Extended coverage monetary regulation system

• US 4,985,833 A
• Filed: 05/07/1990
• Issued: 01/15/1991
• Est. Priority Date: 08/24/1988
• Status: Expired due to Term

• Current Assignee: Frost National Bank of San Antoni
• Original Assignee: First City Texas- N A
• Inventors: Oncken, John E.
• Primary Examiner(s): Smith, Jerry
• Assistant Examiner(s): Huntley, David
• Application Number:
  US07/520,837
• Time in Patent Office: 253 Days
• Field of Search: 364/401, 364/408
• US Class Current: 705/42
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

An extended coverage monetary regulation system for automatically distributing customer deposits to multiple financial institutions so as to obtain F.D.I.C. or F.S.L.I.C. coverage for the full amount of the deposits regardless of the amount. The system of the present invention enables depositors to deal with a single financial institution regardless of the amount of funds deposited and still obtain federal insurance for their funds. Further, the invention provides immediate access to these funds and unlimited withdrawals. A central transaction control center monitors deposits and assigns them, in co-mingled form, to institutions not excluded by the terms of the agreement between the depositor and the control center. The depository institutions receive the funds in co-mingled form and handle them in lump sum. Because the control center maintains accurate records of the identity and the amounts of funds distributed to selected insured depositories, the depositors funds can be divided among depositories so as to obtain full insurance coverage. Further, the depositories have no need to know, and are unware of, the identity of the individual depositors. When one less than the maximum number of withdrawals have been made from any selected depository during a month'"'"'s time, the central transaction control center withdraws the entire sum and distributes it through other selected insured depositories that have the capacity for more than one withdrawal during the remainder of the month.

Claims

1. An extended coverage monetary regulation system comprising:

A. a central transaction control center for receipt, disbursement, and insurance of a plurality of individual account funds in unlimited amounts;

B. an individual account fund processing means for processing funds in commingled form so that a plurality of insured financial institutions receive portions of said commingled individual account funds and so that each financial institution receives less than a maximum amount of each said individual account funds;

C. means for monitoring each of said individual account funds so that upon receipt of a deposit at said central control center, a deposit is received by said financial institution that, after said deposit, maintains less than a maximum amount of said individual account funds; and

D. means for monitoring each of said financial institutions so that as a total number of withdrawals from each of said financial institutions commingled individual account funds reaches one less than a maximum number, one final withdrawal is made reducing a balance of said individual account funds to zero and transferring said balance to financial institutions with more than one less than a maximum number of withdrawals available.

2. The system according to claim 1 wherein said central transaction control center further comprises means for receipt, disbursement and insurance of said individual accounts from individuals, businesses and governmental entities, and means for disbursing funds from said accounts only to agreed upon financial institutions while providing daily monitoring of balances in said financial institutions, monthly accounting of funds deposited and withdrawn and interest earned, and annual tax reporting.

3. The system according to claim 2 wherein said means for monitoring individual accounts ensures that said maximum amount is equal to the maximum amount of funds protected under one of the following insurance vehicles:

Federal Deposit Insurance Corporation and Federal Savings and Loan Insurance Corporation.

4. The system according to claim 3 further including means for ensuring that said plurality of financial institutions are prohibited from receiving information concerning the identity and amounts of said individual account funds received in commingled form so that said financial institutions deal with one fluctuating lump sum only.

5. The system according to claim 1 wherein said financial institutions are F.D.I.C. insured banks.

6. The system according to claim 1 wherein said financial institutions are F.S.L.I.C. insured savings and loans.

7. The system according to claim 1 wherein said financial institutions are a combination of F.D.I.C. insured banks and F.S.L.I.C. insured savings and loans.

8. The system according to claim 1 wherein said means for monitoring said financial institutions ensures that said maximum number of withdrawals is equal to the maximum number of withdrawals allowed for money market savings accounts.

9. An extended coverage monetary regulation system comprising:

A. a central transaction control center for receipt, disbursement, and insurance of a plurality of individual account funds in unlimited amounts;

B. means for receiving individual account funds from individuals, business, and governmental entities and for disbursing funds from said accounts only to agreed upon financial institutions while providing daily monitoring of balances in said financial institutions, monthly accounting of funds deposited and withdrawn and interest earned, and annual tax reporting;

C. processing means for processing said individual account funds in commingled form so that a plurality of insured financial institutions receive portions of said commingled individual account funds and so that each financial institution receives less than a maximum amount of each of said individual account funds;

D. means for ensuring that said plurality of financial institutions are prohibited from receiving information concerning the identity and amounts of said individual account funds received in commingled form so that said financial institutions deal with one fluctuating lump sum only;

E. means for monitoring each of said individual account funds so that upon receipt of a deposit at said central control center, a deposit is received by said financial institution that, after said deposit, maintains less than a maximum amount of said individual account funds; and

F. means for monitoring each of said financial institutions so that as a total number of withdrawals from each of said financial institutions commingled individual account funds reaches one less than a maximum number, one final withdrawal is made reducing a balance of said individual account funds to zero and transferring said balance to financial institutions with more than one less than a maximum number of withdrawals available.

10. The system according to claim 9 wherein said means for monitoring individual accounts ensures that said maximum amount is equal to the maximum amount of funds protected under one of the following insurance vehicles:

Federal Deposit Insurance Corporation and Federal Savings and Loan Insurance Corporation.

11. The system according to claim 9 wherein said financial institutions are F.D.I.C. insured banks.

12. The system according to claim 9 wherein said financial institutions are F.S.L.I.C. insured savings and loans.

13. The system according to claim 9 wherein said financial institutions are a combination of F.D.I.C. insured banks and F.S.L.I.C. insured savings and loans.

14. The system according to claim 9 wherein said maximum number of withdrawals is equal to the maximum number of withdrawal allowed for money market savings accounts.