Port foreclosure hearing rescheduled

Published: Thursday, October 24, 2013 at 10:30 AM.

The Port Authority is arguing it lacked the authority to mortgage public property without a voter referendum on the issue.

Gibson said the judge could rule one of three ways.

A win for Capital City Bank would enforce the mortgage and lead to foreclosure on the parcel.

A win for the Port Authority would mean the mortgage was invalid on its face, Gibson said.

The judge could also rule that the mortgage was unenforceable but the note the Port Authority owes Capital City Bank remained a debt that must be paid.

Capital City Bank has declined late offers from the Port Authority under which the Port Authority would provide additional strength to its obligation to pay back the loan while securing from Capital City Bank time to allow for development at the port.

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