DETAILED ACTION
Notice of Pre-AIA or AIA Status
The present application, filed on or after March 16, 2013, is being examined under the first inventor to file provisions of the AIA .
Status of Claims
The following is Office Action on the merits in response to the communication received on 6/12/26.
Claim status:
Amended claims: 1-2, 4, 6-7, 9, 11-12, 16
Canceled claims: 3, 5, 8, 10, 13, 15
Added New claims: 17-24
Pending claims: 1-2, 4, 6-7, 9, 11-12, 14, 16-24
Claim Rejections - 35 USC § 101
35 U.S.C. 101 reads as follows:
Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.
Claims 1-2, 4, 6-7, 9, 11-12, 14, 16-24 are rejected under 35 U.S.C. § 101 because the claimed invention is not directed to statutory subject matter. Specifically, the invention of claims 1-2, 4, 6-7, 9, 11-12, 14, 16-24 is directed to an abstract idea without significantly more.
Independent claims 1 and 16 are directed to a method (claim 1), and a system, (claim 16). Therefore on its face, each of claims 1 and 16 is directed to a statutory category of invention under Step 1 of the 2019 PEG. However each of claims 1 and 16 is also directed to an abstract idea without significantly more, under Step 2A (Prong One and Prong Two) and Step 2B of the 2019 PEG, which is a judicial exception to 35 U.S.C. 101, as detailed below. Using the language of independent claim 16 to illustrate the claim recites the limitations of, (i) storing; (ii) implementing a loan system having a loan generation module, a portfolio valuation module, and a loan repayment module; a clearinghouse for valuing and coordinating purchase or sale of non-cash assets; and a linked account accessible by the loan system, (iii) generate, at the loan generation module, a loan contract specifying payment terms, the payment terms comprising a payment amount and at least one due date for a payment in the payment amount; (iv) define, at the loan generation module, an association with the linked account, the linked account containing non-cash assets to be used for loan repayment; (v) determine, at the loan repayment module, that payment in the payment amount is due under the loan contract; (vi) define, at the loan repayment module, a threshold required total asset value for the linked account; (vii) retrieve, at the portfolio valuation module, values for the non-cash assets in the linked account from the clearinghouse, thereby defining an actual total asset value for the linked account, (viii) confirm, by the loan repayment module, that the actual total asset value for the linked account is greater than the threshold required asset value; (ix) upon confirming that the actual total asset value for the linked account is greater than the threshold required asset value, initiate payment by the loan repayment module of the payment amount under the loan contract prior to liquidation of non-cash assets, the payment creating a negative cash balance associated with the linked account, (x) following the creation of the negative cash balance, generate liquidation instructions for liquidating non-cash assets sufficient to eliminate the negative cash balance, and (xi) transmitting, by the loan repayment module, the liquidation instructions to the clearinghouse to initiate a sale of non-cash assets in the linked account, thereby eliminating the negative cash balance under the broadest reasonable interpretation (BRI) covers methods of organizing human activity – fundamental economic principles or practices - mitigating risk but for the recitation of generic computers and generic computer components. (Independent claim 1 recites similar limitations and the analysis is the same).
That is, other than reciting a memory, a plurality of instructions and processing circuitry nothing in the claim precludes the steps from being directed to organizing human activity – fundamental economic principles or practices - mitigating risk. If a claim limitation under its BRI, covers methods of organizing human activity but for the recitation of generic computers, then the limitations fall within the “methods of organizing human activity” grouping of abstract ideas. Therefore, claim 16 recites an abstract idea under Step 2A Prong One of the Revised Patent Subject Matter Eligibility Guidance 84 Fed.Reg 50 (“2019 PEG”).
This “methods of organizing human activity” is not integrated into a practical application under Step 2A prong Two of the 2019 PEG. In particular claim 16 recites the following additional elements of, a memory, a plurality of instructions and processing circuitry. This judicial exception is not integrated into a practical application. In particular, the claim only recites the additional elements – a memory, a plurality of instructions and processing circuitry.
The memory, plurality of instructions and processing circuitry are recited at a high-level or generality (i.e. as a generic computer performing generic computer functions) such that, it amounts to no more than instructions to apply the abstract idea with a computer (see MPEP 2106.05(h). Accordingly these additional elements do not integrate the abstract idea into a practical application because they do not impose any meaningful limits on practicing the abstract idea. The claims are directed to an abstract idea.
Under Step 2B of the 2019 PEG independent claim 16 does not include additional elements that are sufficient to amount to significantly more than the abstract idea. The claim(s) do not include additional elements that are sufficient to amount to significantly more than the judicial exception. As discussed above with respect to integration of the abstract idea into a practical application, the additional elements of using a memory, a plurality of instructions and processing circuitry, storing; implementing a loan system having a loan generation module, a portfolio valuation module, and a loan repayment module; a clearinghouse for valuing and coordinating purchase or sale of non-cash assets; and a linked account accessible by the loan system, generate, at the loan generation module, a loan contract specifying payment terms, the payment terms comprising a payment amount and at least one due date for a payment in the payment amount; define, at the loan generation module, an association with the linked account, the linked account containing non-cash assets to be used for loan repayment; determine, at the loan repayment module, that payment in the payment amount is due under the loan contract; define, at the loan repayment module, a threshold required total asset value for the linked account; retrieve, at the portfolio valuation module, values for the non-cash assets in the linked account from the clearinghouse, thereby defining an actual total asset value for the linked account, confirm, by the loan repayment module, that the actual total asset value for the linked account is greater than the threshold required asset value; upon confirming that the actual total asset value for the linked account is greater than the threshold required asset value, initiate payment by the loan repayment module of the payment amount under the loan contract prior to liquidation of non-cash assets, the payment creating a negative cash balance associated with the linked account, following the creation of the negative cash balance, generate liquidation instructions for liquidating non-cash assets sufficient to eliminate the negative cash balance, and transmitting, by the loan repayment module, the liquidation instructions to the clearinghouse to initiate a sale of non-cash assets in the linked account, thereby eliminating the negative cash balance, amount to instructions to apply the abstract idea with a computer. The claims are not patent eligible.
The dependent claims have been given the full two part analysis including analyzing the additional limitations both individually and in combination. The Dependent claim(s) when analyzed individually are also held to be patent ineligible under 35 U.S.C. 101 because for the same reasoning as above and the additional recited limitation(s) fail to establish that the claim(s) are not directed to an abstract idea. The additional limitations of the dependent claim(s) when considered individually do not amount to significantly more than the abstract idea. Claims 2, 4, 6-7, 9, 11-12, 14 and 17-24 merely further explain the abstract idea.
When viewed individually the additional limitations do not amount to a claim as a whole that is significantly more than the abstract idea. Accordingly claims 1-2, 4, 6-7, 9, 11-12, 14, 16-24 are ineligible.
Claim Rejections - 35 USC § 102
The Applicant’s arguments and amendments overcome the 102 Rejections, therefore, the Rejection(s) are moot.
Claim Rejections - 35 USC § 103
In the event the determination of the status of the application as subject to AIA 35 U.S.C. 102 and 103 (or as subject to pre-AIA 35 U.S.C. 102 and 103) is incorrect, any correction of the statutory basis (i.e., changing from AIA to pre-AIA ) for the rejection will not be considered a new ground of rejection if the prior art relied upon, and the rationale supporting the rejection, would be the same under either status.
The following is a quotation of 35 U.S.C. 103 which forms the basis for all obviousness rejections set forth in this Office action:
A patent for a claimed invention may not be obtained, notwithstanding that the claimed invention is not identically disclosed as set forth in section 102, if the differences between the claimed invention and the prior art are such that the claimed invention as a whole would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains. Patentability shall not be negated by the manner in which the invention was made.
The factual inquiries for establishing a background for determining obviousness under 35 U.S.C. 103 are summarized as follows:
1. Determining the scope and contents of the prior art.
2. Ascertaining the differences between the prior art and the claims at issue.
3. Resolving the level of ordinary skill in the pertinent art.
4. Considering objective evidence present in the application indicating obviousness or nonobviousness.
Claim(s) 1-2, 14, 16-17 and 24 is/are rejected under 35 U.S.C. 103 as being unpatentable over Macklin (U.S. Pub. No. 2012/0197799) in view of Sappington (U.S. Pub. No. 7,873,568).
