Previous Story
Ex-governor is sued for unpaid $.5M loan
|
Posted on Jun 28 2005
The Commonwealth Development Authority has sued former Gov. Lorenzo I. DeLeon Guerrero and his wife Matilde over unpaid loans amounting to more than $500,000.
In a complaint filed with the Superior Court Friday, the CDA said the DeLeon Guerreros defaulted on their loans by failing to make any payments for a consolidated loan amount of $417, 814.86.
The amount, though, has already ballooned to $512,316.86 as of June 2 due to accrued interests and penalty charges, according to CDA attorney F. Matthew Smith.
The CDA wants the court to compel the former governor and his wife to settle their obligation.
Should the DeLeon Guerreros fail to pay the CDA once judgment is handed down in favor of the agency, the court should order the foreclosure of real property mortgage that the defendants had executed to secure the loans, Smith said. The mortgage involves a 20,000-sqm lot in As Lito.
Smith also asked the court to seize several properties that the DeLeon Guerreros have used as security, including fishing equipment, boat, supplies, cargo van and certain inventories.
The complaint alleged that the former governor and his wife first acquired a $200,000-loan from the CDA on June 5, 1995. Besides mortgaging the properties, the DeLeon Guerreros also offered a 4,961-sqm lot as security.
On March 13, 1996, the couple acquired a separate $150,000-loan from the CDA, using the same properties as collateral. The parties agreed to consolidate the first and second loans for a new principal amount of $364,654.32 on Oct. 30, 1997.
Smith said the DeLeon Guerreros requested the CDA to revise the consolidated loans for a new principal amount of $378,594.05 on Sept. 30, 1998.
The consolidated loans went through a second revision on March 6, 2001, pegging the new principal amount at $417,814.86. In exchange for the release of prior mortgages, including that on the 4.961-sqm lot, the DeLeon Guerreros mortgaged a 20,000-sqm As Lito land.
The CDA served the former governor and his wife with notices of default on Aug. 17, 2004, after which they continued to fail to make any payment, according to Smith.
The CDA is aggressively running after delinquent borrowers to resolve its high delinquency rate.
