Securitization of a commercial transaction
First Claim
1. A computer-implemented method for generating a tradable security, the method comprising:
- by a processor, confirming compliance by a vendor with terms of a commercial transaction between the vendor and a buyer;
electronically rating a financial commitment relating to an account receivable held by the vendor at a time prior to a payment due date for the account receivable, the account receivable resulting from compliance by the vendor with the terms of the commercial transaction and representing a debt due to the vendor subsequent to the compliance with the terms of the commercial transaction; and
in a computer-implemented financial exchange, transferring entitlement rights to at least a portion of the debt due under the account receivable, where the terms for the transfer of the entitlement rights are based at least in part on the electronic rating of the financial commitment relating to the account receivable.
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.
42 Citations
29 Claims
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1. A computer-implemented method for generating a tradable security, the method comprising:
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by a processor, confirming compliance by a vendor with terms of a commercial transaction between the vendor and a buyer; electronically rating a financial commitment relating to an account receivable held by the vendor at a time prior to a payment due date for the account receivable, the account receivable resulting from compliance by the vendor with the terms of the commercial transaction and representing a debt due to the vendor subsequent to the compliance with the terms of the commercial transaction; and in a computer-implemented financial exchange, transferring entitlement rights to at least a portion of the debt due under the account receivable, where the terms for the transfer of the entitlement rights are based at least in part on the electronic rating of the financial commitment relating to the account receivable. - 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 between the vendor and a buyer, and electronically rate a financial commitment relating to an account receivable at a time prior to a payment due date for the account receivable, the account receivable resulting from compliance by the vendor with the terms of the commercial transaction and representing a debt due to the vendor subsequent to the compliance with the terms of the commercial transaction; and a financial exchange operative to transfer entitlement rights to at least a portion of the debt due under the account receivable, 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 computer-implemented method for trading a security, the method comprising:
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confirming compliance by a vendor with terms of a commercial transaction between the vendor and a buyer; electronically rating a financial commitment to pay a debt to satisfy an account receivable held by the vendor at a time prior to a payment due date for the account receivable, including electronically determining a credit rating of a buyer that is a party to the commercial transaction, the account receivable resulting from compliance by the vendor with the terms of the commercial transaction and representing the debt due to the vendor; in a computer-implemented financial exchange, transferring entitlement rights to at least a portion of the debt due under the account receivable, 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; and transferring an adjusted financial amount due 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