The bank said the homebuilder failed to pay more than $5 million in principal and interest due on two loans, according to the lawsuit filed in New York State Supreme Court in Manhattan on Wednesday.
The loans, made in February, were for $50 million and $55 million.
Urbi said in April it had hired advisors to help it review options including restructuring debt.
Barclays and Credit Suisse are also suing Urbi for failing to make payments on derivative positions.
Urbi and its larger peers Homexand Geoare struggling with heavy debt loads and a slowdown in new home sales.
(Reporting by Elinor Comlay; Editing by Carol Bishopric)
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