Issuing machine and issuing system for public-offering a financing instrument on-line

• US 20110125652A1
• Filed: 12/23/2010
• Published: 05/26/2011
• Est. Priority Date: 09/03/2001
• Status: Active Grant

• Current Assignee: Michihiro Sato
• Original Assignee: Michihiro Sato
• Inventors: Shankar, A. Udaya, Sato, Michihiro
• Granted Patent: US 8,103,580 B2
• Time in Patent Office: Days
• US Class Current: 705/64
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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: G07F 17/26 for printing, stamping, franking, typing or teleprinting apparatus ticket printing or the like apparatus G07F17/42
• CPC Class Codes: G07F 17/42 for ticket printing or like apparatus , e.g. apparatus for dispensing of printed paper tickets or payment cards

Abstract

An issuing system for issuing unmodifiable and/or unforgeable hardcopy documents or securities includes a server and a plurality of issuing machines connected to the server via a network. Each of the issuing machines receives an ID recording medium provided by a potential purchaser, retrieves an identification recorded in the received ID recording medium, requests the potential purchaser to input a request for a transaction of the security or financing instrument, processes the requested transaction, and prints out on demand a hardcopy of the security or financing instrument as purchased by the potential purchaser and a checksum thereon. A method for forming a new market with the issuing system embodies preparing the financing instrument, public-offering the financing instrument, delivering to the purchaser a financial disclosure, requesting the purchaser to acknowledge receipt and review of the financial disclosure, confirming acknowledgement of the financial disclosure from the purchaser; and processing the requested transaction by retrieving information via the network to the server.

Claims

1. A method for financing an operation implemented on an issuing system for transacting a newly-issued security or financing instrument, said issuing system including an appropriately programmed server and a plurality of issuing machines connected to the server on a network, the plurality of issuing machines being operatively connected to input and output data, comprising the steps of:

preparing a financial disclosure on a financing instrument including;

the step of accessing at least one data source via the server, said at least one data source storing data on at least one of an operation to be financed, at least one issuing private legal entity which issues the financing instrument as evidence of debt to acquire funds to finance the operation, a face value to be paid to said issuing private legal entity in exchange for owning the financing instrument, and an interest rate defining periodical interest payments to an instrument holder as a percentage of the face value;

the step of collecting the data via the network from said at least one data source into said financing instrument; and

the step of at least one of;

(1) public-offering via the server the financing instrument on-line directly by said issuing private legal entity, and (2) public-offering via the server the financing instrument through a direct purchase plan by said issuing private legal entity;

via input and output on at least one of the plurality of issuing machines, delivering to a potential purchaser said financial disclosure as required by law; and

processing by the server a requested transaction, including the steps of;

receiving by one of the issuing machines an identification (ID) recording medium provided by the potential purchaser,

retrieving by said one issuing machine identification recorded in the received ID recording medium,

receiving from the potential purchaser a request for a transaction of a security or financing instrument,

processing by said one issuing machine the requested transaction of the security or financing instrument by retrieving information via a network from the server, and

printing out by said one issuing machines said hardcopy certificate of the security or financing instrument as purchased with a cryptographic checksum thereon.

2. The method according to claim 1, wherein the step of processing by the server a requested transaction further includes the steps of:

scanning by one of the issuing machines a hardcopy document inserted by a holder, and

determining by said one issuing machine whether the scanned hardcopy document was issued as said hardcopy certificate of the security or financing instrument by another one of the issuing machines or an issuing machine linked with said one issuing machine according to at least a scanned cryptographic checksum.

3. The method according to claim 1, further comprising:

requesting the potential purchaser to specify a purchasing quantity of the financing instrument and an account for charging a monitory amount equal to a price multiplying the purchasing quantity;

verifying availability of the purchasing quantity in inventory and availability of the monitory amount in the account;

finalizing the purchasing quantity and a purchasing time by the issuing legal entity for the potential purchaser, if the purchasing quantity is available in inventory and the monitory amount is available in the account; and

informing the potential purchaser the finalized purchasing quantity and time.

4. The method according to claim 1, further comprising requesting and verifying an identity and a chargeable account of the potential purchaser.

5. The method according to claim 1, further comprising the steps of:

listing the financing instrument with a instrument exchange; and

transacting the financing instrument through the instrument exchange which matches and publishes transactions in a real-time manner.

6. The method according to claim 1, wherein the governing body is a public agency.

7. The method according to claim 1, further comprising the step of:

encrypting and delivering an electronic file containing the financing instrument according to the finalized purchasing quantity to the potential purchaser thereby printing out a hardcopy of the financing instrument.

8. The method according to claim 1, further comprising the step of:

encrypting and delivering an electronic file containing the financing instrument according to the finalized purchasing quantity and time to a depository as designated by the potential purchaser.

