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SOUTHEAST TEXAS RECORD

Monday, November 4, 2024

WC 4th and Rio Grande filed First Amended Petition against LA Zona Rio for refusing to accept loan payments

Lawsuits
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WC 4th and Rio Grande, LP, has filed a First Amended Petition against LA Zona Rio, LLC, for not cooperating in accepting a loan payoff. | Stock Photo

WC 4th and Rio Grande, LP, has filed a First Amended Petition against LA Zona Rio, LLC, for not cooperating in accepting a loan payoff. 

The borrower, WC 4th and Rio Grande, LP,  was loaned money from the defendant lender, LA Zona Rio, LLC, according to the First Amended Petition filed by the borrower. WC 4th and Rio Grande paid off all loan obligations, but the LA Zona Rio is refusing to accept payments for the loan. 

The court case is meant to require LA Zona Rio to accept the loan payments and cooperate with the debt payoff, which will prevent damage done to WC 4th and Rio Grande. 

The court concluded that the "Plaintiff has shown that it has tendered performance and fully performed on its contractual obligation to pay off the Original Note, and Defendant’s intentional refusal to receive funds and provide payoff information is in breach of Lender’s obligation under Section 2.1 of the Deed of Trust," according to the First Amended Petition. 

This shows bad faith on the defendant lender's part, because LA Zona Rio purposefully meant to charge "improper default interest" to the plaintiff (WC 4th and Rio Grande). The court has ordered the defendant to accept all payoff from WC 4th and Rio Grande, which has agreed to pay off the debt in full under the terms of the loan. 

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