by peter e. bortner
The Pottsville Club is delinquent in both its mortgage payments and real estate taxes, according to a lawsuit filed Monday in Schuylkill County Court by its landlord.
In the lawsuit, Miners Bank, Minersville, alleges the 201 S. 26th St. club has not made a mortgage payment since April or paid its real estate taxes for 2012 or 2013.
Miners Bank asked the court to require the club to pay the entire amount due under the loan secured by the mortgage - $414,400.51 - plus interest at the rate of $55.04 per day and costs.
If the club loses the lawsuit and does not pay the judgment, the bank could take possession of the property and shut down the 125-year-old organization.
The club has been a fixture in Pottsville since its founding in 1888. In addition to its function as a private club, it is the scene of many meetings for community organizations.
In the lawsuit, the bank alleged that on Dec. 6, 2007, it loaned the club $420,000. In exchange for the loan, the club delivered a mortgage on the South 26th Street property to the bank for the same amount, according to the lawsuit.
In financial transactions, a mortgage is an interest against a property owned by the borrower of money. Failure to repay the money allows the holder of the mortgage to take possession of the property.
The bank alleged it recorded the mortgage in the county Office of the Recorder of Deeds and has never assigned it to another person or institution.
Miners said it gave the club notice of the default, and a demand for payment of the entire amount of money owed to it, on May 7.
"Pursuant to the terms and conditions of the Note and Mortgage, (Miners) has right to accelerate and declare immediately due and payable the balance of the Note secured by the Mortgage," the lawsuit reads in part.
Club President Rik Jochems could not be reached Monday for comment on the lawsuit.