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WO1998004987A1 - Methode et dispositif pour gestion commune et distribution de dividendes d'obligation - Google Patents

Methode et dispositif pour gestion commune et distribution de dividendes d'obligation Download PDF

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Publication number
WO1998004987A1
WO1998004987A1 PCT/US1996/012536 US9612536W WO9804987A1 WO 1998004987 A1 WO1998004987 A1 WO 1998004987A1 US 9612536 W US9612536 W US 9612536W WO 9804987 A1 WO9804987 A1 WO 9804987A1
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WO
WIPO (PCT)
Prior art keywords
interest
participants
participation
program
data
Prior art date
Application number
PCT/US1996/012536
Other languages
English (en)
Inventor
Dale B. Finfrock
A. Rene Dervaes, Jr.
Robert S. Dervaes
Original Assignee
Finfrock Dale B
Dervaes A Rene Jr
Dervaes Robert S
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Finfrock Dale B, Dervaes A Rene Jr, Dervaes Robert S filed Critical Finfrock Dale B
Priority to AU66434/96A priority Critical patent/AU6643496A/en
Priority to PCT/US1996/012536 priority patent/WO1998004987A1/fr
Publication of WO1998004987A1 publication Critical patent/WO1998004987A1/fr

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Classifications

    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/04—Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Definitions

