Financial instruments and methods

A system comprising first and second business entities;

• the first entity comprising a corporation having shares of common stock outstanding;
• the second entity comprising a corporation holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• the second entity having no fewer than 100 owners;
• the second entity further characterized in that no five or fewer owners own fifty percent or more of the second entity;
• the second entity further characterized as paying out no less than ninety percent of its income to shareholders in the form of dividends;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity.

A system comprising first and second business entities;

• the first entity comprising a corporation having shares of common stock outstanding;
• the second entity comprising a real estate investment trust holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity.

A method for use in connection with a financial institution regulated by the Federal Reserve Board and possessing first assets, the method for use in connection with a plurality of investors, the method comprising the steps of:

• establishing, by the financial institution, a second entity holding real-estate-related assets;
• issuing preferred stock of the second entity to the plurality of investors, each share of which is associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• at the second entity, monitoring to determine whether there are one hundred or more owners of the second entity;
• at the second entity, monitoring to determine whether fifty percent or more of the second entity is owned by five or fewer owners;
• at the second entity, paying out at least ninety percent of income of the second entity to shareholders in the form of dividends;
• whereby the Tier 1 or Tier 2 capitalization of the financial institution is increased.

A system comprising first and second business entities;

• the first entity comprising a financial institution regulated by a regulator and having shares of common stock outstanding;
• the second entity comprising a corporation holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• the second entity having no fewer than 100 owners;
• the second entity further characterized in that no five or fewer owners own fifty percent or more of the second entity;
• the second entity further characterized as paying out no less than ninety percent of its income to shareholders in the form of dividends;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• the financial institution having greater Tier 1 or Tier 2 capitalization than it would have in the absence of the second entity.

A system comprising first and second business entities;

• the first entity comprising a financial institution regulated by a regulator and having shares of common stock outstanding;
• the second entity comprising a real estate investment trust holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• the financial institution having greater Tier 1 or Tier 2 capitalization than it would have in the absence of the second entity.

A method for use in connection with a corporation rated by a ratings agency and having common stock and possessing first assets and for use in connection with a plurality of investors, the method comprising the steps of:

• establishing, by the corporation, a second entity holding real-estate-related assets;
• issuing preferred stock of the second entity to the plurality of investors, each share of which is associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• at the second entity, monitoring to determine whether there are one hundred or more owners of the second entity;
• at the second entity, monitoring to determine whether fifty percent or more of the second entity is controlled by five or fewer owners;
• at the second entity, paying out at least ninety percent of income of the second entity to shareholders in the form of dividends;
• whereby the corporation receives an improved balance of equity versus debt.

A method for use in connection with a corporation possessing first assets and for use in connection with a plurality of investors, the method comprising the steps of:

• establishing, by the corporation, a second entity comprising a real estate investment trust;
• and
• issuing preferred stock of the real estate investment trust to the plurality of investors, each share of which is associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• whereby the corporation receives an improved balance of equity versus debt.

A system comprising first and second business entities;

• the first entity comprising a corporation and having shares of common stock outstanding;second entity comprising a corporation holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• the second entity having no fewer than 100 owners;
• the second entity further characterized in that no five or fewer owners own fifty percent or more of the second entity;
• the second entity further characterized as paying out no less than ninety percent of its income to shareholders in the form of dividends;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• whereas the corporation has an improved balance of equity versus debt than the corporation would have in the absence of the second entity.

A system comprising first and second business entities;

• the first entity comprising a corporation and having shares of common stock outstanding;
• the second entity comprising a real estate investment trust holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• whereas the corporation has a better balance of equity versus debt than the corporation would have in the absence of the real estate investment trust.

A method for use in connection with a first entity possessing first assets and for use in connection with a plurality of investors, the method comprising the steps of:

• establishing, by the first entity, a second entity holding real-estate-related assets;
• issuing preferred stock of the second entity to the plurality of investors, each share of which is associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• the second entity, paying dividends to the investors;
• and
• at the second entity, deducting from income the dividends paid.

