Method for securitizing retail lease assets

• US 20050289036A1
• Filed: 08/31/2005
• Published: 12/29/2005
• Est. Priority Date: 11/22/2000
• Status: Abandoned Application

• Current Assignee: General Motors Corporation (Motors Liquidation Co. GUC Trust)
• Original Assignee: General Motors Corporation (Motors Liquidation Co. GUC Trust)
• Inventors: Levy, William A., Ondrick, Christine A., Feldkamp, Fredrick L., Raymond, Elizabeth A., Kruszewski, Gregory A., Schwartz, Robert L., Bugg, Nancy L., Kent, Richard V. Sr., LaCombe, Lawrence B. Jr., Ranzilla, Cynthia A., Deitz, Robert N., Straub, Robert L.
• Application Number:
  US11/216,780
• Publication Number:
  US 20050289036A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

The present invention provides a new form of financial instrument for securitization of retail automotive and light truck lease assets. The instrument is supported by secured notes that are separately and independently secured by a first priority perfected lien on each related vehicle and lease (to protect the investment entity which creates securities sold to investors 27 and, thereby, the investors 27). The method of the present invention for creating the financial instrument includes creating a leasing company. The leasing company then acquires leases from dealers. In one embodiment of the present invention, termination value guarantees on the leases can be obtained. A financial asset is issued to fund the acquisition of the leases. In one embodiment of the present invention, a nominee titleholder and a registered lien are created on each leased vehicle. The financial asset is transferred to a securities-issuing entity. A security backed by pools of the financial assets is offered via a registered public offering or an exempt private placement transaction.

Claims

1. A method for securitizing retail lease assets comprising:

creating a leasing company;

acquiring leases from dealers into the leasing company;

issuing a financial asset to fund such acquisition;

securing the financial asset;

transferring the financial asset to a securities-issuing entity; and

offering a security backed by pools of the financial assets.

2. The method for securitizing retail lease assets of claim 1 further including the step of creating a nominee titleholder and a registered lien on each leased vehicle.

3. The method for securitizing retail lease assets of claim 1 further including the step of financially supporting the leasing company separate from manufacturer of the vehicle and the financier of the vehicle.

4. The method for securitizing retail lease assets of claim 1 further wherein the step of acquiring leases from dealers into the lease company includes funding the lease acquisition primarily by borrowing against the security of first priority perfected security interests in each lease and vehicle.

5. The method for securitizing retail lease assets of claim 1 further including securing the vehicle residual value included within each financial asset at the time of inception by a termination value (including residual value) insurance policy.

6. The method for securitizing retail lease assets of claim 1 further wherein the step of offering a security backed by the financial asset further includes offering the security via a registered public offering.

7. The method for securitizing retail lease assets of claim 1 further wherein the step of offering a security backed by the financial asset further includes offering the security via an exempt private placement transaction.

8. A security comprised of the following attributes:

the security being backed by a financial asset;

the financial asset being issued by a company having a portfolio of leases;

the leases having been acquired from dealers; and

each lease and financial asset pertaining to a particular vehicle.

9. The security of claim 8 further wherein the company having a portfolio of leases is financially supported separate from the manufacturer of the vehicle and the financier of the vehicle.

10. The security of claim 8 further wherein the lease acquisition is funded primarily by borrowing against the security of first priority perfected security interests in each lease and vehicle.

11. The security of claim 8 further wherein the financial asset is secured by a termination value (including residual value) insurance policy at the time of lease inception.

12. The security of claim 8 further wherein the financial asset is supporting the financial asset by credit enhancement under a termination value (residual value) insurance policy which takes effect at the time of lease inception.

13. The security of claim 8 further wherein the security is offered via a registered public offering.

14. The security of claim 8 further wherein the security is offered via an exempt private placement transaction.

15. A method for securitizing retail lease assets comprising:

creating a leasing company which acquires leases from dealers;

obtaining termination value guarantees;

issuing a financial asset to fund the acquisition of the leases;

transferring the financial asset to a securities-issuing entity; and

offering a security backed by pools of the financial assets.

16. The method for securitizing retail lease assets of claim 15 further including the step of creating a nominee titleholder and a registered lien on each leased vehicle.

17. The method for securitizing retail lease assets of claim 15 further including the step of financially supporting the leasing company separate from manufacturer of the vehicle and the financier of the vehicle.

18. The method for securitizing retail lease assets of claim 15 further wherein the step of acquiring leases from dealers includes funding the lease acquisition primarily by borrowing against the security of first priority perfected security interests in each lease and vehicle.

19. The method for securitizing retail lease assets of claim 15 further wherein the step of offering a security backed by the financial asset further includes offering the security via a registered public offering.

20. The method for securitizing retail lease assets of claim 15 further wherein the step of offering a security backed by the financial asset further includes offering the security via an exempt private placement transaction.