Updated Mon, Aug 26, 2013 10:05 am
The non-profit organization that was created to oversee University Courtyard Apartments is now facing a $210,000 bill from the creditor from which they borrowed the money.
In documents filed Aug. 6 and 7 in Athens County Common Pleas Court, Housing for Ohio, Inc., a 501©(3) organization, Judge L. Alan Goldsberry granted a judgment against HFO to Bank of the Ozarks of $210,000 plus 3 percent interest per year and court costs.
The judgment was based on a cognovit note, which is a document signed by the bank and the company saying the bank can file a judgment with the court can make without notifying the company, according to Michael R. Schmidt, co-counsel for the bank.
Schmidt declined to discuss the specifics of the court case but said the bank, which is based in Little Rock, Ark., had a promissory note from HFO — essentially, a promise to pay the money — that was not paid.
With the judgment, the organization now must pay the entire amount owed immediately.
“The bank’s position is they want to be paid in full,” Schmidt said. “As far as the bank is concerned, this is the end of the case.”
The original order was signed by Goldsberry on July 31, but the request for the clerk of court’s office to prepare, record/file and docket a certificate of judgement was not filed until Aug. 6.
The interest was ordered to begin accruing on July 31.
Requests for comment from legal counsel for Housing for Ohio, Inc., was not returned.