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CDA sues Rota couple over unpaid loan
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Posted on Mar 01 2006
The Commonwealth Development Authority yesterday sued a couple from Rota for alleged non-payment of $22,198 loan plus accrued interest.
CDA, through the Vicente T. Salas law office, sued Ramon M. Sablan and Faustina T. Sablan for breach of contract.
CDA asked the Superior Court to order the defendants to pay the amount or seize the mortgaged property and sell them to satisfy the judgment.
CDA said that as of Jan. 10, 2006, the CDA is owed by the defendants the principal sum of $20,494.54, plus accrued interest of $1,047 plus penalty charges of $657.34, for a total of $22,198.89 with interest at 5 percent per annum.
The Salas law office stated in the complaint that on April 12, 1996 CDA executed a direct loan to Ramon and Faustina Sablan in the principal amount of $20,000.
The couple mortgaged, among other assets, their 929 square meters of land in Tenetu, Rota, to secure the loan.
The Salas law office said that on Jan. 23, 1997, at defendants’ request, CDA revised and extended the loan, making a new principal amount of $19,858.74.
At defendants’ request, CDA revised and extended the loan four more times, the last in August 2000, making a new principal amount of $20,494.54.
“Defendants are in default in the payments of indebtedness owed to CDA,” the complaint said.
