Methods and systems are provided for issuing a new type of security, referred
to herein as a "Guarantee Certificate," which offers payments to a holder contingent
upon the occurrence of specified risk-related events that would typically trigger
an insurance or guaranty payment. Guarantee Certificates offer a mechanism for
separating certain payment rights associated with a pool of assets (which may or
may not be securitized) from the remaining payment rights associated with the pool,
such that the payment rights form separate, transferable financial instruments.
These instruments evidence an obligation of a mortgage insurer or a securities
guarantor to make payments triggered by certain default-related events involving
a corresponding (in the case of a mortgage insurer) or an underlying (in the case
of a securities guarantor) mortgage loan or loans. A data processing system creates
and maintains information corresponding to the Guarantee Certificates. A Guarantee
Certificate may be tradable by the holder.