Method and apparatus of creating financial instrument and administering an adjustable rate loan system
First Claim
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1. A system employing operatively interconnected data processing and computing means for creating, servicing and paying loan agreements between a lender and borrower providing for repayment of the loan together with interest at a periodically adjusted rate based on the terms of the agreement, said system comprising:
- means for inputting and storing the negotiated terms and conditions of a loan agreement with an identified lender into a system database which include at least a principal balance of the loan and the term, an initial period interest rate, compounding and interest rate crediting dates, terms for determining a formula interest rate applicable for a given period of time based at least in part on at least one publicly available external benchmark, and at least one of a life-time maximum interest rate, a maximum periodic interest rate, a life time minimum, a periodic minimum interest which rates can include a performance-based benchmark rate;
means accessible to the system database for issuing the loan agreement with constraints comprising the agreed terms and conditions;
means accessible to the system database for creating and storing in at least one further database a loan account for each loan agreement;
means for computing, allocating and storing in at least one of said databases, initial balances relating to each loan account for at least a balance account, a payment account, a purpose account and a computational account;
means for inputting said external benchmark into the system database;
means accessible to said databases for computing the periodically adjustable interest rate for the next ensuing interest period as a function of a calculated formula interest rate based on the external benchmark and the constraints of the loan agreement;
means accessible to the databases for periodically calculating and reallocating balances in the balance account between at least one of a number of accounts which include the payment account, each purpose account and the computational account based on the terms of each loan agreement stored in the at least one further database;
means accessible to the databases for monitoring and displaying each loan balance account based upon preestablished parameters governing the amount of the loan balance as derived from said databases;
means for inputting into one of said databases expenses related to each loan account in said at least one further databases;
means accessible to the databases for determining the amount and date for payments to be made on each loan account based on information stored in said databases as governed by the terms and conditions of the loan agreement which optionally may include means accessible to said databases for projecting the discounted value of the principal and minimum interest and comparing it with the present loan balance and means accessible to said databases for determining and displaying whether to elect acceleration of the loan repayment as a function of said comparison and other information stored in said databases within constraining limits of the terms of the loan agreement; and
means for the determination of and storage in at least one of said databases of the accreting balance of each loan account derived from information previously stored in said databases.
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Abstract
An operatively interconnected data processing and computing system is provided for creating, servicing and paying loan agreements between a lender and borrower providing for repayment of the loan together with interest at a periodically adjusted rate based on the terms of the agreement.
508 Citations
135 Claims
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1. A system employing operatively interconnected data processing and computing means for creating, servicing and paying loan agreements between a lender and borrower providing for repayment of the loan together with interest at a periodically adjusted rate based on the terms of the agreement, said system comprising:
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means for inputting and storing the negotiated terms and conditions of a loan agreement with an identified lender into a system database which include at least a principal balance of the loan and the term, an initial period interest rate, compounding and interest rate crediting dates, terms for determining a formula interest rate applicable for a given period of time based at least in part on at least one publicly available external benchmark, and at least one of a life-time maximum interest rate, a maximum periodic interest rate, a life time minimum, a periodic minimum interest which rates can include a performance-based benchmark rate; means accessible to the system database for issuing the loan agreement with constraints comprising the agreed terms and conditions; means accessible to the system database for creating and storing in at least one further database a loan account for each loan agreement; means for computing, allocating and storing in at least one of said databases, initial balances relating to each loan account for at least a balance account, a payment account, a purpose account and a computational account; means for inputting said external benchmark into the system database; means accessible to said databases for computing the periodically adjustable interest rate for the next ensuing interest period as a function of a calculated formula interest rate based on the external benchmark and the constraints of the loan agreement; means accessible to the databases for periodically calculating and reallocating balances in the balance account between at least one of a number of accounts which include the payment account, each purpose account and the computational account based on the terms of each loan agreement stored in the at least one further database; means accessible to the databases for monitoring and displaying each loan balance account based upon preestablished parameters governing the amount of the loan balance as derived from said databases; means for inputting into one of said databases expenses related to each loan account in said at least one further databases; means accessible to the databases for determining the amount and date for payments to be made on each loan account based on information stored in said databases as governed by the terms and conditions of the loan agreement which optionally may include means accessible to said databases for projecting the discounted value of the principal and minimum interest and comparing it with the present loan balance and means accessible to said databases for determining and displaying whether to elect acceleration of the loan repayment as a function of said comparison and other information stored in said databases within constraining limits of the terms of the loan agreement; and means for the determination of and storage in at least one of said databases of the accreting balance of each loan account derived from information previously stored in said databases. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 109, 110, 111, 112, 113, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131)
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75. A method employing operatively interconnected data processing and computing means for creating, servicing and paying loan agreements between a lender and borrower providing for repayment of the loan together with interest at a periodically adjusted rate based on the terms of the agreement, said method comprising the steps of:
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inputting and storing the negotiated terms and conditions of a loan agreement with an identified lender into a system database which terms and conditions include at least a principal balance of the loan and the term, an initial period interest rate, compounding and interest rate crediting dates, terms for determining a formula interest rate applicable for a given period of time based at least in part on at least one publicly available external benchmark, and at least one of a life-time maximum interest rate, a maximum periodic interest rate, a life time minimum, a periodic minimum interest which rates can include a performance-based benchmark rate; issuing the loan agreement with the agreed terms and conditions representing constraints by accessing such terms and conditions in said system database; creating and storing in at least one further database a loan account for each loan agreement by accessing information input and stored in the system database; computing, allocating and storing in at least one of said databases, initial balances relating to each loan account for at least a balance account, a payment account, a purpose account and a computational account; obtaining and inputting said external benchmark into said system database; computing from information in said system database the periodically adjustable interest rate for the next ensuing interest period as a function of the calculated formula interest rate based on said external benchmark and the constraints of the loan agreement; periodically calculating and reallocating balances in the balance account between at least one of a number of accounts which include the payment account, each purpose account and the computational account based on the terms of each loan agreement stored in the at least one further database; accessing said databases including monitoring and displaying each loan balance account based upon preestablished parameters governing the amount of the loan balance as derived from said databases; inputting into at least one of said databases, expenses related to each loan account; determining from information stored in said databases, the amount and date for payments to be made on each loan account based on information stored in said databases as governed by the terms and conditions of the loan agreement which optionally may include projecting the discounted value of the principal and minimum interest and comparing it with the present loan balance and determining and displaying whether to elect acceleration of the loan repayment as a function of said comparison and other information stored in said databases within constraining limits of the terms of the loan agreement; and calculating and storing in at least one of said databases, the accreting balance of each loan account derived from information previously stored in databases. - View Dependent Claims (76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 132, 133, 134, 135)
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114. The system 7 including data processing means coupled to the data bases, comprising:
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means for electronically recording and storing periodic dates on which the borrower could elect to partially or wholly prepay the loan agreement; means for electronically recording and storing terms and conditions for periodic rate recomputation; means for determining, by said data processing means, a minimum rate of periodic interest to be paid to the lender if the borrower wholly prepays the loan agreement prior to maturity, if applicable; and means for determining, by said data processing means, a portion of the loan agreement which may not be prepaid prior to maturity, if applicable.
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Specification