CDA runs after Rota land over delinquent loan

The Commonwealth Development Authority sued four persons yesterday over a delinquent loan, asking the court to allow the foreclosure and sale of two mortgaged lots on Rota.

The CDA also impleaded the U.S. Small Business Administration, Mobil Oil Micronesia, and the Bank of Guam as defendants, all of which might have interests in the mortgaged lots. The CDA asserted that its rights over the mortgaged properties were superior to those of the SBA and defendant companies.

In a civil complaint filed with the Superior Court, CDA lawyer F. Matthew Smith sued the Manglonas—Benita A., Vincent A., Bernadita A., and Prudencio T.—over a delinquent loan that was acquired in September 1985. Smith could not say if Benita A. Manglona is the same person as the board member of the Marianas Public Lands Authority.

According to the complaint, Mobil Oil entered into a lease agreement with Vincent and Benita in June 1987 in connection with a service station lease. The lot involved in the transaction measures 735-sqm, the same Sinapalo property that was the subject of two mortgages by Vincent and Benita to the Bank of Guam in April 1999.

In April 1988, Vincent and Benita also mortgaged to the SBA another Sinapalo lot measuring 929-sqm.

Smith said that, when Vincent and Benita acquired a $56,000-loan from the Economic Development Loan Fund in 1985, they executed a promissory note that committed monthly payments from February 1986 to June 1995, until the loan would have been fully paid. The two collateralized the two Sinapalo lots. The CDA now controls the assets of the Fund.

In January 1986, the four Manglonas entered into another transaction with the CDA, which resulted in the revision of the loan to a new principal amount of $57,747.

Smith said the Manglonas defaulted on the loan payments and were notified about the situation in January this year. Despite demand, Smith said the Manglonas failed to settle their obligation.

As of Aug. 31, 2004, Smith said the Manglonas’ debt amounted to $20,396.14, including interest and penalty charges.

Smith asked the court that the mortgaged lots be foreclosed and auctioned for the proceeds to cover the delinquent loan payments. He also asked the court to seize certain movable properties that the Manglonas collateralized so that they could be auctioned.

He asked the court that the SBA and defendant companies be foreclosed of any equity in the mortgaged lots, asserting that these entities’ interests over the properties were subordinate to that of the CDA.