Terminella Tangles with MNB

Apparently Fayetteville developer Tom Terminella isn’t going to let Metropolitan National Bank foreclose on him without a fight.
By now most know Terminella filed a counter-claim against Metropolitan on July 2, but most stories we read buried the lead that Terminella and his partners are claiming damages in excess of $50 million, which represents the total equity of all their properties in Benton and Washington counties.
Terminella, who also filed a motion July 2 to have the two foreclosures combined into one to be heard in Washington County, made several pointed allegations.
Chief among them is that MNB — which made loans of $11.8 million and stands to take possession of properties with an appraised value of $20.5 million — took the actions it did in order to “gain control of the very valuable Grand Valley and Cornerstone properties.”
Based on that charge, Terminella and his partners say punitive damages are justified against the Little Rock-based bank.
They also allege MNB, which solicited them to move the loans from Signature Bank of Arkansas in 2005, breached the original loan agreement in November 2006.
Terminella and his partners charge MNB refused to continue to fund the Grand Valley project according to the agreed-upon construction budget and then in late March unjustly liquidated a $500,000 certificate of deposit put up as collateral.
The claim states the CD was liquidated soon after a meeting between Terminella and his creditors when fellow Fayetteville developer Jim Lindsey advised MNB not to foreclose on Terminella.