Securitization of a commercial transaction
First Claim
1. A method for generating a tradable security, the method comprising:
- confirming compliance by a vendor with terms of a commercial transaction;
electronically rating a financial commitment relating a receivable account for the commercial transaction at a time prior to a payment due date; and
in a financial exchange, transferring entitlement rights to monies due under the receivable account, where the terms for the transfer of the entitlement rights are based at least in part on the electronic rating.
12 Assignments
0 Petitions
Accused Products
Abstract
A method and apparatus for generating a tradable security includes confirming a vendor'"'"'s compliance with predefined terms of a commercial transaction, such that a buyer is obligated to make a due payment. The method and apparatus further includes electronically rating a financial commitment relating to a receivable account for the commercial transaction. This receivable account is rated based on conditions and factors known to a system facilitating the commercial transaction. Based on the ability for the financial commitment to be rated, a financial exchange is operative to transfer entitlement rights to monies due under the receivable account where the terms for the transfer of the entitlement rights are based at least in part on the electronic rating. Thereby, receivable accounts to commercial transactions may be tradable by one or more investors as properly rated investment.
46 Citations
29 Claims
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1. A method for generating a tradable security, the method comprising:
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confirming compliance by a vendor with terms of a commercial transaction;
electronically rating a financial commitment relating a receivable account for the commercial transaction at a time prior to a payment due date; and
in a financial exchange, transferring entitlement rights to monies due under the receivable account, where the terms for the transfer of the entitlement rights are based at least in part on the electronic rating. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. An apparatus for generating a tradable security, the apparatus comprising:
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a processing device, in response to executable instructions, operative to confirm compliance by a vendor with terms of a commercial transaction and electronically rate a financial commitment relating a receivable account for the commercial transaction at a time prior to a payment due date; and
a financial exchange operative to transfer entitlement rights to monies due under the receivable account, where the terms for the transfer of the entitlement rights are based at least in part on the electronic rating. - View Dependent Claims (13, 14, 15, 16, 17, 18, 19, 20, 21, 22)
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23. A method for trading a security, the method comprising:
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confirming compliance by a vendor with terms of a commercial transaction electronically rating a financial commitment relating a receivable account for the commercial transaction at a time prior to a payment due date, including electronically determining a credit rating of a buyer that is a party to the commercial transaction;
in a financial exchange, transferring entitlement rights to monies due under the receivable account, where the terms for the transfer of the entitlement rights are based at least in part on the electronic rating;
transferring the entitlement rights to a security special purpose vehicle (SPV), prior to the completion of the commercial transaction, wherein the security SPV exchanges financial notes from at least one investor for the entitlement rights of the receivable accounts; and
transferring an adjusted financial amount due under the receivable account to the vendor based upon the buyer'"'"'s compliance with a designated condition of the commercial transaction, wherein the adjusted amount is based on the terms of the financial exchange. - View Dependent Claims (24, 25, 26, 27, 28, 29)
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Specification