Newspaper article THE JOURNAL RECORD

$15 Million Suit Filed against First National

Newspaper article THE JOURNAL RECORD

$15 Million Suit Filed against First National

Article excerpt

Jr. filed a $15 million lawsuit Wednesday against First National B ank and Trust Co. of Oklahoma City in Cleveland County District Court.

First Norman, the holding company for First National Bank and Trust Co. of Norman, and Kidd alleged in the suit that employees and attorneys of First National of Oklahoma City conspired to threaten, coerce and defraud him into making certain agreements.

Kidd claimed First National of Oklahoma City did not disclose that a loan advancement of $500,000 was made to First National of Norman in order to obtain mortgages on property valued in excess of $6 million.

The dispute stems from a $3.7 million debt owed by First Norman to First National of Oklahoma City on which the bank's only collateral security was stock of First National of Norman.

Approximately $1 million in loans were written off as a loss after the Comptroller of the Currency conducted an examination of First National of Norman in December 1984, the suit said.

The examination also showed cause to require a capital injection of $500,000, the suit said.

Shortly thereafter, First Norman asked First National for a $500,000 loan, but was informed the note would have to be secured by Kidd's personal guaranty and additional stock collateral, according to the suit.

Prior to the Comptroller's examination, First National of Oklahoma City had already examined the recorded of First National of Norman and determined their $3.7 million stock loan was probably a total loss and it should obtain at least $3.7 million in other types of collateral to protect its interest, the suit said.

According to the First Norman complaint, neither Kidd nor any officers of the bank were informed of First National of Oklahoma City's conclusions.

Because First National required additional collateral, Kidd asked to borrow the required $500,000 in capital from Norman Bank of Commerce and received approval, the said said. …

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