Bank sues Museum in the Community over loans

By Chris Dickerson | Oct 12, 2007

WINFIELD – The Putnam County Bank has sued Museum in the Community for more than $750,000 on two notes it took out more than two years ago.

The suit was filed Oct. 5 in Putnam Circuit Court by Huntington attorney J. Grant McGuire of Campbell Woods LLC.

In the complaint, the bank says it refinanced and advanced the museum $730,000 on two notes of $680,000 and $50,000.

The bank says the museum is in default on its loan and owes $699,402.73 plus $79.5205 in interest per day after Sept. 7, 2007, on the first note and $52,671.33 plus $11.2564 in interest per day after Sept. 7 on the second note.

The complaint also hints that other parties might become involved in the suit, such as the Putnam County Commission, the Putnam County Parks & Recreations Board and former Putnam County Attorney Frank Gritt.

The complaint says those parties have information concerning the bank's loan to the museum for purposes of building a museum facility and sources of repayment, lease arrangements for the facility land and facts concerning the bank's inability to secure a deed of trust for the facility.

The museum, located at 3 Valley Park Drive in Hurricane, is on land owned by the county parks department.

The museum has had its share of financial problems. Last year, it laid off all of its employees. The museum's board has asked Putnam County officials to help.

The case has been assigned to Putnam Circuit Judge O.C. Spaulding.

Putnam Circuit Court case number: 07-C-425

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