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CDA sues Maratita couple for unpaid loan
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Posted on Jun 15 2005
The Commonwealth Development Authority sued Edward U. Maratita yesterday over unpaid loans and interests totaling nearly $600,000.
CDA attorney F. Matthew Smith could not confirm, though, if the defendant is the former senator. The CDA also sued Rosa C. Maratita as co-defendant. Smith said the two defendants, who hail from Rota, are believed to be a couple.
In a complaint, Smith narrated that the Maratitas obtained their first loan from CDA on March 4, 1996. He said the Maratitas issued a promissory note and mortgaged two Rota lands measuring 25,000 square meters and 928 square meters to secure the $165,000 loan. The Maratitas also mortgaged business equipment, machinery appliances and fixtures as additional security for the loan.
CDA extended another direct loan to the Maratitas amounting to $165,000 on June 30, 1998. On the same day, the first and second loans were consolidated for a new principal loan amount of $359,215.79, Smith said.
Upon request by the Maratitas, the CDA revised the consolidated loans for a new principal amount of $409,946.63. But Smith said the Maratitas never made any monthly payment pursuant to a promissory note.
Despite notifying the Maratitas on June 7, 2004 that they have defaulted on the loans, the defendants allegedly failed to settle their debt with the CDA.
With interests ballooning to nearly $200,000, the Maratitas’ total debt has reached $598,615.62.
The CDA asked the court to compel the Maratitas to pay their debt. It also asked the court to foreclose the mortgages and seize the loan securities so that the proceeds could be applied to a possible favorable judgment.
