The article discusses a recent decision of the United States Bankruptcy Court for the Northern District of Iowa serves as a reminder that banks should proceed with caution when relaxing bank procedures to appease large account holders. In the bankruptcy case Sarachek v. Luana Savings Bank (In re Agriprocessors, Inc.), the court ordered a bank to disgorge over $1.5 million for allowing repeated account overdrafts, which the chapter 7 bankruptcy trustee successfully argued were essentially short-term loans made to the debtor by the bank prior to the bankruptcy filing. Read more: http://www.law.com/sites/camishasimmons/2015/05/10/bankruptcy-court-orders-bank-to-disgorge-over-1-5-million-for-allowing-account-overdrafts/
Camisha is the Founder and Managing Member of Simmons Legal. She is dedicated to assisting parties in protecting their interests in corporate restructuring, creditors’ rights, real estate transactions, other business transactions, and litigation matters.
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