Judge Says OneUnited Must Wait for $2.9M from Church
A federal bankruptcy judge has told OneUnited Bank that it must wait for $2.9 million raised in a real estate auction by its borrower, the Charles Street African Methodist Episcopal Church, until the two sides have resolved their remaining legal disputes. The legal fight has dragged on since the church filed for bankruptcy in March 2012. The Charles Street AME church owes nearly $5 million to OneUnited after falling behind on a $3.4 million construction loan in 2008 and 2009 while building a community center. It also owes $1.3 million on a loan secured by the church building itself. In April, the church finally gave up hope of completing the community center and proceeded to auction it off, raising the $2.9 million currently at issue.