Patent NZ-586983-A (NZ)
Title: A Data Processing System and Method with Investment Construction, Appreciation Contingency and Conflict Management
Inventor: SKILBECK BENJAMIN EVERARD
IPC: G06Q40/00
Filed: 2010-07-23
Abstract: A method of using a data processing apparatus to generate a digitally encoded electronic signal representing the quantum required to settle a wholly or partially collateral dependent finance arrangement incorporating mitigates for collateral valuation risk and consumer gaming is disclosed. The method comprises the steps of: (i) inputting into data processing apparatus input data including a combination of: the amount of finance advanced; a pre-determined share of capital appreciation, which may be constant or a variable function of collateral appreciation or time; a predetermined share of capital depreciation; an initial value of the collateral for the purposes of commencing the finance arrangement; a final value of the collateral for the purposes of consummating the finance arrangement; and a valuation risk premium, the combination comprising input data sufficient to calculate or return output instructed of the data processing apparatus in any one of steps (ii) - (ix) hereof; and (ii) instructing the data processing apparatus to determine the amount to be repaid at the conclusion of the finance arrangement as the amount advanced multiplied by the addition of 1 and the valuation risk premium, plus the pre-determined share of the collateral capital appreciation over the term of the finance arrangement, less the predetermined share of the collateral capital depreciation over the term of the finance arrangement; or (iii) instructing the data processing apparatus to determine the amount to be repaid at the conclusion of the finance arrangement as the amount advanced, plus the valuation risk premium, plus the predetermined share of the collateral capital appreciation over the term of the finance arrangement, less the predetermined share of the collateral capital depreciation over the term of the finance arrangement; or (iv) instructing the data processing apparatus to determine the amount to be repaid at the conclusion of the finance arrangement as the maximum of either the amount advanced at commencement of the finance arrangement multiplied by the sum of I and a valuation risk premium or the amount advanced at commencement of the finance arrangement plus a valuation risk premium amount; and the sum of the amount advanced at commencement of the finance arrangement plus the predetermined share of capital appreciation less the predetermined share of capital depreciation; (v) instructing the data processing apparatus to determine the amount to be repaid at the conclusion of the finance as the amount determined in accordance with (ii) or (iii) only in the event of the initial value and/or the final value being determined by way of a valuation appraisal, as opposed to a purchase price at commencement and/or a sale price at conclusion of the finance; or (vii) instructing the data processing apparatus to determine that the initial value used for the purposes of commencing the finance is decreased by the valuation risk premium, or multiplied by 1 less the valuation risk premium, before being used to calculate the share of collateral capital appreciation due to the provider of the finance; or (viii) instructing the data processing apparatus to determine that the amount owing under the finance arrangement is the amount advanced at commencement of the finance arrangement, plus the predetermined share of capital appreciation over the term of the finance arrangement, less the predetermined share of capital depreciation over the term of the finance arrangement, plus only in the event of the initial value and/or the final value being determined by way of a valuation appraisal, as opposed to a purchase price at commencement and/or a sale price at conclusion of the finance arrangement, a time dependent cost of finance; or (ix) instructing the data processing apparatus to determine that the amount owing under the finance arrangement is the amount advanced at commencement of the finance arrangement, plus the predetermined share of capital appreciation over the term of the finance arrangement, less the predetermined share of capital depreciation over the term of the finance arrangement, plus only in the event of the initial value and/or the final value being determined by way of a valuation appraisal, as opposed to a purchase price at commencement and/or a sale price at conclusion of the finance arrangement, an additional collateral dependent cost of finance, which may be implemented via an increase in the predetermined share of the collateral appreciation over the term of the finance arrangement.