A bank is suing a small car dealership and a St. Clair County couple for more than $200,000 after it says the company defaulted on loan payments.

Associated Bank claims Haley's Auto of Cahokia executed a promissory note with the bank on Jan. 19, 2006, for $300,000. On the same day, Larry and Pauline Haley, the couple from St. Clair County, guaranteed payment of the note, according to the complaint filed Aug. 7 in St. Clair County Court.

To secure the note, Larry Haley executed a mortgage conveying 2633 Camp Jackson Rd. in Cahokia to the bank, the suit states.

"The Security Agreement provides that the failure to 'make any payment when due under the Indebtedness' constitutes an event of default," the complaint says.

Later, the note was split into two separate promissory notes – one for $100,000 and the other for $200,000, Associated Bank claims.

According to the complaint, Haley's Auto was to make payments on the first note of $3,149.94 beginning on March 21, 2007, and payments on the second note of $2,547.57 beginning on Feb. 19, 2008.

But on Nov. 21, Haley's Auto failed to make its $3,149.94 payment, the suit states. The dealership failed to make its $2,547.57 payment on March 19, the complaint says.

"On or about May 19, 2009, Associated Bank provided Haley's Auto and Larry and Pauline Haley with Notice of Default and Acceleration, whereby Associated Bank notified Defendants of its acceleration of the maturity of the first Promissory Note and made demand upon Haley's Auto and Larry and Pauline Haley for the payment of $46,661.04, the then-outstanding principal amount due on the first Promissory Note, plus $466.61 in aggregate late fees, and an additional $2,268.94 in unpaid interest on the First Promissory Note," the suit states.

Associated Bank again provided a Notice of Default and Acceleration to Haley's Auto and the Haleys on the second promissory note and demanded payment of $183,530.44, plus $4,129.43 in unpaid interest, it claims.

However, Haley's Auto and the Haley's have failed to pay Associated Bank the money it is demanding, according to the complaint.

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

It will be represented by Teresa Dale Pupillo of Carmody and MacDonald in St. Louis.

St. Clair County Circuit Court case number: 09-L-416.

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