With respect to claim 1:
Macklin teaches:
A method for loan management, the method comprising: generating a loan contract specifying payment terms, the payment terms comprising a payment amount and at least one due date for a payment in the payment amount (“The disclosure provides a financial product (“a secured charge card) that has features that are different from existing debit and charge cards. The secured charge card provides one or more of the following features: (1) user makes payments monthly, (2) user may pay from any accounts any way they like (e.g., check, autopay, etc.), (3) user's spending line (e.g., credit line) may be secured through their deposit relationship (e.g., as a security interest), and (4) the secured charge card, in some examples, does not debit an asset account through a network (e.g., a deferred debt methodology may be used). The remaining credit line available to a user may be reduced in real time (or near real time) by the customer's spending on the secured charge card. Meanwhile, portions of the user's deposit account may be “secured” to guarantee payment of the secured charge card balance without expressly reducing the account balance. As such, user may continue to earn interest on (or hold assets in) the account through the billing cycle. Upon the payment due date at the end of the billing cycle, the user may pay the balance on the secured charge card, else authorize payment through use of the “secured” funds in the account. The secured charge card may also provide for access to margin for purchasing and payment. Meanwhile, in some examples, ATM transactions may be processed as cash advances. The secured charge card may be implemented, in some embodiments, without requiring new cards be issued to users. Some embodiments of the secured charge card may offer a rewards program, while other embodiments might not” Macklin Pgh. [0013]);
providing a linked account, the linked account containing non-cash assets to be used for loan repayment (“In the foregoing example, a secured charge card may be tied to a brokerage account such that the spending limit on the secured card is set by the “cash available” (e.g., available balance) on the account. The “available balance” may be calculated in numerous ways in accordance with the disclosure. For example, the account balance of a DDA account (e.g., a checking account, money market account, savings account, etc.) may be the available balance, assuming no transactions are pending/un-posted on the account. In an account where transactions are pending (e.g., an online bill pay check that is scheduled to be mailed), the available balance may be less than the total cash balance of the account. In addition, in the example of a brokerage account (e.g., a brokerage account used with the trading of stocks/bonds/securities), calculating the available balance may involve determining the current market value of securities/stocks/bonds/etc. in the account multiplied by the number of shares of each instrument, or some subset of investments in such brokerage accounts. Moreover, in some examples, the available balance may include an availability through a margin line. For example, the available balance may be the total cash in a brokerage account plus the total margin available on the account. In yet another example, a collateral account holding, for example, a certificate of deposit may provide the available balance. In addition, in another example, multiple accounts may be designated as a security interest for the secured card. For example, a first account may be designated as the primary account, and a second account may be designated as the secondary account into which the security interest may extend if the available balance in the primary account is insufficient. In another example, an account belonging to another person/entity may be used as security interest, such as a parent providing a secured charge card for their son/daughter” Macklin Pgh. [0015]);
determining that payment in the payment amount is due under the loan contract (“Upon the payment due date at the end of the billing cycle, the user may pay the balance on the secured charge card, else authorize payment through use of the “secured” funds in the account. The secured charge card may also provide for access to margin for purchasing and payment. Meanwhile, in some examples, ATM transactions may be processed as cash advances. The secured charge card may be implemented, in some embodiments, without requiring new cards be issued to users. Some embodiments of the secured charge card may offer a rewards program, while other embodiments might not” Macklin Pgh. [0013]);
defining a threshold required total asset value for the linked account (“In another example, the secured charge card may be configured (through, for example, business rules created on the account system 205 a) to require no or less than full security for particular purchases. For example, a secured charge card used to purchase certain types of lower risk items or items that retain their intrinsic value (e.g., gold) may require only half of the purchase price of the item to be secured (e.g., held) in the user's account. In another example, the percentage or amount of security required may be adjusted based on the credit rating/score of a person or other factors. For example, if a user is consistent in making timely payments of their secured charge card, over time the percentage of security required may be reduced. In yet another example, a financial institution may designate a base amount (e.g., $1,000) and permit a user to spend on the secured charge card up to that amount without causing a hold on assets in the user's account. After the base amount has been reached, any subsequent charges on the secured charge card may require the user to have a sufficient available balance in their account to act as a security interest against the charge” Macklin Pgh. [0021]);
after determining that the payment in the payment amount is due {…..} determining that the actual total asset value is greater than the threshold required asset value (“Referring to FIG. 3, Customer B may make a $300 POS transaction (e.g., by using in step 302 the secured charge card at a grocery store). The card is secured to customer's DDA/brokerage account. The DDA/brokerage account has $600 available balance prior to the transaction. The card may be treated as a regular credit card by the cashier, and no PIN may be required of Customer B. Meanwhile, on the backend account system 205 a, a fraud check may be performed (optionally), a real-time check against balance may occur (see FIG. 3, step 304), a hold may be placed on a balance of secured account for $300 (DDA/brokerage) (see FIG. 3, step 308), and an indication of approval of the transaction may be sent (see FIG. 3, step 306). As a result, the available balance on the customer's account available for security for subsequent transactions on the secured charge card may be reduced to the remaining $300 available balance. However, the customer's DDA/brokerage account statement, in one example, will remain unchanged (i.e., the assets in the account will not show as liquidated or sold.) In another example, the statement may show the amount of funds being secured (e.g., locked) due to the secured charge card's outstanding balance. At a later time, Customer B may be sent a bill for the secured charge card, which states a $300 amount outstanding and a payment due date (see FIG. 3, steps 310 and 312). Referring to FIG. 3, Customer B may either pay the bill (see FIG. 3, step 316) using an account of her choice (e.g., another account with the financial institution, paper check, cash, etc.), else the system may automatically remove the funds (see FIG. 3, step 318) from the associated DDA/brokerage account (e.g., the held assets would be liquidated and applied against the bill.) When the customer's payments have been applied against the outstanding bill, the account system 205 a may release the hold (e.g., lock) on the particular assets/funds and increase the available balance on the account accordingly” Macklin Pgh. [0020]); and
initiating payment of the payment amount under the loan contract prior to any liquidation of non-cash assets in the linked account, the payment creating a negative cash balance associated with the linked account; following the creation of the negative cash balance, generating liquidation instructions for liquidating non-cash assets sufficient to eliminate the negative cash balance and transmitting the liquidation instructions to the brokerage system to liquidate the corresponding non-cash assets in the linked account, thereby eliminating the negative cash balance (“For example, a first account may be designated as the primary account, and a second account may be designated as the secondary account into which the security interest may extend if the available balance in the primary account is insufficient” (Macklin Pgh. [0015]) and “Referring to FIG. 3, Customer B may make a $300 POS transaction (e.g., by using in step 302 the secured charge card at a grocery store). The card is secured to customer's DDA/brokerage account. The DDA/brokerage account has $600 available balance prior to the transaction. The card may be treated as a regular credit card by the cashier, and no PIN may be required of Customer B. Meanwhile, on the backend account system 205 a, a fraud check may be performed (optionally), a real-time check against balance may occur (see FIG. 3, step 304), a hold may be placed on a balance of secured account for $300 (DDA/brokerage) (see FIG. 3, step 308), and an indication of approval of the transaction may be sent (see FIG. 3, step 306). As a result, the available balance on the customer's account available for security for subsequent transactions on the secured charge card may be reduced to the remaining $300 available balance. However, the customer's DDA/brokerage account statement, in one example, will remain unchanged (i.e., the assets in the account will not show as liquidated or sold.) In another example, the statement may show the amount of funds being secured (e.g., locked) due to the secured charge card's outstanding balance. At a later time, Customer B may be sent a bill for the secured charge card, which states a $300 amount outstanding and a payment due date (see FIG. 3, steps 310 and 312). Referring to FIG. 3, Customer B may either pay the bill (see FIG. 3, step 316) using an account of her choice (e.g., another account with the financial institution, paper check, cash, etc.), else the system may automatically remove the funds (see FIG. 3, step 318) from the associated DDA/brokerage account (e.g., the held assets would be liquidated and applied against the bill.) When the customer's payments have been applied against the outstanding bill, the account system 205 a may release the hold (e.g., lock) on the particular assets/funds and increase the available balance on the account accordingly” Macklin Pgh. [0020]).
