Development I LLC (CCD)—a joint development partner of the Lake Erie Land
Company—is in default on an $11.9 million loan.
contention of a lawsuit filed on May 19 by Old Second National Bank of
Chicago Heights, Ill., which is seeking, among other things, a judgment in
that amount as well as a foreclosure order on property held by CCD and
According to the
suit, on July 8, 2008, CCD obtained a loan from Old Second National in the
amount of $11.9 million and two letters of credit, one in the amount of
$140,804, the other in the amount of $98,802. To secure that indebtedness,
CCD mortgaged two separate parcels of real estate on Oct. 17, 2008.
On Jan. 10,
2010, however, the $11.9 million loan matured and CCD has not paid it, is in
default, and in principal, interest, costs, and late fees now owes Old
Second National a total of $12,088,683, the suit alleges.
default on the loan, the two letters of credit are also in default and Old
Second National is entitled in addition to be paid for all draws made on
them, the suit further alleges.
National is seeking the following:
•A judgment in
the amount of $12,088,683; all draws on the letters of credit; and interest
since March 31, 2010, attorney’s fees, and collection costs.
declaring the two mortgages to be both valid and superior to any other
claims, liens, or interests asserted against the property in question.
foreclosing CCD’s interest in the property and barring the rights of all
other defendants in that property.
•And an order
directing a sheriff’s sale of the property as separate parcels to satisfy
Old Second National’s claim, at which sale the bank would be empowered
itself to bid on the property with the full indebtedness owed the bank
credited to any bid.
Also named in
the suit as defendants—“to answer” as to their own “interests” in the
property in question—are the Lake Erie Land Company, the Coffee Creek Center
Homeowners Association, the Coffee Creek Center Commercial Association, the
Sand Creek Homeowners Association, the First Bank and Trust Company of
Illinois, Centier Bank, Sand Creek Country Club Real Property, and Gierczyk