By Alan Sorensen
The secretary of Quantum Five, Inc. has answered a foreclosure petition filed in 12th Judicial District Court in Havre last month by the Confederated Tribes of the Grand Ronde Community of Oregon with a charge of his own.
The confederated tribes claimed in papers filed with the Hill County Clerk of Courts Office that Quantum Five Inc., a Montana corporation, failed to repay a $900,000 loan. Quantum Five allegedly signed a promissory note for $900,000 with Performance Funding, Inc., of Washington on Oct. 30, 1996, using a parcel of land in east Havre as collateral. Quantum Five purchased the land for development of the Havre Golf and Country Club.
In his answer to the charges, James V. OConner of Seattle admitted to taking out the loan and failing to repay the loan and its interest.
OConner charged, however, that the loan it entered into was illegal because Quantum Five was required to pay 10 percent down for consideration of the loan whose interest rate was 15 percent. OConner charges that the loan rate constitutes usury and is subject to penalties provided in law.
Jock O. Anderson, a Helena lawyer, filed the suit that claims that Quantum agreed to repay the principle and interest by Nov. 15, 1997.
The suit claims that Quantum Five owes all of the principle and $200,432.64 in interest. Quantum Five, it said, is continuing to accrue further interest debt at the rate of $375 per day.
The suit also asks for $2,594.25 from Quantum Five for the cost of the foreclosure report and not less than $5,000 for attorney fees.
The tribes are asking the Hill County Sheriffs Office to hold take possession of the land and put it up for auction in a sheriffs sale. Proceeds from the sale would be used to cover the sheriffs cost of holding the sale and the debt owing the tribes, with the remainder turned over to the Hill County Clerk of Court for further disbursement as deemed appropriate.
The tribes further ask for permission to bid on the land that Quantum 5 purchased for the purpose of building the golf course and selling home and business sites.
OConner asks that the loan be declared usurious and that any penalty determined by the court should be deducted from the principle amount of the loan. His answer also asks the court to award Quantum Five its costs and attorney fees incurred by the initial petition.
In response to the proposed sheriffs auction of the land, OConner said only that portion of the land required to pay off any judgment determined by the court should be sold. He said the property has been platted and could be sold in separate parcels.
No court dates have been set.
