Method for creating and managing a lease agreement

• US 6,023,687 A
• Filed: 12/30/1998
• Issued: 02/08/2000
• Est. Priority Date: 12/16/1997
• Status: Expired due to Fees

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Weatherly, James E., Carey, Charles R.
• Primary Examiner(s): MacDonald, Allen R.
• Assistant Examiner(s): MEINECKE DIAZ, SUSANNA M
• Application Number:
  US09/223,156
• Time in Patent Office: 405 Days
• Field of Search: 705/35, 705/38, 705/39, 705/40, 705/1, 705/4
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/0278 Product appraisal
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0645 Rental transactions; Leasing transactions
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A computerized system and method for creating and managing a lease agreement includes a lease control computer (14) including means (18,22) for analyzing and processing predetermined financial information regarding a potential tenant (T) and a potential landlord (L) on behalf of a lease control intermediary, means (24) for evaluating the information to determine the acceptability of the financial risk associated with potential tenant creating a service product in the form of a guaranty (30) directed to periodic lease payments from the lease control intermediary to the landlord (L) for a predetermined amount defining a guaranty limit with the guaranty limit corresponding to a predetermined lime period with the guaranty obligation becoming active upon failure of the potential lessee (T) to pay periodic lease payments: providing a lease agreement (32) for execution by the landlord (L) and tenant (T) and the least control intermediary, and means for depositing periodic lease payments received either from the tenant (T) or made by the lease control intermediary according to the service product into an account held by the landlord (L), the payments having a management fee removed therefrom by the lease control intermediary.

Claims

1. A computerized system for creating and managing a lease agreement comprising:

a preprogrammed lease control computer including means for processing information regarding a potential lessee, said preprogrammed lease control computer being remote from the lessor and being operated to carry out tasks of a lease control intermediary, said lease control computer having means for storing predetermined data regarding the potential lessee, means to determine the level of financial risk associated with said potential lessee according to predetermined criteria to create and produce, upon determination of an acceptable risk level, a physical manifestation of a service product in the form of a guaranty directed to periodic lease payments received from an actual lessee by said lease control intermediary for payment from said lease control intermediary to said lessor, said guaranty being for a predetermined monetary amount defining a guaranty limit corresponding to a predetermined time period with said guaranty obligation becoming active upon failure of said potential lessee to pay periodic lease payments.

2. A computerized system for creating and managing a lease agreement according to claim 1, wherein said preprogrammed lease control computer includes means to create and produce, upon determination of an acceptable risk level, a physical manifestation of a lease agreement for execution by said potential lessor, said potential lessee and said lease control intermediary, and to create and produce periodic lease payment material directing payment of periodic lease payments to said lease control intermediary whereby, upon execution of said lease agreement, said potential lessee and said potential lessor become lessee and lessor, and said lease control intermediary becoming a guarantor of the lease payments.

3. A computerized system for creating and managing a lease agreement according to claim 1 and further comprising a lessor computer in communication with said lease control computer for data exchange regarding said potential lessee.

4. A computerized system for creating and managing a lease agreement according to claim 3 and further comprising a telecommunications link between said lessor computer and said lease control computer.

5. A computerized system for creating and managing a lease agreement according to claim 1 wherein said lease control computer includes means to determine whether said service product was accepted by said lessor and said lease agreement accepted by said lessor, said lessee and said lease control intermediary, and, if so, to monitor periodic lease payment activity by said lessee to determine whether periodic lease payment has been made by a predetermined date.

6. A computerized system for creating and managing a lease agreement according to claim 5, wherein said lease control computer includes means to, upon nonreceipt of said periodic lease payment by said predetermined date, add uncollected periodic lease payments to a total amount of outstanding debt for an account of said lessee, and means to compare said amount of outstanding debt to said predetermined guaranty limit to determine whether said amount of outstanding debt exceeds said predetermined guaranty limit, and means to indicate if said amount of outstanding debt does exceed said predetermined guaranty limit, and to initiate collection procedures to recover the amount of said outstanding debt from said lessee.

