US 7,734,519 B1Granted

Systems and methods for securitized financing of assets

AssigneeMorgan Stanley

InventorsSanjeev Khanna, Garth D. Williams, Charles Atkins

Life of this patent

Estimating the term…

Loading patent…

Abstract

A securitization structure for raising capital, where notes issued under the structure are backed by a plurality of real property assets. The structure includes one or more asset holders that hold a plurality of real property assets. The structure also includes one or more issuers that issue notes to noteholders, wherein the notes are supported by the real property assets including cash flows therefrom, but where the noteholders do not have the benefit of a material amount of security interests in the plurality of real property assets, wherein at least one title insurance policy exists for the benefit of noteholders with respect to one or more of the plurality of real property assets that are not subject to a security interest for the benefit of the noteholders, and wherein the noteholders have the benefit of a security interest in the equity interests of the one or more asset holders that are pledged as security for the notes.

Claims18

Dependent claims

A computer-implemented method of facilitating securitizing real assets owned by one or more issuing asset holders, the method comprising:

receiving a transfer by an issuing entity of equity interests of the one or more issuing asset holders;
issuing by the issuing entity and the one or more issuing asset holders to noteholders one or more classes of notes, wherein principal and interest obligations of the notes are to be paid from fees paid by third parties to the one or more issuing asset holders under agreements for use of the real assets by the third parties;
receiving fees, via a transaction computer system, paid by the third parties under the agreements for use of the real assets;
paying, via the transaction computer system, payment obligations of the notes;
granting from the one or more issuing asset holders to an indenture trustee for the benefit of holders of the notes, a first security interest in (i) assignable personal property of the one or more issuing asset holders, (ii) the agreements for use of the real assets, and (iii) the fees paid to the one or more issuing asset holders pursuant to the agreements;
and
pledging from the issuing entity to the indenture trustee for the benefit of the holders of the notes, the issuing entity's equity interests in the one or more issuing asset holders as security for repayment of the notes, without mortgaging the real assets of the one or more asset holders, such that, in the event of a default on the notes, the equity interests of the one or more asset holders can be sold without the real assets being able to be foreclosed upon by the indenture trustee,
wherein the transaction computer system is connected to a data communication network.

5 more elements

A computer-implemented method of facilitating securitizing real assets, the method comprising:

receiving a transfer by an issuing entity of equity interests of one or more issuing asset holders that own the real assets;
issuing by the issuing entity and the one or more issuing asset holders to noteholders one or more classes of notes, wherein principal and interest obligations of the notes are to be paid from (i) fees paid to the one or more issuing asset holders under agreements for use of the real assets of the issuing asset holders and (ii) fees paid to one or more non-issuing asset holders under agreements for use of real assets of the non-issuing asset holders, wherein the non-issuing asset holders are restricted from issuing the notes, and wherein the issuing entity own equity interests in the non-issuing asset holders;
receiving fees, via a transaction computer system, paid by the third parties under the agreements for use of the real assets;
paying, via the transaction computer system, payment obligations of the notes;
granting from the one or more issuing asset holders to an indenture trustee for the benefit of holders of the notes, a first security interest in (i) assignable personal property of the one or more issuing asset holders, (ii) the agreements for use of the real assets, and (iii) fees paid to the one or more issuing asset holders pursuant to the agreements;
and
pledging from the issuing entity to the indenture trustee for the benefit of the holders of the notes, as security for repayment of the notes, (i) the issuing entity's equity interests in the one or more issuing asset holders and (ii) the issuing entity's equity interests in the one or more non-issuing asset holders, without mortgaging the real assets of the one or more issuing asset holders, such that, in the event of a default on the notes, the equity interests of the one or more issuing asset holders can be sold without the real assets of the one or more issuing asset holders being able to be foreclosed upon by the indenture trustee;
wherein the transaction computer system is connected to a data communication network.

5 more elements

Dependencies are inferred from the claim text.