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Bank sues US studs for defaulted loans

MAJOR American thoroughbred operations Buck Pond Farm and McKathan Brothers Farm have had lawsuits filed against them by PNC Bank.

The suit, filed in Fayette Circuit Court in Lexington, Kentucky, claims the farms are in default against outstanding loans.

Doug Arnold's Buck Pond Farm in Versailles, Kentucky, stands stallions including Bull Market and State City, while J. B. and Kevin McKathan's Florida-based outfit selected Kentucky Derby winners Real Quiet and Silver Charm for their owners.

PNC claims that Buck Pond and the Arnolds are in default on two separate loans and owe $505,499.99 and $432,766.67 plus associated interest.

The suit against the McKathan Brothers states that they owe $499,778.88 plus interest.

The original loans were taken out from National City Bank, which was acquired by PNC in late 2008.

PNC are seeking a declaration that the bank can claim horses, stallion nominations or shares that were given as collateral on the loans.

Last year PNC Bank filed a similar suitagainst the Allen E. Paulson Living Trust for a defualted loan that had been obtained from the National City Bank.

 

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