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Firm seeks foreclosure of couple’s land leasehold due to $100K debt
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Posted on Aug 17 2004
A company sued a prominent business couple to collect on an unpaid loan worth over $100,000, seeking to foreclose leasehold rights over six parcels of land on Saipan.
Pacific Asset Management Corp. filed with the Superior Court Monday a civil action against David Trung Quoc Phan and his wife, Flordeliza.
The complaint showed that David Phan obtained a $130,000-loan from the company’s predecessor-in-interest, Pacific Financial Corp, in April 1999. Phan executed a note that promises to repay the loan plus interests.
Based on the agreement, Phan agreed to pay 35 monthly installments of $2,218.35 and one final installment of $110,203 due on April 20, 2002.
In obtaining the loan, the Phans mortgaged their leasehold over six parcels of land on Saipan.
Timothy Bellas, PAM Corp.’s lawyer, said, however, that he has yet to ascertain the location of the real properties. The Phans are known to have diverse business interests in the CNMI.
Bellas said that the Phans had requested for the revision of the promissory note to allow them to make the final balloon payment of $110,203 from April to July 20, 2002.
Despite this, however, Bellas said the Phans failed to make timely payments, which resulted in them defaulting on the loan and the note. Bellas said the Phans refused to pay despite demand.
Bellas asked the court to compel the Phans to pay his client some $119,921.71 in principal amount owed, besides interests and costs incidental to the lawsuit.
PAM Corp. sought the foreclosure of the mortgaged real property leaseholds to satisfy any possible favorable judgment that the court might have in their favor in the civil case.
