Todd firehouse facing foreclosure?


Bank files suit, department said matter is already resolved



(Jesse Campbell|Jefferson Post) Todd Volunteer Fire & Rescue could be facing foreclosure if payment issues with its lender are not resolved. Todd Fire Chief Chris Welch said the issue has already been worked out, but the department had a June 8, meeting scheduled with Yadkin Bank officials.


TODD-Todd’s lone fire department could be in jeopardy following the filing of a civil suit by Yadkin Bank.

Yadkin Bank is attempting to collect on loans it says Todd Volunteer Fire & Rescue has defaulted on, but Todd’s Fire Chief Chris Welch said the issue with the bank has already been resolved.

In a suit that was filed in May at the Watauga County Courthouse, Yadkin Bank claims the rural volunteer fire department failed to uphold its end of the bargain on a series of promissory notes that exceed $400,000.

A notice of hearing on the foreclosure on property listed as being owned by the fire department has also been issued in the case. A hearing is currently set for Tuesday, June 14.

As a result of the alleged non-payment, the lender has declared the loans to be in default, accelerated the balance due and made demand of the department for payment. In turn, Yadkin Bank says the fire department has refused to pay the balance due.

As of June 8, the department has yet to file any type of answer or response to the complaint, according to the Watauga County Clerk of Court’s office.

In its claim of reliefs it is asking of the court, Yadkin Bank is also asking the court to make the fire department surrender all collateral it put up for the loans, including a Chevrolet truck.

The bank provided a summary of the total nature of its attempt to collect on the defaulted monies and what it could mean to both parties involved in the suit.

“Upon information and belief, the continued possession and use of the station and equipment by Todd materially threatens to injure, impair and depreciate the value of plaintiff’s collateral and the Chevy truck and may harm the community unless fire protection is provided,” the suit reads.

Todd Fire Chief Chris Welch said the bank’s claim of default is part of a misunderstanding the department’s board is working to resolve.

When reached by phone last week, Welch said he was confident the bank and the fire department had reached a resolution that would be solidified by Wednesday evening when he was scheduled to meet with bank officials.

“I will know more after 7:30 tonight,” said Welch during a phone interview with the Post Wednesday.

Welch went on to say he hasn’t had any further discussions with bank officials prior to the scheduled meeting on Wednesday, June 8.

The results of the discussion were unavailable as of press time but Welch said last week, “We had some issues last year where we were in the red as a department but we tightened our belt and we’re back in the black, where we need to be, so this is an issue I think will be all resolved shortly.”

Ashe County Manager Sam Yearick said on June 3, that Watauga County Manager Deron Geouque had informed him of the situation concerning the department in late May.

“He told us, here’s the situation with the Todd Fire Department,” Yearick said. “But right now we’re kind of waiting to hear about the meeting with the bank that’s scheduled for (June 8). We can’t exactly say what is happening until after that meeting.”

Reach Jesse Campbell at 336-846-7164.

(Jesse Campbell|Jefferson Post) Todd Volunteer Fire & Rescue could be facing foreclosure if payment issues with its lender are not resolved. Todd Fire Chief Chris Welch said the issue has already been worked out, but the department had a June 8, meeting scheduled with Yadkin Bank officials.
http://jeffersonpost.com/wp-content/uploads/2016/06/web1_ToddSign.jpg(Jesse Campbell|Jefferson Post) Todd Volunteer Fire & Rescue could be facing foreclosure if payment issues with its lender are not resolved. Todd Fire Chief Chris Welch said the issue has already been worked out, but the department had a June 8, meeting scheduled with Yadkin Bank officials.
Bank files suit, department said matter is already resolved
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