  • This invention relates to the field of financial securities for senior citizens and, in particular, to a program assisting in the administration and distribution of interest derived from pooled U.S. Treasury Bonds. BACKGROUND
  • Insurance is a program generally made operative by death providing the beneficiary with proceeds upon occurrence. For a couple in retirement, a spouse typically collects proceeds upon the death of the spouse. Insurance can also be used to provide protection for uncertain costs.
  • United States patents 4,642,768, 4,722,055 and 4,752,877 issued to Robert's discloses a method and apparatus for funding future liability of uncertain costs. The program allows the investor to fund a fairly certain future cost such as a child's college education as well as estimate the expected cost of the liability, when the liability will incur, and the amount of insurance necessary to cover the liability.
  • the instant program is a closed end non-diversified investment pool organized for the purposes of investing in and holding to maturity a fixed portfolio of thirty-year U.S. Government bonds or the like capable of providing 100% investment security.
  • the program is based upon statistics as the Department of Health and Human Services indicates that the life expectancy of a 60 year old male or a 65 year old female is approximately 18 years and the life expectancy of a 70 year old male or a 75 year old female is approximately 12 years, according to 1988 records. From this statistic a preferred embodiment of the program is based upon a minimum number of investors having a particular birth year. To insure that participants in a particular pool have at least a reasonable approximation of the estimated longevity, no pool is formed with fewer than two hundred participants.
  • the program's principal purpose is to provide a source of income to meet the increasing expenses of those investors who live extended lives. This objective will be met by terminating the right of any investor who dies in the interim provided by the bond portfolio, thereby increasing the amount of
  • Income from the portfolio bonds will be divided in or up to twelve pools, for example; ten thousand dollar investments by men born in 1921 or 1922 and women born in 1916 or 1917 will be placed in one pool, as such men and women have approximately the same life expectancy. Twenty-five thousand dollar investments by such persons will be placed in a second pool . Ten thousand dollar investments by men born in 1923 or 1924 and women born in 1918 or 1919 will be placed in a third pool. Twenty-five thousand dollar investments by such persons will be placed in a fourth pool ; and so on for men and women born in each of the three subsequent two-year periods, according to the amount invested. However, to provide statistical equality, unless two hundred or more individuals from the same applicable two-year bracket subscribe to the same amount during the period of the offering, all subscriptions of that amount from individuals in such bracket will be returned.
  • Interest from the Fund's portfolio bonds is allocated among the different categories of investors according to birth year and amount invested, pro rata, and then distributed among the investors in each sub-category who have timely submitted a personally endorsed coupon. Accordingly, each unit holder will participate only in the interest attributable to investors in his or her birth year and amount invested bracket, and then only to the extent that he or she submits a personally endorsed coupon, with signature and date guaranteed.
  • the United States Treasury currently pays interest semi -annually on bonds similar to the bonds to be purchased by the instant program. The administrator to this program would not distribute such interest for a period of time during which period such funds will be deposited in interest-bearing money market accounts investing in short term securities guaranteed by the U.S.
  • Yet still another objective of the instant invention is to provide a method and apparatus providing for the managing of increased income whose benefit is derived upon living, the income derived therefrom depending upon the participants longevity in respect to co-participants during the interest bearing years of the bond.
  • Figure 1 is a schematic flow diagram of the data processing system of the instant invention.
  • the data processing system of the instant invention is for administering a program to senior citizens for managing and distributing the interest from pooled government bonds .
  • the program employs a microprocessor based computer system having an input terminal for entry of each customers name, address, estate administrator contact, and the like
  • the computer is based at the central offices of the financial institution sponsoring the program with auxiliary branches accessing the program by use of modem coupling.
  • the program prompting the operator to query the customer on age, health, and various term rates of fixed interest security plans available further providing both an internal record and printout of the query questions and responses for the customers' records.
  • Each plan based upon a bond fund unit of various security offering to specific groups of senior citizens having a common age and financial goal. As long as the individual is alive, the individual will share equally in an increasing income stream derived from the interest based on the individual's initial investment. As fellow participants status becomes deceased, the interest is maintained by the pool and delivered only to the living participants in an amount equal to the pool interest divided by the number of living participants.
  • FIG. 1 the operation of the system is depicted by reference to Figure 1 wherein a participant transaction is set forth.
  • the operator of the system queries the participant 12 for determination of threshold age as this program is dependent upon age versus security term rate readily apparent later in this description. If the participant is beneath the threshold age the program is stopped 16 as an underage participant violates the underlying principal of the plan. If the participant 12 is above the threshold age he may choose from various plans 18 and 20 which are based upon guaranteed security rates and unit levels purchased.
  • the preferred plan is based upon a United States 30 year Treasury Bond requiring a minimum threshold age of 60/61 for males and 65/66 for female participation.
  • the participant's name, address, age, verification of age document, spouse, estate administrator, and family contacts are inputted into the form of agreement 22 together with the determination of the earliest plan available 26 having a level of participation open to additional recipients.
  • Use of a central computer accessed throughout the country allows a faster closure rate than regional or locally based plans.
  • the participant Upon signatory acceptance the participant makes a single payment to the plan's bank trustee 30, a federally chartered national bank fiduciary, who holds the payment for a 3 -day holding period 32 wherein the customer who decides not to participate is returned the payment 3 .
  • the bank trustee deposits the payment into a bank escrow account 36 to await payment clearance and completion of the minimum level of participation for the chosen plan.
  • the bank trustee purchases 40 each bond in the names of the participants, or as trustee thereof, wherein the bonds are held in a chartered national bank trust 42 account. The interest from each bond collected and held in an interest pool 44.
  • the interest pool 44 is checked at least twice per year for bond maturity. If the bond is not mature, the program queries 48 participation data for participant status. The query based upon written receipt of the last interest payment or telephone contact with the participant. Each investor in the program receives a certificate representing his interest in the program, and a book of coupons or certificates which are submitted during the last six months preceding the calendar year in which the distribution is made. Subsequent interest distributions are based on coupons actually received during such period and no unit holder whose coupon is not timely received will be entitled to participate in a distribution. The interest pool, less administrative fees, is then distributed to the living participants 50. If the maturity date 46 of the bond becomes due, the program instructs a release 52 of all bonds held by the bank trustee 42, the matured bond or original capital contribution 54 returned to each participant or their estate for distribution to heirs or beneficiaries.
  • EXAMPLE 1 An individual who invests $25,000 in a 30 year U.S. Treasury Bond with a 8% guaranteed fixed interest rate will receive $1,800 per year with a limit of $54,000 receivable over the 30 year period. If the individual invests $25,000 in a 30 year U.S. Treasury Bond with a 6.4% guaranteed fixed interest rate under the 200 unit pooled interest program, and lives for 30 years, the participant can expect to receive in excess of $175,000 based upon normal attrition rates of males who participate beginning at age 64/65 and females who participate beginning at age 70/71.
  • EXAMPLE 2 An individual who invests $10,000 in a 30 year U.S. Treasury Bond with an 8% guaranteed fixed interest rate will receive $800 per year with a limit of $24,000 receivable over the 30 year period. If the individual invests $10,000 in a 30 year U.S. Treasury Bond with a 6.4% guaranteed fixed interest rate under the 200 unit pooled interest program, and lives for 30 years, the participant can expect to receive in excess of $71,000 based upon normal attrition rates of males who participate beginning at age 64/65 and females who participate beginning at age 70/71.
  • the 1992 -A Seniors' U.S. Treasury Bond Fund is organized for the purpose of investing in and holding to maturity a fixed portfolio of 30-year U.S. Government bonds.
  • the Bonds will be purchased within five business days of a stock auction and the interest to be realized from such Bonds will be determined at the time of purchase. All interest on the Fund's portfolio will be distributed semi-annually to surviving holders of the Fund's Units .
  • $10,000 investments by men born in 1921 or 1922 and women born in 1916 or 1917 will be placed in one pool, and $25,000 investments by such persons in another; $10,000 investments by men born in 1923 or 1924 and women born in 1918 or 1919 will be placed in a third pool, and
  • the Fund will offer the Units through an underwriter and other broker-dealers who are members of the National Association of Securities Dealers, Inc. The underwriter will be entitled to compensation (including wholesale expenses, administrative costs) and commissions on the price of Units sold by participating dealers.
  • Chart I summarizing Examples 1-3 further providing a unit holder column listing predicting statistical decline in participation with the appreciable amount of interest for distribution to the remaining participants.

