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2 businessmen sued over unpaid promissory note

TWO businessmen have been sued over an unpaid promissory note amounting to $96,729.89.

Gene Sylvester Eagle-Oden and Pacific International Nutrition Inc. have filed a lawsuit in Superior Court against Joseph C. Guerrero and Joseph C. Santos, co-owners of August Healthcare Group LLC and Saint Joseph’s Medical Transport LLC.

The defendants are accused of defaulting on a promissory note entered into and executed in Saipan on or about Oct. 24, 2014, and breach of contract.

According to the lawsuit filed by attorney Stephen Nutting, the plaintiff doesn’t know whether the two businesses are still in operation or still in existence at this time.

Nutting said on Oct. 24, 2013, Pacific International Nutrition and the two defendants executed a promissory note which designated the plaintiff as the lender and the defendants as borrowers.

The promissory note “memorialized the fact that Santos and Guerrero wished to borrow $75,000 to be secured by an assignment of income and accounts receivable to be paid at a fixed interest rate of 1.1 percent per month with a guaranteed minimum interest payment of $6,000 to be paid regardless of an early payoff of the loan.”

The promissory note also provided that the unpaid balance “shall immediately become due and payable without demand or notice in case of default or the undersigned becomes insolvent.”

In addition, the promissory note provided that the defendants “execute an assignment of income and lien accounts receivable of August Healthcare Group and Saint Joseph’s Medical Transport to allow Pacific International Nutrition to receive and collect all such income and accounts receivables as may be produced by the two companies in the event of a default.”

Nutting said the defendants made payments by check from Nov. 2013 to Jan. 2015 for a total of 12 payments.

He said the defendants did not make a payment in Sept. 2014, Nov. 2014, or Dec. 2014 or for the months since Jan. 2015 to the present.

Due to the defendants’ delinquency and non-payments, they incurred the associated penalty to the promissory note, Nutting said.

The defendants, he added, are in arrear in payments in the amount of $96,729.89, which is composed of the total principal amount, interest and penalties incurred.

Nutting is asking the court to find Santos and Guerrero liable for breach of contract and to find them in default of the promissory note.

The lawyer also asked the court to issue an order granting the plaintiff the entire balance owed under the promissory note as of Nov. 2017 and interest.

Nutting, in addition, asked the court for an order to transfer the defendants’ assets, such as business, income, tangible property, bonds, monies, accounts payable, real property, and any other form of income provided under the terms of the promissory note and or assignment of income to the plaintiff to secure full repayment of the remaining balance of the loan.

Source: Marianas Variety : http://www.mvariety.com/cnmi/cnmi-news/local/101237-2-businessmen-sued-over-unpaid-promissory-note

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