Owner sued for default of $1 M business loan

By Kelly Holleran | Jan 27, 2010

The owner of several small businesses in Beaumont has been sued for allegedly defaulting on a loan of more than $1 million.

Plaintiff CIT Small Business Lending Corp. claims defendant Brenda Van Dyke, who manages defendant companies V.M. Plantation and Trinity Spas, borrowed $1,679,000 on Feb. 10, 2006, in the form of a U.S. Small Business Administration note.

In connection with her execution of the note, Van Dyke delivered a security agreement to CIT on Feb. 10, 2006, granting CIT a security interest in the businesses' equipment, inventory, outstanding accounts receivable, contact rights and general intangibles, according to the complaint filed Jan. 25 in Jefferson County District Court.

In addition, B. Van Dyke Enterprises guaranteed to pay the money on the note should Van Dyke or the businesses default on payments, the suit states.

The complaint claims, however, the defendants defaulted on payments and have still refused to make them despite CIT's notice of acceleration.

"As of Jan. 7, 2010, there remains outstanding and unpaid total sum of $1,769,067.84 on the Note representing: Principal Balance: $1,665,359.58; Accrued and unpaid interest to 1/7/10: $99,183.54; Late Charges: $4,524.72," the suit states.

In its four-count suit, CIT alleges breach of contract against the defendants.

In addition to the money it says it is due, CIT is seeking pre- and post-judgment interest, attorneys' fees, costs and foreclosure of its security interest in the property.

F. Beth Morgan of Morgan and Associates in San Antonio will be representing it.

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

Jefferson County District Court case number: E185-786.

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