly return the license to the Attorney General.

(b) Administrative Action- Upon receipt by the Attorney General of notice that an individual to whom a license has been issued under this title has become a person described in subsection (a), the Attorney General shall ensure that the individual promptly returns the license to the Attorney General.

TITLE II--RECORD OF SALE OR TRANSFER

SEC. 201. SALE OR TRANSFER REQUIREMENTS FOR QUALIFYING FIREARMS.

Section 922 of title 18, United States Code, as amended by section 101 of this Act, is amended by adding at the end the following:

`(bb) Unauthorized Sale or Transfer of a Qualifying Firearm- It shall be unlawful for any person to sell, deliver, or otherwise transfer a qualifying firearm to, or for, any person who is not a licensed importer, licensed manufacturer, licensed dealer, or licensed collector, or to receive a qualifying firearm from a person who is not a licensed importer, licensed manufacturer, licensed dealer, or licensed collector, unless, at the time and place of the transfer or receipt--

`(1) the transferee presents to a licensed dealer a valid firearm license issued to the transferee--

`(A) under title I of Blair Holt's Firearm Licensing and Record of Sale Act of 2009; or

`(B) pursuant to a State firearm licensing and record of sale system certified under section 602 of Blair Holt's Firearm Licensing and Record of Sale Act of 2009 established by the State in which the transfer or receipt occurs;

`(2) the licensed dealer contacts the Attorney General or the head of the State agency that administers the certified system described in paragraph (1)(B), as applicable, and receives notice that the transferee has been issued a firearm license described in paragraph (1) and that the license remains valid; and

`(3) the licensed dealer records on a document (which, in the case of a sale, shall be the sales receipt) a tracking authorization number provided by the Attorney General or the head of the State agency, as applicable, as evidence that the licensed dealer has verified the validity of the license.'.

SEC. 202. FIREARM RECORDS.

(a) Submission of Sale or Transfer Reports- Not later than 14 days after the date on which the transfer of qualifying firearm is processed by a licensed dealer under section 922(bb) of title 18, United States Code (as added by section 201 of this Act), the licensed dealer shall submit to the Attorney General (or, in the case of a licensed dealer located in a State that has a State firearm licensing and record of sale system certified under section 602 of this Act, to the head of the State agency that administers that system) a report of that transfer, which shall include information relating to--

(1) the manufacturer of the firearm;

(2) the model name or number of the firearm;

(3) the serial number of the firearm;

(4) the date on which the firearm was received by the transferee;

(5) the number of a valid firearm license issued to the transferee under title I of this Act; and

(6) the name and address of the individual who transferred the firearm to the transferee.

(b) Federal Record of Sale System- Not later than 9 months after the date of the enactment of this Act, the Attorney General shall establish and maintain a Federal record of sale system, which shall include the information included in each report submitted to the Attorney General under subsection (a).

(c) Elimination of Prohibition on Establishment of System of Registration- Section 926(a) of title 18, United States Code, is amended by striking the second sentence.

TITLE III--ADDITIONAL PROHIBITIONS

SEC. 301. UNIVERSAL BACKGROUND CHECK REQUIREMENT.

Section 922 of title 18, United States Code, as amended by sections 101 and 201 of this Act, is amended by adding at the end the following:

`(cc) Universal Background Check Requirement-

`(1) REQUIREMENT- Except as provided in paragraph (2), it shall be unlawful for any person other than a licensed importer, licensed manufacturer, licensed dealer, or licensed collector to sell, deliver, or otherwise transfer a firearm to any person other than such a licensee, unless the transfer is processed through a licensed dealer in accordance with subsection (t).

`(2) EXCEPTION- Paragraph (1) shall not apply to the infrequent transfer of a firearm by gift, bequest, intestate succession or other means by an individual to a parent, child, grandparent, or grandchild of the individual, or to any loan of a firearm for any lawful purpose for not more than 30 days between persons who are personally known to each other.'.

SEC. 302. FAILURE TO MAINTAIN OR PERMIT INSPECTION OF RECORDS.

Section 922 of title 18, United States Code, as amended by sections 101, 201, and 301 of this Act, is amended by adding at the end the following:

`(dd) Failure To Maintain or Permit Inspection of Records- It shall be unlawful for a licensed manufacturer or a licensed dealer to fail to comply with section 202 of Blair Holt's Handgun Licensing and Record of Sale Act of 2009, or to maintain such records or supply such information as the Attorney General may require in order to ascertain compliance with such Act and the regulations and orders issued under such Act.'.

SEC. 303. FAILURE TO REPORT LOSS OR THEFT OF FIREARM.

Section 922 of title 18, United States Code, as amended by sections 101, 201, 301, and 302 of this Act, is amended by adding at the end the following:

`(ee) Failure To Report Loss or Theft of Firearm- It shall be unlawful for any person who owns a qualifying firearm to fail to report the loss or theft of the firearm to the Attorney General within 72 hours after the loss or theft is discovered.'.

SEC. 304. FAILURE TO PROVIDE NOTICE OF CHANGE OF ADDRESS.

