SPRINGDALE — First Federal Bank filed a petition of foreclosure against Linda A. and Jerey Lane Gaddy, heirs of borrower Bob Gaddy Estate in Fayetteville Circuit Court on Wednesday.
The suit states Bob Gaddy, doing business as Sequoyah Meadows LLC, borrowed $3.8 million in June 2008 to finance development of a residential subdivision located near Arkansas 16, east of Fayetteville.
First Federal Bank does not comment on pending litigation with its customers, but the bank is seeking a $4.44 million judgment against Gaddy’s heirs, accruing at a rate of $521 per day, according to the filing.
Gaddy was a well-known face and business figure in Northwest Arkansas. He sold Mexican Original Products to Tyson Foods in 1983 and ran Pace Industries which merged with Leggett & Platt Inc. in 1996. He retired as CEO from Leggett & Platt in 2002.
Gaddy died in September 2008 and the loans with First Federal became delinquent.
The judgment, declared as a lien on the property, is payable in full within 10 days or the lender will proceedwith the foreclosure sale as provided by law.
First Federal Bank is the second local lender to seek payment from Gaddy’s estate through the court system. Metropolitan National Bank sued the estate for $27 million, but received the collateral property back via deed in lieu of foreclosure in September along with a $2 million court settlement awarded by Washington County Circuit Court Judge Mary Ann Gunn.
That settlement was reached after applying the value of the residential property and all payments made under the notes, Gunn noted in September filing.
News, Pages 4 on 11/05/2009
Comments
To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Please read our comment policy.
Use the comment form below to begin a discussion about this content.
Registration is required to make comments. Click here to LOGIN.
You can register for FREE to post comments and receive alerts.