Bank claims rental company sold equipment used to secure loan
A lender alleges one of the businesses to which it lent money sold property it used to secure a loan.
Communitybank of Texas filed a lawsuit Sept. 30 in Jefferson County District Court against H2O Production Systems, doing business as Boumans Trailer and Equipment Rental, and Richie Brothers Autioneers.
In its complaint, Communitybank alleges it has a valid Uniform Commercial Code security interest in all of H2O's equipment.
Communitybank discovered Richie Brothers sold the equipment at auction for $70,000, according to the complaint. The money should have been paid to Communitybank, but the bank not received payment, the suit states.
"H2O has wrongly made a claim on such sales proceeds and Richie Bros. has declined to distribute the proceeds to CBTX," the complaint says.
In its complaint, Communitybank wants the court to declare the rights of the parties in the complaint and award the bank damages, costs and fees, plus other relief it deems just.
Gary Neale Reger of Orgain, Bell and Tucker in Beaumont will be representing it.
Judge Gary Sanderson, 60th District Court, has been assigned to the case.
Case No. B191-033