Bi-currency debt contract system and procedure

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Reexamination Certificate

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C705S03600T, C705S038000, C705S001100, C705S014270, C340S001100, C713S001000, C713S150000, C902S001000, C902S024000

Reexamination Certificate

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06856969

ABSTRACT:
A bi-currency debt contract system for making secure debts and including guidelines and an associated procedure particularly adaptable for issuing debt of a hard or stabilized currency, such as but not limited to US dollars, to a debtor entity which utilizes the debt proceeds in a secondary economy historically characterized by unstable monetary conditions. A debt issuer entity makes a stable currency debt at a first interest rate, based on a currently available debt rate of the stable currency. An amortization schedule to satisfy the loan is established and is characterized by a portion of the debt being paid at a second interest rate commonly associated with the debt rate of the local currency of the secondary economy, which is significantly greater than the first interest rate. A remainder or second portion of the debt is amortized at the first interest rate on which the debt was also based. A reserve fund is established and retained to facilitate payment or satisfaction of the debt in the event of instability of the secondary economy and/or the inability of the debtor entity to amortize the debt in accordance with the pre-established amortization schedule. The reserve fund is derived from the difference between the higher amortization payment, made at the second interest, and the amount of the lesser payment amortized at the lower first interest rate, at which the debt was actually established.

REFERENCES:
patent: 5644727 (1997-07-01), Atkins
patent: 6269347 (2001-07-01), Berger
patent: 2002166338 (2002-05-01), None
Siandra, Eduardo “Credit and Moral Hazard in a Dual Currency Economy” May , 2001.

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