CDA sues Bennett, Lizama over loan

The Commonwealth Development Authority is suing former Board of Education teacher representative Ambrose Bennett, his tricycle dealership company, and former Superior Court associate judge Juan T. Lizama for allegedly not paying a commercial loan plus accrued interest, penalty charges, legal fees, and costs totaling $39,828.49.

Lizama is a co-defendant as it was the former judge who allegedly executed a fee simple mortgage to secure the amounts Bennett and his Lil & Bro’s Trike Dealership & Rentals owe under a promissory note.

CDA, through Jennifer Dockter, asked the Superior Court to rule against Bennett and Lil & Bro’s Trike Dealership & Rentals, in the principal of $34,162.33 plus accrued interest of $3,242.08, plus penalty charges of $904.16, plus legal fees and costs of $1,519.92, plus any additional amount of accrued interest and late charges.

Bennett said yesterday he is thankful to CDA for the loan “but it is just unfortunate that the economy was terrible at the time” he opened his company. Bennett said he also had a heart attack and developed cancer.

Bennett said he admits the principal amount but protests the interest.

“I hate that it had to end this way,” he said.

As of press time, Saipan Tribune was still waiting a reply from Lizama for comments.

CDA asked the court that the mortgaged interest in the real property be sold.

CDA asked the court that Bennett, Lil & Bro’s Trike Dealership & Rentals, and Lizama be foreclosed of all equity or other interest they may have in the mortgaged property.

CDA requested the court that all mortgaged chattels be seized and sold by CDA.

Proceeds of any sale will be applied for payment.

CDA also sought court’s judgment that it be allowed to execute against Bennett and Lil & Bro’s Trike Dealership & Rentals for any deficiency after applying all the proceeds of all sales.

DA extended a direct commercial loan of $61,000 to Bennett and Lil & Bro’s Trike Dealership & Rentals on April 1, 2011.

In Bennett’s promissory note, he agreed to repay the loan, plus interest at 7 percent per annum. Bennett agreed to repay the loan in monthly installments, beginning Aug. 1, 2011, and continuing until the loan was paid in full on July 1, 2014.

According to Dockter in the complaint, Lizama executed a fee simple mortgage to secure the amounts Bennett and Lil & Bro’s Trike Dealership & Rentals owes CDA under the promissory note.

Dockter said Lizama mortgaged to CDA his interest in the real property containing 1,186 square meters of land. This was recorded on May 10, 2011 with the Commonwealth Recorder.

In addition to the real property mortgage, Bennett and his dealership executed a security agreement (chattel mortgage) using some items to secure the amounts it owes CDA under the promissory note.

Dockter said the items include 2001 Mazda MPV passenger wagon; one Trojan-1 300-trike; two Chita 300-1 trike; two Trojan-2 150-C trikes; four Bob Bat-1, 150-9 trikes; four Rocker-3, 150-8 CA trikes; and 15 Puma, 150-7 trikes.

Dockteer said other items are all current and newly acquired furniture, fixtures, equipment, machinery, inventory, merchandise, supplies, new trikes, and general tangibles.

The lawyer said the security agreement (chattel mortgage) was recorded on May 10, 2011 with the Commonwealth Recorder.

Dockter said in addition, and in order to obtain the loan, Bennett and his dealership executed receivables and inventory security agreement using some items to secure the amount it owes CDA under the promissory note.

Dockter said Bennett and the company have failed to make the promised monthly payments and have failed to abide by the terms of the note, loan, mortgages, and security agreements.

Dockter said that Bennett has defaulted on the loan and breached the conditions of the note, loan, mortgages, and security agreements.

Dockter said it’s more than 30 days have passed since Bennett, the dealership, and Lizama received the notice of default.