Macklin does not teach; however Sappington teaches:
{…..} retrieving values for the non-cash assets from a brokerage system, thereby defining an actual total asset value for the linked account {…..}(“Once a loan account is established, the secured collateral account needs to be monitored to satisfy the above predetermined set of percentage advance and requirements. The monitoring may be accomplished by first obtaining daily market prices for each security and account types in the secured collateral account and by calculating the market value of the secured collateral account based on the market prices of the securities. The credit limit of the loan account is adjusted using the updated market value of the collateral account” Sappington Column 7 Lines 49-58).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate Sappington’s teachings in order “for a client to obtain a loan based on their securities held in a brokerage account” Sappington Column 1 Lines 42-43.
With respect to claim 2:
Macklin teaches:
wherein following the elimination of the negative cash balance, the method continues to monitor payment due dates under the loan contract, and upon determining that a further payment in the payment amount is due under the loan contract, defines a threshold required total asset value for the linked account, retrieves an actual asset value for the linked account and determines that the actual total asset value is greater than the threshold required asset value, initiates payment of the payment amount under the loan contract prior to any liquidation of non-cash assets in the linked account, the payment, creating a new negative cash balance associated with the linked account and generates further liquidation instructions for liquidating non-cash assets sufficient to eliminate the negative cash balance and transmitting liquidation instructions to the brokerage system to liquidate the corresponding non-cash assets in the linked account to eliminate any resulting negative cash balance (“According to one or more aspects, financial transactions may be conducted using a financial card product. The financial card product may be a charge card secured through a security interest in an asset. The asset may be the available balance in an interest-bearing checking account (e.g., a DDA account), a brokerage account, or other type of account that may hold funds/assets (e.g., collateral account). The available balance may be monitored in real-time (or near real-time) such that the available spending limit on the secured charge card may be floating (e.g., dynamic). In some examples, the secured charge card may be associated with an account (e.g., a prefunded account) that does not provide credit/overdraft protection; meanwhile, in other examples the account may provide such protections in addition to or in lieu of other protections” (Macklin Pgh. [0004]) and “For example, a first account may be designated as the primary account, and a second account may be designated as the secondary account into which the security interest may extend if the available balance in the primary account is insufficient” (Macklin Pgh. [0015]) and “Referring to FIG. 3, Customer B may make a $300 POS transaction (e.g., by using in step 302 the secured charge card at a grocery store). The card is secured to customer's DDA/brokerage account. The DDA/brokerage account has $600 available balance prior to the transaction. The card may be treated as a regular credit card by the cashier, and no PIN may be required of Customer B. Meanwhile, on the backend account system 205 a, a fraud check may be performed (optionally), a real-time check against balance may occur (see FIG. 3, step 304), a hold may be placed on a balance of secured account for $300 (DDA/brokerage) (see FIG. 3, step 308), and an indication of approval of the transaction may be sent (see FIG. 3, step 306). As a result, the available balance on the customer's account available for security for subsequent transactions on the secured charge card may be reduced to the remaining $300 available balance. However, the customer's DDA/brokerage account statement, in one example, will remain unchanged (i.e., the assets in the account will not show as liquidated or sold.) In another example, the statement may show the amount of funds being secured (e.g., locked) due to the secured charge card's outstanding balance. At a later time, Customer B may be sent a bill for the secured charge card, which states a $300 amount outstanding and a payment due date (see FIG. 3, steps 310 and 312). Referring to FIG. 3, Customer B may either pay the bill (see FIG. 3, step 316) using an account of her choice (e.g., another account with the financial institution, paper check, cash, etc.), else the system may automatically remove the funds (see FIG. 3, step 318) from the associated DDA/brokerage account (e.g., the held assets would be liquidated and applied against the bill.) When the customer's payments have been applied against the outstanding bill, the account system 205 a may release the hold (e.g., lock) on the particular assets/funds and increase the available balance on the account accordingly Macklin Pgh. [0020]).
With respect to claim 14:
Macklin teaches:
wherein the non-cash assets are stocks and wherein the linked account is a brokerage account (“In addition, in the example of a brokerage account (e.g., a brokerage account used with the trading of stocks/bonds/securities), calculating the available balance may involve determining the current market value of securities/stocks/bonds/etc. in the account multiplied by the number of shares of each instrument, or some subset of investments in such brokerage accounts” Macklin Pgh. [0015]).
With respect to claim 16:
Macklin teaches:
A system for loan management, the system comprising: a memory for storing a plurality of instructions; processing circuitry implementing a loan system having a loan generation module, a portfolio valuation module and a loan repayment module; a clearinghouse for valuing and coordinating purchase or sale of non-cash assets and a linked account accessible by the loan system, wherein the processing circuitry couples with the memory and is configured to execute the instructions (“In the foregoing example, a secured charge card may be tied to a brokerage account such that the spending limit on the secured card is set by the “cash available” (e.g., available balance) on the account. The “available balance” may be calculated in numerous ways in accordance with the disclosure. For example, the account balance of a DDA account (e.g., a checking account, money market account, savings account, etc.) may be the available balance, assuming no transactions are pending/un-posted on the account. In an account where transactions are pending (e.g., an online bill pay check that is scheduled to be mailed), the available balance may be less than the total cash balance of the account. In addition, in the example of a brokerage account (e.g., a brokerage account used with the trading of stocks/bonds/securities), calculating the available balance may involve determining the current market value of securities/stocks/bonds/etc. in the account multiplied by the number of shares of each instrument, or some subset of investments in such brokerage accounts. Moreover, in some examples, the available balance may include an availability through a margin line. For example, the available balance may be the total cash in a brokerage account plus the total margin available on the account. In yet another example, a collateral account holding, for example, a certificate of deposit may provide the available balance. In addition, in another example, multiple accounts may be designated as a security interest for the secured card. For example, a first account may be designated as the primary account, and a second account may be designated as the secondary account into which the security interest may extend if the available balance in the primary account is insufficient. In another example, an account belonging to another person/entity may be used as security interest, such as a parent providing a secured charge card for their son/daughter” Macklin Pgh. [0015]);
generate, at the loan generation module, a loan contract specifying payment terms, the payment terms comprising a payment amount and at least one due date for a payment in the payment amount; define, at the loan generation module, an association with the linked account, the linked account containing non-cash assets to be used for loan repayment (“The disclosure provides a financial product (“a secured charge card) that has features that are different from existing debit and charge cards. The secured charge card provides one or more of the following features: (1) user makes payments monthly, (2) user may pay from any accounts any way they like (e.g., check, autopay, etc.), (3) user's spending line (e.g., credit line) may be secured through their deposit relationship (e.g., as a security interest), and (4) the secured charge card, in some examples, does not debit an asset account through a network (e.g., a deferred debt methodology may be used). The remaining credit line available to a user may be reduced in real time (or near real time) by the customer's spending on the secured charge card. Meanwhile, portions of the user's deposit account may be “secured” to guarantee payment of the secured charge card balance without expressly reducing the account balance. As such, user may continue to earn interest on (or hold assets in) the account through the billing cycle. Upon the payment due date at the end of the billing cycle, the user may pay the balance on the secured charge card, else authorize payment through use of the “secured” funds in the account. The secured charge card may also provide for access to margin for purchasing and payment. Meanwhile, in some examples, ATM transactions may be processed as cash advances. The secured charge card may be implemented, in some embodiments, without requiring new cards be issued to users. Some embodiments of the secured charge card may offer a rewards program, while other embodiments might not” Macklin Pgh. [0013]);
determine, at the loan repayment module, that payment in the payment amount is due under the loan contract (“Upon the payment due date at the end of the billing cycle, the user may pay the balance on the secured charge card, else authorize payment through use of the “secured” funds in the account. The secured charge card may also provide for access to margin for purchasing and payment. Meanwhile, in some examples, ATM transactions may be processed as cash advances. The secured charge card may be implemented, in some embodiments, without requiring new cards be issued to users. Some embodiments of the secured charge card may offer a rewards program, while other embodiments might not” Macklin Pgh. [0013]);
