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Syndication loan administration and processing system




Title: Syndication loan administration and processing system.
Abstract: A loan syndication tracking and management system and method provides a user with access to specific details related to a syndicated loan. The system and method coordinates investor, borrower and resource information, in addition to features related to the overall structure of a syndicated loan. Users access the system with various levels of permissions to view, add, update or delete information according to their allotted permissions. The system permits multiple users to access the information for efficient handling of approvals and requests related to multiple investors and borrowers, in addition to handling institution interchanges and notifications. The system and method keeps a record of all transactions and changes for review, reporting or regulatory purposes. The administration of a syndicated loan transaction is simplified while providing advanced features such as support for loan trading. ...

USPTO Applicaton #: #20100057606
Inventors: Edmund H. Louie, Michael X. Campbell


The Patent Description & Claims data below is from USPTO Patent Application 20100057606, Syndication loan administration and processing system.

This application is based upon and claims benefit of U.S. provisional application 60/192,098, filed Mar. 24, 2000, to which a claim of priority is made.

BACKGROUND

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OF THE INVENTION

1. Field of the Invention

The present invention relates to a syndication loan management and administration system for tracking information related to a syndicated loan. More particularly, the present invention relates to a multiuser system for accessing and manipulating data related to a syndicated loan, including investor, borrower and institution information.

2. Description of the Prior Art

Financing of a large commercial endeavor typically requires leveraging a large amount of financial resources to support creation of a commercial entity. A planned commercial endeavor will typically involve a number of individuals responsible for initiating and managing the endeavor through its various phases, including inception of the commercial entity. These individuals will typically seek debt based financing, such as commercial loans, to support the initial development of the commercial enterprise. The types of commercial loans needed are typically large and require a significant amount of resources to properly complete the funding transaction. For example, if individuals representing the entity approach a large commercial bank for a commercial loan, the bank generally needs to obtain proper assurances from the borrowers before money can be loaned. Such assurances could include items such as collateral, loan insurance or the like. In addition, the commercial bank must organize resources sufficient to meet the needs of the borrowers and structure the loan in a way which meets the needs of the borrowers.

Lending institutions such as commercial banks typically have limits to the amounts of funds they wish to commit to any one commercial undertaking. These loan limits are often less than the total amount of financing a commercial undertaking requires to initiate an enterprise. By organizing a number of banks or lenders to finance the undertaking, the required funds can be obtained while limiting the exposure of individual lending institutions. One way of organizing a group of banks or lenders is to form a loan syndicate which has as members a number of commercial lending institutions. The loan syndicate can underwrite large commercial loans, while spreading risk and liability among the various members to lessen the impact of any risk associated with the large commercial loan.

A syndicated loan involving a number of lending institutions involves the handling of a large amount of data related to various aspects of the syndicated loan. For example, the loan resources to be used, or facilities, typically need to be tracked and evaluated for availability, amounts available, future demands on the facility and so forth. Information related to the members of the syndicate group, or investors, also needs to be tracked and updated as a loan evolves. Activity related to the borrowers such as payment amounts, expected dates of payments and so forth must also be tracked. In addition, details related to regulatory requirements must be tracked and reported to appropriate authorities, such as required tax payments.

A syndicate manager is typically one of the lending institutions in a syndicated loan group, that carries the administrative burden of managing the syndicate loan over its lifetime. The manager, or agent, will usually be paid fees out of the loan transaction to offset the administrative burden, which can be significant. The agent has extensive duties before and after closing a syndicated loan deal, many of which include regulatory reporting requirements.

As a syndicated loan is completed, an opportunity for loan trading is presented among the various lenders holding loan assets during the lifetime of the syndicated loan. Loan trading presents a further administrative burden on the syndicate manager, which must track changes in ownership.

An institution that wishes to become a syndicate manager will usually endeavor to attract potential lenders and evaluate the interests of borrowers to provide an attractive package for the two parties. Success in becoming a syndicate manager often depends on adroitly organizing contact information to facilitate a market monitoring process between lenders and borrowers.

Once a borrower sets a desired funding amount, and a potential syndicate manager begins soliciting lenders for organizing a loan syndicate, proposals need to be organized and shared with all potential lenders. A typical proposal includes voluminous legal documents that a manager must ensure specify all the proper terms and conditions of the loan agreement.

After a syndicate loan has closed, the manager acts as the administrator between lenders and borrowers, and provide funding updates and notifications as agreed. Typically, a number of lenders are involved with the updates and notifications, requiring the syndicate loan manager to expend a number of resources providing paper notification by courier or facsimile at given intervals or on agreed dates. As the loan matures, further functionality is desirable, such as sharing data with other systems, analyzing loan parameters and providing further access and integration with desktop type systems.

