According to documents filed in U.S. District Court for the Central District of Illinois, the FDIC’s $10.4 million lawsuit against former directors and officers of Corn Belt Bank, alleging the defendants “acted recklessly” in approving one or more of five high-risk loans as members of the Bank’s loan committee, has been settled.

The suit cited loans that were approved for Horizon Leasing ($5.5 million), Brentwood Truck Leasing ($5.0 million) and McKenzie Trucking and Leasing ($1.8 million).

The court documents note that the parties had reached an agreement to resolve the case, and a written settlement agreement has been signed by all parties. Terms of the settlement agreement were not disclosed. The motion notes that the agreement calls for the FDIC to file the motion to “dismiss with prejudice”, meaning the case cannot be tried again.

In a statement, former Corn Belt Bank president Jeffrey K. Stark said the allegations in the lawsuit were “denied and vigorously defended throughout the litigation.”

Illinois Department of Financial and Professional Regulation officials closed Corn Belt Bank & Trust Co. on February 13, 2009. The FDIC was named as receiver.

Previously on monitordaily: FDIC Sues Bank Officers/Directors on Loans to Leasing Companies, published March 24, 2011