View Mobile Site
 
Posted: August 11, 2011 6:36 p.m.

FDIC could pay part of loan default

CALHOUN (AP) - Two Georgia Republicans have settled a lawsuit with a bank alleging they defaulted on a $2.2 million loan, but the FDIC might eventually have to cover some of the bill.

U.S. Rep. Tom Graves and state Senate Majority Leader Chip Rogers took out a loan from Bartow County Bank to purchase and rehabilitate a Gordon County inn. The loan went into default and the bank sued. Graves and Rogers say the bank reneged on a promise to refinance.

The lawmakers have declined to disclose their agreement with the bank.

If they fail to pay back the full amount, the FDIC could end up paying 80 percent of the difference. Taxpayer money would not be involved, and insurance fees paid by banks would be used to cover any FDIC loss. 

Commenting is not available.

Commenting not available.

Please wait ...