define, at the loan repayment module, a threshold required total asset value for the linked account (“In another example, the secured charge card may be configured (through, for example, business rules created on the account system 205 a) to require no or less than full security for particular purchases. For example, a secured charge card used to purchase certain types of lower risk items or items that retain their intrinsic value (e.g., gold) may require only half of the purchase price of the item to be secured (e.g., held) in the user's account. In another example, the percentage or amount of security required may be adjusted based on the credit rating/score of a person or other factors. For example, if a user is consistent in making timely payments of their secured charge card, over time the percentage of security required may be reduced. In yet another example, a financial institution may designate a base amount (e.g., $1,000) and permit a user to spend on the secured charge card up to that amount without causing a hold on assets in the user's account. After the base amount has been reached, any subsequent charges on the secured charge card may require the user to have a sufficient available balance in their account to act as a security interest against the charge” Macklin Pgh. [0021]);
confirm, by the loan repayment module, that the actual total asset value for the linked account is greater than the threshold required asset value (“Referring to FIG. 3, Customer B may make a $300 POS transaction (e.g., by using in step 302 the secured charge card at a grocery store). The card is secured to customer's DDA/brokerage account. The DDA/brokerage account has $600 available balance prior to the transaction. The card may be treated as a regular credit card by the cashier, and no PIN may be required of Customer B. Meanwhile, on the backend account system 205 a, a fraud check may be performed (optionally), a real-time check against balance may occur (see FIG. 3, step 304), a hold may be placed on a balance of secured account for $300 (DDA/brokerage) (see FIG. 3, step 308), and an indication of approval of the transaction may be sent (see FIG. 3, step 306). As a result, the available balance on the customer's account available for security for subsequent transactions on the secured charge card may be reduced to the remaining $300 available balance. However, the customer's DDA/brokerage account statement, in one example, will remain unchanged (i.e., the assets in the account will not show as liquidated or sold.) In another example, the statement may show the amount of funds being secured (e.g., locked) due to the secured charge card's outstanding balance. At a later time, Customer B may be sent a bill for the secured charge card, which states a $300 amount outstanding and a payment due date (see FIG. 3, steps 310 and 312). Referring to FIG. 3, Customer B may either pay the bill (see FIG. 3, step 316) using an account of her choice (e.g., another account with the financial institution, paper check, cash, etc.), else the system may automatically remove the funds (see FIG. 3, step 318) from the associated DDA/brokerage account (e.g., the held assets would be liquidated and applied against the bill.) When the customer's payments have been applied against the outstanding bill, the account system 205 a may release the hold (e.g., lock) on the particular assets/funds and increase the available balance on the account accordingly” Macklin Pgh. [0020]); and
upon confirming that the actual total asset value for the linked account is greater than the threshold required asset value, initiate payment by the loan repayment module of the payment amount under the loan contract, prior to liquidation of non-cash assets, the payment creating a negative cash balance associated with the linked account, following the creation of the negative cash balance, generate liquidation instructions for liquidating non-cash assets sufficient to eliminate the negative cash balance; and transmitting, by the loan repayment module, the liquidation instructions to the clearinghouse to initiate a sale of non-cash assets in the linked account, thereby eliminating the negative cash balance (“For example, a first account may be designated as the primary account, and a second account may be designated as the secondary account into which the security interest may extend if the available balance in the primary account is insufficient” (Macklin Pgh. [0015]) and “Referring to FIG. 3, Customer B may make a $300 POS transaction (e.g., by using in step 302 the secured charge card at a grocery store). The card is secured to customer's DDA/brokerage account. The DDA/brokerage account has $600 available balance prior to the transaction. The card may be treated as a regular credit card by the cashier, and no PIN may be required of Customer B. Meanwhile, on the backend account system 205 a, a fraud check may be performed (optionally), a real-time check against balance may occur (see FIG. 3, step 304), a hold may be placed on a balance of secured account for $300 (DDA/brokerage) (see FIG. 3, step 308), and an indication of approval of the transaction may be sent (see FIG. 3, step 306). As a result, the available balance on the customer's account available for security for subsequent transactions on the secured charge card may be reduced to the remaining $300 available balance. However, the customer's DDA/brokerage account statement, in one example, will remain unchanged (i.e., the assets in the account will not show as liquidated or sold.) In another example, the statement may show the amount of funds being secured (e.g., locked) due to the secured charge card's outstanding balance. At a later time, Customer B may be sent a bill for the secured charge card, which states a $300 amount outstanding and a payment due date (see FIG. 3, steps 310 and 312). Referring to FIG. 3, Customer B may either pay the bill (see FIG. 3, step 316) using an account of her choice (e.g., another account with the financial institution, paper check, cash, etc.), else the system may automatically remove the funds (see FIG. 3, step 318) from the associated DDA/brokerage account (e.g., the held assets would be liquidated and applied against the bill.) When the customer's payments have been applied against the outstanding bill, the account system 205 a may release the hold (e.g., lock) on the particular assets/funds and increase the available balance on the account accordingly” Macklin Pgh. [0020]).
Macklin does not teach; however Sappington teaches:
retrieve, at the portfolio valuation module, values for the non-cash assets in the linked account from the clearinghouse, thereby defining an actual total asset value for the linked account (“Once a loan account is established, the secured collateral account needs to be monitored to satisfy the above predetermined set of percentage advance and requirements. The monitoring may be accomplished by first obtaining daily market prices for each security and account types in the secured collateral account and by calculating the market value of the secured collateral account based on the market prices of the securities. The credit limit of the loan account is adjusted using the updated market value of the collateral account” Sappington Column 7 Lines 49-58).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate Sappington’s teachings in order “for a client to obtain a loan based on their securities held in a brokerage account” Sappington Column 1 Lines 42-43.
With respect to claim 17:
Macklin teaches:
The system of claim 16, wherein the processing circuitry is further configured to: confirm that the negative cash balance has been eliminated following transmission of the liquidation instructions to the clearinghouse; determine, at the loan repayment module, that a further payment in the payment amount is due under the loan contract; define, at the loan repayment module, a threshold required total asset value for the linked account, {.....}; confirm, by the loan repayment module, that the updated actual total asset value for the lined account is greater than the threshold required asset value; initiate payment of the payment amount under the loan contract prior to any liquidation of non-cash assets in the linked account, the payment creating a new negative cash balance associated with the linked account; generate further liquidation instructions for liquidating non-cash assets sufficient to eliminate the negative cash balance; and transmit, by the repayment module, the liquidation instructions to the clearinghouse to liquidate the corresponding non-cash assets in the linked account to eliminate any resulting negative cash balance (“According to one or more aspects, financial transactions may be conducted using a financial card product. The financial card product may be a charge card secured through a security interest in an asset. The asset may be the available balance in an interest-bearing checking account (e.g., a DDA account), a brokerage account, or other type of account that may hold funds/assets (e.g., collateral account). The available balance may be monitored in real-time (or near real-time) such that the available spending limit on the secured charge card may be floating (e.g., dynamic). In some examples, the secured charge card may be associated with an account (e.g., a prefunded account) that does not provide credit/overdraft protection; meanwhile, in other examples the account may provide such protections in addition to or in lieu of other protections” (Macklin Pgh. [0004]) and “For example, a first account may be designated as the primary account, and a second account may be designated as the secondary account into which the security interest may extend if the available balance in the primary account is insufficient” (Macklin Pgh. [0015]) and “Referring to FIG. 3, Customer B may make a $300 POS transaction (e.g., by using in step 302 the secured charge card at a grocery store). The card is secured to customer's DDA/brokerage account. The DDA/brokerage account has $600 available balance prior to the transaction. The card may be treated as a regular credit card by the cashier, and no PIN may be required of Customer B. Meanwhile, on the backend account system 205 a, a fraud check may be performed (optionally), a real-time check against balance may occur (see FIG. 3, step 304), a hold may be placed on a balance of secured account for $300 (DDA/brokerage) (see FIG. 3, step 308), and an indication of approval of the transaction may be sent (see FIG. 3, step 306). As a result, the available balance on the customer's account available for security for subsequent transactions on the secured charge card may be reduced to the remaining $300 available balance. However, the customer's DDA/brokerage account statement, in one example, will remain unchanged (i.e., the assets in the account will not show as liquidated or sold.) In another example, the statement may show the amount of funds being secured (e.g., locked) due to the secured charge card's outstanding balance. At a later time, Customer B may be sent a bill for the secured charge card, which states a $300 amount outstanding and a payment due date (see FIG. 3, steps 310 and 312). Referring to FIG. 3, Customer B may either pay the bill (see FIG. 3, step 316) using an account of her choice (e.g., another account with the financial institution, paper check, cash, etc.), else the system may automatically remove the funds (see FIG. 3, step 318) from the associated DDA/brokerage account (e.g., the held assets would be liquidated and applied against the bill.) When the customer's payments have been applied against the outstanding bill, the account system 205 a may release the hold (e.g., lock) on the particular assets/funds and increase the available balance on the account accordingly Macklin Pgh. [0020]).