Syndicate loan managers typically find it difficult to assemble a group of banks to collaborate on a single credit transaction. Once a group of lenders is assembled, it is further challenging to coordinate the group during the lifetime of the loan. The present market for syndicated loans demands greater sophistication and complexity, in addition to more capability and flexibility, than any present system can provide.

It would be advantageous to any syndicate loan manager to have a tool to efficiently handle the demands of loan administration, while providing functionality for new possibilities of communication, including the Internet, in a single package. Presently, there is no known system that can deliver the needed functionality in a complete and efficient manner in a single package to handle the complexities and sophistication of these types of deals in their present form. Accordingly, there is a need for a multi-user sophisticated syndicated loan management system which has high reliability, efficiency and accessibility.

SUMMARY

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OF THE INVENTION

It is an object of the present invention to provide a system and method for syndicate loan management and processing which overcomes the drawbacks of the prior art.

Briefly stated, there is provided according to the present invention a loan syndication tracking and management system and method that provides a user with access to specific details related to a syndicated loan. The system and method coordinates investor, borrower and resource information, in addition to features related to the overall structure of a syndicated loan. Users access the system with various levels of permissions to view, add, update or delete information according to their allotted permissions. The system permits multiple users to access the information for efficient handling of approvals and requests related to multiple investors and borrowers, in addition to handling institution interchanges. The system and method keeps a record of all transactions and changes for review, auditing, reporting or regulatory purposes. The structure of a syndicated loan transaction is simplified, and the transactions can be made with greater efficiency and ease.

According to an embodiment of the present invention, there is provided a loan management system comprising a first dataset related to a plurality of lenders, a second dataset related to at least one borrower and a third dataset related to a plurality of loan resources. A processing engine can access and manipulate the datasets, while a user interface permits a user to access and provide commands to the processing engine. The commands provided by the user permits access and manipulation of the datasets. The datasets can be manipulated to record and track information related to a loan composed of at least a portion of the plurality of loan resources provided by the plurality of lenders to at least one borrower.

The lenders, or investors, have access to a number of financial resources, such as negotiable instruments, promissory notes and the like, suitable for allocation to a borrower loan. A financial resource is typically referred to as a facility. Each investor can contribute a share of the loan resources, for example a pro-rata share, in addition to absorbing a portion of the liability and tax burdens of the loan. Each investor similarly receives a share of the proceeds of the loan repayment. Typically, there is one investor that acts as the lead lender for the deal, generally providing a larger proportion of the loan funding. The system and method according to the present invention permits a lead lender, for example, to track the assets of the loan, payment schedules, pro-rata shares in the loan of all the participating investors, contacts for the various investors and borrowers and generate reports for distribution among the various members of the transaction.

BRIEF DESCRIPTION OF THE DRAWINGS

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The above, and other objects, features and advantages of the present invention will become apparent from the following description read in conjunction with the accompanying drawings, in which:

FIG. 1 is a diagram showing the interconnectivity of system components according to the present invention;

FIG. 2 is an illustration of a menu system according to the present invention;

FIG. 3 is a typical user interface screen for accessing the system according to the present invention;

FIG. 4 is an illustration of interaction between components according to the present invention; and

FIG. 5 is a diagram of components and entities according to the present invention.

DETAILED DESCRIPTION

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OF THE PREFERRED EMBODIMENTS

Referring now to FIG. 1, a diagram of system interconnectivity with various layers is shown. A presentation layer includes client machines, while a middle layer represents local area network access and communication ports. A database layer includes mass storage devices and database processing engines for accessing data stored in the mass storage devices.

An individual user typically accesses the system shown in FIG. 1 through a user interface 10. User interface 10 is preferably connected to an application server 20 and a reports server 22, each of which are accessible by the user. Application server 20 preferably has access to a number of resources including a network file server 12, an SNA gateway 14 and a fax server 16. Network file server 12 hosts network accessible files and has a large number of resources available to the LAN (Local Area Network) comprising the middle layer indicated in FIG. 1. SNA gateway 14 provides access to central mainframe 32 for application server 20 over a connection through SNA gateway 14. Fax server 16 controls a modem 18, and is capable of sending facsimile correspondence automatically over a telephone network 28.




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stats Patent Info
Application #
US 20100057606 A1
Publish Date
03/04/2010
Document #
File Date
12/31/1969
USPTO Class
Other USPTO Classes
International Class
/
Drawings
0


Syndication

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20100304|20100057606|syndication loan administration and processing system|A loan syndication tracking and management system and method provides a user with access to specific details related to a syndicated loan. The system and method coordinates investor, borrower and resource information, in addition to features related to the overall structure of a syndicated loan. Users access the system with |