Hartford and Capital Credit Union clash over $3 million in bankruptcy battle

The dispute centers on two contracts: the General Indemnity Agreement (GIA) and the Intercreditor Collateral Agreement (ICA). The GIA, signed in July 2020, assigned to Hartford all of Pro-Mark’s rights in or related to the bonds. In December 2021, Pro-Mark entered into two business loan agreements with Capital Credit Union, secured by most of Pro-Mark’s assets, including its deposit accounts. Recognizing potential overlapping interests, Hartford and Capital Credit Union executed the ICA in July 2022. The ICA defined “Bank Priority Collateral” and “Surety Priority Collateral,” and set out how proceeds, including insurance proceeds, would be distributed between the parties.