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Canadian bank sues Michael Vick

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looks like everybody wants his share

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-19817767.htm

Canadian bank sues Michael Vick
September 25, 2007: 02:44 PM EST

Sep. 25, 2007 (Thomson Financial delivered by Newstex) --

NEWPORT NEWS, Va. (AP) - Royal Bank of Canada has sued suspended Atlanta Falcons quarterback Michael Vick for more than $2.3 million.

The bank argued that his guilty plea to federal dogfighting charges and the resulting impact on his career have prevented him from repaying a loan.

Vick borrowed $2.5 million in January with plans to use the money for real estate investments, Royal Bank of Canada said in the lawsuit filed in U.S. District Court in Newport News on Thursday.

The loan's terms specify that any employment change negatively impacting Vick's income constitutes a default on the loan, according to the lawsuit.

Last month, Vick pleaded guilty to bankrolling a dogfighting ring at a property he owned in Surry County, near his hometown of Newport News.

Vick faces up to five years in prison when he is sentenced in December, has been indefinitely suspended without pay and has lost all his major sponsors, including Nike. (NYSE:NKE) On Tuesday, he was indicted on state charges related to dogfighting.

'The criminal charges, and resulting impact on the Defendant's employment ... materially affect his ability to repay the Term Note,' the bank said in the lawsuit.

The bank is demanding $2,313,694.37, plus $499 in interest per day, starting Sept. 19, as well as attorney's fees.

Vick's attorneys did not immediately return phone messages Tuesday.


Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
 
I understand he borrowed 2 mil but $499.00 a day in interest is :smh: with all the problems this man is facing.

They are truly kicking a man when he's down.
 
Gemma said:


They are truly kicking a man when he's down.
Click to expand...
Thats the best time to kick a man.

You can only learn from this mans mistake. Never put yourself in a situation to be fucked.

Sad story all around. Let the pile on continue.
 
What's rich dudes doing borrowing money?
maybe if he wasnt spending his money to make overgrown rats kill each other
he wouldnt of needed a damn loan. i swear peeps with money are the dumbest.
 
alexw said:
why is he borrowing money?
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Alex, you thought I was talking shit when I said he probably is going to have huge financial issues from this.

Although these were hockey players, one of my best friend was really good friends with Jimmy D ( he used to manage the Red Wings....crazy old man..still fucking young broads and shit)...Anyway..me and my friend went out for drinks with Jimmy D just before that hockey lockout... and dude was telling us about how some of the players can't go for a few months without a paycheck because they burn so much money. He said hockey players are more notoriously fiscally irresponsible than other athletes but because of his position, he was cool with Dumars and Millen...and he was like.. a lot of these players even borrow money from other players because they just get into too much debt and they blow millions like they are going to continue to earn that type of money forever. He said Dumars mentioned Lindsey Hunter was pawning off Rolexes when he was having contract issues...

He was like(concerning the lockout), they knew exactly how much time the holdout would last because they knew how long it would be before 80 percent of the players started running out of cash because of their spending habits and lack of saving...

I wasn't trying to knock Vick.. but I'm trying to tell you guys...even some of these players with the largest salaries are living check to check because they buy soo much shit ( cars, houses, boats, jewelry)..man..you can spend 5 million just as quickly as 500 dollars when you are buying boats and shit.... ask Sprewell...
 
Heist said:
Fuck off. If YOU were the bank, how would you re-act?!
They're doing the right thing.
I too would do the EXACT same thing too if someone owed me $2MM+ dollars and decided to act reckless.
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I know business is business and I don't know if they asked for it back.

Like a man. You think he can't pay. Request the money don't take him to court. I mean, I got laid off after 9/11 the bank didn't take me to court and repossess my car when I started unemployment. I still made my payments and kept it pushing.

If they think there is a chance he won't pay and it's in the verbage of the agreement ask for it back. Give him a deadline to repay it THEN take him to court.

Like a man...
 
I withdraw my formerly steadfast support for Mike Vick from here on. He is a bumbling fool. Why would you borrow 2m when you have at least 15 m in the bank and not pay back.

