Bank Suing Kite's Owner For Millions
RILEY COUNTY, Kan.(WIBW)-- A local business owner is being sued for several million dollars over what the bank says are unpaid loans.
Farmers State Bank has filed a lawsuit in Riley County District Court against William "Rusty" Wilson and his companies: Kite’s Bar and Grill, Inc.; Rusty’s Bargain Barn, Inc.; W.R. Wilson, Inc.; and Rusty’s of KC, Inc- all based in Manhattan. The bank is seeking more than $3.6 million in repayment.
The 19 page lawsuit contains 10 different counts alleging a breach of contract and the bank is seeking foreclosure of Kite’s Bar and Grill and possession of other property and holdings.
In Count 1, it states that in February of 2008, Wilson and Kite’s received a loan in the principal amount of $650,000. According to the document,$558,888 plus $90, 491 in interest have gone unpaid. The bank says, as a result of the default, it is entitled to immediate possession of Kite’s Bar and Grill which was offered as collateral, including Kite’s “accounts, inventory, equipment, fixtures and general intangibles.”
In Count II, the bank seeks restitution from a $270,000 loan Wilson and W.R. Wilson, Inc. was granted in April of 2008 of which $12,224 plus $42,320 have not been paid.
In Count III, it states a $30,000 loan plus $8,090 in interest are due from W.R. Wilson, Inc. from a $30,000 loan issued in August of 2008.
In Count IV, the bank seeks repayment of $54, 562 and $14, 714 in interest from a $54,562 loan Wilson and W.R. Wilson, Inc. were given in September of 2008.
In Count V, the bank states that $986,918 plus $136,469 in interest have gone unpaid from a $1,000,000 loan Wilson and W.R. Wilson, Inc. were granted in September of 2008.
In Count VI, the lawsuit indicates that $179, 854 and $20,405 in interest have been unpaid after Wilson and his wife were given a $191,000 loan in June of 2008.
In Count VII, the bank seeks repayment of $68,000 and $16,061 in interest from a $68,000 loan Wilson received in May of 2009 and possession of five vehicles offered as collateral.
In Count VIII, the bank seeks $20,000, alleging that Wilson sold a 1950 Chevrolet 3100 without permission that had been offered as collateral for one of the loans.
In Count IX, Farmers State Bank requests payment of $529,378 plus $159,961 in interest from a $550,000 loan Rusty’s Bargain Barn, Inc. received in September of 2007.
In Count X, the bank seeks restitution in the amount of $688,780 plus $105,720 in interest from a $730,341 loan Rusty’s of KC, Inc. was given in March of 2008.