Custom Legal Documents for the IBM AutoLoan Exchange
IBM T. J. Watson Research Center
30 Saw Mill River Road
Hawthorne, NY 10532
Our group at the IBM T. J. Watson Research center
develops transaction-oriented systems which reduce
the processing barriers between businesses and their
customers. We do this by developing advanced,
computationally active user-interfaces, reengineer-
ing business processes, and building interfaces di-
rectly to existing data processing systems.
Early in 1996 we faced the task of providing
document support for a pilot project we were under-
taking with Chase Manhattan Automotive Finance
Corporation (hereafter \Chase") a subsidiary of The
Chase Manhattan Bank. The project would connect
automobile dealers to the Chase automobile loan
decision system via the internet.
It would give
dealers a loan decision in minutes for most credit
It would replace a system of data
entry from faxes that produced loan decision times
measured in hours to days.
Dealers know that customers generally do not
return to the dealership a second time. If they say
they'll be back, they won't. When a customer leaves
without buying a car, odds are there will be no sale.
Quick nancing approval for customers with good
credit would allow dealers to give approved nancing
and sell an automobile to a customer on the crucial
In addition to an electronic credit application,
the system would allow dealers to submit an elec-
tronic loan contract. The electronic contract would
enable the nancial institution to almost immedi-
ately provide funds, thus reducing the \
between the dealer's payment for the automobile
and the bank's payment to the dealer.
The rst lenders on the system would anticipate
growing market share due to increased service to the
dealer. All lenders on the system would enjoy lower
costs for approving loans.
In spite of the electronic nature of this reengi-
lenders, dealers, and purchasers
would (for the forseeab