METHOD OF COMPENSATING AN EMPLOYEE

• US 20070118393A1
• Filed: 11/28/2006
• Published: 05/24/2007
• Est. Priority Date: 08/06/2004
• Status: Active Grant

• Current Assignee: Entaire Global Intellectual Property, Inc.
• Original Assignee: Entaire Global Intellectual Property, Inc.
• Inventors: Rosen, Jonathan, DeWitt, Robert, Bush, Paul, Metzger, David
• Granted Patent: US 7,797,218 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computer system for monitoring and enhancing the collateral security underlying a set of loans is provided, including a system for calculating the unsecured value of the set at any time and for initiating additional collateral enhancement instruments when the unsecured value exceeds a certain limit. The system may include a variety of modules in communication with a relational database for storing data about the loans and system elements. The computer system may also be configured to allocate, manage, and execute the waterfall or cascade of funds between and among the various participants in a financial plan. The invention also includes a structured finance plan and related methods for enhancing the collateral security of a loan obtained for a life insurance or annuity product, and a system and method for managing a portfolio of such loans in order to obtain favorable financing and to facilitate securitization.

Claims

1. A method of compensating an employee, comprising:

obtaining a loan from a loan originator;

signing a promissory note for said loan;

purchasing a life insurance product using the proceeds of said loan and naming an employee as an insured;

providing a compensation agreement between said employee and an employer involving said loan;

executing a collateral assignment of said product by said employee in favor of said employer;

pledging an asset of said employer to said loan originator as collateral for said loan.

2. The method of claim 1, wherein said steps are executed by said employer.

3. The method of claim 1, wherein said collateral assignment of said product is executed in favor of said loan originator.

4. The method of claim 1, wherein said compensation agreement includes a secured demand loan arrangement.

5. The method of claim 1, wherein said compensation agreement includes a bonus plan.

6. The method of claim 1, wherein said step of pledging an asset further comprises:

filing a UCC-1 statement to memorialize the pledging of said asset.

7. The method of claim 1, further comprising:

providing one or more gap enhancement instruments for reducing the current gap value of said product, said current gap value representing the difference between a total premium outlay and a current value of said product.

8. The method of claim 7, wherein said one or more gap enhancement instruments comprises:

an agreement to postpone payment of a portion of a commission earned on the sale of said product.

9. The method of claim 7, wherein said one or more gap enhancement instruments comprises:

a rider on said product waiving a portion of a surrender fee, in favor of said loan originator, said surrender fee representing an amount charged in the event said product is surrendered or said employer defaults on said loan.

10. The method of claim 7, wherein said one or more gap enhancement instruments comprises:

an agreement to deposit funds in a reserve account, said funds representing a portion of a surrender fee, said surrender fee representing an amount charged in the event said product is surrendered or said employer defaults on said loan.

11. The method of claim 7, wherein said one or more gap enhancement instruments comprises:

an agreement by an insurer, in the event of a surrender or default event, to extend a loan to said loan originator in an amount approximately equal to said current gap value, wherein said loan originator'"'"'s repayment obligation to said insurer is ultimately secured by said pledged asset.

12. The method of claim 7, wherein said one or more gap enhancement instruments comprises:

an agreement by an insurer to pay a marketing allowance to said loan originator, said marketing allowance including a portion of the costs associated with marketing said product.