Bank claims volunteer fire department failed to pay loan for equipment

By Kelly Holleran | Mar 16, 2010

A Texas bank has filed suit against a local volunteer fire department it says failed to make payments on an equipment loan.

Banc of America Leasing and Capital claims LaBelle-Fannett Volunteer Fire Department entered into a lease and option contract with E-One Inc. on Oct. 19, 2007.

In the agreement, LaBelle-Fannett VFD obtained financing for an E-One Tradition 2-Door Pumper which was to be mounted on a 2006 Freightliner M2 chassis with a side mount pump panel, according to the complaint filed March 5 in Jefferson County District.

To obtain the equipment, LaBelle-Fannett Volunteer Fire Department financed $200,045.80 from E-One, which assigned its interest in the agreement to Banc of America on Sept. 26, 2008, the suit states.

However, Banc of America claims LaBelle-Fannett VFD stopped making required yearly payments of $20,004.58 on Feb. 12, 2009.

"The total amount owed, excluding attorneys fees, late charges and interest, is $180,941.43," the suit states.

In addition to the money it says it is owed, Banc of America is seeking pre- and post-judgment interest, attorneys' fees, costs and other relief to which it may be entitled.

Mitchell Zoll of Strasburger and Price in Austin will be representing it.

The case has been assigned to Judge Gary Sanderson, 60th District Court.

Jefferson County District Court case number: B186-202.

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