9. The method according to claim 1, wherein the financing instrument further specifies a financing purpose which stipulates said operation to be executed with said funds.

10. The method according to claim 1, wherein said third party to issuance includes one of an international organization, a national or local government, a national or local government agency, a profit or non-profit entity, and a financial or non-financial entity.

11. The method according to claim 1, wherein said issuing legal entity includes a public or private entity.

12. The method according to claim 1, wherein said operation constitutes public works or services provided through public works.

13. The method according to claim 1, wherein the financing instrument further specifies a redemption date on or after which the instrument holder may redeem a full amount the face value by presenting the financing instrument to said issuing legal entity or representatives thereof.

14. The method according to claim 1, wherein the financing instrument further specifies an operation lifetime or a retirement date on or after which said operation will stop.

15. An operation financing system, comprising:

an issuing system for transacting a newly-issued security or financing instrument, said issuing system including an appropriately programmed server and a plurality of issuing machines connected to the server on a network, the plurality of issuing machines being operatively connected to input and output data;

means for preparing a financing instrument specifying an operation to be financed, at least one issuing private legal entity which issues the financing instrument as evidence of debt to acquire funds to finance the operation, a face value to be paid to said issuing private legal entity in exchange for owning the financing instrument, and an interest rate defining periodical interest payments to an instrument holder as a percentage of the face value;

means for sending an application for offering the financing instrument and financial disclosure regarding at least one operation financed through the financing instrument to a governing body that oversees exchange of financing instruments for review or registration as required by law;

means for delivering to a potential purchaser said financial disclosure, requesting the potential purchaser to acknowledge receipt and review of said financial disclosure as required by law, after finalizing the registration, and confirming acknowledgement of said financial disclosure from the potential purchaser, and at least one of;

(1) means for public-offering the financing instrument on-line directly by said issuing private legal entity;

(2) means for public-offering the financing instrument through a direct purchase plan by said issuing private legal entity;

means for requesting the potential purchaser to specify a purchasing quantity of the financing instrument and an account for charging a monitory amount equal to a price multiplying the purchasing quantity;

means for verifying availability of the purchasing quantity in inventory and availability of the monitory amount in the account;

means for finalizing the purchasing quantity and a purchasing time by the issuing private legal entity for the potential purchaser, if the purchasing quantity is available in inventory and the monitory amount is available in the account; and

means for informing the potential purchaser the finalized purchasing quantity and time, wherein

the issuing system is configured to process by the server a requested transaction by receiving by one of the issuing machines an identification (ID) recording medium provided by the potential purchaser, retrieving by said one issuing machine identification recorded in the received ID recording medium, receiving from the potential purchaser a request for a transaction of a security or financing instrument, processing by said one issuing machine the requested transaction of the security or financing instrument by retrieving information via a network from the server, and printing out by said one issuing machines said hardcopy certificate of the security or financing instrument as purchased.

16. The operation financing system according to claim 15, further comprising means for requesting and verifying an identity and a chargeable account of the potential purchaser.

17. The operation financing system according to claim 15, further comprising means for listing the financing instrument with a instrument exchange;

and transacting the financing instrument through the instrument exchange which matches and publishes transactions in a real-time manner.

18. The operation financing system according to claim 15, wherein the governing body is a public agency.

19. The operation financing system according to claim 15, further comprising means for encrypting and delivering an electronic file containing the financing instrument according to the finalized purchasing quantity to the potential purchaser thereby printing out a hardcopy of the financing instrument.

20. The operation financing system according to claim 15, further comprising means for encrypting and delivering an electronic file containing the financing instrument according to the finalized purchasing quantity and time to a depository as designated by the potential purchaser.

21. The operation financing system according to claim 15, wherein the financing instrument further specifies a financing purpose which stipulates said operation to be executed with said funds.

22. The operation financing system according to claim 15, wherein said third party to issuance includes one of an international organization, a national or local government, a national or local government agency, a profit or non-profit entity, and a financial or non-financial entity.

23. The operation financing system according to claim 15, wherein said issuing legal entity includes a public or private entity.

24. The operation financing system according to claim 15, wherein said operation constitutes public works or services provided through public works.

25. The operation financing system according to claim 15, wherein the financing instrument further specifies a redemption date on or after which the instrument holder may redeem a full amount the face value by presenting the financing instrument to said issuing legal entity or representatives thereof.

26. The operation financing system according to claim 15, wherein the financing instrument further specifies an operation lifetime or a retirement date on or after which said operation will stop.

27. The operation financing system according to claim 15, wherein the issuing machine further comprises:

scanning means for scanning a hardcopy document inserted by a holder, and determining means for determining whether the hardcopy document was issued by an issuing machine linked with the issuing machine according to at least a scanned cryptographic checksum.