The bank is doing the right thing. They have a duty to their shareholders and investors and that includes getting back money that they loaned out.
 
Mad Boma said:
I know business is business and I don't know if they asked for it back.

Like a man. You think he can't pay. Request the money don't take him to court. I mean, I got laid off after 9/11 the bank didn't take me to court and repossess my car when I started unemployment. I still made my payments and kept it pushing.

If they think there is a chance he won't pay and it's in the verbage of the agreement ask for it back. Give him a deadline to repay it THEN take him to court.



Like a man...
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I am sure all these have been done. I am sure a demand letter was sent to him, and the law suit can be easily withdrawn upon payment and even during the trial. The only thing is that they will tack on attorney fees.

I just re-read the article and it suggests that he may not have defaulted yet. Well, there is a concept called anticipatory default, just like here where Mike Vick was given the loan based on his employment, but he no longer works because of some bad shit that he did, and they can consider it a default.
 
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Mad Boma said:
I know business is business and I don't know if they asked for it back.

Like a man. You think he can't pay. Request the money don't take him to court. I mean, I got laid off after 9/11 the bank didn't take me to court and repossess my car when I started unemployment. I still made my payments and kept it pushing.

If they think there is a chance he won't pay and it's in the verbage of the agreement ask for it back. Give him a deadline to repay it THEN take him to court.

Like a man...
Click to expand...




The article wasn't very clear on whether this loan was being re-paid or not. As a matter of fact, most lenders won't bother you if you're making the agreed upon payments.

Frankly, I'm surprised. Vick has received some huge bonus checks over the years. The only way you can get rid of money that fast is to put it all in a trash can and light it on fire.

But one thing I've always said and will say again.... being rich these days doesn't equal being smart.
 
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jagu said:
I am sure all these have been done. I am sure a demand letter was sent to him, and the law suit can be easily withdrawn upon payment and even during the trial. The only thing is that they will tack on attorney fees.

I just re-read the article and it suggests that he may not have defaulted yet. Well, there is a concept called anticipatory default, just like here where Mike Vick was given the loan based on his employment, but he no longer works because of some bad shit that he did, and they can consider it a default.
Click to expand...





Actually, this article was incomplete. I read the same story on AJC that included this paragraph not listed in the posted article

"The lawsuit claims that Vick is in default of the loan, which carried a balance last week of $2,313,694.37, for "numerous reasons," including that he failed to promptly provide a semi-annual personal financial statement and disclosure of his liquid assets as required by the loan."

This was some type of "business" loan. And a requirement for loans like this one is that the borrower provide a periodic financial statement. In this case, the loan required Vick to submit a semi-annual personal financial statement. Obviously he failed to do that.


I noted the financial statement requirement in particular because I have worked with enough small businesses on matters such as this.

There are quite a few small business owners that try to overlook the financial statement requirement because they think everything is okay so long as they are making payments. Then unfortunately, the day comes when they start skippin payments.

Hey.... just to show you how long I been doin this kind of stuff.... I always ask for "my cash" up front. If he ain't payin his bank.... chances are .... he ain't gonna pay me. :lol::lol::lol:

But you must understand... the financial statement was a "requirement" for his loan. If he did not give them one when they asked, he is "breach" of his contractual obligations. And if he "was" making payments, I doubt they would have bothered him.



 
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TEN said:
What's rich dudes doing borrowing money?
maybe if he wasnt spending his money to make overgrown rats kill each other
he wouldnt of needed a damn loan. i swear peeps with money are the dumbest.
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u most not know many rich dudes. wealthy people never use their own money when investing in ventures. they use the bank's money.
 
Damn Right said:
u most not know many rich dudes. wealthy people never use their own money when investing in ventures. they use the bank's money.
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Yeah I don't think too many people understand the money game.

Borrow from sources that have low interest payments and invest in enterprises that have a higher return.

Therefore you make money with someone else's money.

When japan's interest rate on loans was zero (0%) in the 80's, banks would borrow money from japan and invest it elsewhere........
 

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