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CDA files suit over delinquent $400K loan
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Posted on Dec 19 2004
The Commonwealth Development Authority filed with the Superior Court Friday a lawsuit that seeks to collect on payment for loans totaling about $400,000.
CDA lawyer F. Matthew Smith asked the court to foreclose two mortgages that collateralized a 38,001-sqm lot and leasehold rights over a 5,043-sqm property on Saipan’s commercial port.
Defendants Antonio S. and Elphidia MSP. Camacho secured the loans and executed the mortgages, based on the complaint filed by the CDA.
The CDA also impleaded the Division of Tax and Revenue as co-defendant because the latter might have interests over the properties. The CDA asserted that its interests to the properties, by virtue of the mortgages, are superior to those of the division.
The Camachos first acquired a $37,500-loan from the CDA in January 1986. They eventually acquired other direct loans in the amounts of $107,500 on August 1986; $100,000, March 1987; $150,000, December 1987, and $50,000, October 1988.
The loans underwent several consolidations, resulting in a final consolidated amount of $379,935.44 in October 1996, which was eventually revised to $304,709.37 in July 2001.
Smith said the Camachos defaulted on paying the consolidated loans and failed to settle them despite demand.
As of May 21, 2004, Smith said the Camachos owed the CDA a total of $380,535.03, inclusive of interest and charges. (John Ravelo)
