POWER TO CREATE DIVINE LAW

US Capital Private Bank – Sovereignty & Legal Hierarchy Knowledge Base

Power to Create Divine Law

At the foundation of all lawful authority lies the concept of Divine Law—the ultimate, supreme authority bestowed by the Creator, who alone possesses the sovereign power to create and define natural persons. This principle distinguishes natural persons—human beings created by God, endowed with inherent rights and sovereignty—from artificial entities such as corporations or governmental bodies, which are creations of human law.

The United States Constitution, as the supreme law of the land, acknowledges this distinction implicitly by protecting the sovereignty of individuals and the states, while limiting the powers of government entities. Understanding the Power to Create Divine Law is essential to recognizing the true scope and limits of governmental authority, the nature of jurisdiction, and the constitutional protections of individual rights.

In this framework, sovereignty is an exclusive right held by natural persons and the states of the Union. Governments—federal and state—derive their delegated powers from these sovereign sources but may not lawfully exceed or override the constitutional boundaries that protect individual liberty and jurisdictional authority. Any attempt by government to impose authority beyond these limits violates the natural and constitutional order, undermining the rule of law and individual freedoms.

1. Sovereignty and Jurisdiction

1.1 Territorial Jurisdiction of States and the Federal Government

The United States is a federal system composed of sovereign states, each possessing territorial jurisdiction within its own borders over all land and persons therein, except where specifically ceded by law to the federal government.

• States of the Union maintain territorial jurisdiction within their boundaries over all lands not ceded by an act of the state legislature to the federal government. They hold exclusive authority within these territories and have no jurisdiction outside their borders.

• The federal government’s territorial jurisdiction is limited to:

  1. The federal zone established by Congress, including Washington D.C. and federal enclaves;

  2. Areas ceded by state legislatures under Article I, Section 8, Clause 17 of the U.S. Constitution;

  3. Federal territories, possessions, and property wherever situated; and

  4. Federal domiciliaries—citizens and residents subject to federal jurisdiction within these areas.

Under the Tenth Amendment, “police powers” are reserved to the states, reinforcing that the federal government generally has no legislative territorial jurisdiction within the states unless expressly provided by the Constitution.

1.2 Subject Matter Jurisdiction of the Federal Government Within States

Where the federal government lacks territorial jurisdiction, its authority within states is restricted to subject matter jurisdiction—power over certain specific areas explicitly enumerated in the Constitution. Without express constitutional authority, federal laws, including tax statutes, cannot be lawfully imposed within state territories.

Examples of federal subject matter jurisdiction include:

• Foreign and interstate commerce, including import taxes but not export taxes (Constitution, Art. I, §8, Cl. 3; 26 U.S.C. §7001; Art. I, §9, Cl. 3);

• Bankruptcy proceedings (28 U.S.C. §1334; Pauletto v. Reliance Ins. Co., 64 Cal. App. 4th 597 (1998));

• Claims under the Sherman Antitrust Act (15 U.S.C. §4);

• Claims under the Securities Exchange Act of 1934 (15 U.S.C. §78aa);

• Claims involving federal labor laws such as union activities preempting state court jurisdiction (San Diego Bldg. Trades Council v. Garmon, 359 U.S. 236 (1959));

• Certain ERISA actions (29 U.S.C. §1132(e)(1));

• Jurisdiction over federal property and employees (Art. IV, §3, Cl. 2);

• Federal jurisdiction over mail fraud (Art. I, §8, Cl. 7);

• Cases of treason (Art. IV, §2, Cl. 2);

• Patent and copyright claims (28 U.S.C. §1338(a); Art. I, §8, Cl. 8);

• Admiralty and maritime claims (28 U.S.C. §1333; Art. I, §8, Cl. 10).

Outside these narrowly defined subjects, the federal government has no lawful jurisdiction within the states.

1.3 Federal Property Rights and State Sovereignty

The creation of a new state or the formation of state governments within federal territories does not affect the legal status of federal property not ceded to the state. The Supreme Court in Van Brocklin v. Tennessee, 117 U.S. 151 (1886), confirmed that federal ownership of lands within new states remains exempt from state taxation and jurisdiction absent express congressional consent.

This principle preserves federal sovereignty over its properties and reinforces the limited scope of state and federal jurisdictional overlap.

1.4 Summary

In summary, sovereignty within the United States is stratified:

• States of the Union have territorial jurisdiction over their lands and people except where lawfully ceded.

• The federal government exercises territorial jurisdiction only in specific federal zones and subject matter jurisdiction explicitly authorized by the Constitution.

• The powers of federal and state governments are strictly limited to preserve the sovereignty and constitutional rights of natural persons and the states themselves.

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