A method for use in connection with a first entity possessing first assets and for use in connection with a plurality of investors, the method comprising the steps of:

• establishing by the first entity, a second entity comprising a real estate investment trust;
• issuing preferred stock of the real estate investment trust to the plurality of investors, each share of which is associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• at the real estate investment trust, paying dividends from the real estate investment trust to the investors;
• and
• at the real estate investment trust, deducting from income the dividends paid.

A system comprising first and second business entities;

• the first entity comprising a corporation having shares of common stock outstanding;
• the second entity comprising a corporation holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• the second entity further characterized as being able to deduct dividends paid from its income.

A system comprising first and second business entities;

• the first entity comprising a corporation having shares of common stock outstanding;
• the second entity comprising a real estate investment trust holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• the second entity further characterized as being able to deduct dividends paid from its income.

A method for use in connection with a financial institution regulated by a regulator and possessing first assets, the method for use in connection with a plurality of investors, the method comprising the steps of:

• establishing, by the financial institution, a second entity holding real-estate-related assets;
• issuing preferred stock of the second entity to the plurality of investors, each share of which is associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• at the second entity, deducting dividends paid to the investors from its income;
• whereby the Tier 1 or Tier 2 capitalization of the ehfinancial institution is increased.

A method for use in connection with a financial institution regulated by a regulator and possessing first assets, the method for use in connection with a plurality of investors, the method comprising the steps of:

• establishing, by the financial institution, a second entity comprising a real estate investment trust;
• issuing preferred stock of the real estate investment trust to the plurality of investors, each share of which is associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• deducting from the income of the real estate investment trust dividends paid to the investors;
• whereby the Tier 1 or Tier 2 capitalization of the financial institution is increased.

A system comprising first and second business entities;

• the first entity comprising a financial institution regulated by a regulator and having shares of common stock outstanding;
• the second entity comprising a corporation holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity the second entity characterized as being able to deduct dividends paid from its income;
• the financial institution having greater Tier 1 or Tier 2 capitalization than it would have in the absence of the second entity.

A system comprising first and second business entities;

• the first entity comprising a financial institution regulated by a regulator and having shares of common stock outstanding;
• the second entity comprising a real estate investment trust holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• the second entity characterized as being able to deduct dividends paid from its income;
• the financial institution having greater Tier 1 or Tier 2 capitalization than it would have in the absence of the second entity.

A method for use in connection with a corporation having common stock and possessing first assets and for use in connection with a plurality of investors, the method comprising the steps of:

• establishing, by the corporation, a second entity holding real-estate-related assets;
• issuing preferred stock of the second entity to the plurality of investors, each share of which is associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• at the second entity, deducting dividends paid to the investors from its income;
• whereby the corporation receives an improved balance of equity versus debt.

A method for use in connection with a corporation possessing first assets and for use in connection with a plurality of investors, the method comprising the steps of:

• establishing, by the corporation, a second entity comprising a real estate investment trust;
• issuing preferred stock of the real estate investment trust to the plurality of investors, each share of which is associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• at the real estate investment trust, deducting dividends paid from its income;
• whereby the corporation receives an improved balance of equity versus debt.

A system comprising first and second business entities;

• the first entity comprising a corporation and having shares of common stock outstanding;
• the second entity comprising a corporation holding real-estate-related assets and deriving income therefrom;
• the second entity further characterized as having shares of preferred stock outstanding;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• the second entity characterized as being able to deduct dividends paid from income;
• the corporation having a better balance of equity versus debt than the corporation would have in the absence of the second entity.

A system comprising first and second business entities;

• the first entity comprising a corporation and having shares of common stock outstanding;
• the second entity comprising a real estate investment trust holding real-estate-related assets and deriving income therefrom;
• second entity further characterized as having shares of preferred stock outstanding;
• each share of preferred stock of the second entity associated with an equity contract relating to the purchase by the holder of the preferred stock of common stock of the first entity;
• the second entity characterized as being able to deduct dividends paid from income;
• the corporation having a better balance of equity versus debt than the corporation would have in the absence of the real estate investment trust.