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First Farmers settles with City on Y Project

A settlement for the Old YMCA project has been reached with the City of Marion and First Farmers Bank and Trust.

The Chronicle Tribune is reporting that First Farmers Bank & Trust has agreed to pay out $300,000 to the City of Marion. The settlement’s terms are covered by a confidentiality agreement, but the Chronicle-Tribune obtained a copy of the settlement agreement Thursday through a public records request.

The city accused First Farmers of breach of fiduciary duty and breach of agreement, alleging the bank gave out the funds to the YMCA project developers without first receiving the paperwork required by the trust indenture agreement between the city and the bank.

The city alleges some of the funds were used for the personal expenses of developer Michael An and the family of former Marion mayor Wayne Seybold.

In the settlement agreement First Farmers does not admit to any of the city’s claims against the bank.

This week the judge entered an order dismissing the case with respect to First Farmers.

You can read more in today’s Chronicle-Tribune.

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