CDA sues ex-first lady, others over $546K debt

The Commonwealth Development Authority has filed a foreclosure lawsuit against former First Lady Sophia P. Tenorio and four others over a 1999 bank commercial loans totaling $650,000.

Aside from Sophia Tenorio, CDA is also suing Island Development Authority, Jesus V. Guerrero, P. Michael P. Tenorio, and Reiko Deleon Guerrero.

CDA, through counsel George Lloyd Hasselback, asked the Superior Court to issue a judgment holding the defendants jointly liable to pay the principal sum of $308,383.01, plus accrued interest of $226,707.72, plus penalty charges of $9,320.88, plus legal fees and costs of $1,794.25, plus any additional amount of accrued interest and late charges.

Saipan Tribune tried but failed to get comments from the defendants yesterday.

CDA requested the court to order the sale of the mortgaged interest in the real property and rule that the defendants and all persons or entities claiming through them, be foreclosed.

CDA asked the court to order the seizure and sell of all mortgaged chattels or other security or accounts.

CDA requested the court to apply the proceeds of any sale to payment to the agency.

Hasselback stated in the complaint that Bank of Guam extended two direct commercial loans to Island Development Authority in the principal amounts of $100,000 and $550,000, totaling $650,000, on Aug. 25, 1999.

Hasselback said in return, Island Development executed two promissory notes, wherein it agreed to repay the direct loans, plus interest thereon at 3 percent per annum.

Hasselback said Island Development agreed to repay the loans in set monthly installments beginning Oct. 10, 1999, and continuing until the loan was paid in full of Sept. 10, 2002.

The lawyer said Jesus Guerrero and Sophia Tenorio executed the first simple mortgage and the second simple mortgage, respectively to secure the amounts Island Development owes Bank of Guam under the promissory note.

He said Jesus Guerrero and Sophia Tenorio mortgaged to CDA their respective interests in the two subject real properties.

Hasselback said in order to obtain the loan to Island Development, Michael Tenorio and Reiko Deleon Guerrero executed a personal guaranty and promised to pay any amounts due by the company should the company default in the payment of any indebtedness owed under the promissory note.

Hasselback said that, on June 28, 2007, following the default by borrowers and a demand to CDA by Bank of Guam, CDA paid the bank $585,000 or the guaranteed amount owed the bank under a CDA guaranty.

In consideration of the CDA payment, Bank of Guam executed an assignment in favor of CDA and assigned all of its rights, title and interest in the loan, mortgages, guaranty and other related loan documents it had obtained from Island Development.

Hasselback said the defendants are in default in the payments of indebtedness now owed to CDA as they have failed to make the promised monthly payments.

Hasselback said as of Feb. 18, 2016, there is justly due and owing to CDA by defendants $308,383.01 in principal sum, $226,707.72 in accrued interest, $9,320.88 in penalty charges, and $1,794.25 in legal fees and costs, or for a total of $546,205.85.