This bit is slightly less removed from reality than the average SovCit rant. The collateral is the house, but the piece of paper (deed/lien) says who legally owns the house. Without that documentation, the bank wouldn't accept the fact that a house merely exists, as collateral for the loan.
But like any good SovCit, they take the grain of truth and try to fill a canyon with it.
It’s even a bit more esoteric than that. Depending on the jurisdiction even the deed is worthless unless you registered it and/or gave adequate notice to anyone with a current or future interest in the property (newspaper announcement is a classic example). This is one of the many reasons that a County Register of Deeds is so important.
I bet you it’s one of those “silver” things they claim is the real money. Like how they give little silver bricks? Maybe some strange corner of the sovcit world started producing “real” “money” with this “silver” stuff, stamped into a coin shape for these sovcits to scream about when no one accepts it as currency.
Easy, you let it wave back and forth in front of the banker:
"Your eyelids are heavy, you hear only my voice, when you wake up you'll be convinced that I have paid you in full"
I like that. Some of the things Bones posts here are about as inscrutable as Game Genie codes. At the same time, the rest have that "die in this specific spot and unlock infinite lives" energy.
It sounds to me like they printed their own "money." Then they pulled out some section of law that they've misinterpreted to mean that the bank has to accept her Karenbucks.
A vast oversimplification, but currencies hold value because of a combination of being backed up by material assets, and widespread trust in the backer of those assets.
If your currency is neither backed by something of value, nor trusted by literally anybody, then your currency holds no value - end of story.
If anybody could just write note on a random piece of paper that said it was worth $10 million and cash it at the bank, don't they think somebody high-profile would've done just that by now?