Bank Seeks To Force County Repayment Of Loan
Thursday, March 22nd 2007, 11:19 am
By: News On 6
DURANT, Okla. (AP) A bank will seek court action to force Bryan County to repay a loan that was taken out to upgrade a jail.
First United Bank Chief Executive Officer Greg Massey said he will seek a legal order requiring county commissioners to pay their obligation.
"I hate that we are having to file something to get the commissioners to do what they are obligated to do," Massey said.
County Commissioner Monty Montgomery said the bank is owed about a $500,000.
The loan was taken out in 2002 to remodel the Bryan County Jail. It was to be paid off with sales tax revenue.
However, Montgomery said this revenue was spent on a building now being used as the auxiliary jail.
He said one annual payment and some deferred payments have been made on the loan. County commissioners decided in January to stop payments until clarification about the obligation could be made.
Montgomery said commissioners were hoping to come to an agreement to pay interest only throughout this fiscal year.
First United is the lead bank on the note, but Landmark Bank, First Texoma National Bank and Shamrock Bank also have an interest in the loan.