The patent badge is an abbreviated version of the USPTO patent document. The patent badge does contain a link to the full patent document.
The patent badge is an abbreviated version of the USPTO patent document. The patent badge covers the following: Patent number, Date patent was issued, Date patent was filed, Title of the patent, Applicant, Inventor, Assignee, Attorney firm, Primary examiner, Assistant examiner, CPCs, and Abstract. The patent badge does contain a link to the full patent document (in Adobe Acrobat format, aka pdf). To download or print any patent click here.
Patent No.:
Date of Patent:
Mar. 18, 1980
Filed:
Sep. 22, 1976
Robert Robbins, Atlanta, GA (US);
Other;
Abstract
A method and a system are provided wherein an interest rate fluctuates according to the ratio of a borrower's funds on deposit with the lender, to the borrower's outstanding indebtedness (or to the outstanding indebtedness combined with line of credit) at any time, and for the duration of a selected period of time. The ratio of the borrower's funds on deposit with the lender, to the borrower's loan balance (or to the borrower's loan balance combined with line of credit), forms a Compensating Balance. This method and system provide for each individual lender to set a 'par point', which is the Compensating Balance required by the lender in order for the borrower to qualify for a pre-determined interest rate. The interest rate of the loan automatically fluctuates inversely to the fluctuation of the borrower's Compensating Balance from the 'par point'. As the Compensating Balance increases, the interest rate decreases, and as the Compensating Balance decreases, the interest rate increases.