State moves to invalidate and cancel loan from Capon Valley Bank to Wardensville

By Robert Hadley | Feb 4, 2016

MOORFIELD —The state of West Virginia is suing to invalidate an unlawful line of credit issued by Capon Valley Bank to the town of Wardensville.


MOORFIELD —The state of West Virginia is suing to invalidate an unlawful line of credit issued by Capon Valley Bank to the town of Wardensville.

The case was filed Jan. 27 in Hardy Circuit Court.

According to the complaint, Wardensville was extended a line of credit starting in Sept. 14, 2005, signed by two elected officials, Mayor Tracey Miller and Recorder John Sayers. The suit says some of the obligations were approved by Wardensville City Council, resulting in a current unpaid balance of $99,990.

   

Although West Virginia code states that municipal bodies can incur debt if a general obligation bond is issued, Attorney General Patrick Morrisey says the loan is unlawful because no bond was issued to cover the costs.

The plaintiff seeks a declaratory judgment invalidating the loan and cancellation of any outstanding debt illegally incurred by Wardensville. The state is represented by Deputy Attorney General Stephen R. Connolly of Charleston. Circuit Judge J. Charles Carl III has been assigned to the case.

Hardy Circuit Court Case number 16-C-3

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