Former judge: Land was collateral for just $10K

A former judge said he allowed the use of his land as collateral for just $10,000 of the Commonwealth Development Authority loan to former Board of Education teacher representative Ambrose Bennett and not for the entire $61,000 loan.

“I never signed the promissory note of $61,000 loan to CDA,” said former Superior Court associate judge Juan T. Lizama in his opposition to CDA’s motion for summary judgment and his motion for summary judgment against CDA.

He said he was a signatory to the mortgage-loan agreement between Bennett and CDA but his liability under the mortgage extend only to his piece of land that he provided as collateral to Bennett’s loan.

He said CDA and Bennett were looking for a $10,000 collateral so he agreed to use his property as security interest for Bennett’s $61,000 loan from CDA. Lizama said the deal was discussed between him, Bennett, and CDA’s Oscar Camacho.

Lizama said the property that he used as collateral to the mortgage is still being preserved and secured.

He said his liability is only to the extent of the security interest he provided.

Lizama said when the loan was executed, he did not sign the promissory note and when the $61,000 check was issued, it was issued to Bennett.

Therefore, Lizama said, there is no genuine issue of fact that he is liable for the entire $61,000 loan but rather only to the extent of the collateral he provided.

Lizama also attached to his opposition to CDA’s motion Bennett’s declaration in which the latter agreed that he asked Lizama if he could help him with a real property worth $10,000 to be provided as security for his loan and that Lizama agreed.

Bennett agreed with Lizama’s declaration that he, Lizama, and CDA’s Camacho discussed this matter and they all agreed to this arrangement.

Bennett said he is the borrower of the $61,000 loan from CDA.

Last December, CDA sued Bennett, his tricycle dealership, and Lizama over alleged non-payment of a $39,828.49 loan plus accrued interest, penalty charges, legal fees, and costs.

CDA included Lizama as co-defendant in the lawsuit because it was he who allegedly executed a fee simple mortgage to secure the amounts Bennett and his Lil & Bro’s Trike Dealership & Rentals owe under a promissory note.

When asked for comments last December, Bennett said he is thankful to CDA for the loan but that it was just unfortunate that the economy was terrible at the time he opened his company.

Bennett said he also had a heart attack and cancer.

Bennett admits the principal amount and is only protesting the interest.

CDA asked the court that the mortgaged property be sold.

According to Dockter in the complaint, on April 1, 2011, CDA extended a $61,000 loan to Bennett and Lil & Bro’s Trike Dealership & Rentals.

In return, Bennett and Lil & Bro’s Trike Dealership & Rentals executed a promissory note, wherein it agreed to repay the loan, plus interest at 7 percent per annum.

Dockter said that Lizama mortgaged to CDA 1,186 square meters of land.

Dockter said Bennett and the company have failed to make the promised monthly payments.