Margin reserve in lending
First Claim
1. A method for administering, using a computer loan system, an agreement relating to a loan having an arranger, lenders, and a borrower, the method comprising:
- at time t1, recording, on memory in the computer loan system, an initial price of the loan corresponding to the agreement, the initial price of the loan comprising a reserve rate;
at time t3, receiving, at the computer loan system, information for use with a pricing grid recorded on the memory in the computer loan system, where the information comprises a report of the borrower'"'"'s financial status for use with the pricing grid;
determining, using a processor of the computer loan system, an adjusted price of the loan using the information and the pricing grid;
applying the adjusted price of the loan for a period of time starting at a time t2 and ending at the time t3, where the time t2 is earlier than the time t3;
determining that the adjusted price of the loan is not less than the initial price of the loan; and
at time t3, requesting distribution of a reserve amount of the loan that accrued at the reserve rate for a period of time ending prior to the time t3, in accordance with the adjusted price of the loan.
1 Assignment
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Accused Products
Abstract
System and methods are disclosed to permit the retroactive application of an interest rate change to a loan. An entity acting as an agent for a loan agreement may allocate a portion of the interest collected on a loan into a margin reserve portion. The reserve amount may be increase or decreased as desired. Furthermore, the agent may hold or distribute the reserve amount according to the compliance, or lack of compliance, of the borrower to certain financial reporting procedures, including the meeting of certain financial goals. A pricing grid or performance grid may be included with the loan agreement to assist in the calculation of interest rate changes and changes to the reserve amount. In addition, traders on the secondary market for loans may minimize the risk of over-payment or under-payment.
19 Citations
15 Claims
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1. A method for administering, using a computer loan system, an agreement relating to a loan having an arranger, lenders, and a borrower, the method comprising:
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at time t1, recording, on memory in the computer loan system, an initial price of the loan corresponding to the agreement, the initial price of the loan comprising a reserve rate; at time t3, receiving, at the computer loan system, information for use with a pricing grid recorded on the memory in the computer loan system, where the information comprises a report of the borrower'"'"'s financial status for use with the pricing grid; determining, using a processor of the computer loan system, an adjusted price of the loan using the information and the pricing grid; applying the adjusted price of the loan for a period of time starting at a time t2 and ending at the time t3, where the time t2 is earlier than the time t3; determining that the adjusted price of the loan is not less than the initial price of the loan; and at time t3, requesting distribution of a reserve amount of the loan that accrued at the reserve rate for a period of time ending prior to the time t3, in accordance with the adjusted price of the loan. - View Dependent Claims (2, 3, 4, 5, 6, 7, 13)
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8. A computerized system comprising:
- a processor, and a memory storing computer-readable executable instructions that when executed cause the system to perform steps comprising;
at time t1, recording an initial price of a loan corresponding to an agreement, the initial price of the loan comprising a reserve rate; at time t3, receiving information for use with a pricing grid, the pricing grid being stored in the memory, where the information comprises a report of the borrower'"'"'s financial status for use with the pricing grid; calculating an adjusted price of the loan using the information and the pricing grid, where the adjusted price of the loan is not less than the initial price of the loan; applying the adjusted price of the loan for a period of time starting at a time t2 and ending at the time t3, where the time t2 is earlier than the time t3; and requesting distribution of a reserve amount accrued at the reserve rate for a period of time from the time t1 to the time t2, in accordance with the adjusted price of the loan. - View Dependent Claims (9, 10, 11, 12)
- a processor, and a memory storing computer-readable executable instructions that when executed cause the system to perform steps comprising;
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14. A computer-assisted method for use with a computer loan system, the method comprising:
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receiving, at the computer loan system, funds from a borrower'"'"'s account, where the funds correspond to interest payments for a period of time starting at a time t1 and ending at a time t2, and where a reserve amount is a portion of the funds received from the borrower'"'"'s account and is based on a reserve rate of the borrower'"'"'s loan; crediting, using a processor of the computer loan system, the reserve amount into a reserve account; at time t3, debiting, using the processor of the computer loan system, the reserve amount from the reserve account, where the time t3 is after the time t2; and crediting, using the processor of the computer loan system, a first portion of the debited reserve amount to the borrower'"'"'s account and a second portion of the debited reserve amount to at least one lender'"'"'s account; where the first portion of the debited reserve amount is zero when information about the borrower'"'"'s financial status indicates that an adjusted interest rate of the borrower'"'"'s loan calculated at the time t3 is not less than an interest rate of the borrower'"'"'s loan at the time t2, where the adjusted interest rate of the borrower'"'"'s loan calculated at the time t3 is based on the information about the borrower'"'"'s financial status and a pricing grid. - View Dependent Claims (15)
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Specification