Ameriana Bancorp in New Castle, Ind., has resolved a long-running legal battle related to a pool of leases it acquired that turned out to be fraudulent.
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The $422 million-asset company said Friday that RLI Insurance Co. of Peoria, Ill., would pay it $2.75 million to settle a suit it filed against RLI in 2003 for refusing to honor surety bonds that backed the lease pools. Ameriana will record the payment as a recovery to its loss allowance in the third quarter.
Ameriana sued RLI after charging off nearly $2.8 million related to leases it bought from Commercial Money Center Inc. of Escondido, Calif.
