Pinnacle National Bank has withdrawn its Davidson County Circuit Court complaint and will forego collection on a $1.5 million promissory note made to prominent home builder Bob Parks, an indebtedness that remained in default for several months and was secured by an unrelated piece of Rutherford County commercial property.
“We’re working out the details of a forbearance,” wrote Bill Norton, Parks’ attorney at Bradley Arant Boult Cummings LLP, in an email to NashvillePost.com.
There are many types of forbearance agreements in the banking world. The term is used in commercial and residential lending and basically means that alternative payment arrangements have been or are about to be codified. Sometimes lenders will stop loan collection efforts before an agreement is drafted, depending on the solvency of the borrower and other factors. Apparently, that’s what has happened here.
Jason West, executive vice president at Pinnacle and head of the bank’s special assets group, was not available for comment. West is the bank’s point man for high-profile loans in distress and the various moves associated with loan workouts.
Parks had originally signed the Pinnacle loan Sept. 29, 2010. The money was accompanied by a Deed of Trust tying it to an unspecified piece of Rutherford County commercial property for collateral.
In December, the loan balance was about $1,45 million. Parks apparently had made some payments to the bank but for reasons unclear had stopped. Pinnacle's legal action — originally filed Dec. 6 — didn’t surprise Parks but he thought the filing unnecessary. He said he understood the bank's need to have something publicly recorded but added that resolution was even then imminent.
“There’s adequate collateral backing this loan and we'll work something out during the first quarter of next year," Parks told the NashvillePost.com in December.
Pinnacle is being represented by Nicholas R. Akins of the Nashville-based Morgan & Akins firm.
POSTDATA: WARRANTY DEEDS