THE HIGH Court has cleared the way for a bank to appoint a receiver over certain funds of a woman who allegedly got a loan of €785,000 on security of lands valued at €3.6 million which turned out to be “bogland” worth about €100,000.
An earlier freezing order over the €365,0000 funds in question was varied by consent at the court yesterday, which means Bank of Ireland can appoint a receiver over the money held in a solicitor’s client account.
The bank claims it had given a €785,000 loan to Catherine O’Brien, of An Grianán, Ballinroad, Dungarvan, Co Waterford, last year to facilitate the purchase of a supermarket in Dungarvan.
It said she was to repay the loan in instalments over a five-month period, and she offered 10.5 acres of land at Cloverhill, Mallow, Co Cork, as security.
That land was valued at €3.6 million and was to be sold. However, the proposed sale never went through and the loan was not repaid, the High Court heard.
Last December, the bank secured judgment against Ms O’Brien for €845,000 and also sought to have a receiver appointed to administer a sum of €365,000 held in the client account of a Co Waterford-based firm of solicitors.
It said it had carried out its own investigation into the Mallow lands – described by counsel as “bogland” – and found their estimated worth between €80,000 and €100,000.
The bank had applied to have the €365,000 in the solicitor’s account paid over to it. Two other people who claim to have also lent money to Ms O’Brien had secured freezing orders over her assets and some of those applied to the solicitor’s account.
Yesterday, Ms Justice Mary Laffoy was told the parties involved had agreed the freezing order could be varied to allow the Waterford solicitor to release the funds to the bank so a receiver could be appointed over them.
The court adjourned to next week all other proceedings by the bank and by the two people who are seeking to recover loans.
The court heard Ms O’Brien had instructed a solicitor last Friday, and her counsel had not seen all of the papers related to the proceedings against her.