Newspaper article THE JOURNAL RECORD

First National of Okc Files Counterclaim in Norman Suit

Newspaper article THE JOURNAL RECORD

First National of Okc Files Counterclaim in Norman Suit

Article excerpt

First National Bank of Oklahoma City has denied allegations of fraud charged against it in a $15 million lawsuit by Fi rst Norman Bancshares and Philip C. Kidd Jr.

The bank also filed a counterclaim to collect on $4.2 million in notes and guarantees.

The counterclaim, filed May 28, one day before the closing of First National Bank and Trust Co. of Norman, added the bank as a third-party defendant along with the Donna K. Kidd Trust and Margaret Lee Kidd Trust, Philip C. Kidd III, Donna K. Kidd and Margaret Lee Kidd as partners of the Kidd Bar P Ranch.

First Norman Bancshares was the holding company of First National Bank of Norman before the bank's close. The bank's assets were purchased by Liberty National Bank of Oklahoma City, which reopened the bank as a Liberty branch on Monday.

First Norman attorney Terry Tippens indicated the holding company is trying to get enough money from a lease agreement on the bank building with Liberty National Bank in order to settle the $3.7 million claim of First National of Oklahoma City.

The suit against First National of Oklahoma City claimed the bank conducted an examination of the records of the Norman bank prior to an exam by the Comptroller of the Currency. First National of Oklahoma City allegedly concluded its $3.7 million stock loan was a total loss and it should obtain collateral to protect its interest.

The suit said the officers of the Norman bank were not made aware of the examination's findings.

In its exam of First National of Norman, the Office of the Comptroller of the Currency found about $1 million in loans were written off as a loss, requiring a capital injection of $500,000.

First National of Oklahoma City, seeking to collaterize its loan, secured the $3.7 million note with a first mortgage on the Norman bank building at 116 S. …

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