Macklin does not teach; however Sappington teaches:
{…..} retrieve updated values for any non-cash assets remaining in the linked account from the clearinghouse, thereby defining an updated actual total asset value for the linked account{…..} (“Once a loan account is established, the secured collateral account needs to be monitored to satisfy the above predetermined set of percentage advance and requirements. The monitoring may be accomplished by first obtaining daily market prices for each security and account types in the secured collateral account and by calculating the market value of the secured collateral account based on the market prices of the securities. The credit limit of the loan account is adjusted using the updated market value of the collateral account” Sappington Column 7 Lines 49-58).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate Sappington’s teachings in order “for a client to obtain a loan based on their securities held in a brokerage account” Sappington Column 1 Lines 42-43.
With respect to claim 24:
Macklin teaches:
wherein the non-cash assets are stocks and wherein the linked account is a brokerage account (“In addition, in the example of a brokerage account (e.g., a brokerage account used with the trading of stocks/bonds/securities), calculating the available balance may involve determining the current market value of securities/stocks/bonds/etc. in the account multiplied by the number of shares of each instrument, or some subset of investments in such brokerage accounts” Macklin Pgh. [0015]).
Claim(s) 4, 6-7, 9, 11-12,18-23 is/are rejected under 35 U.S.C. 103 as being unpatentable over Macklin (U.S. Pub. No. 2012/0197799) in view of Sappington (U.S. Pub. No. 7,873,568) and McNamar (U.S. Pub. No. 7,089,202).
With respect to claim 4:
Macklin does not teach; however McNamar teaches:
wherein the threshold required asset value for the linked account is defined based on a loan to value ratio of 50% (“Margin accounts for investments are well established and regulated by the appropriate margin account limit for collateral as a percent of fair market value set by the Federal Reserve Board, which limit is applicable to all commercial banks, savings banks, and brokerage houses. At present a customer can borrow up to 50% of the fair market value of the customers portfolio held by the mutual fund company or the brokerage house to be borrowed and used for other purposes, including reinvesting the loan proceeds in the account. Because neither the mutual fund company nor the brokerage firm is in the business of making margin loans on a wide scale, the loans are relatively expensive, and under current income tax laws the interest is not always tax deductible by individual taxpayers” McNamar Column 2 Lines 4-17).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate McNamar’s teachings in order “to insure against the loss of loan principal and/or appreciation in the funds due to subsequent market declines” McNamar Column 1 Lines 27-29.
With respect to claim 6:
Macklin does not teach; however McNamar teaches:
further comprising receiving a request from a user for increased credit, {…..}, determining that assets in the linked account are sufficient to support the increased credit {…..}, issuing the increased credit, and generating an updated loan contract specifying updated payment terms, such that the payment terms for the method are redefined as the updated payment terms (“The present invention also contemplates using the fact that as the value of people's houses increase by some percentage in most years, an account holder can become eligible for a larger loan, with the additional proceeds invested in the investment component when the loan is increased. This will have an appeal to many clients, because it will maximize their investment return. Some original home equity loans will be taken out as dollar amounts, others as a percentage of the loan to value so that the first mortgage and the second mortgage do not preferably exceed a 100% loan to value. As the value of the house increases, a calculation is performed that indicates how much more the client can borrow and invest” (McNamar Column 27 Lines 37-49) and “The calculation can be calculated automatically by the provider periodically, e.g. once a quarter or once a year. The periodic calculation can be done because (a) the client has elected to have it done and the loan and investment increased automatically, or (b) because the provider on a periodic basis (once a year or every two years) applies an inflation rate factor to the similar houses in the area, county, or state. Also, as option (c), the provider can input the actual inflation rate from a table of public records and initiate the calculation, and then electronically notify the client that he is eligible to increase his account loan and investment by a certain value” (McNamar Column 27 Lines 50-61) and “The client can elect to institute the automatic account increase at any time. This is a unique electronic communication from the client to the provider based on a notification from the provider to the client about the opportunity to increase the amount of the loan based on the calculation regarding the value of the house or other security pledged” McNamar Column 27 Lines 62-67).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate McNamar’s teachings in order “to insure against the loss of loan principal and/or appreciation in the funds due to subsequent market declines” McNamar Column 1 Lines 27-29.
Macklin does not teach; however Sappington teaches:
{…..} retrieving values for the non-cash assets from the brokerage system{…..} (“Once a loan account is established, the secured collateral account needs to be monitored to satisfy the above predetermined set of percentage advance and requirements. The monitoring may be accomplished by first obtaining daily market prices for each security and account types in the secured collateral account and by calculating the market value of the secured collateral account based on the market prices of the securities. The credit limit of the loan account is adjusted using the updated market value of the collateral account” Sappington Column 7 Lines 49-58).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate Sappington’s teachings in order “for a client to obtain a loan based on their securities held in a brokerage account” Sappington Column 1 Lines 42-43.
With respect to claim 7:
Macklin does not teach; however McNamar teaches:
receiving a request for a purchase prior to generating the loan contract, the request for purchase comprising a desired loan amount, defining a threshold required total asset value for the linked account based on the desired loan amount; {…..}; determining that the actual total asset value for the linked account is greater than the threshold required asset value; and generating the loan contract based on the request for the loan (“Referring more specifically to steps 363–370, the client may receive the information about the terms and conditions of the IFMA accounts' automatic home value increase loan or margin loan components. Under this option, the client may learn how they can automatically agree to increase their loan and investment as the house or security increases in value, and also incur a margin loan for qualified investment fund securities in the IFMA account that are above a qualified level in addition to the increase in home equity loan based on an increase in the value of the home. Under this option, the IFMA account may automatically increase the home equity or margin loan amount and purchase additional investment funds specified in the customers current asset allocation mix with the proceeds of the increased loans. These options may be illustrated with examples of additional home equity loan or margin loan dollar amounts invested in investment funds and the excess assets borrowed on margin, and the combined returns calculated and displayed. This information can be displayed, printed out, or carried over to the Financial Projections Module 336” McNamar Column 14 Lines 7-26).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate McNamar’s teachings in order “to insure against the loss of loan principal and/or appreciation in the funds due to subsequent market declines” McNamar Column 1 Lines 27-29.
