GA taxpayers could pay part of GOP loan default - | Chattanooga News, Weather & Sports

GA taxpayers could pay part of GOP loan default

CALHOUN, GA. (AP) - Two leading Georgia Republicans have settled a lawsuit with a Georgia bank alleging they defaulted on a $2.2 million loan.

But questions persist about the financial arrangement of U.S. Rep. Tom Graves and state Senate Majority Leader Chip Rogers.

And taxpayers might eventually foot some of the bill for their failed north Georgia hotel.

The lawmakers in 2007 took out a loan from Bartow County Bank to purchase and rehabilitate the Oglethorpe Inn in Gordon County.

The loan went into default and the bank sued to recoup its money.

Graves and Rogers say the bank reneged on its promise to refinance.

Experts say if Graves and Rogers fail to pay back the full amount, the FDIC could pay 80 percent of the difference.

Both have spoken out against government bailouts.

(Copyright 2011 by The Associated Press.  All Rights Reserved.)

Powered by Frankly