System and method for extending automatically secured credit to building project owners and to building contractors for purchasing building supplies from building supply wholesalers

• US 20020107790A1
• Filed: 02/07/2002
• Published: 08/08/2002
• Est. Priority Date: 02/07/2001
• Status: Abandoned Application

• Current Assignee: James A. Nielson
• Original Assignee: James A. Nielson
• Inventors: Nielson, James A.
• Application Number:
  US10/072,552
• Publication Number:
  US 20020107790A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system and method for extending automatically secured credit to building project owners and to building contractors for the purpose of purchasing building supplies from building supply wholesalers provides building contractors, owners, and materialmen with a more secure, less risky means of financing materials purchases for building projects. A contractor enters into a contractual agreement with a third-party lender to purchase supplies on credit from a building supply wholesaler. The building supply wholesaler also contracts with the lender to have the lender manage their sales on account to contractors approved by the lender. In exchange for lender'"'"'s promises to extend credit upon approval to contractors it approves and to pay approved contractors'"'"' accounts with the building supply wholesaler, both the contractor and the wholesaler assign their rights to record and enforce mechanics'"'"' liens relating to the building supplies to the lender. The system and method may employ the use of digital signature and notary technologies as well as electronic recording of liens.

Claims

1. A method of extending automatically secured credit from a lender to a building contractor for purchasing building supplies from a building supply wholesaler, the method comprising:

entering into a contractual relationship between the lender and the building supply wholesaler; and

assigning to the lender the rights to record a lien against any building project for which the lender sells building supplies to the contractor on credit extended by the lender.

2. The method of claim 1, further comprising entering into a contractual relationship between the building contractor and the lender under which the contractor assigns to the lender its rights to record a lien against any building project for which the contractor purchases building supplies from a building supply wholesaler on credit extended by the lender.

3. The method of claim 1, wherein entering into the contractual relationship between the lender and the building supply wholesaler comprises electronically entering into the contractual relationship between the lender and the building supply wholesaler.

4. The method of claim 1, further comprising applying a digital signature to the contractual relationship between the lender and the building supply wholesaler.

5. The method of claim 1, further comprising electronically purchasing building materials from the building supply wholesaler on credit extended by the lender.

6. The method of claim 1, further comprising electronically obtaining the information for each building project for which credit is extended by lender sufficient to record a lien against the building project for the purpose of securing the credit extended by lender.

7. The method of claim 1, further comprising assigning and using unique identification numbers for each building project for which credit is extended to the building contractor to purchase building supplies from the wholesaler.

8. The method of claim 1, further comprising using digital signatures and digital notary public acknowledgments in the process of serving preliminary and recording notices regarding liens to appropriate state and municipal agencies.

9. The method of claim 1, further comprising using digital signatures and digital notary public acknowledgments in the process of recording liens at appropriate state and municipal agencies.

10. The method of claim 1, further comprising using electronic means to receive notification from state and municipal agencies regarding official certification of lien recording and receipt of preliminary lien notices.

11. The method of claim 1, further comprising using electronic means to track and store transmitted preliminary lien notices and liens, as well as official certification of lien recording and receipt of preliminary lien notices.

12. The method of claim 1, further comprising using computer software for the purpose of automatically sending preliminary lien notices to contractors and appropriate state and municipal agencies, recording liens, checking for certification of lien recording and receipt of preliminary lien notices, and sending lien recording notices to contractors and building project property owners.

13. The method of claim 1, further comprising developing a network of contractors and building supply wholesalers which use lender'"'"'s credit supplying services.

14. The method of claim 1, further comprising providing information regarding members of the network of contractors and building supply wholesalers which use lender'"'"'s credit supplying services to other members of the network.

17. The method of claim 16, further comprising applying digital signatures and digital notary public acknowledgments to the execution of the loan and security documents and recording said documents with the appropriate state and municipal agencies.

18. The method of claim 16, further comprising using electronic means to receive notification from state and municipal agencies regarding official certification of loan security document recording.

19. The method of claim 16, further comprising making payments directly to suppliers of building materials and labor for the construction project for which the construction loan was issued, including building supply wholesalers and building contractors who are part of the lender'"'"'s automatically secured credit extension network.

20. The method of claim 16, further comprising making payments directly to building supply wholesalers and building contractors who are part of the lender'"'"'s automatically secured credit extension network from proceeds of the construction loan issued to the building project owner.

21. The method of claim 16, further comprising using a computer to ensure that credit is not extended beyond the approved amount for any construction loan.

15. A method for using a computer to facilitate a transaction between a lender and a building contractor for extending automatically secured credit used in purchasing building supplies from a building supply wholesaler, the method comprising:

inputting into the computer an offer to enter into a contractual relationship between the lender and the building supply wholesaler including assigning to the lender the rights to record a lien against any building project for which the lender sells building supplies to the contractor on credit extended by the lender;

outputting to the lender the offer from the building supply wholesaler to enter into the contractual relationship;

inputting into the computer an acceptance to the building supply wholesaler from the lender;

inputting into the computer an offer to enter into a contractual relationship between a building contractor and the lender under which the contractor assigns to the lender its rights to record a lien against any building project for which the contractor purchases building supplies from a building supply wholesaler on credit extended by the lender;

outputting to the lender the offer from the contractor to enter into the contractual relationship;

inputting into the computer an acceptance to the contractor from the lender;

applying a digital signature to the contractual relationship between the lender and the building supply wholesaler; and

applying a digital signature to the contractual relationship between the lender and the contractor.

16. A method of extending credit in the form of a construction loan from a lender to a building project owner, the method comprising:

electronically completing a construction loan application; and

electronically completing security documents for the loan.