Macklin does not teach; however Sappington teaches:
{…..} retrieving values for the non-cash assets in the linked account from the brokerage system, thereby defining an actual total asset value for the linked account {…..} (“Once a loan account is established, the secured collateral account needs to be monitored to satisfy the above predetermined set of percentage advance and requirements. The monitoring may be accomplished by first obtaining daily market prices for each security and account types in the secured collateral account and by calculating the market value of the secured collateral account based on the market prices of the securities. The credit limit of the loan account is adjusted using the updated market value of the collateral account” Sappington Column 7 Lines 49-58).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate Sappington’s teachings in order “for a client to obtain a loan based on their securities held in a brokerage account” Sappington Column 1 Lines 42-43.
With respect to claim 9:
Macklin teaches:
wherein the method for loan management is associated with a credit or debit card or a buy now pay later platform, and wherein the request for purchase is automatically transmitted upon usage of the credit or debit card or the buy now pay later platform to execute a purchase (“(“According to one or more aspects, financial transactions may be conducted using a financial card product. The financial card product may be a charge card secured through a security interest in an asset. The asset may be the available balance in an interest-bearing checking account (e.g., a DDA account), a brokerage account, or other type of account that may hold funds/assets (e.g., collateral account). The available balance may be monitored in real-time (or near real-time) such that the available spending limit on the secured charge card may be floating (e.g., dynamic). In some examples, the secured charge card may be associated with an account (e.g., a prefunded account) that does not provide credit/overdraft protection; meanwhile, in other examples the account may provide such protections in addition to or in lieu of other protections” (Macklin Pgh. [0004]) and “For example, a first account may be designated as the primary account, and a second account may be designated as the secondary account into which the security interest may extend if the available balance in the primary account is insufficient” (Macklin Pgh. [0015]) and “Referring to FIG. 3, Customer B may make a $300 POS transaction (e.g., by using in step 302 the secured charge card at a grocery store). The card is secured to customer's DDA/brokerage account. The DDA/brokerage account has $600 available balance prior to the transaction. The card may be treated as a regular credit card by the cashier, and no PIN may be required of Customer B. Meanwhile, on the backend account system 205 a, a fraud check may be performed (optionally), a real-time check against balance may occur (see FIG. 3, step 304), a hold may be placed on a balance of secured account for $300 (DDA/brokerage) (see FIG. 3, step 308), and an indication of approval of the transaction may be sent (see FIG. 3, step 306). As a result, the available balance on the customer's account available for security for subsequent transactions on the secured charge card may be reduced to the remaining $300 available balance. However, the customer's DDA/brokerage account statement, in one example, will remain unchanged (i.e., the assets in the account will not show as liquidated or sold.) In another example, the statement may show the amount of funds being secured (e.g., locked) due to the secured charge card's outstanding balance. At a later time, Customer B may be sent a bill for the secured charge card, which states a $300 amount outstanding and a payment due date (see FIG. 3, steps 310 and 312). Referring to FIG. 3, Customer B may either pay the bill (see FIG. 3, step 316) using an account of her choice (e.g., another account with the financial institution, paper check, cash, etc.), else the system may automatically remove the funds (see FIG. 3, step 318) from the associated DDA/brokerage account (e.g., the held assets would be liquidated and applied against the bill.) When the customer's payments have been applied against the outstanding bill, the account system 205 a may release the hold (e.g., lock) on the particular assets/funds and increase the available balance on the account accordingly Macklin Pgh. [0020]).
With respect to claim 11:
Macklin does not teach; however McNamar teaches:
determining that a user has attempted to purchase non-cash assets to be deposited in the linked account; receiving a request for a loan prior to generating the loan contract, the request for a loan generated based on the attempted purchase of non-cash assets, and the request for a loan comprising a desired loan amount for purchasing the non-cash assets, defining a threshold required total asset value for the linked account based on the desired loan amount; {…..} defining a hypothetical total asset value for the linked account following the attempted purchase, the hypothetical total asset value comprising a sum of the retrieved values for the non- cash assets already in the linked account and the non-cash assets that are the subject of the attempted purchase confirming that the hypothetical total asset value for the linked account is greater than the threshold required asset value, and generating the loan contract based on the request for the loan (“Referring more specifically to steps 363–370, the client may receive the information about the terms and conditions of the IFMA accounts' automatic home value increase loan or margin loan components. Under this option, the client may learn how they can automatically agree to increase their loan and investment as the house or security increases in value, and also incur a margin loan for qualified investment fund securities in the IFMA account that are above a qualified level in addition to the increase in home equity loan based on an increase in the value of the home. Under this option, the IFMA account may automatically increase the home equity or margin loan amount and purchase additional investment funds specified in the customers current asset allocation mix with the proceeds of the increased loans. These options may be illustrated with examples of additional home equity loan or margin loan dollar amounts invested in investment funds and the excess assets borrowed on margin, and the combined returns calculated and displayed. This information can be displayed, printed out, or carried over to the Financial Projections Module 336” McNamar Column 14 Lines 7-26).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate McNamar’s teachings in order “to insure against the loss of loan principal and/or appreciation in the funds due to subsequent market declines” McNamar Column 1 Lines 27-29.
Macklin does not teach; however Sappington teaches:
{…..} retrieving values for the non-cash assets that are the subject of the attempted purchase from the brokerage system; retrieving values for the non-cash assets already in the linked account from the brokerage system {…..} (“Once a loan account is established, the secured collateral account needs to be monitored to satisfy the above predetermined set of percentage advance and requirements. The monitoring may be accomplished by first obtaining daily market prices for each security and account types in the secured collateral account and by calculating the market value of the secured collateral account based on the market prices of the securities. The credit limit of the loan account is adjusted using the updated market value of the collateral account” Sappington Column 7 Lines 49-58).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate Sappington’s teachings in order “for a client to obtain a loan based on their securities held in a brokerage account” Sappington Column 1 Lines 42-43.
With respect to claim 12:
Macklin does not teach; however McNamar teaches:
wherein the retrieved values for the non- cash assets already in the linked account is zero and the hypothetical total asset value for the linked account is the retrieved values for the non-cash assets that are the subject of the attempted purchase, and wherein the desired loan amount is less than the value of the non-cash assets being purchased (“As shown in FIG. 5B, the new IFMA account is opened in step 504. In the first preferred embodiment, the IFMA account opened at this stage is referred to as a “shell” account because the client may not eventually qualify for a loan in the loan component of the IFMA account. On qualification, the proceeds of the loan component are used to fund the investment assets in the investment component of the IFMA account. In step 505, the client is offered asset purchase options for assets to be credited to the client's investment component so that the client can profit from any appreciation in the asset value right from the date of opening the IFMA account. The client selects among the asset options 507 in step 506 so that the selected assets are purchased in step 508. It should be noted that although the client has an interest in the appreciation of the asset from the date of opening of the account, the assets are purchased by the IFMA account sponsor (also referred to as “provider”) and are owned by the IFMA account sponsor until the client's loan is disbursed in the loan component and the disbursed funds are used to fund the investment assets selected in the investment component of the IFMA account. The account status after the purchase of the investment assets are displayed in step 509” (McNamar Column 16 Lines 34-56) and “In step 559, in the first preferred embodiment, the investment asset to be purchased is funded by the IFMA sponsor so that the investment assets selected by the client are purchased and held by the IFMA account sponsor contemporaneous with the account opening process. It should be understood that the term “contemporaneous” in the present invention applies to all investment assets purchased that are temporally before the approval of the loan in the loan component even if they are temporally after the account opening process is completed” (McNamar Column 18 Line 60 to Column 19 Line 2) and “On successful approval of the loan in the loan component of the IFMA account, the ownership of the investment assets is transferred to the IFMA account's investment component so that ownership (subject to liens) is transferred to the IFMA account holder client at that time. The client is also entitled to any appreciation in value of the investment asset between the date of purchase on the account opening date and the date of approval of the loan in the loan component of the IFMA account” McNamar Column 19 Lines 3-11).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate McNamar’s teachings in order “to insure against the loss of loan principal and/or appreciation in the funds due to subsequent market declines” McNamar Column 1 Lines 27-29.
