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CDA sues two over unpaid loan
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Posted on Mar 15 2005
The Commonwealth Development Authority has filed a lawsuit against two Tinian residents, seeking to foreclose mortgages involving land and chattel.
CDA attorney F. Matthew Smith filed with the Superior Court last Monday a civil action against Thomasa I. Palacios and James M. Mendiola.
Although the complaint showed that it was Palacios who initially transacted the loan with the CDA, she and Mendiola mortgaged a 1,322-sqm land in Marpo, Tinian to secure it.
Smith asked the court to foreclose the mortgaged land, so it could be auctioned to earn proceeds that could be used to satisfy judgment that might be favorable to the CDA. He also asked the court to seize chattel mortgaged by Palacios, which included a truck and fishing equipment, so they could be auctioned also.
In the complaint, Smith said that the CDA extended a loan to Palacios in the amount of $68,000 on Feb. 24, 1997. Palacios and Mendiola mortgaged the land to the CDA the following day. Palacios also mortgaged the truck and fishing equipment on that day.
He also noted that the CDA deferred the loan payments for three months and extended the maturity date, in consideration of the effects of Typhoon Joan sometime in November 1997.
The complaint alleged that the loan underwent four revisions for a new principal amount of $73,693.55 in November 2000. However, Palacios allegedly defaulted on the payments.
Smith said Palacios failed to settle her debt despite being served a notice of default on Sept. 15, 2004. As of Nov. 30, 2004, the unpaid loan already went up to $89,125.15, inclusive of interests and charges.
