Community Bank files suit over loans to third party

Kelly Holleran Jun. 14, 2010, 8:00am

Community Bank of Texas has filed suit against the woman who has failed to repay loans made to a third party.

Community Bank claims defendant Martha J. Pittman executed a series of security agreements granting the bank a security interest in certain brokerage accounts. Pittman executed the security agreements to secure loans Community Bank made to a third party.

Since then, the third party defaulted on the loans and declared bankruptcy, according to the complaint filed June 3 in Jefferson County District Court.

When the default occurred, Community Bank requested that Pittman assemble the collateral she used to secure the loan, the suit states. However, Pittman informed the bank that she did not intend to assist it and refuses to grant it collateral in the accounts, the complaint says.

In its complaint, Community Bank seeks a judgment within the jurisdictional limits of Jefferson County District Court, plus attorneys' fees, costs, pre-judgment interest and other relief the court deems just.

Glenn H. Steele Jr. of McPherson, Hughes, Bradley, Wimberley, Steele and Chatelain will be representing it.

The case has been assigned to Judge Donald Floyd, 172nd District Court.

Jefferson County District Court case number: E187-012.

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