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CDA sues borrower for $.4M debt, late charges
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Posted on May 14 2006
The Commonwealth Development Authority has sued a borrower who allegedly failed to pay a $.4 million debt plus accrued interest and late charges.
CDA asked the Superior Court to issue a ruling declaring Francisco I. Babauta liable to pay a total of $440,612.78.
CDA, through Vicente Salas law firm, demanded that Babauta’s mortgaged 752 square meters of land in San Roque be sold and all his mortgaged chattels and other security or accounts be seized.
The plaintiff requested that the proceeds of the sale should be applied for payment.
The Salas law office alleged that as of April 4, 2006, there is justly due and owing to CDA the principal sum of $350,080.81 plus $88,251.49 in accrued interest, plus penalty charges of $2,280.48 for a total of $440,612.78.
The complaint said that on July 9, 1992, CDA extended a direct loan to Babauta in the principal amount of $275,000.
The loan was revised in 1994, 1997, 1998, 2000, 2001, and finally in 2003 in which the new principal amount was $350,080.
“Babauta is in default in the payments of indebtedness owed to CDA,” the complaint said. (Ferdie de la Torre)
