Bank of America Moves to Collect Cleaver Car Wash Loan money June 20, 2013

The Kansas City Star reports The Bank of America, which is involved with the unsuccessful Grandview car wash loan to Kansas City Rep. Emanuel Cleaver has moved to get its money.

“Documents in Clay County Circuit Court show a June 12 garnishment order obtained against Cleaver Co. LLC for $1,271,070.14. The garnishee is Liberty Bank,” the Star reported Thursday.

“It appears the order has been transferred to Jackson County, where a branch of Liberty Bank is located.”

More: http://www.kansascity.com/2013/06/19/4301663/cleaver-car-wash-bill-still-close.html

Cleaver Reaches Deal to Settle Troubled Loan for Car Wash Operation April 18, 2013

The Kansas City Star reports Kansas City Congressman, Emanuel Cleaver has settled his dispute over a loan for a car wash with Bank of America.
Bank of America sued Cleaver and his wife Diane over $1.6 million dollar loan for a Grandview, Missouri car wash business that failed.
Cleaver got the loan from the Small Business Administration in 2003, before he was elected to Congress. The SBA guaranteed 75% of the loan. That means taxpayers could have been involved in paying back the money if a settlement had not been reached.
Under the terms of the settlement that was reached Thursday, the Cleavers are still obligated to repay $1.2 million.
Cleaver says the car wash operation has been sold for about $460,000.
The newspaper report says Cleaver issued a statement about the settlement.
“We recognize our responsibilities and continue to work in good faith to resolve this issue and meet all of our legal obligations,” Cleaver’s statement said.
“We are saddened the business wasn’t successful.”

Cleaver’s Lawyers Ask for More Time on Car Wash Suit February 21, 2013

KC Star:
Lawyers for Rep. Emanuel Cleaver’s company have asked for more time to respond to a request that the firm be ordered to pay $1.6 million on a delinquent car loan.

In January, Bank of America asked a judge to order the immediate payment on the loan, which the company obtained for a car wash in Grandview. Cleaver’s lawyers were to have responded by Tuesday.

But in a motion filed with the court, the lawyers said they have been unable to discuss the case with their clients “due to scheduling matters related to their employment.” That could refer to Cleaver, who often travels to Washington for congressional business, but it may refer as well to Dianne Cleaver, who is a defendant in the case.

No word on whether the judge has granted the motion, which the Bank of America lawyers oppose.

The trial is still set for April 17.
http://midwestdemocracy.com/articles/cleaver-lawyers-ask-more-time-answer-car-wash-case/

Bank of America Demands Immediate Payment of Cleaver Car Wash Loan January 18, 2013

KANSAS CITY, Mo. (AP) – Bank of America has asked a Jackson County judge to order Congressman Emanuel Cleaver, his wife and their company to immediately repay a 2002 loan they received to buy a car wash in the Kansas City suburb of Grandview.

The Kansas City Star reports the bank’s attorneys filed a motion Thursday saying the facts of the case are undisputed, so the lender should immediately recover $1.61 million in outstanding debt, late fees, interest and costs.

When Bank of America sued the Cleavers’ company in March, it said the congressman owed about $1.5 million. Thursday’s filing says that amount has grown by nearly $86,000 because payments still aren’t being made.

The Missouri Democrat’s congressional office says the motion is a personal business matter and another step in the legal process.

Judge Denies Bank of America Bid to Take Control of Cleaver Car Wash April 14, 2012

KC Star:
On Friday a Jackson County judge denied a request from Bank of America that a receiver be appointed to take control of a Grandview car wash owned by Rep. Emanuel Cleaver’s company.
In a one-page order, Judge Charles McKenzie denied the bank’s request to immediately take control of the car wash, which it considers collateral for a $1.3 million loan to Cleaver Company LLC made in 2002.
In late March Bank of America sued Cleaver, his wife Dianne, and the Cleaver Company to recover more than $1.5 million it says is now owed on the loan. In its lawsuit, the bank said payments on the loan have not been made and that a receiver is necessary to protect the car wash.
A lawyer for the bank declined to comment on the judge’s decision, and a bank spokeswoman had no comment.
It was not clear Friday when the court might hear the bank’s full lawsuit. Cleaver’s office has not responded to an emailed request for comment.

Read more here: http://midwestdemocracy.com/articles/judge-declines-order-receiver-cleaver-car-wash/#storylink=cpy