04194242 is referenced by 51 patents and cites 2 patents.

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.

Title
Method and system for determining interest rates
Application Number
5/725535
Publication Number
4194242
Application Date
September 22, 1976
Publication Date
March 18, 1980
Inventor
Robert Robbins
Atlanta
GA, US
Agent
Sherman & Shalloway
Assignee
William Norman Robbins
GA, US
Betty B Robbins
GA, US
Nancy Fern Hamburger
GA, US
Patricia Ann Cotts
GA, US
IPC
G06F 13/00
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