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SOUTHEAST TEXAS RECORD

Friday, April 19, 2024

Credit union says business owes more than $123K

A credit union is suing over claims a Jefferson County business and its owner have failed to pay promissory notes.

Fivepoint Federal Credit Union filed a lawsuit Sept. 29 in Jefferson County District Court against Safety Star Industrial Inc. and Leonidias and Kimberly Smith.

According to the complaint, Safety Star President Leonidias Smith delivered two promissory notes, security agreements and guaranties in the amounts of $55,000 and $176,000 to Fivepoint on July 7, 2011.

The complaint states Safety Star granted to the plaintiff a security interest in all inventory, equipment, accounts receivable and intangibles but modified the second note, then defaulted on both notes, owing more than $41,000 on the first and $133,000 on the second as of July 9.

Fivepoint says the defendants delivered a third promissory note, commercial security agreement and commercial guaranty in the amount of $125,000, which they defaulted on, owing more than $123,000 as of July 9.

Fivepoint seeks the amounts owed, plus interest, possession of all collateral, attorney fees and costs of court.

It is represented by attorney James W. King of Offerman and King in Beaumont.

Jefferson County District Court case number: D-196171

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