Methods, software programs, and systems for managing one or more liabilities

• US 8,930,264 B1
• Filed: 09/25/2013
• Issued: 01/06/2015
• Est. Priority Date: 11/28/2000
• Status: Expired due to Term

• Current Assignee: Goldman Sachs & Co. LLC (Goldman Sachs Group Incorporated)
• Original Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated)
• Inventors: Butcher, George H. III
• Primary Examiner(s): Tinkler, Muriel
• Application Number:
  US14/036,917
• Time in Patent Office: 468 Days
• Field of Search: 705/37, 705/38
• 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

The present invention relates to various methods, software programs, and systems for managing one or more liabilities. More particularly, certain embodiments of the present invention relate to methods, software programs, and systems for managing debt in the form of at least one credit issued by a borrower.

Claims

1. A method for structuring a variable rate municipal bond, comprising:

setting, by a computer, an expected maturity for the bond;

setting, by the computer, a legal maturity for the bond, wherein the legal maturity is longer than the expected maturity;

periodically budgeting, by the computer, for debt service on the bond;

periodically making, by the computer, sinking fund installments, wherein each of the sinking fund installments is substantially equal, for at least a part of a life of the bond, to the budgeted debt service minus actual interest on the bond; and

making, by the computer, one or more payments until the legal maturity to the extent that principal remains to be paid on the bond after the expected maturity.

2. The method of claim 1, wherein the variable rate municipal bond is a term bond.

3. The method of claim 1, wherein the budgeted debt service is set periodically over the life of the variable rate municipal bond.

4. The method of claim 1, wherein the budgeted debt service is set yearly over the life of the variable rate municipal bond.

5. The method of claim 1, wherein the budgeted debt service remains substantially constant over the life of the variable rate municipal bond.

6. The method of claim 1, wherein the budgeted debt service varies over the life of the variable rate municipal bond.

7. The method of claim 1, wherein the variable rate municipal bond is selected from the group including:

(a) a single issue variable rate demand bond; and

(b) a series of variable rate demand bonds.

13. The method of claim 1, wherein the budgeted debt service is based on a budget estimate of what a short-term interest rate is or will be at the time the estimate is made.

8. A method for structuring a variable rate municipal bond, comprising:

setting, by a computer, an expected maturity for the bond;

setting, by the computer, a legal maturity for the bond, wherein the legal maturity is longer than the expected maturity;

setting, by the computer, an expected debt service schedule on the bond, wherein the expected debt service schedule identifies a number of expected debt service payments;

periodically making, by the computer, sinking fund installments, wherein each of the sinking fund installments does not exceed, for at least a part of a life of the bond, a corresponding one of the expected debt service payments; and

making, by the computer, one or more payments until the legal maturity to the extent that principal remains to be paid on the bond after the expected maturity.

9. The method of claim 8, wherein the variable rate municipal bond is a term bond.

10. The method of claim 8, wherein the expected debt service remains substantially constant over the life of the variable rate municipal bond.

11. The method of claim 8, wherein the expected debt service varies over the life of the variable rate municipal bond.

12. The method of claim 8, wherein the variable rate municipal bond is selected from the group including:

(a) a single issue variable rate demand bond; and

(b) a series of variable rate demand bonds.

14. A non-transitory, computer-readable medium for structuring a variable rate municipal bond, the computer-readable medium having computer-readable instructions stored thereon which, when executed by one or more processors, configure the one or more processors for:

setting an expected maturity for the bond;

setting a legal maturity for the bond, wherein the legal maturity is longer than the expected maturity;

periodically budgeting for debt service on the bond;

periodically making sinking fund installments, wherein each of the sinking fund installments is substantially equal, for at least a part of a life of the bond, to the budgeted debt service minus actual interest on the bond; and

making one or more payments until the legal maturity to the extent that principal remains to be paid on the bond after the expected maturity.

15. A system for structuring a variable rate municipal bond, comprising:

a memory; and

a processor in communication with the memory, the processor operable to execute software modules, the software modules comprising;

a module configured to set an expected maturity for the bond;

a module configured to set a legal maturity for the bond, wherein the legal maturity is longer than the expected maturity;

a module configured to periodically budget for debt service on the bond;

a module configured to periodically make sinking fund installments, wherein each of the sinking fund installments is substantially equal, for at least a part of a life of the bond, to the budgeted debt service minus actual interest on the bond; and

a module configured to make one or more payments until the legal maturity to the extent that principal remains to be paid on the bond after the expected maturity.

16. A non-transitory, computer-readable medium for structuring a variable rate municipal bond, the computer-readable medium having computer-readable instructions stored thereon which, when executed by one or more processors, configure the one or more processors for:

setting an expected maturity for the bond;

setting a legal maturity for the bond, wherein the legal maturity is longer than the expected maturity;

setting an expected debt service schedule on the bond, wherein the expected debt service schedule identifies a number of expected debt service payments;

periodically making sinking fund installments, wherein each of the sinking fund installments does not exceed, for at least a part of a life of the bond, a corresponding one of the expected debt service payments; and

making one or more payments until the legal maturity to the extent that principal remains to be paid on the bond after the expected maturity.

17. A system for structuring a variable rate municipal bond, comprising:

a memory;

a processor in communication with the memory, the processor operable to execute software modules, the software modules comprising;

a module configured to set an expected maturity for the bond;

a module configured to set a legal maturity for the bond, wherein the legal maturity is longer than the expected maturity;

a module configured to set an expected debt service schedule on the bond, wherein the expected debt service schedule identifies a number of expected debt service payments;

a module configured to periodically make sinking fund installments, wherein each of the sinking fund installments does not exceed, for at least a part of a life of the bond, a corresponding one of the expected debt service payments; and

a module configured to make one or more payments until the legal maturity to the extent that principal remains to be paid on the bond after the expected maturity.