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BOA sues Rep. Cleaver (D) for $1.5 million loan repayment
U.S. Rep. Emanuel Cleaver's car wash headache is raging once again.

The bank that loaned the Kansas City congressman
(and head of the Congressional Black Caucus)
and his wife $1.3 million in 2002 to buy the Grandview Auto Wash at 12204 Blue Ridge Extension is now demanding payment of more than $1.5 million, after the Cleavers repeatedly fell behind on repaying the loan.

The suit, filed last week in Jackson County Circuit Court, said the demand for repayment came after three attempts to delay foreclosure. Bank of America also is seeking attorney's fees and a receiver to protect collateral.

According to court documents, the outstanding principal totals $1.2 million with interest totaling $240,545 as of March 6. Late fees have reached $54,587. Both Cleavers had personally guaranteed the debts, according to the suit.
The loan was originally part of a Small Business Administration program. It was not clear Thursday how much money, if any, taxpayers will have to provide if the loan defaults.
Gateway Pundit links to reports that Cleaver voted on a bill raising the SBA loan guarantees from 75% to 95% - i.e. that's how much Cleaver could shift to taxpayers. Can we say 'conflict of interest?'.

Posted by: lotp 2012-04-08
http://www.rantburg.com/poparticle.php?ID=342371