Patent ID: 7805346

Claim:
A computer-implemented method relating to pass-through certificates, the method comprising: determining, by a computer system, following issuance of the pass-through certificates by an issuer, whether a cash trap condition exists with respect to the pass-through certificates, wherein: pass-though rate payments on the certificates are funded by payments to the issuer by one or more borrowers on a mortgage loan for a reference property; the reference property comprises harvestable timberlands; and the mortgage loan requires that during a cash trap condition, all excess cash flow of the one or more borrowers is to be deposited in a cash trap reserve account; and wherein determining whether the cash trap condition exists comprises: determining, by the computer system, whether an under-harvest condition exists for the reference property and whether an over-harvest condition exists for the reference property, wherein the cash trap condition exists when any one of a plurality of disjunctive conditions exists, wherein the disjunctive conditions comprise (i) an over-harvest condition for the reference property and (ii) an under-harvest condition for the reference property, wherein determining whether an under-harvest condition exists comprises determining, by the computer system, whether both (a) a total volume of harvested timber over one or more time periods meets a corresponding under-harvest threshold for the reference property for the one or more time periods and (b) a debt service coverage ratio (DSCR) for the certificates is at or below a DSCR under-harvest threshold value, and wherein the computer system is in communication with a database that stores data about timber harvested from the reference property, and wherein the computer system comprises a cash-trap determination module for determining whether the cash trap condition exists based on the data in the database.