Section 922 of title 18, United States Code, as amended by sections 101, 201, 301, 302, and 303 of this Act, is amended by adding at the end the following:

`(ff) Failure To Provide Notice of Change of Address- It shall be unlawful for any individual to whom a firearm license has been issued under title I of Blair Holt's Firearm Licensing and Record of Sale Act of 2009 to fail to report to the Attorney General a change in the address of that individual within 60 days of that change of address.'.

SEC. 305. CHILD ACCESS PREVENTION.

Section 922 of title 18, United States Code, as amended by sections 101, 201, 301, 302, 303, and 304 of this Act, is amended by adding at the end the following:

`(gg) Child Access Prevention-

`(1) DEFINITION OF CHILD- In this subsection, the term `child' means an individual who has not attained the age of 18 years.

`(2) PROHIBITION AND PENALTIES- Except as provided in paragraph (3), it shall be unlawful for any person to keep a loaded firearm, or an unloaded firearm and ammunition for the firearm, any 1 of which has been shipped or transported in interstate or foreign commerce, within any premises that is under the custody or control of that person, if--

`(A) that person--

`(i) knows, or recklessly disregards the risk, that a child is capable of gaining access to the firearm; and

`(ii) either--

`(I) knows, or recklessly disregards the risk, that a child will use the firearm to cause the death of, or serious bodily injury (as defined in section 1365 of this title) to, the child or any other person; or

`(II) knows, or reasonably should know, that possession of the firearm by a child is unlawful under Federal or State law; and

`(B) a child uses the firearm and the use of that firearm causes the death of, or serious bodily injury to, the child or any other person.

`(3) EXCEPTIONS- Paragraph (2) shall not apply if--

`(A) at the time the child obtained access, the firearm was secured with a secure gun storage or safety device;

`(B) the person is a peace officer, a member of the Armed Forces, or a member of the National Guard, and the child obtains the firearm during, or incidental to, the performance of the official duties of the person in that capacity;

`(C) the child uses the firearm in a lawful act of self-defense or defense of 1 or more other persons; or

`(D) the person has no reasonable expectation, based on objective facts and circumstances, that a child is likely to be present on the premises on which the firearm is kept.'.

TITLE IV--ENFORCEMENT

SEC. 401. CRIMINAL PENALTIES.

(a) Failure To Possess Firearm License; Failure To Comply With Qualifying Firearm Sale or Transfer Requirements; Failure To Maintain or Permit Inspection of Records- Section 924(a) of title 18, United States Code, is amended by adding at the end the following:

`(8) Whoever knowingly violates subsection (aa), (bb), or (dd) of section 922 shall be fined under this title, imprisoned not more than 2 years, or both.'.

(b) Failure To Comply With Universal Background Checks; Failure To Timely Report Loss or Theft of a Qualifying Firearm; Failure To Provide Notice of Change of Address- Section 924(a)(5) of such title is amended by striking `(s) or (t)' and inserting `(t), (cc), (ee), or (ff)'.

(c) Child Access Prevention- Section 924(a) of such title, as amended by subsection (a) of this section, is amended by adding at the end the following:

`(9) Whoever violates section 105(a)(2) of Blair Holt's Handgun Licensing and Record of Sale Act of 2009, knowingly or having reason to believe that the person is prohibited by subsection (g) or (n) of section 922 of title 18, United States Code, from receiving a firearm, shall be fined under this title, imprisoned not more than 10 years, or both.

`(10) Whoever violates section 922(gg) shall be fined under this title, imprisoned not more than 5 years, or both.'.

SEC. 402. REGULATIONS.

(a) In General- The Attorney General shall issue regulations governing the licensing of possessors of qualifying firearms and the recorded sale of qualifying firearms, consistent with this Act and the amendments made by this Act, as the Attorney General determines to be reasonably necessary to reduce or prevent deaths or injuries resulting from qualifying firearms, and to assist law enforcement in the apprehension of owners or users of qualifying firearms used in criminal activity.

(b) Maximum Interval Between Issuance of Proposed and Final Regulation- Not later than 120 days after the date on which the Attorney General issues a proposed regulation under subsection (a) with respect to a matter, the Attorney General shall issue a final regulation with respect to the matter.

SEC. 403. INSPECTIONS.

In order to ascertain compliance with this Act, the amendments made by this Act, and the regulations and orders issued under this Act, the Attorney General may, during regular business hours, enter any place in which firearms or firearm products are manufactured, stored, or held, for distribution in commerce, and inspect those areas where the products are so manufactured, stored, or held.

SEC. 404. ORDERS.

The Attorney General may issue an order prohibiting the sale or transfer of any firearm that the Attorney General finds has been transferred or distributed in violation of this Act, an amendment made by this Act, or a regulation issued under this Act.

SEC. 405. INJUNCTIVE ENFORCEMENT.

The Attorney General may bring an action to restrain any violation of this Act or an amendment made by this Act in the district court of the United States for any district in which the violation has occurred, or in which the defendant is found or transacts business.

TITLE V--FIREARM INJURY INFORMATION AND RESEARCH

SEC. 501. DUTIES OF THE ATTORNEY GENERAL.