Landscapes

  • Business, Economics & Management (AREA)
  • Accounting & Taxation (AREA)
  • Finance (AREA)
  • Engineering & Computer Science (AREA)
  • Development Economics (AREA)
  • Economics (AREA)
  • Marketing (AREA)
  • Strategic Management (AREA)
  • Technology Law (AREA)
  • Physics & Mathematics (AREA)
  • General Business, Economics & Management (AREA)
  • General Physics & Mathematics (AREA)
  • Theoretical Computer Science (AREA)
  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)

Abstract

Méthode et dispositif pour l'application d'un programme de gestion et de distribution d'intérêts provenant d'obligations d'Etat (12) en gestion commune ou d'autres fonds du même type. Ce programme fondé sur un fonds d'obligations unique formé d'une offre variée de titres, s'adressant à des groupes spécifiques de personnes âgées qui ont un âge et un objectif financier communs. Tant que le participant (12) est vivant, il touche une part égale du flux de revenus dérivé de l'intérêt du titre, flux qui augmente grâce à la diminution progressive du nombre de participants (26) au fond commun, la part perçue étant fonction de l'investissement initial du participant. Les obligations (42) produisant des revenus sont mises en commun et administrées en une unité, et sont fondées sur des bons de Trésor américain à long terme. Les intérêts sont distribués aux participants (12) encore en vie tandis que la valeur d'échéance de l'obligation demeure payable aux participants (12) ou à leur succession (54). Ce programme fournit aux participants(12) et gestionnaires impliqués une assistance concernant les actifs du Fonds, les prédictions statistiques et la distribution des dividendes (50).
PCT/US1996/012536 1996-07-31 1996-07-31 Methode et dispositif pour gestion commune et distribution de dividendes d'obligation WO1998004987A1 (fr)

Priority Applications (2)

Application Number Priority Date Filing Date Title
AU66434/96A AU6643496A (en) 1996-07-31 1996-07-31 Method and apparatus for pooling and distributing bond dividends
PCT/US1996/012536 WO1998004987A1 (fr) 1996-07-31 1996-07-31 Methode et dispositif pour gestion commune et distribution de dividendes d'obligation

Applications Claiming Priority (1)

Application Number Priority Date Filing Date Title
PCT/US1996/012536 WO1998004987A1 (fr) 1996-07-31 1996-07-31 Methode et dispositif pour gestion commune et distribution de dividendes d'obligation

Publications (1)

Publication Number Publication Date
WO1998004987A1 true WO1998004987A1 (fr) 1998-02-05

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AU (1) AU6643496A (fr)
WO (1) WO1998004987A1 (fr)

Cited By (5)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
JP2003528369A (ja) * 1999-11-18 2003-09-24 ネットストック コーポレイション 証券仲介サービスを集計する方法および装置
US7668764B2 (en) 1999-07-16 2010-02-23 H&R Block Tax Services LLC Spending vehicles for payments
US7765132B2 (en) 1999-07-16 2010-07-27 H&R Block Tax Services, Llc Tax refund system
US8548883B2 (en) 2000-01-14 2013-10-01 H&R Block Tax Services, Llc System and method for providing a loan to a taxpayer
CN112541813A (zh) * 2020-12-10 2021-03-23 中国银行股份有限公司 债券批量计息的方法及装置

Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US4750121A (en) * 1985-10-03 1988-06-07 Halley Gustavo M Pension benefits system
US5083270A (en) * 1988-11-02 1992-01-21 Interforce, Ltd. Method and apparatus for releasing value of an asset
US5136502A (en) * 1991-10-02 1992-08-04 Fred Van Remortel System for funding, analyzing and managing health care liabilities
US5291398A (en) * 1992-07-10 1994-03-01 Hagan Bernard P Method and system for processing federally insured annuity and life insurance investments

Patent Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US4750121A (en) * 1985-10-03 1988-06-07 Halley Gustavo M Pension benefits system
US5083270A (en) * 1988-11-02 1992-01-21 Interforce, Ltd. Method and apparatus for releasing value of an asset
US5136502A (en) * 1991-10-02 1992-08-04 Fred Van Remortel System for funding, analyzing and managing health care liabilities
US5291398A (en) * 1992-07-10 1994-03-01 Hagan Bernard P Method and system for processing federally insured annuity and life insurance investments

Non-Patent Citations (1)

* Cited by examiner, † Cited by third party
Title
FORBES, 16 March 1992, STEVE KICHEN, "Gouls Pools", page 19. *

Cited By (7)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US7668764B2 (en) 1999-07-16 2010-02-23 H&R Block Tax Services LLC Spending vehicles for payments
US7765132B2 (en) 1999-07-16 2010-07-27 H&R Block Tax Services, Llc Tax refund system
US8332289B2 (en) 1999-07-16 2012-12-11 H&R Block Tax Services LLC Spending vehicles for payments
JP2003528369A (ja) * 1999-11-18 2003-09-24 ネットストック コーポレイション 証券仲介サービスを集計する方法および装置
JP4831555B2 (ja) * 1999-11-18 2011-12-07 シェアビルダー コーポレイション 証券仲介サービスを集計する方法および装置
US8548883B2 (en) 2000-01-14 2013-10-01 H&R Block Tax Services, Llc System and method for providing a loan to a taxpayer
CN112541813A (zh) * 2020-12-10 2021-03-23 中国银行股份有限公司 债券批量计息的方法及装置

Also Published As

Publication number Publication date
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