Patent ID: 7818237

Claim:
A method implemented by a programmed computer system for use in a financial transaction involving a debt issuer and a debt holder, comprising: inputting, into the computer system, data associated with outstanding debt between the debt issuer and the debt holder; inputting, into the computer system, data associated with entry into a multi-component option contract between the debt issuer and the debt holder, wherein the debt issuer sells a put on the outstanding debt and buys a call on the outstanding debt, and the debt holder buys the put and sells the call as a counterparty to the multi-component option contract; inputting, into the computer system, data regarding maintenance payments associated with the multi-component option contract; inputting, into the computer system, data associated with the multi-component option contract regarding conditions for retiring the outstanding debt of the debt issuer by the debt issuer; inputting, into the computer system, data associated with the multi-component option contract regarding conditions for retiring the outstanding debt of the debt issuer by the debt holder; and retiring some of the outstanding debt, wherein the outstanding debt is retired utilizing a calculation done by the computer system based upon the input data regarding conditions for retiring the outstanding debt by the debt issuer and by the debt holder associated with the multi-component option contract and based upon the input data regarding the maintenance payments; wherein at least some of the outstanding debt is held by the debt holder; wherein the multi-component option contract is bundled into a separable unit with at least some of the outstanding debt, allowing substitution of the outstanding debt with other predetermined eligible collateral; wherein the debt holder pledges at least some of the outstanding debt which is held by the debt holder and which is bundled into the unit as a substitutable collateral component of the unit; and wherein the multi-component option contract comprises an agreement by the debt holder that a bankruptcy or acceleration reduces principal amount of a repayment claim associated with the pledged debt.