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From the October-21, 2009 issue of Credit Union Times Magazine • Subscribe!
Condo Dispute Ends in Illinois CU's Favor
A jury recently ruled in favor of IH Mississippi Valley Credit Union, deciding that the financial institution will not have to pay developers the $3.5 million they were seeking after the CU moved to foreclose a condo loan.
Cypress Point Developers was seeking $3.5 million in damages, according to the The Quad City Times. The development company said the credit union wanted out of the loan because it had exceeded its member business lending cap and had also missed out by locking in the loan at a lower interest rate than it would have received from other potential borrowers. Jon Fox, the attorney for IH Mississippi Valley in Moline, Ill., claimed Cypress Point's owners knew one of the loan provisions included six-month extensions.
Philip Burian, the attorney for Cypress Point, told a jury at recent trial held in Scott County District Court that the $16 million is what the development company's owners felt they could make from the condo project upon its completion.
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