With respect to claim 18:
Macklin does not teach; however McNamar teaches:
wherein the threshold required asset value for the linked account is defined based on a loan to value ratio of 50% (“Margin accounts for investments are well established and regulated by the appropriate margin account limit for collateral as a percent of fair market value set by the Federal Reserve Board, which limit is applicable to all commercial banks, savings banks, and brokerage houses. At present a customer can borrow up to 50% of the fair market value of the customers portfolio held by the mutual fund company or the brokerage house to be borrowed and used for other purposes, including reinvesting the loan proceeds in the account. Because neither the mutual fund company nor the brokerage firm is in the business of making margin loans on a wide scale, the loans are relatively expensive, and under current income tax laws the interest is not always tax deductible by individual taxpayers” McNamar Column 2 Lines 4-17).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate McNamar’s teachings in order “to insure against the loss of loan principal and/or appreciation in the funds due to subsequent market declines” McNamar Column 1 Lines 27-29.
With respect to claim 19:
Macklin does not teach; however McNamar teaches:
wherein the processing circuitry is further configured to: determine, at the loan generation module, that a purchase has been requested prior to generating the loan contract, the request for purchase comprising a desired loan amount; define a threshold required total asset value for the linked account based on the desired loan amount; {…..}; confirm, at the loan generation module, that the actual total asset value for the linked account is greater than the threshold required asset value; and generate the loan contract based on the request for the loan (“Referring more specifically to steps 363–370, the client may receive the information about the terms and conditions of the IFMA accounts' automatic home value increase loan or margin loan components. Under this option, the client may learn how they can automatically agree to increase their loan and investment as the house or security increases in value, and also incur a margin loan for qualified investment fund securities in the IFMA account that are above a qualified level in addition to the increase in home equity loan based on an increase in the value of the home. Under this option, the IFMA account may automatically increase the home equity or margin loan amount and purchase additional investment funds specified in the customers current asset allocation mix with the proceeds of the increased loans. These options may be illustrated with examples of additional home equity loan or margin loan dollar amounts invested in investment funds and the excess assets borrowed on margin, and the combined returns calculated and displayed. This information can be displayed, printed out, or carried over to the Financial Projections Module 336” McNamar Column 14 Lines 7-26).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate McNamar’s teachings in order “to insure against the loss of loan principal and/or appreciation in the funds due to subsequent market declines” McNamar Column 1 Lines 27-29.
Macklin does not teach; however Sappington teaches:
{…..} retrieve values for the non-cash assets in the linked account from the clearinghouse, thereby defining an actual total asset value for the linked account {…..} (“Once a loan account is established, the secured collateral account needs to be monitored to satisfy the above predetermined set of percentage advance and requirements. The monitoring may be accomplished by first obtaining daily market prices for each security and account types in the secured collateral account and by calculating the market value of the secured collateral account based on the market prices of the securities. The credit limit of the loan account is adjusted using the updated market value of the collateral account” Sappington Column 7 Lines 49-58).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate Sappington’s teachings in order “for a client to obtain a loan based on their securities held in a brokerage account” Sappington Column 1 Lines 42-43.
With respect to claim 20:
Macklin teaches:
wherein the system further comprises a credit or debit card, and wherein upon usage of the credit or debit card to execute a purchase, an indication is transmitted from a debit or credit management platform associated with the corresponding debit or credit card to the loan generation module, and wherein the determination at the loan generation module that a purchase has been requested is based on the transmitted indication (“According to one or more aspects, financial transactions may be conducted using a financial card product. The financial card product may be a charge card secured through a security interest in an asset. The asset may be the available balance in an interest-bearing checking account (e.g., a DDA account), a brokerage account, or other type of account that may hold funds/assets (e.g., collateral account). The available balance may be monitored in real-time (or near real-time) such that the available spending limit on the secured charge card may be floating (e.g., dynamic). In some examples, the secured charge card may be associated with an account (e.g., a prefunded account) that does not provide credit/overdraft protection; meanwhile, in other examples the account may provide such protections in addition to or in lieu of other protections” (Macklin Pgh. [0004]) and “For example, a first account may be designated as the primary account, and a second account may be designated as the secondary account into which the security interest may extend if the available balance in the primary account is insufficient” (Macklin Pgh. [0015]) and “Referring to FIG. 3, Customer B may make a $300 POS transaction (e.g., by using in step 302 the secured charge card at a grocery store). The card is secured to customer's DDA/brokerage account. The DDA/brokerage account has $600 available balance prior to the transaction. The card may be treated as a regular credit card by the cashier, and no PIN may be required of Customer B. Meanwhile, on the backend account system 205 a, a fraud check may be performed (optionally), a real-time check against balance may occur (see FIG. 3, step 304), a hold may be placed on a balance of secured account for $300 (DDA/brokerage) (see FIG. 3, step 308), and an indication of approval of the transaction may be sent (see FIG. 3, step 306). As a result, the available balance on the customer's account available for security for subsequent transactions on the secured charge card may be reduced to the remaining $300 available balance. However, the customer's DDA/brokerage account statement, in one example, will remain unchanged (i.e., the assets in the account will not show as liquidated or sold.) In another example, the statement may show the amount of funds being secured (e.g., locked) due to the secured charge card's outstanding balance. At a later time, Customer B may be sent a bill for the secured charge card, which states a $300 amount outstanding and a payment due date (see FIG. 3, steps 310 and 312). Referring to FIG. 3, Customer B may either pay the bill (see FIG. 3, step 316) using an account of her choice (e.g., another account with the financial institution, paper check, cash, etc.), else the system may automatically remove the funds (see FIG. 3, step 318) from the associated DDA/brokerage account (e.g., the held assets would be liquidated and applied against the bill.) When the customer's payments have been applied against the outstanding bill, the account system 205 a may release the hold (e.g., lock) on the particular assets/funds and increase the available balance on the account accordingly Macklin Pgh. [0020]).
With respect to claim 21:
Macklin teaches:
wherein the system further comprises a buy now pay later module, and wherein upon usage of the buy now pay later module to execute a purchase, an indication is transmitted from the buy now pay later module to the loan generation module, and wherein the determination at the loan generation module that a purchase has been requested is based on the transmitted indication (“According to one or more aspects, financial transactions may be conducted using a financial card product. The financial card product may be a charge card secured through a security interest in an asset. The asset may be the available balance in an interest-bearing checking account (e.g., a DDA account), a brokerage account, or other type of account that may hold funds/assets (e.g., collateral account). The available balance may be monitored in real-time (or near real-time) such that the available spending limit on the secured charge card may be floating (e.g., dynamic). In some examples, the secured charge card may be associated with an account (e.g., a prefunded account) that does not provide credit/overdraft protection; meanwhile, in other examples the account may provide such protections in addition to or in lieu of other protections” (Macklin Pgh. [0004]) and “For example, a first account may be designated as the primary account, and a second account may be designated as the secondary account into which the security interest may extend if the available balance in the primary account is insufficient” (Macklin Pgh. [0015]) and “Referring to FIG. 3, Customer B may make a $300 POS transaction (e.g., by using in step 302 the secured charge card at a grocery store). The card is secured to customer's DDA/brokerage account. The DDA/brokerage account has $600 available balance prior to the transaction. The card may be treated as a regular credit card by the cashier, and no PIN may be required of Customer B. Meanwhile, on the backend account system 205 a, a fraud check may be performed (optionally), a real-time check against balance may occur (see FIG. 3, step 304), a hold may be placed on a balance of secured account for $300 (DDA/brokerage) (see FIG. 3, step 308), and an indication of approval of the transaction may be sent (see FIG. 3, step 306). As a result, the available balance on the customer's account available for security for subsequent transactions on the secured charge card may be reduced to the remaining $300 available balance. However, the customer's DDA/brokerage account statement, in one example, will remain unchanged (i.e., the assets in the account will not show as liquidated or sold.) In another example, the statement may show the amount of funds being secured (e.g., locked) due to the secured charge card's outstanding balance. At a later time, Customer B may be sent a bill for the secured charge card, which states a $300 amount outstanding and a payment due date (see FIG. 3, steps 310 and 312). Referring to FIG. 3, Customer B may either pay the bill (see FIG. 3, step 316) using an account of her choice (e.g., another account with the financial institution, paper check, cash, etc.), else the system may automatically remove the funds (see FIG. 3, step 318) from the associated DDA/brokerage account (e.g., the held assets would be liquidated and applied against the bill.) When the customer's payments have been applied against the outstanding bill, the account system 205 a may release the hold (e.g., lock) on the particular assets/funds and increase the available balance on the account accordingly Macklin Pgh. [0020]).
