Actually Fifth Third is one of the leading banks in racing. Many banks wont extend credit for something as risky and 5/3 has kept many racing/breeding operations afloat when times are bad.
Banks lend money and charge interest on it. Both parties have to agree to the deal. Banks treat the superrich differently from the average schmoe. Thy extend more credit and offer more generous terms so that when they superrich client will transfer more business to them once the immediate need for creit if past. Fifth Third was probably pretty sure that Zayat had a temporary need for extra cash and would be able to repay soon. It appears that not only was that not the case, he had chosen NOT to disclose a large insurance settlement that could have been used to offset debt. If it is determined that the value of Thorn Song was used as collateral for the loan it is all the more a problem as Zayat, by collateraizing the horse effectively made 5/3 a partner in the horse. You cannot destroy collateral and accept an insurance payment on it and then not inform the leander that it is gone.
Also, the JC rules say that owners are reuired to submit a death certificate to the JC if they have papers. Zayat didn't do so which begs a few more questions. Does he have the papers? Does Fifth Third Bank have them? Was he just trying to be sure that no record of the death was avaialble? Why?
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RIP Monroe.
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