Method and system for automatically producing loan documents

• US 6,366,892 B1
• Filed: 04/05/2000
• Issued: 04/02/2002
• Est. Priority Date: 04/05/2000
• Status: Expired due to Fees

• Current Assignee: Titanium Capital LLC
• Original Assignee: Titan Film Capitol LLC
• Inventors: Perkins, James C., Altman, Charles J.
• Primary Examiner(s): Millin, Vincent
• Assistant Examiner(s): AKERS, GEOFFREY R
• Application Number:
  US09/543,700
• Time in Patent Office: 727 Days
• Field of Search: 705/38, 364/408
• US Class Current: 705/38
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A method for automating legal documents particularly for institutional and commercial loans includes the steps of providing in a database a plurality of provisions, including a plurality of standard clauses for each provision, and at least one optional clause associated with each standard clause, and a lender ranking value for each optional clause; selecting either the standard clause or the associated optional clause for each provision; allocating a borrower ranking value to each selected optional clause; comparing the associated lender ranking value to the borrower ranking value for each selected optional clause for determining which of the standard clauses will be retained and which of the selected optional clauses associated with the standard clause will be accepted to replace the standard clause; and generating a loan document having each of the accepted selected optional clauses and each of the retained standard clauses.

Claims

1. A method for generating a customized legal document for a sophisticated commercial or business transaction, in a manner that significantly reduces the time, effort and cost of negotiating terms of the legal document, by utilizing a computer system having a database of loan provisions, the loan provisions including a plurality of non-negotiable loan provisions and a plurality of negotiable loan provisions designated for negotiation, the negotiable loan provisions including standard clauses and at least one optional clause associated with each of the standard clauses, each optional clause having a lender ranking threshold, the method comprising the steps of:

(a) selecting the standard clause or the associated optional clause for each of the negotiable loan provisions;

(b) allocating a borrower ranking value to each selected optional clause;

(c) comparing the lender ranking threshold to the borrower ranking value for each selected optional clause for determining which of the standard clauses will be retained in the legal document and which selected optional clause associated with the standard clause will be accepted to replace the standard clause; and

(d) generating the legal document having the non-negotiable loan provisions and each of the accepted selected optional clauses and each of the retained standard clauses.

2. A method as claimed in claim 1 further comprising the step of assigning a value to each optional clause, and computing a loan price based on the values assigned to each accepted selected optional clause.

3. A method as claimed in claim 1 further comprising the step of limiting the sum of the borrower ranking values to a specified number so that the borrower ranking value allocated to a single selected optional clause cannot exceed the specified number.

4. A method as claimed in claim 3 wherein the lender ranking threshold for each optional clause is limited to the sum of the borrower ranking values.

5. A method as claimed in claim 1 wherein the selected optional clause replaces the standard clause when the borrower ranking value is equal to or exceeds the lender ranking threshold and the standard clause is retained in the legal document when the lender ranking threshold exceeds the borrower ranking value.

6. A method for generating a customized legal document for a sophisticated commercial or business transaction in a manner that significantly reduces the time, effort and cost of negotiating terms of the legal document, by utilizing a computer terminal, and a borrower terminal connected to the computer terminal, the computer terminal having a database of loan provisions, the loan provisions including a plurality of non-negotiable loan provisions and a plurality of negotiable loan provisions designated for negotiation, the negotiable loan provisions including standard clauses and at least one optional clause associated with each of the standard clauses, each optional clause having a lender ranking threshold, the method comprising the steps of:

(a) receiving at the computer terminal, a selection of the standard clause or the associated optional clause for each negotiable loan provision, and a borrower ranking value allocated to each selected optional clause from the borrower terminal;

(b) comparing the lender ranking threshold to the borrower ranking value for each selected optional clause for determining which of the standard clauses will be retained in the legal document and which of the selected optional clauses associated with the standard clause will be accepted to replace the standard clause; and

(c) generating the legal document having the non-negotiable loan provisions and each of the accepted selected optional clauses and each of the retained standard clauses.

7. A method as claimed in claim 6 wherein each optional clause has an assigned value and further comprising the step of computing a loan price based on the values assigned to each accepted optional clause.

8. A method as claimed in claim 6 wherein the selected optional clause replaces the standard clause when the borrower ranking value is equal to or exceeds the lender ranking threshold and the standard clause is retained in the legal document when the lender ranking threshold exceeds the borrower ranking value.

9. A method for generating a customized legal document for a sophisticated commercial or business transaction, in a manner that significantly reduces the time, effort and cost of negotiating terms of the legal document, by utilizing a computer terminal, a lender terminal and a borrower terminal, the lender terminal and the borrower terminal being connected to the computer terminal, the computer terminal having a database of loan provisions, the loan provisions including standard clauses and at least one optional clause associated with each of the standard clauses, the method comprising the steps of:

(a) accessing the computer terminal at the lender terminal;

(b) selecting loan provisions which are negotiable at the lender terminal;

(c) designating at least one optional clause for each negotiable loan provision at the lender terminal;

(d) assigning a lender ranking threshold to each designated optional clause at the lender terminal;

(e) accessing the computer terminal at the borrower terminal;

(f) selecting the standard clause or the associated designated optional clause for each of the negotiable loan provisions at the borrower terminal;

(g) allocating a borrower ranking value to each selected designated optional clause at the borrower terminal;

(h) comparing the lender ranking threshold to the borrower lender value for determining which of the standard clauses will be retained and which of the selected designated optional clauses associated with the standard clause will be accepted to replace the standard clause at the computer terminal; and

(i) generating the legal document having the non-negotiable loan provisions and each of the accepted selected optional clauses and each of the retained standard clauses at the computer terminal.

