CHATTANOOGA. (AP) - The Tennessee Multicultural Chamber of Commerce mortgaged everything including furniture in 2009 to get a second loan on property it bought the year before with $579,000 in borrowed money.
In exchange for a $150,000 from SunTrust, chamber officials used much more than two lots for collateral. They also signed over rights to everything the organization owns, from office furniture to flowerbeds, as well as income from renting or leasing property, according to The Chattanooga Times Free Press, citing county property documents.
According to a city review of the chamber's records, that loan apparently financed a line of credit that Multicultural Chamber Executive Director Sherrie Gilchrist used to pay for operations, the newspaper reported.
Gary Hathaway, who was the chamber's finance chairman when the SunTrust loan was made, would not comment.
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.