28. The operation financing system according to claim 15, wherein said printing means further prints a random pattern on said hardcopy certificate, said scanning means scans said hardcopy certificate with the random pattern prior to providing said hardcopy certificate to the purchaser.

29. The operation financing system according to claim 28, wherein said scanning means scans a hardcopy document inserted by a holder, and said determining means determines the hardcopy document as not issued by an issuing machine linked with the issuing machine if the hardcopy document does not contain the random pattern.

30. The operation financing system according to claim 28, wherein if said determining means determines the hardcopy document as issued by an issuing machine linked with the issuing machine, said transaction processing means purchases back the hardcopy document at a market price, or converts the hardcopy document into an electronic certificate for the holder.

31. The operation financing system according to claim 30, wherein said electronic certificate is sent to any e-mail account of a person or an institute as directed by the holder.

32. The operation financing system according to claim 31, wherein said institute is a securities depository or breakage.

33. The operation financing system according to claim 32, wherein the holder sets a limit or stop order to sell the electronic certificate via the securities breakage.

34. The operation financing system according to claim 28, wherein if said determining means determines the hardcopy document as not issued by an issuing machine linked with the issuing machine, said transaction processing means either returns the hardcopy certificate to the holder, or instructs said printing means to print “

VOID”

on the hardcopy certificate and stores it locally.

35. The operation financing system according to claim 15, wherein the hardcopy certificate is the security or financing instrument.

36. The operation financing system according to claim 15, wherein said printing means further prints out said hardcopy certificate with a watermark or a hologram.

37. The operation financing system according to claim 15, wherein said printing means prints out said hardcopy certificate on a heavy paper, a colored paper, a forensic fiber paper, or a paper embedded with metallic or UV sensitive threads.

38. The operation financing system according to claim 15, wherein the issuing system is further configured to process by the server a requested transaction by printing out by said one issuing machines said hardcopy certificate of the security or financing instrument as purchased with a cryptographic checksum thereon.

39. The operation financing system according to claim 28, wherein said printing means prints the cryptographic checksum on said hardcopy certificate in a microprinting font.

40. The operation financing system according to claim 39, wherein said cryptographic checksum is generated by using a cryptographic algorithm and information other than said cryptographic checksum to be printed on said hardcopy certificate.

41. The operation financing system according to claim 40, wherein the cryptographic algorithm is a keyed-hash function H.

42. The operation financing system according to claim 41, wherein K_B denotes a certificate key held by the server, Y denotes the information other than said cryptographic checksum to be printed on said hardcopy certificate, the cryptographic checksum is obtained by applying the keyed-hash function H to the key K_B and the information Y as H(K_B, Y).

43. The operation financing system according to claim 42, wherein said transaction processing means uses a different certificate key K_A to communicate with the server.

44. The operation financing system according to claim 42, wherein the server uses different certificate keys K_B for different classes of hardcopy certificates.

45. An issuing system for a newly-issued security or financing instrument comprising:

a server; and

a plurality of issuing machines connected to the server via a network, each of the issuing machines including;

receiving means for receiving an ID recording medium provided by a potential purchaser;

information retrieving means for retrieving identification recoded in the received ID recording medium;

input means for the potential purchaser to input request for a transaction of a security or financing instrument;

transaction processing means for processing the requested transaction by retrieving information via a network from the server; and

printing means for printing out said hardcopy certificate as purchased by the potential purchaser and a cryptographic checksum thereon, wherein the server has implemented therein;

a module that prepares a financing instrument specifying an operation to be financed, at least one issuing private legal entity which issues the financing instrument as evidence of debt to acquire funds to finance the operation, a face value to be paid to said issuing private legal entity in exchange for owning the financing instrument, and an interest rate defining periodical interest payments to an instrument holder as a percentage of the face value;

a modules that sends an application for offering the financing instrument and financial disclosure regarding at least one operation financed through the financing instrument to a governing body that oversees exchange of financing instruments for review or registration as required by law;

a module that delivers to a potential purchaser said financial disclosure, requesting the potential purchaser to acknowledge receipt and review of said financial disclosure as required by law, after finalizing the registration, and confirming acknowledgement of said financial disclosure from the potential purchaser, and at least one of;

(1) means for public-offering the financing instrument on-line directly by said issuing private legal entity;

(2) means for public-offering the financing instrument through a direct purchase plan by said issuing private legal entity;

a module that requests the potential purchaser to specify a purchasing quantity of the financing instrument and an account for charging a monitory amount equal to a price multiplying the purchasing quantity;

a module that verifies availability of the purchasing quantity in inventory and availability of the monitory amount in the account;

a module that finalizes the purchasing quantity and a purchasing time by the issuing private legal entity for the potential purchaser, if the purchasing quantity is available in inventory and the monitory amount is available in the account; and

a module that informs the potential purchaser the finalized purchasing quantity and time.