First Bank claims Keleher Development owes $5.4 million

Kelly Holleran Mar. 16, 2010, 8:10am

A bank has filed suit against the two Freeburg residents that it claims owe the bank more than $5 million after failing to make monthly payments.

First Bank claims Keleher Development originally borrowed $467,500 on Aug. 15, 2002. Again, on Dec. 15, 2003, it borrowed $700,000, according to the complaint filed Feb. 1 in St. Clair County Circuit Court. On Aug. 2, 2007, Keleher Development executed a promissory note for $623,981.06, and on Aug. 28, 2007, it borrowed $215,325. On Aug. 5, 2006, Keleher Development borrowed $450,000 and on Aug. 26, 2005, it borrowed $1,631,070. Again on March 7, 2007, Keleher Development executed a promissory note worth $1,120,000 and on Aug. 24, 2007, it borrowed $462,989. On May 28, 2008, it borrowed $150,000 and on Sept. 24, 2003, it borrowed $400,000. The bank issued a promissory note to Keleher Development on Oct. 5, 2005, for $624,888 and on Nov. 15, 2006, issued another note worth $352,000. Finally, on March 26, 2009, Keleher Development executed a promissory note for $105,000, the suit states.

Defendants Roberta and R. Kenneth Keleher acted as guarantors on the notes, promising to repay them if Keleher Development failed to make the required monthly payments, the complaint says.

Since then, Keleher Development defaulted on the notes and has stopped making payments, First Bank claims. Despite the bank's demands, the Kelehers have also refused to make the payments, according to the complaint.

"As of January 29, 2010, payments that have become due and payable on the Notes are in default and arrears in the total amount of $5,400,508.76, which includes unpaid principal in the amount of $4,939,134.27, and accrued, but unpaid interest, in the amount of $205,674.61 plus late fees of $255,789.58," the suit states.

In addition to the money it says it is owed, First Bank is seeking costs, attorneys' fees and other relief the court deems just.

R. Scott Moore and Alfred J. Ludwig of Lewis, Rice and Fingersh in St. Louis will be representing it.

St. Clair County Circuit Court case number: 10-L-47.

More News