Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Reexamination Certificate
1998-10-21
2002-04-16
Millin, Vincent (Department: 2164)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
C705S03600T, C705S037000, C705S038000
Reexamination Certificate
active
06374231
ABSTRACT:
BACKGROUND OF THE INVENTION
1. Field of the Invention
The novel system is in the field of account transaction processing and provides an administered money fund banking system that is integrated with an insured deposit account.
2. State of the Art
The Federal Deposit Insurance Corporation (“FDIC”) is a federal governmental entity that provides insurance for deposits in most banks and savings institutions in the United States. Bank deposits are insured by the FDIC's Bank Insurance Fund (“BIF”) and savings institutions' deposits are insured by the FDIC's Savings Association Insurance Fund (“SAIF”). The rules governing insurance of deposits of institutions insured by the BIF and the SAIF are the same. The FDIC bases insurance coverage on the concept of ownership rights and capacities: finds held in different ownership categories are insured separately from each other, and funds of the same ownership but held in different accounts are subsumed under the same insurance coverage. The amount of insurance covered provided to depositors of each institution insured by BIF and SAIF is the same: $100,000.00 to the owner(s) of the funds in the account(s), including principal and interest.
Title 12, Part 329, of the Code of Federal Regulations (“CFR”) specifies that “no bank shall, directly or indirectly, by any device whatsoever, pay interest on any demand deposit.”(12 C.F.R. § 329.2.) A “deposit” is any money put into a savings account, a checking account, or time account such as a certificate of deposit. A “demand” account is one from which the owner of the account can demand that funds be drawn and paid elsewhere, either to another account (of the same or a different owner) or to a third party. These payments are typically made via a bank draft or check, or a credit or debit card. A account different than a demand account is an account where all or a fixed amount of the principal must be maintained in the account for a period of time to achieve the particular benefits offered by that account. As stated in this section of the CFR, a “demand deposit” includes any deposit in account under which terms the depositor is authorized to make, during any month or statement cycle of at least four weeks, more than six transfers by means of a preauthorized or automatic transfer of telephone (including data transmission) agreement, order or instruction, which transfers are made to another account of the depositor at the same bank, to the bank itself, or to a third party provided that such an account will be deemed a demand deposit if more than three of the six authorized transfers are authorized to be made by check, draft, debit card or similar order made by the depositor. (12 C.F.R. § 329.1(b)(3).) On the other hand, withdrawals from a deposit account are not deemed to be included within the six transfers permitted for a nondemand account when the withdrawals are made by mail, messenger, telephone (via check mailed to the depositor), automated teller machine, or in person. In essence, unless the funds of a deposit are held in a NOW account (18 U.S.C. 1832(a)), an account in which a depositor has the ability to make at least six transfers will be deemed a demand account and no interest will be payable on the funds therein. Therefore, owners of demand accounts are denied interest on their funds.
SUMMARY OF THE INVENTION
In light of this regulatory scheme, it would be beneficial to provide depositors of demand accounts with interest from the funds on deposit while simultaneously providing unlimited (or at least six) transfers of the funds therein. For example, it would be beneficial to provide such depositors with the ability to deposit funds into the demand account from various sources, and to make payments from the demand account via different instruments, without limitation as to the number of transfers, and still earn interest on the funds in the clients' accounts.
To accomplish these and other objectives, this invention provides a system for managing a plurality of accounts for multiple clients by administering at a banking institution a single insured deposit account in which all of the funds for the insured deposit accounts are held, providing a database having client information for each client's account, administering clients' deposits to and withdrawals from each of their accounts, authorizing whether funds in a particular clients account can be used for each payment requested from that client's account, determining as the net transaction of the sum of the insured money market account deposits and withdrawals from the plurality of insured money market accounts on a regular periodic basis, using the determination of the net transaction to deposit funds to or withdraw funds from the single insured deposit account, distributing interest earned on the single deposit account to each of the clients in proportion to their portion of funds in the deposit account, and updating the database for each client's deposits and authorized demand payments.
REFERENCES:
patent: 4232367 (1980-11-01), Youden et al.
patent: 4346442 (1982-08-01), Musmanno
patent: 4376978 (1983-03-01), Musmanno
patent: 4597046 (1986-06-01), Musmanno
patent: 4674044 (1987-06-01), Kalmus
patent: 4694397 (1987-09-01), Grant
patent: 4700297 (1987-10-01), Hagel
patent: 4751640 (1988-06-01), Lucas et al.
patent: 4774663 (1988-09-01), Musmanno
patent: 4953085 (1990-08-01), Atkins
patent: 5126936 (1992-06-01), Champion
patent: 5206803 (1993-04-01), Vitagliano
patent: 5235507 (1993-08-01), Sackler
patent: 5262942 (1993-11-01), Earle
patent: 5270922 (1993-12-01), Higgins
patent: 5297032 (1994-03-01), Trojan
patent: 5671363 (1997-09-01), Christofich
patent: 5689650 (1997-11-01), McClelland et al.
patent: 5710889 (1998-01-01), Clark
patent: 5765144 (1998-06-01), Larche
patent: 5774880 (1998-06-01), Ginsberg
patent: 5781654 (1998-07-01), Carney
patent: 5806049 (1998-09-01), Petruzzi
patent: 5812987 (1998-09-01), Luskin
patent: 5826243 (1998-10-01), Musmanno
patent: 5878258 (1999-03-01), Pizi
patent: 5890141 (1999-03-01), Carney
patent: 5893078 (1999-04-01), Paulson
patent: 5905974 (1999-05-01), Fraser
patent: 5940809 (1999-08-01), Musmanno
patent: 5941996 (1999-08-01), Smith
patent: 5950175 (1999-09-01), Austin
patent: 5978779 (1999-11-01), Stein
patent: 6014642 (2000-01-01), El-Kadi
patent: 6016482 (2000-01-01), Molinari
patent: 6026438 (2000-02-01), Piazza
patent: 6044371 (2000-03-01), Person
patent: 6047324 (2000-04-01), Ford
patent: 6105005 (2000-08-01), Fuhrer
patent: 6108641 (2000-08-01), Kenna
patent: 6131810 (2000-10-01), Weiss
patent: 6154770 (2000-11-01), Kostakos
patent: 10049590 (1998-02-01), None
patent: 95/23379 (1995-08-01), None
Britt, Phil; “Struggling with sweep accounts”, America's Community Banker, v6, n12, p18-23, Dec. 1997.*
News article; “Regulators Support Demand Deposit Bill”, Regulatory Compliance Watch-Mar. 9, 1998; p 1; vol. 9, No. 10.
Bent Bruce
Bent, II Bruce
Hopgood, Calimafde, Judlowe & Mondolino LLP
Millin Vincent
Patel Jagdish N
LandOfFree
Money fund banking system does not yet have a rating. At this time, there are no reviews or comments for this patent.
If you have personal experience with Money fund banking system, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Money fund banking system will most certainly appreciate the feedback.
Profile ID: LFUS-PAI-O-2924101