10. A computer system for generating a customized legal document for a sophisticated commercial or business transaction, in a manner that significantly reduces the time, effort and cost of negotiating terms of the legal document, the computer system comprising:

(a) a computer terminal having a database;

(b) a plurality of loan provisions stored in the database, the loan provisions including non-negotiable loan provisions and negotiable loan provisions designated for negotiation, the negotiable loan provisions including standard clauses and at least one optional clause associated with each standard clause, each optional clause having an associated lender ranking threshold;

(c) access means for retrieving the plurality of negotiable loan provisions on a second computer connected to the computer terminal;

(d) selection means for choosing between the standard clause and the associated optional clause and transmitting the selection to the computer terminal;

(e) allocation means for allocating a borrower ranking value to each selected optional clause and transmitting the allocated borrower ranking value to the computer terminal;

(f) comparison means for comparing the lender ranking threshold and the borrower ranking value for determining which of the standard clauses will be retained and which of the selected optional clauses associated with the standard clause will be accepted to replace the standard clause, wherein the selected optional clause replaces the standard clause when the borrower ranking value is equal to or exceeds the lender ranking threshold and the standard clause is retained in the legal document when the lender ranking threshold exceeds the borrower ranking value; and

(g) document generating means for creating the legal document including the non-negotiable loan provisions and each of the accepted selected optional clauses and each of the retained standard clauses.

11. A computer system as claimed in claim 10 further comprising a computing means for computing a loan price based on a value assigned to each accepted selected optional clause, the values being stored in the database.

12. A computer system for generating a customized legal document for a sophisticated commercial or business transaction, in a manner that significantly reduces the time, effort and cost of negotiating terms of the legal document, the computer system having a database of a plurality of loan provisions stored in the database, the loan provisions including non-negotiable loan provisions and negotiable loan provisions designated for negotiation, the negotiable loan provisions including standard clauses and at least one optional clause associated with each standard clause, each optional clause having a lender ranking threshold;

the computer system allowing a borrower terminal to access the database for selecting either the standard clause or the associated optional clause and assigning a borrower ranking value to the selected optional clause;

the computer system receiving the selection of the standard clause or the optional clause for each negotiable loan provision and the borrower ranking value from the borrower terminal;

the computer system comparing the lender ranking threshold and the borrower ranking value for determining which of the standard clauses will be retained and which selected optional clauses associated with the standard clause will be accepted to replace the standard clause in the legal document; and

the computer system creating the legal document having the non-negotiable provisions and each of the accepted selected optional clauses and each of the retained standard clauses.

13. A computer system as claimed in claim 12 wherein the selected optional clause replaces the standard clause when the borrower ranking value is equal to or exceeds the lender ranking threshold and the standard clause is retained in the legal document when the lender ranking threshold exceeds the borrower ranking value.

14. A computer system as claimed in claim 12 further comprising a computing means for computing a loan price based on a value assigned to each accepted selected optional clause, the values being stored in the database.

15. A computer system for generating a customized legal document for a sophisticated commercial or business transaction, in a manner that significantly reduces the time, effort and cost of negotiating terms of the legal document, the computer system having a database of a plurality of loan provisions stored in the database, the loan provisions including standard clauses and a least one optional clause associated with each standard clause;

the computer system being connected to a lender terminal for allowing the lender terminal to access the database for selecting loan provisions which are negotiable, designating at least one optional clause for each negotiable loan provision and assigning a lender ranking threshold to each designated optional clause;

the computer system receiving the selection of negotiable loan provisions, the designation of at least one optional clause for each negotiable provision, and the lender ranking threshold for each designated optional clause from the lender terminal;

the computer terminal also being connected to a borrower terminal for allowing the borrower terminal to access the database for selecting either the standard clause or the associated designated clause and assigning a borrower ranking value to the selected designated optional clause;

the computer system receiving the selection of the standard clause or the designated optional clause for each negotiable loan provision and the borrower ranking value from the borrower terminal;

the computer system comparing the lender ranking threshold and the borrower ranking value for determining which of the standard clauses will be retained and which of the selected designated optional clauses associated with the standard clause will be accepted to replace the standard clause in the legal document; and

the computer system generating the legal document having the non-negotiable loan provisions and each of the accepted selected designated optional clauses and each of the retained standard clauses.

16. The computer system as claimed in claim 15 wherein the selected designated optional clause replaces the standard clause when the borrower ranking value is equal to or exceeds the lender ranking threshold and the standard clause is retained in the legal document when the lender ranking threshold exceeds the borrower ranking value.