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The Atlanta Journal-Constitution
Published on: 05/08/08
Michael Vick has been ordered to pay more than $2.5 million to the Royal Bank of Canada in a court order filed Wednesday.
The United States District Court for the Eastern District of Virginia granted a motion for summary judgment against Vick for default and breach of a promisory note from Jan. 18, 2007.
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Vick was found in default of $2,421,170.90. He also must pay interest of the rate of $499 per diem from Sept. 19, 2007 from May 7, 2008 — a total of 231 days and a sum of $115,269. The order also states that Vick must pay the bank's attorneys' fees and costs in the amount of $11,950.97.
Royal Bank of Canada, which operates as RBC Centura in the United States, first sent a letter on Aug. 31, 2007 to Vick demanding repayment of a line of credit that he'd taken in January 2007 for a real estate venture. "Such proceeds were not to be used primarily for personal, family or household purposes, " according to the loan.
The lawsuit claimed that Vick was in default of the loan 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.
The suit also claimed that Vick was in default because of an "adverse change" in his employment "which could affect the borrower's ability to repay the note."
Vick is serving a 23-month sentence in federal prison for a felony conviction on charges related to dogfighting. Vick also faces dogfighting charges in the state of Virginia. A trial is scheduled for next month.
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