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Royal Indemnity Comments on Summary Judgment Ruling Against NetBank

 
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Royal Indemnity Comments on Summary Judgment Ruling Against NetBank
06/07/2007

Royal Indemnity Company is pleased with today's decision by a US Bankruptcy Court granting the motion for summary judgment by the trustee in the Commercial Money Center (CMC) bankruptcy proceedings against NetBank FSB, a subsidiary of NetBank, Inc.

The litigation arises from a program in which surety bonds were issued in the names of Royal Indemnity and other surety companies, securing the payment of equipment leases issued by CMC, a now-defunct leasing company.

In its decision, the Court held that NetBank had neither an ownerhip interest nor a security interest in the CMC lease payments at issue, and that NetBank may not assert claims against Royal Indemnity bonds.  NetBank's claims against Royal Indemnity are pending in federal court in Cleveland.

Royal Indemnity Company is a subsidiary of Arrowpoint Capital Corp.