With respect to claim 22:
Macklin does not teach; however McNamar teaches:
wherein the processing circuitry is further configured to: determine that a user has attempted to purchase non-cash assets to be deposited in the linked account; receive a request for a loan prior to generating the loan contract, the request for a loan generated based on the attempted purchase of non-cash assets, and the request for a loan comprising a desired loan amount for purchasing the non-cash assets, define a threshold required total asset value for the linked account based on the desired loan amount; {…..}; define a hypothetical total asset value for the linked account following the attempted purchase, the hypothetical total asset value comprising a sum of the retrieved values for the non-cash assets already in the linked account and the non-cash assets that are the subject of the attempted purchase; confirm that the hypothetical total asset value for the linked account is greater than the threshold required asset value; and generate the loan contract based on the request for the loan (“Referring more specifically to steps 363–370, the client may receive the information about the terms and conditions of the IFMA accounts' automatic home value increase loan or margin loan components. Under this option, the client may learn how they can automatically agree to increase their loan and investment as the house or security increases in value, and also incur a margin loan for qualified investment fund securities in the IFMA account that are above a qualified level in addition to the increase in home equity loan based on an increase in the value of the home. Under this option, the IFMA account may automatically increase the home equity or margin loan amount and purchase additional investment funds specified in the customers current asset allocation mix with the proceeds of the increased loans. These options may be illustrated with examples of additional home equity loan or margin loan dollar amounts invested in investment funds and the excess assets borrowed on margin, and the combined returns calculated and displayed. This information can be displayed, printed out, or carried over to the Financial Projections Module 336” McNamar Column 14 Lines 7-26).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate McNamar’s teachings in order “to insure against the loss of loan principal and/or appreciation in the funds due to subsequent market declines” McNamar Column 1 Lines 27-29.
Macklin does not teach; however Sappington teaches:
{…..} retrieve values for the non-cash assets that are the subject of the attempted purchase from the clearinghouse; retrieve values for the non-cash assets already in the linked account from the clearinghouse; {…..}(“Once a loan account is established, the secured collateral account needs to be monitored to satisfy the above predetermined set of percentage advance and requirements. The monitoring may be accomplished by first obtaining daily market prices for each security and account types in the secured collateral account and by calculating the market value of the secured collateral account based on the market prices of the securities. The credit limit of the loan account is adjusted using the updated market value of the collateral account” Sappington Column 7 Lines 49-58).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate Sappington’s teachings in order “for a client to obtain a loan based on their securities held in a brokerage account” Sappington Column 1 Lines 42-43.
With respect to claim 23:
Macklin does not teach; however McNamar teaches:
wherein the retrieved values for the non-cash assets already in the linked account is zero and the hypothetical total asset value for the linked account is the retrieved values for the non-cash assets that are the subject of the attempted purchase, and wherein the desired loan amount is less than the value of the non-cash assets being purchased (“As shown in FIG. 5B, the new IFMA account is opened in step 504. In the first preferred embodiment, the IFMA account opened at this stage is referred to as a “shell” account because the client may not eventually qualify for a loan in the loan component of the IFMA account. On qualification, the proceeds of the loan component are used to fund the investment assets in the investment component of the IFMA account. In step 505, the client is offered asset purchase options for assets to be credited to the client's investment component so that the client can profit from any appreciation in the asset value right from the date of opening the IFMA account. The client selects among the asset options 507 in step 506 so that the selected assets are purchased in step 508. It should be noted that although the client has an interest in the appreciation of the asset from the date of opening of the account, the assets are purchased by the IFMA account sponsor (also referred to as “provider”) and are owned by the IFMA account sponsor until the client's loan is disbursed in the loan component and the disbursed funds are used to fund the investment assets selected in the investment component of the IFMA account. The account status after the purchase of the investment assets are displayed in step 509” (McNamar Column 16 Lines 34-56) and “In step 559, in the first preferred embodiment, the investment asset to be purchased is funded by the IFMA sponsor so that the investment assets selected by the client are purchased and held by the IFMA account sponsor contemporaneous with the account opening process. It should be understood that the term “contemporaneous” in the present invention applies to all investment assets purchased that are temporally before the approval of the loan in the loan component even if they are temporally after the account opening process is completed” (McNamar Column 18 Line 60 to Column 19 Line 2) and “On successful approval of the loan in the loan component of the IFMA account, the ownership of the investment assets is transferred to the IFMA account's investment component so that ownership (subject to liens) is transferred to the IFMA account holder client at that time. The client is also entitled to any appreciation in value of the investment asset between the date of purchase on the account opening date and the date of approval of the loan in the loan component of the IFMA account” McNamar Column 19 Lines 3-11).
It would have been obvious to one of ordinary skill of the art to have modified Macklin’s teachings to incorporate McNamar’s teachings in order “to insure against the loss of loan principal and/or appreciation in the funds due to subsequent market declines” McNamar Column 1 Lines 27-29.
Response to Arguments
Applicant's arguments filed 6/12/26 have been fully considered but they are not persuasive.
35 USC § 101
The Applicant “disagrees that either claim 1 or 16 recites the judicial exception of certain methods of organizing human activity.” (page 12) and that the Claim “integrates any such methods of organizing human activity into a practical application.” (page 12). The Examiner disagrees with these sentences because the claims are an improvement of the abstract idea only. It is a business solution to the business problem of managing loans. The applicant has not shown how the claims improve a computer or other technology, invoke a particular machine, transform matter, or provide more than a general link between the abstraction and the technology, MPEP 2106.05(a)-(c) & (e). The Claims do not provide an improvement over prior systems and only add details to the abstract idea (i.e., they add specificity to the cause and effect of financial manipulations). They do not address a problem particular to computer networks and merely apply the abstract idea on general computer components. The amended claims make the abstract idea more specific, and managing loans is not an unconventional activity. Applicant’s remarks about why these limitations provide a practical application fail to surface any technical improvement identified in the spec, therefore this is not an inventive concept and significantly more.
35 USC § 102
The Applicant’s arguments and amendments overcome the 102 Rejections, therefore, the Rejection(s) are moot.
35 USC § 103
The amended claim language is taught in the references of record as indicated above in
the Office action.
Conclusion
Any inquiry concerning this communication or earlier communications from the examiner should be directed to MARLA HUDSON whose telephone number is (571)272-1063. The examiner can normally be reached M-F 9:30 a.m. - 5:30 p.m. ET.
Examiner interviews are available via telephone, in-person, and video conferencing using a USPTO supplied web-based collaboration tool. To schedule an interview, applicant is encouraged to use the USPTO Automated Interview Request (AIR) at http://www.uspto.gov/interviewpractice.
If attempts to reach the examiner by telephone are unsuccessful, the examiner’s supervisor, Bennett Sigmond can be reached at (303) 297-4411. The fax phone number for the organization where this application or proceeding is assigned is 571-273-8300.
Information regarding the status of published or unpublished applications may be obtained from Patent Center. Unpublished application information in Patent Center is available to registered users. To file and manage patent submissions in Patent Center, visit: https://patentcenter.uspto.gov. Visit https://www.uspto.gov/patents/apply/patent-center for more information about Patent Center and https://www.uspto.gov/patents/docx for information about filing in DOCX format. For additional questions, contact the Electronic Business Center (EBC) at 866-217-9197 (toll-free).
If you would like assistance from a USPTO Customer Service Representative, call 800-786-9199 (IN USA OR CANADA) or 571-272-1000.
/M.H./Examiner, Art Unit 3694
/BENNETT M SIGMOND/Supervisory Patent Examiner, Art Unit 3694
Prosecution Insights