First Security Bank is the third bank to seek a piece of the proceeds of H. Dennis Smiley Jr.'s Arvest Bank stock.
The bank filed a response in Benton County Circuit Court Monday to Arvest's interpleader suit that asked the court to hold the $551,755 in stock proceeds.
Smiley was president and chief executive officer of Arvest Bank of Benton County until resigning March 13.
Arvest claims Smiley was unauthorized to use the stock options as collateral on loans. The initial court filing listed 19 banks that might try to claim the money as collateral for loans to Smiley and HDS Holdings LLC, a holding company he has with his father, Henry Dennis Smiley Sr.
Monday's filing by First Security states Arvest either knew or should have known Smiley was using his stock for collateral.
The filing states Arvest "has executed numerous control agreements in favor of First Security confirming and agreeing to abide by Smiley's pledge of his stock options and recognizing First Security's first lien perfected security interest in the stock options."
Bank of Fayetteville and First National Bank of Fort Smith filed similar responses earlier this month also claiming first shot at the stock proceeds. Both banks produced documents bearing what appears to be signatures from Arvest officials authorizing the use of the stock options to secure loans.
So far three banks have filed complaints claiming loan default.
Delta Trust & Bank claims Smiley, his father and HDS Holdings missed the initial payment on a $245,126 loan he took out Feb. 20.
First State Bank names Smiley, Cynthia Smiley and her company, Design for the Home, as defendants in a case seeking $160,000.
Simmons First National Bank sued the elder Smiley and HDS Holdings for $88,716.
Smiley Sr., chairman of First State Bank of De Queen, claims in filings he didn't sign for loans taken in the name of HDS Holdings LLC.
NW News on 04/22/2014