Yom Kippur 2010

Yom Kippur 2010, Holiest of Jewish holidays begins; the congregation of a synagogue in Florida faces the loss of your building and Torah in a foreclosure action of the bank.

A bankruptcy judge will schedule a hearing to determine whether to allow the bank to foreclose on the assets of the synagogue for the failure to make payments on a loan of 3.8 million, according to court documents in West Palm Beach, Florida.

Congregation Chabad Lubavitch of Boynton Beach called for greater protection for Chapter 11 bankruptcy in June after Stonegate Bank sued to foreclose on assets. The synagogue cited “the recession, the values of real estate and finance.” His lawyer also said in a telephone interview that Stonegate was not good on his promise of funding.

“Not that they could not make payments,” said Philip Landau, a lawyer for the synagogue. “The mortgage was made with the understanding of bond financing for the loan.

“That never happened bond financing.” Landau said in Shraiberg, Ferrara & Landau PA in Boca Raton, Florida. “The bank has not fulfilled its promise.”

Robert Furr, a lawyer from Fort Lauderdale-based Stonegate Bank, did not respond to messages left for comment. David Seleski, Stonegate president was not immediately available.

The hearing on the request of the bank to continue the execution was scheduled for 24 September. Because that is the Jewish holiday of Sukkot, the bankruptcy judge agreed to choose another date, “said Landau.

Automatic suspension

The bankruptcy laws automatically freezes lawsuits against the presentation of the party; a judge may lift a stay. The bank asked the judge to allow it to proceed with a lawsuit that could take the assets of the synagogue.

“The bank has a lien on all goods, so that the Torah are within your property,” Landau said in the interview.

Chabad Lubavitch sued the bank in a Florida state court charged with fraud and false statements promising that the loan would be “the first of three that would result in a bond offering, according to an amended lawsuit filed in March.

The synagogue used to repay a mortgage loan and the loan earlier and planned to raise funds to expand into a vacant lot next to the temple. When the housing market in South Florida, “went into a tailspin,” according to the complaint in March, the bank “decided to unilaterally change the second and third phase” of the agreement.

Seeking a meeting

Landau said he is seeking a meeting with the bank’s lawyers to try to reach a compromise.

“We are hopeful in the coming weeks we can sit down with the banks,” said Landau. “The term of the loan and the loan amount is to be restructured.”

The original loan agreement was signed in October 2007 with a 7.4 percent rate of interest and a maturity date 18 months later. A revised agreement in April 2009 extended the maturity of October and the interest rate fell to 5.5 percent.

The bank received the last payment in July 2009, according to court documents. Stonegate is due and 4.56 million, including interest and fees, he said.

Stonegate asked the judge for permission to contact the members of the synagogue to determine if a plan to donate all that was promised from their income seems to be largely dependent upon receipt of pledges. “Landau said, the judge denied the request. The decision has not been submitted in the dossier.

The synagogue list of its total assets and 9 million and its debts and 4,150,000 at the time of Chapter 11.