BofA Sues Ala. Lender Over $1B In Loan Proceeds

Law360, New York (August 13, 2009, 3:03 PM EDT) -- Bank of America NA has accused Colonial Bank of refusing to turn over $1 billion in loans and cash it held for the financial giant, marking more trouble for the Alabama-based financial institution already under investigation by federal regulators.

In a complaint filed Wednesday in the U.S. District Court for the Southern District of Florida, Bank of America alleges that Colonial has violated an agreement between the two financial institutions that made the defendant custodian of various loans and loan sale proceeds.

Bank of America held...
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