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LOUISIANA RECORD

Thursday, November 21, 2024

First Bank and Trust sued by a disabled service non-profit over loan repayment dispute

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NEW ORLEANS – A non-profit organization created to assist those with disabilities is suing a local bank claiming it wrongfully sought immediate repayment on a loan.

Alternatives Living, Inc. filed suit against First Bank and Trust in the Orleans Parish District Court on July 2, 2015.

Alternatives Living, Inc., an Orleans Parish based non-profit organization, claims that First Bank and Trust unreasonably exercised its right to demand full payment on a loan with which which Alternatives Living conducts its non-profit work.

The plaintiff alleges that immediate repayment of the loan would cause irreparable damage to its operations and the many disabled and psychologically unstable people who rely on Alternatives Living as a place for counseling and services.

Alternatives Living contends First Bank and Trust accused them of failing to disclose a change in their financial condition and ability to pay its debts which stemmed from an Internal Revenue Service tax lien filed against the plaintiff.

Alternatives Living, meanwhile, claims it has continued to make all payments on its debts owed to the defendant and claims to have complied with all conditions of the loan agreement. Furthermore, the plaintiff alleges the demands made by First Bank and Trust would make this continued payment of debts untenable and would destabilize a community of homeless and disabled individuals who rely on Alternatives Living as a safe premise.

Alternatives Living seeks that a temporary restraining order to prevent First Bank and Trust from initiating foreclosure proceedings, seizing property, and placing its line of credit into default. Alternatives Living also requests an unspecified amount for of all court fees and any other relief deemed just and proper.

Alternatives Living is represented by Cameron Ehsan-Landry.

The case has been assigned to Division E Judge Clare Jupiter.

Case no. 2015-06383.

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