United Bank Claims Interest on Ohio Valley University Funds | News, Sports, Jobs
PARKERSBURG — United Bank filed a priority notice with Wood County Circuit Court regarding funds released from the Ohio Valley University bank account this month.
The notice requesting repayment of a loan from the bank takes precedence over the award of $1.2 million to Aladdin Food Management Services LLC.
In October 2020, Wood County Circuit Judge Jason Wharton awarded Aladdin the award following a lawsuit that the school failed to make payments for services amounting to $1 .16 million.
On December 28, Aladdin filed a request to release funds from OVU’s bank account at United Bank, which had a balance of approximately $163,000, according to the request.
United Bank’s filing indicates he has priority of payment due to an unpaid loan taken out in July 2008 for $200,000 with the security deposit account. Under the terms of the line of credit, not including late fees and collection charges, the university now owes $200,985.41, the motion says.
“While Aladdin claims the deposit accounts should be paid to it to enforce the judgment Aladdin has against OVU, United holds a perfect secured interest before the garnishment in the deposit accounts which takes priority over the claim of ‘Aladdin at the Funds’, says the notice.
United Bank entered into a forbearance agreement in March 2020 stating that OVU only had to make interest payments until July 2021, according to the motion.
“From 2020 and through 2021, OVU failed to make the required interest payments to United on time and was therefore in default under the terms of the forbearance agreement,” says the notice.
In July 2021, Aladdin presented United with documents indicating that it had won the lawsuit against OVU for $1.2 million and that United should suspend deposit accounts and await further instructions as to when the funds could be released. removed from the account and given to Aladdin, the motion says. On the same day, United responded saying the accounts were frozen, as they remain so.
“Due to its privileged interest, United are under no obligation to remit any funds to Aladdin,” says the notice.
The motion asks the court to dismiss Aladdin’s motion to release funds from OVU’s United accounts and rescind Aladdin’s favor.
An email to Michael Ross, president of OVU, was not answered by the deadline, and the university’s phones were not connected. United Bank did not return calls for more information or comment.
Candice Black can be contacted at [email protected]