The Bank of Vernon, Ala., dropped its lawsuit against Columbus businessman David Shelton.
The parties have agreed to settle, according to documents filed in Lowndes County Circuit Court.
In its suit, the Bank of Vernon claimed Shelton defaulted on a $887,734.84 loan.
According to the complaint, which was filed with the Lowndes County Circuit Court on May 25, Shelton promised to repay the loan, plus interest, by April 8.
The terms of the promissory note state that in the event of default, “the entire indebtedness is due and payable.”
The bank also requested attorney”s fees of $266,300, plus interest.
No court date was set in the matter.
Sixteenth Circuit Judge Lee Howard signed off on the dismissal on Aug. 18.