Anglo Irish Bank has begun legal action to recover loans of €70m from its former chairman Sean FitzPatrick.
The bank entered a summary summons in the High Court today. Sean FitzPatrick had deadline of yesterday to submit proposals to repay loans.
Today the bank took the first step to initiate legal action to recover its money.
It is understood Anglo is seeking repayment of €70m.
In the company's financial results last year loans to Mr FitzPatrick were then listed as €106m.
A shareholders meeting of the bank was told last year the former chairman had invested in film finance deals, his pension, property and Anglo shares.
He also had put funds into a Nigerian oil project and a casino in Macau.
For eight years the loans were hidden from investors.
When they were revealed in December 2008 Mr FitzPatrick had to stand down as chairman.
By issuing a summons today it means there will be a hearing in the Commercial Court.
Mr FitzPatrick will have an opportunity to enter a defence. The bank will seek a judgement against Mr FitzPatrick.
If it is ultimately granted that judgement it would mean it could take steps to seize his assets if it wished.
A spokesman for the Minister for Finance Brian Lenihan said the minister welcomed the action by the bank.
He said the new management Anglo was determined outstanding obligations of borrowers were fulfilled.
The move against Mr FitzPatrick follows legal action by the bank against its former chief executive David Drumm to recover loans of €8m.