(a) In General- The Attorney General shall--

(1) establish and maintain a firearm injury information clearinghouse to collect, investigate, analyze, and disseminate data and information relating to the causes and prevention of death and injury associated with firearms;

(2) conduct continuing studies and investigations of firearm-related deaths and injuries; and

(3) collect and maintain current production and sales figures for each licensed manufacturer.

(b) Availability of Information- Periodically, but not less frequently than annually, the Attorney General shall report to the Congress and make available to the public a report on the activities of the Attorney General under subsection (a).

TITLE VI--EFFECT ON STATE LAW

SEC. 601. EFFECT ON STATE LAW.

(a) In General- This Act and the amendments made by this Act may not be construed to preempt any provision of the law of any State or political subdivision of that State, or prevent a State or political subdivision of that State from enacting any provision of law regulating or prohibiting conduct with respect to firearms, except to the extent that the provision of law is inconsistent with any provision of this Act or an amendment made by this Act, and then only to the extent of the inconsistency.

(b) Rule of Interpretation- A provision of State law is not inconsistent with this Act or an amendment made by this Act if the provision imposes a regulation or prohibition of greater scope or a penalty of greater severity than a corresponding prohibition or penalty imposed by this Act or an amendment made by this Act.

SEC. 602. CERTIFICATION OF STATE FIREARM LICENSING SYSTEMS AND STATE FIREARM RECORD OF SALE SYSTEMS.

Upon a written request of the chief executive officer of a State, the Attorney General may certify--

(1) a firearm licensing system established by a State, if State law requires the system to satisfy the requirements applicable to the Federal firearm licensing system established under title I; or

(2) a firearm record of sale system established by a State, if State law requires the head of the State agency that administers the system to submit to the Federal firearm record of sale system established under section 202(b) a copy of each report submitted to the head of the agency under section 202(a), within 7 days after receipt of the report.

TITLE VII--RELATIONSHIP TO OTHER LAW

SEC. 701. SUBORDINATION TO ARMS EXPORT CONTROL ACT.

In the event of any conflict between any provision of this Act or an amendment made by this Act, and any provision of the Arms Export Control Act (22 U.S.C. 2751), the provision of the Arms Export Control Act shall control.

TITLE VIII--INAPPLICABILITY

SEC. 801. INAPPLICABILITY TO GOVERNMENTAL AUTHORITIES.

This Act and the amendments made by this Act shall not apply to any department or agency of the United States, of a State, or of a political subdivision of a State, or to any official conduct of any officer or employee of such a department or agency.

TITLE IX--EFFECTIVE DATE

SEC. 901. EFFECTIVE DATE OF AMENDMENTS.

The amendments made by this Act shall take effect 1 year after the date of the enactment of this Act.

Somebody Got a Degree in Spaghetti

I would say, "No Comment", but that in itself is a comment of a nasty sort when you consider the graphic.

Still in Chains

I received an interesting letter today from Bank of America (you know, the people who take mortgages from undocumented workers). The letter announced some "enhancements" to their system.

On or after January 19, 2008, the APR for Cash Advances (which includes using an ATM with their card) will go to 26.24%. This is also expressed as a Daily Periodic Rate (DPR) because they compound the interest every day.

Also on the same date, a new term, "default re-pricing event" becomes part of the card agreement. A "default re-pricing event" occurs (1) if the minimum payment is late, or (2) if the outstanding balance exceeds the credit limit during the billing cycle. Two such "default re-pricing events" in a 12 month period will result in a default APR of 32.24% being applied to the account.

Third, effective March 10, 2008, any Balance Transfer, Check Cash Advance, or Direct Deposit Cash Advance will have a Balance Transfer Fee of 3% with a minimum fee of $10. It appears from the letter that the maximum fee of $75 will no longer apply. They aren't really clear on that one.

Fourth, the letter formally announces that interest on the balance will be compounded daily.

Finally, effective November 30, 2007, the arbitration section of the agreement is amended. Either party may choose to arbitrate a claim, and if arbitration is chosen, the decision to arbitrate shall cover "any third party providing benefits, services, or products in connection with the account"; in other words, if you were provided with a faulty product that caused injury, Bank of America can choose to arbitrate any damage claim and [their bold and caps] "...PRECLUDES YOU AND US FROM HAVING A RIGHT OR OPPORTUNITY TO LITIGATE CLAIMS THROUGH COURT, OR TO PARTICIPATE OR BE REPRESENTED IN LITIGATION FILED IN COURT BY OTHERS." So if somebody else sues, and you had a similar experience, you are forbidden to testify in court for them if your own claim has been arbitrated.

Personally, I think the people at Bank of America are totally un-American. Consider this : the borrower who has two "default re-pricing events" within a 12 month period is probably already in financial difficulty. The bank would be much further ahead if the credit were halted, the interest rate rolled back to a level where the borrower could pay, and as much of the principal as possible recovered. They certainly are not listening to Ben Bernanke. Raising the interest rate on a financially troubled borrower to 32.24% is asinine.

It is time to cancel this card.

The Bible states that the borrower is the slave of the lender. The biggest slave-owners in America today are the credit card companies.