LUBBOCK, TX (KCBD) - Judge Robert Jones has ruled an agreement between Levelland-based AimBank and two Reagor-Dykes dealerships can move forward despite objections from GM Financial.
The ruling approves the sale of two Certificates of Deposit (CDs) by Reagor-Dykes to pay off the amounts of checks the dealership wrote hours before the auto group declared bankruptcy on August 1 of last year.
Jones made the ruling Monday afternoon in a brief conference call involving representatives from the bank, financial company and attorneys for Reagor-Dykes.
The agreement, first pitched on January 22 of this year, cashes the two CD’s totaling more than $1 million to pay off the checks that were cashed in late July before being dishonored by VistaBank.
The two dealerships involved, Reagor-Dykes of Plainview and the Reagor Auto Mall, owe AimBank more than $800,000 after each writing the checks to Reagor-Dykes Snyder.
Jones referenced previous testimony in discussing the bag checks, saying the checks “closed the circle of the kiting scheme” - something RDAG has been accused of doing by multiple banks.
GM Financial announced their opposition to the agreement on Feb, 20, stating they had “superior interest” in any CDs as they were funds available. Judge Jones disagreed, telling GM that the CDs were not deposit accounts, and were viewed as property under Texas and federal law, meaning Reagor-Dykes had the right to sell their CDs to AimBank as a way to pay their debt.
One thing Jones did not address is what would then happen to any leftover money, slightly more than $230,000, left following the sale of the CDs.
He then asked AimBank to file an additional order once the money had been secured.