Bank agrees to pay $300K city after project involving bonds
MARION, Ind. (AP) — First Farmers Bank & Trust has agreed to pay $300,000 to a northeastern Indiana city following a failed renovation project involving municipal bonds.
The settlement’s terms with the City of Marion are covered by a confidentiality agreement, but the Chronicle-Tribune obtained a copy of the agreement Thursday through a public records request.
The city initially sued the bank seeking to recover more than $1.9 million, bond proceeds that the city says the bank disbursed without proper oversight. The bank was trustee of the bond proceeds for the former YMCA renovation project.
In the settlement agreement First Farmers doesn’t admit to any of the city’s claims against the bank. It’s not an admission of liability or responsibility for anyone involved.
Information from: Chronicle-Tribune, http://www.chronicle-tribune.com