ACC pursues Louth couple for €1.8m in unpaid loans

ACCBANK IS pursuing a couple for summary judgment for some €1.8 million over unpaid loans related to the purchase of eight properties in Co Louth.

ACC had appointed a receiver over six of the properties in last May with a view to selling them to recover its loans, two of the properties having earlier been sold by Frank and Ann Kelly, Highbury, Rathmullan Road, Drogheda.

After the receiver encountered threats and numerous difficulties, ACC said it offered to suspend the receiver’s appointment if the defendants would co-operate in the sale and also offered not to register any judgment it might obtain against the defendants’ home.

No agreement was reached with the defendants and ACC alleges Mr Kelly made further threats to the receiver and to the bank.

Mr Kelly, in a letter to ACC in July 2009, said the defendants’ understanding was that the loan was offered for a 25-year period. The properties involved were a long-term investment and “not a get-rich-quick scheme for either ourselves or Rabobank”, he wrote.

Given the adverse market conditions, the defendants had decided it was neither viable nor prudent to continue selling the properties and sought to service the loan for the rest of its term, he added.

The proceedings by the bank against the Kellys were admitted to the Commercial Court yesterday by Ms Justice Mary Finlay Geoghegan on the application of Ciarán Lewis, for ACC.

The judge fixed the summary judgment application for hearing next month.

ACC claims that in October 2008 it advanced €2.1 million to the defendants to refinance their borrowings related to six investment properties and to enable them purchase two other residential properties. As security, the defendants granted legal charges over all eight properties to the bank, it is claimed.

ACC said the terms of the loan agreement required the defendants to make interest repayments only on that capital sum for the first 36 months of the loan.

After the defendants fell behind with interest repayments, the bank said it reached an agreement for the defendants to sell the charged properties on a phased basis and to pay all rental income from the properties directly to the bank monthly.

ACC said arrears continued to increase but it was told by the defendants they had retained an estate agent to sell the charged properties. By March 2009, interest arrears had increased to some €120,000 and, in April 2009, the bank demanded repayment of all sums due.

After that demand was issued, the bank claims two of the charged properties were sold, reducing the defendants’ debt by €414,055. Some €1.8 million was still owing in May 2009 and the bank that month demanded immediate repayment. When repayment was not made, it initiated the legal action.