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Where does the fiat money come from when you get a loan  from a national bank, credit union, etc.? 

National banks are not financial intermediaries but the DTC and Federal Reserve Banks are intermediaries, banks do not lend fiat money out of customers deposits, what they do is create fiat money out of the note purchase, by the process of digital U.S. dollar credit creation.

At law it is very clear, banks are essentially the  opposite of what economists have claimed, which is that  banks are deposit-taking institutions that lend fiat  money, but banks do not take deposits and they don’t  lend fiat money. They do not take deposits because they  borrow from the public. A deposit suggests something is held in custody, like a bailment, and this is not what happens, instead the fiat money people lend to the  bank, which they call erroneously a deposit, is actually their fiat money, they own it, it’s really a loan from the people, because the public is general  creditors, and banks never lend fiat money, because  they are in the business of purchasing securities.

When “you” get a loan, the loan contract is a  promissory note, the same as the Federal Reserve Note,  but of course the loan contract, promissory note is not  legal tender, until the bank purchases that security  and exchanges it into Federal Reserve Notes or credit.

The loan contract, promissory note that is purchased is held as an financial asset and expanded 100%, with 10%, withheld as an reserve, 90% loaned out as a investment.

The borrower who is the actual seller of the contract, promissory note is not compensated the proceeds from its sale, and also pays back a loan of fiat money they  did not actually receive, because the bank did not lend  any fiat money, it only created a digital U.S. dollar  credit, from the purchase of the promissory note. 

In summary, under our legal fraud system, banks legally claim all proceeds from the financial asset, but in equity, the borrower shall be entitled to the proceeds  from the sale of the note and a share in the expansion.

What is real from the reality of a past transaction, bank loans are promises to loan fiat money, because no fiat money is lent, and the instrumentality borrower’s financial asset, being a security, created the credit.

In essence, when you appear in person and take out a loan, the bank is essentially creating new fiat money by crediting your account with the amount of the loan  contract, promissory note that is purchased OTC.

Fiat money is not actually taken from someone else's deposit; it is simply created out of the purchase.

Your home or automobile is not the collateral, but your loan contract, promissory notes is the financial asset,  which is the collateral that is relative liquid, but  believed to represent principally an investment of the holder bank, rather than a medium of exchange in electronic digital U.S. dollar credit form, which can be used to purchase a seller’s goods and services.

The loan contract, promissory note, drawn through  federal agencies, SSN, federal account, is considered a  financial asset, because it represents a promise to pay a certain amount of real money in the future, and is converted into Federal Reserve Notes, legal tender, or digital U.S. dollar credit from its purchase.

The loan contract, promissory note that is relatively  liquid, means that it can be easily sold to another  party, which makes it a more attractive form of  collateral for banks than, say, a house or automobile,  which can be more difficult to sell quickly.

The promissory note is a reserve and easily expanded.