7. A computerized system for creating and managing a lease agreement according to claim 1, wherein said lease control computer includes means to process said data regarding said potential lessee to determine whether more than one potential lessee exists for a proposed lease and if more than one potential lessee exists, to store said data for all potential lessees by said computer until all potential lessees have submitted said predetermined information, said lease control computer also including means to compare said predetermined information from all potential lessees to a credit allocation model resident in said computer resulting in a collective credit assessment and to determine said guaranty limit based on said collective credit assessment;

and to create and produce said service product bearing said guaranty limit.

8. A computerized system for creating and managing a lease agreement according to claim 1, wherein said lease control computer includes means to compare said data from said potential lessee to a credit allocation model resident in said computer, to produce a credit assessment, determine said guaranty limit based on said credit assessment and create and produce said service product bearing said guaranty limit.

9. A computerized system for creating and managing a lease agreement according to claim 7 wherein said lease control computer includes means to determine whether said credit assessment results in declining an applicant, and, if so, said lease control computer includes means to create and produce a letter to said potential lessee indicating that the lease control intermediary declined to offer a guaranty to the potential lessor.

10. A computerized system for creating and managing a lease agreement according to claim 1, wherein said lease control computer includes means to determine whether said periodic lease payments should be directly deposited into a bank account of said lessor, and, if so, said lease control computer is configured to form an automatic periodic lease deposit account, and automatically credit said automatic periodic lease deposit account with an amount in accordance with said periodic lease payments less a management fee.

11. A computerized system for creating and managing a lease agreement according to claim 1, wherein said lease control computer includes means for processing account information regarding said lessee, said lessor, said lease agreement and said service product;

means for noting dates associated with actual payments and expected payments;

means for designating accounts with payments past due for five days;

means for generating and sending letters to said lessor and said lessee indicating that the full periodic lease payment was not received; and

means for continuing to monitor said account.

12. A computerized system for creating and managing a lease agreement according to claim 11, wherein said lease control computer includes means for determining whether a payment has been received within the ten days following said five days past due date and if payment is received, updating said account to reflect payment received and, if no payment is received, generating and sending a second letter to said lessee;

and initiating a collection process.

13. A computerized system for creating and managing a lease agreement according to claim 12, wherein said lease control computer includes means for determining whether payment has been made by a next regular periodic due date, means for comparing if no payment has been received, an amount of outstanding debt to said guaranty limit, means for crediting if said outstanding debt amount exceeds said guaranty limit, an amount equal to a security deposit to said lessor;

means for closing the account, with no further automatic deposits being made; and

means for generating and sending a letter to said lessor indicating said limit has been achieved.

14. A computerized system for creating and managing a lease agreement according to claim 13, wherein said lease control computer includes means for determining whether said limit has not been exceeded and the outstanding debt has not been paid within five days of the next regular periodic due date, means for assessing a late fee to said account, and means for generating and sending letters to said lessor and said lessee.

15. A computerized system for creating and managing a lease agreement according to claim 2 wherein said service product includes regular periodic intermediary payments to be paid by said lease control intermediary to said lessor no later than a regular periodic due date, said regular periodic intermediary payments being substantially equivalent to said periodic lease payments less a management fee, and wherein said lease control computer includes means for determining that said regular periodic intermediary payments are due.

16. A computerized system for creating and managing a lease agreement according to claim 15 wherein said lease control computer includes means for creating invoices for said regular periodic intermediary payments, whereby said invoices may be created in advance of said regular periodic due date to assure timely payment to said lessor.

17. A computerized system for creating and managing a lease agreement according to claim 15 wherein said lease control computer includes means for automatically depositing said regular periodic intermediary payments into a bank account of said lessor, and means for determining whether said regular periodic intermediary payments should be deposited directly into said bank account.