Method for effecting chattel paper transactions
First Claim
1. A method for processing a portfolio of chattel paper comprising:
- (i). transferring said chattel paper portfolio from an originator to a trust;
(ii). issuing a note from the trust to one of the originator or its SPE in exchange for the portfolio of chattel paper; and
(iii). selling said note to a purchaser.
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Accused Products
Abstract
A method processes a portfolio of chattel paper, typically including retail installment sales contracts, transferred from an originator to its SPE and then to a first trust, the trust creating a Certificate of Beneficial Interest (CBI) for the transferred portfolio. The CBI is issued from the first trust to a second trust. The second trust issues a non-recourse, investment grade note, secured by the CBI, to the first trust in exchange for the CBI. The note is transferred from the first trust to the SPE of the originator in exchange for the entire portfolio. The note is then marketed directly, indirectly, through the Internet, or otherwise, from the SPE of the originator to a purchaser; the proceeds are then transferred by the SPE to the originator. Fewer trusts can be employed and a “true sale” can be used to further meet the goals of the invention.
16 Citations
11 Claims
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1. A method for processing a portfolio of chattel paper comprising:
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(i). transferring said chattel paper portfolio from an originator to a trust;
(ii). issuing a note from the trust to one of the originator or its SPE in exchange for the portfolio of chattel paper; and
(iii). selling said note to a purchaser.
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2. A system for selling chattel paper comprising:
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(i). a sale server creating investment grade non-recourse notes, each note secured by a Certificate of Beneficial Investment (CBI) based on a portfolio of rateable and unrateable chattel paper;
(ii). buyer sites at which a purchaser accesses said sale server for purchasing said notes in an auction process;
(iii). an interconnection communications system interconnecting said buyer sites and said sale server for communications therebetween; and
(iv). at the originator site, computer software for implementing instructions for;
creating an auction of said notes whereby buyer sites can bid against one another to purchase said notes;
enabling buyer sites to review the defining parameters of each note, and enabling buyer sites to access tools for evaluating each note.
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3. A secured investment grade note secured by chattel paper comprising:
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(i). a non-recourse element;
(ii). an investment grade rating;
(iii). a face value no greater than the rated assets value;
(iv). a rating rendering the note of investment grade value; and
(v). said note being secured based upon said chattel paper. - View Dependent Claims (4)
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5. A method for processing a portfolio of chattel paper comprising:
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(i). transferring said chattel paper portfolio from an originator to a first trust;
(ii). transferring a Certificate of Beneficial Interest representing said portfolio of chattel paper from said first trust to a second trust;
(iii). issuing a note from the second trust to the first trust in exchange for said Certificate of Beneficial Interest;
(iv). transferring said note to one of the originator or its SPE in exchange for the portfolio; and
(v). selling said note to a purchaser.
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6. A method for processing a portfolio of chattel paper comprising:
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(i). transferring said portfolio from an originator to a first trust;
(ii). creating a Certificate of Beneficial Interest (CBI) for said transferred portfolio;
(iii). issuing said CBI from said first trust to a second trust;
(iv). issuing a note from the second trust to the first trust in exchange for the CBI;
(v). transferring said note from the first trust to one of the originator or its SPE in exchange for the portfolio; and
(vi). selling said transferred note to a purchaser. - View Dependent Claims (7, 8, 9, 10)
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11. A method for processing a portfolio of chattel paper comprising:
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(i). transferring said chattel paper portfolio from an originator to a first trust;
(ii). transferring said portfolio of chattel paper from said first trust to a second trust;
(iii). issuing a note-like Certificate of Beneficial Interest (CBI) from the second trust to the first trust in exchange for the portfolio;
(iv). transferring said CBI to one of the originator or its SPE in exchange for the portfolio; and
(v). selling said CBI to a purchaser.
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Specification