Printer Friendly

Texans CU lending CUSO files Loan Breach Suit vs. Coastal FCU.

A lawsuit has been filed by Credit Union Liquidity Services LLC (Logical Link Control) See "LANs" under data link protocol.

LLC - Logical Link Control
, a Texans Credit Union CUSO CUSO Credit Union Service Organization
CUSO Canadian University Services Overseas
CUSO Canadian University Services Organization
CUSO Carson United Soccer Organization
, against Coastal Federal Credit Union for breach of contract involving loan participation agreements tied to commercial properties in Pennsylvania and Illinois.

Credit Union Liquidity Services was previously known as Texans Commercial Capital LLC. According to the May 1 complaint, the CUSO alleged that the $2 billion Coastal FCU FCU Federal Credit Union
FCU Florida Credit Union
FCU Fan Coil Unit
FCU Fuel Control Unit
FCU Flight Control Unit
FCU Flexor Carpi Ulnaris
FCU Familial Cold Urticaria
FCU Fire Control Unit
FCU Fused Connection Unit
FCU Flow Control Unit
 and CULS CULS Capital University Law School (Columbus, Ohio)  signed two participation agreements on Aug. 30, 2006, for loans used to finance the Mockingbird mockingbird: see mimic thrush.

Any of several New World birds of a family (Mimidae) known for their mimicry of birdsong. The common, or northern, mockingbird (Mimus polyglottos) can imitate the songs of 20 or more species within 10
 Commons in Pennsylvania and the Lincoln Mall in Chicago. A third participation agreement was signed on June 6, 2007, for the Mountain Village in Pennsylvania.

The agreement was amended in 2007 by CULS and the mall, according to the complaint. The CUSO allegedly said it made the changes with the understanding that it did not need Coastal's consent to make material amendments to the terms of the agreement. Coastal supposedly paid $5 million for an all-in participation in the Lincoln Mall. The participation interest was initially set at 24.75%; however, the interest was to be reduced to 12.68% as the loan commitment increased. According to the complaint, CULS continued to pay Coastal the original 24.75%. Overpayments were also made on the Lincoln Mall project by more than $486,909 and more than $558,163 on the Mockingbird Commons project, CULS has alleged. Coastal has failed to return the overpaid o·ver·pay  
v. o·ver·paid , o·ver·pay·ing, o·ver·pays
1. To pay (a party) too much.

2. To pay an amount in excess of (a sum due).

To pay too much.
 funds, according to the complaint.

"As policy, Texans Credit Union does not discuss pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
," said Jo Trizila, a spokeswoman for the credit union. Coastal spokesman Joe Mecca said the credit union does not comment on pending litigation.

This is not the first time CULS has been involved in a suit regarding Lincoln Mall. In February, the CUSO was sued by Realty America Group LLC for breach of contract. Realty America and CULS entered into a loan agreement on Dec. 17, 2004. In early 2004, Realty America sought additional construction financing for the Illinois property that would include a replacement or restructure of the prior loan agreement. Bank of America
See also:  and

Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world.
 approved a $57 million restructure with a scheduled closing date of May 15, 2007, according to the claim.

CULS and Realty America had discussed the possibility of providing the restructure, but the real estate firm raised concerns about the CUSO's ability to fund the new loan. CULS said it had the wherewithal to fund the loan and on May 4, 2007, issued a letter of intent to loan $44.5 million and a $430,000 loan origination fee. Realty America declined Bank of America's $57 million loan and signed on with CULS.

According to Realty America, CULS failed to fund the loan on May 18, 2007, the scheduled closing date. The commercial lending CUSO said a revised loan in the amount of $39.5 million would have to be approved by the loan committee on May 24, 2007, but the closing and funding would occur five days after that. Realty America said by June 1 CULS had not funded the loan. However, both parties later signed a second amended, restated agreement increasing the loan amount by $2.5 million, which CULS funded, according to the claim. CULS also intended to loan up to $42 million in place of the amended $39.5 million amount. The loan was issued on July 2, 2007, according to Realty America. Realty America is seeking $20 million and punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. .

In 2007, $1.6 billion Texans CU sold its majority interest in the former Texans Commercial Capital to a real estate professional but retained a minority interest in the company and 100% ownership of the CUSO's pre-existing loans.

MICHELLE MICHELLE Mid-Infrared Echelle Spectrograph  A.
COPYRIGHT 2009 Summit Business Media
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

 Reader Opinion




Article Details
Printer friendly Cite/link Email Feedback
Author:Samaad, Michelle A.
Publication:Credit Union Times
Date:May 20, 2009
Previous Article:Lawmakers are still discussing next step for stabilization plan.
Next Article:NCUA still in housing business.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters