Vectra Bank Colorado has filed a state court lawsuit accusing a Denver-area commercial finance company and its affiliates of defaulting on a multimillion-dollar loan and improperly withholding pledged collateral.
In a complaint filed Monday in Colorado’s 2nd Judicial District Court, Zions Bancorporation NA, operating as Vectra Bank Colorado, alleges that CSI Holdings LLC, its chief executive Christopher A. Smith, and related entities CSI Factoring LLC and CSI Financial LLC failed to repay a loan that was increased to $6.5 million earlier this year.
According to the filing, Vectra originally extended a $2 million loan to CSI in 2014. The agreement included a security arrangement pledging all of the company’s assets as collateral. The bank says the parties later amended the agreement in July, raising the loan amount to $6.5 million and extending the maturity date to early October.
Vectra claims the revised loan matured on Oct. 7 without repayment and that the defendants have since refused to turn over collateral despite repeated demands.
“Defendants have failed to timely cure the loan and have rebuffed all demands to turn over the collateral pledged to secure the loan,” the bank alleged.
The lawsuit says CSI now owes the bank more than $4.5 million, excluding attorney fees and additional costs. Vectra also accuses the defendants of concealing information related to pledged assets, making it difficult to determine the value of the collateral.
Alongside the complaint, Vectra filed a motion seeking a temporary restraining order, alleging that CSI is withholding details about collections activity tied to its accounts receivable. The bank says those receivables were pledged as collateral in the event of default.
Vectra further alleges that CSI took ownership of an Oregon farm in 2024 through a deed in lieu of foreclosure from Willamette Valley Hop Farms Inc., which reportedly owed CSI more than $1.7 million. The bank claims the transaction was not disclosed, violating the security agreement, and that CSI is now attempting to sell the property without the bank’s consent.
“Defendants acquired the farm in violation of the agreement and intend to market and sell the farm,” Vectra said, alleging unjust enrichment.
Vectra is asserting claims for breach of promissory note, breach of commercial guaranty, replevin and constructive trust. The bank is seeking repayment of the outstanding balance and a court order imposing a constructive trust over the Oregon farm, including its leases and any proceeds from a sale.
CSI Financial describes itself as a Denver-based commercial finance firm providing loans to small and mid-sized businesses across manufacturing, wholesale and distribution sectors.
Representatives for CSI and Vectra did not immediately respond to requests for comment.
Vectra is represented by Steven E. Abelman and Amalia Y. Sax-Bolder of Brownstein Hyatt Farber Schreck LLP.
The case is Zions Bancorporation v. CSI Holdings LLC et al., case number 2026CV30034, in the 2nd Judicial District of Colorado.
