Bank sues Christian bookstore over default on $130K loan
A bank has filed suit against Leap of Faith, alleging it defaulted on a $130,000 loan.
Community First Bank claims it lent $130,000 to Leap of Faith, a Christian bookstore in Swansea, on Sept. 22, 2005. Defendants David N. Douglas and Michelle L. Douglas guaranteed repayment of the money, according to the complaint filed Sept. 13 in St. Clair County Circuit Court.
However, the defendants eventually defaulted on the loan and failed to gather collateral promised under a security agreement for Community First Bank, the suit states.
"There is due and owing to Plaintiff the sum of $50,854.62 as of September 12, 2011," the complaint says.
In its two-count complaint, Community First Bank is asking the court order the defendants to deliver the collateral or to deliver a payment equal to the value of the collateral. It also is seeking the money it says it is owed, plus attorney's fees, interest, repossession expenses and other costs.
The bank will be represented by David E. Guymon of Flynn, Guymon and Garavalia in Belleville.
Madison County Circuit Court case number: 11-L-516.