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Thread: Canadian Bank Sues Vick for Return of Funds

  1. #1
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    Canadian Bank Sues Vick for Return of Funds

    Now, why would someone who received $20 million of a $37 million SB need a LOC for another $2.5 mill?

    If he was using the money for 'real estate' investments, I'm sure the bank got the collateral deeds and documents, right?

    This $$ was Vick's 'spare change', and this bank has in all likelihood ZERO chance of seeing their money again...but anyone with an ounce of intelligence has to ask why would they lend it to him to begin with?

    Play with fire? Sometimes you get burned...everyone's going to be left holding the bag in the financial dealings of Vick.


    Canadian bank seeks to recoup entire line of credit
    By Len Pasquarelli
    ESPN.com
    (Archive)
    Updated: September 25, 2007, 6:07 PM ET


    ATLANTA -- Already under indictment on federal and state charges related to dogfighting activities, embattled Atlanta Falcons quarterback Michael Vick is being sued by a Canadian bank which claims he is in default on a $2.5 million line of credit he received in January.

    The Royal Bank of Canada, which conducts business in the United States as RBC Centura, has filed suit in U.S. District Court in Newport News, Va., seeking payment on a promissory note Vick obtained for what he told the bank were real estate investments.

    The lawsuit was first reported by the Daily Press of Newport News and confirmed Tuesday afternoon by a court clerk.

    Calls to the Royal Bank of Canada were referred to the bank's attorneys who did not return messages. Vick's attorney, Lawrence Woodward, did not return a message.

    When the suit was filed last week, the balance on the line of credit was $2.313 million. The bank is demanding payment of the full amount, interest of $499 per day, commencing on Jan. 19, and legal fees.

    The suit, filed with District Judge Henry C. Morgan Jr., contends that Vick was apprised in writing of the demand for payment by Sept. 10, and that he did not meet the deadline. It further states that Vick did not provide the bank with financial statements that were required as part of the loan agreement.

    Vick obtained the line of credit on Jan. 18 and shortly thereafter filed papers acknowledging that the money was to be used for real estate investments, and that "such proceeds were not to be used primarily for personal, family or household purposes."

    The lawsuit cites elements of the loan agreement which stipulate that Vick, who has been suspended indefinitely by the NFL, is in default if there are any changes in his employment status which might impact his ability to repay the note.

    "The criminal charges and resulting impact on the Defendant's employment . . . materially affect his ability to repay the Term Note," the lawsuit argues.

    The Falcons have filed a non-injury grievance against Vick and are attempting to recover $20 million of the $37 million in bonuses paid to him as part of the 10-year, $130 million contract extension signed on Christmas Eve 2004. An arbitration date of Oct. 4 has been set for that action.

  2. #2
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    Nancy Grace (in your face) is freaking out over the Vick news today ... saying he is getting off easy (wasn't indicting on other charges, etc.)

  3. #3
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    He's not getting paid right now is he? If he is, that 2.5 mil is like one month's pay.

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    Quote Originally Posted by Buzzsaw
    He's not getting paid right now is he? If he is, that 2.5 mil is like one month's pay.
    Nope, he's not getting paid...which is why they want their money back. That, and the fact that his 'future' employment is in serious jeopardy.

    But it begs the question...if someone can make $2.5 mill/month, why does he need a $2.5 mill LOC?

    And, what moron decided that Vick was a capable 'real estate' investor?

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    Just suppose MV wanted thre funds for ready cash for his legal team?

    Rbc makes loans to individuals for all kinds of "investments". They will add in interest and their legal costs, etc... then go for their own judgment which they can levy in other jurisdictions. More interesting will be if Va. moves on the property as part of a criminal seizure.

    I say you put OJ, MT, MV all in the same cell- they can all bs each other!

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    Quote Originally Posted by jetliner
    Rbc makes loans to individuals for all kinds of "investments".
    I'm sure they do....but saying they lent the money to Vick for 'real estate investments' is laughable...and, if he used it for 'real estate investments', I'm sure Vick will forward the list of real estate he 'invested' in to them right away.

    Quote Originally Posted by jetliner
    They will add in interest and their legal costs, etc... then go for their own judgment which they can levy in other jurisdictions. More interesting will be if Va. moves on the property as part of a criminal seizure.
    The Commonwealth of VA will move to seize his property after he is convicted. There will be a line of people waiting to get their money back from Vick.

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    The sad thing is that I can't even use one of my many exchange rate jokes anymore....

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