Methods and Systems for Providing enhanced Capital Advantaged Preferred Securities
In one aspect, the invention comprises a method comprising: (a) forming a limited liability company (“ULLC”) operable to issue LLC preferred securities; (b) forming a trust operable to issue trust preferred securities and to purchase LLC preferred securities from the LLC; and (c) issuing subordinated notes with at least a 30 -year maturity to the LLC. In another aspect, the invention comprises a method comprising: (a) forming a trust operable to issue trust preferred securities and to purchase LLC preferred securities; and (b) receiving over the computer network subordinated notes with a maturity of at least 30 years from a parent. In another aspect, the invention comprises a security that: (a) is tax deductible, and (b) receives equity credit above 50% from Moody's and S&P.
1 . A computer based method comprising:
forming a limited liability company (“LLC”) operable to issue LLC preferred securities over a computer network.
2 . Forming a trust operable to issue trust preferred securities over said computer network and to purchase LLC preferred securities from said LLC over said computer network; and
electronically issuing over said computer network subordinated notes with at least a 30-year maturity to said LLC.
3 . A computer based method comprising:
forming a trust operable to issue trust preferred securities over a computer network and to purchase LLC preferred securities over said computer network; and
electronically receiving over said computer network subordinated notes with a maturity of at least 30 years from a parent.
4 . A method comprising:
forming a limited liability company (“LLC”) operable to issue LLC preferred securities;
forming a trust operable to issue trust preferred securities and to purchase LLC preferred securities from said LLC; and
issuing subordinated notes to said LLC.
5 . A method as in claim 4 , wherein said LLC is operable to invest proceeds from redemption of said subordinated notes into long-dated subordinated loans.
6 . A method as in claim 4 , wherein said subordinated notes have a maturity of at least 30 years.
7 . A method as in claim 4 , wherein said trust preferred securities are 60-year dated preferred securities.
8 . A method as in claim 4 , wherein said LLC preferred securities are 60-year dated preferred securities.
9 . A method as in claim 4 , wherein said LLC is operable to invest proceeds from redemption of said subordinated notes into short term, high quality third party assets.
10 . A method as in claim 4 , wherein said subordinated notes are 20% loaned to affiliates.
11 . A method as in claim 4 , further comprising guaranteeing said subordinated notes.
12 . A method as in claim 4 , further comprising contributing up to 5% of total capital for a managing member interest in said LLC.
13 . A method as in claim 4 , wherein said LLC and said trust are covered by a support agreement that ensures that each will have enough assets to pay its obligations.
14 . A method comprising:
forming a trust operable to issue trust preferred securities and to purchase LLC preferred securities; and
receiving subordinated notes with a maturity of at least 30 years from a parent in exchange for a loan to said parent
15 . A method as in claim 14 , wherein said subordinated notes have a deferral period of 10-12 years.
16 . A method as in claim 15 wherein, after a predetermined period of optional deferral, said parent is obligated to sell common or preferred stock in order to fund distribution payments.
17 . A method as in claim 16 , wherein said predetermined period is five years.
18 . A method as in claim 15 wherein, upon mandatory deferral, said parent is obligated to issue common or preferred stock in-order to fund distribution payments.
19 . A method as in claim 15 wherein, after 10-12 years of deferral, holders of said subordinated notes have a right to accelerate said loan and said notes become immediately due and payable.
20 . A security that: (a) is tax deductible, and (b) receives equity credit above 50% from Moody's and S&P.
21 . A security as in claim 20 , wherein said equity credit is similar to that of perpetual preferred stock.
22 . A security as in claim 20 , wherein said security is a preferred security issued by a trust,
wherein said trust is operable to purchase LLC preferred securities from an LLC, and
wherein said LLC is operable to purchase subordinated notes from a parent with funds received from said trust in exchange for said LLC preferred securities.
23 . A security as in claim 22 , wherein said LLC is operable to invest proceeds from redemption of said subordinated notes into long-dated subordinated loans.
24 . A security as in claim 22 , wherein said LLC preferred securities are 60-year dated preferred securities.
25 . A security as in claim 22 , wherein said security is a 60-year dated preferred security.
26 . A security as in claim 22 , wherein said LLC is operable to invest proceeds from redemption of said subordinated notes into short term, high quality third party assets.
27 . A security as in claim 22 , wherein said subordinated notes are 20% loaned to affiliates.
28 . A security as in claim 22 , wherein said subordinated notes are guaranteed by said parent.
29 . A security as in claim 22 , wherein said LLC and said trust are covered by a support agreement that ensures that each will have enough assets to pay its obligations.