Collateral Mechanisms

A computer program product tangibly stored on a computer readable storage device, the computer program product comprising instructions for causing a processor to:

• record receipt of a first request for obligations that grant to a first party a first participation right to allow a second party having commercial contracts with the first party to draw against assets of a legal trust, at least some of the assets in the legal trust being funded by investors;
• receive terms for issuance of the obligations, the terms including a guarantee by the first party to redeem assets in the legal trust that are drawn by the second party;
• record a first set of contracts formed with two or more independent contract providers unrelated to the first and second parties, the contract providers being jointly and severally liable for a negative difference between the value of the assets the first party contributes to the legal trust and the value of the assets actually drawn by the second party;
• and
• record a transfer of the requested obligations to a collateral account that benefits the second party.

A system comprises:

• one or more computer system, each system comprising:
• a processor;
• and
• memory coupled to the processor;
• and the computer system configured to:
• record receipt of a first request for obligations that grant to a first party a first participation right to allow a second party having commercial contracts with the first party to draw against assets of a legal trust, at least some of the assets in the legal trust being funded by investors;
• receive terms for issuance of the obligations, the terms including a guarantee by the first party to redeem assets in the legal trust that are drawn by the second party;
• record a first set of contracts formed with two or more independent contract providers unrelated to the first and second parties, the contract providers being jointly and severally liable for a negative difference between the value of assets the first party contributes to the legal trust and the value of the assets actually drawn by the second party;
• and
• record a transfer of the requested obligations to a collateral account that benefits the second party.