Source: NorthFulton.com

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Wells Fargo sues Fulton Science Academy after $19M default

by Aldo Nahed

December 20, 2012

ALPHARETTA, Ga. — Wells Fargo has filed a lawsuit over a $19 million bond default by the Fulton Science Academy.

Last year, the Development Authority of Alpharetta made the loan to finance the construction of a campus to eventually house the FSA elementary school (Fulton Sunshine Academy), FSA Middle and FSA High. After Fulton County revoked the charter for the middle school, plans for construction stopped and the loan went into default in June.

According to the Dec. 17 lawsuit filed in U.S. District Court, first reported by the Atlanta Business Chronicle.

Wells Fargo says Fulton Science Academy has not made payments on its $18.9 million loan. Wells Fargo is trustee for the holders of the bonds.

"The note has been accelerated with payment in full demanded. Defendants are in default under the terms of the note," Wells Fargo's complaint said. "Defendants have failed to meet their repayment obligations for those funds under the terms of the Note. The Note has been accelerated with payment in full demanded."

Read the lawsuit here:

The Fulton County School System has cut ties with Fulton Science Academy. The Fulton Science Academy Middle School has reopened this year as a private school after it lost its bid for as a charter school.

The Fulton Science Academy High School could also lose its charter.

At a hearing on Tuesday, the Fulton Science Academy leaders told the Fulton Board of Education that the school was close to an agreement that would not involve them paying back the bond.

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