Judge Awards Bank $1.1 Million in Foreclosure

HUTCHINSON, Kan. (AP) A federal bankruptcy judge is awarding $1.1 million to a Scott City bank in the forced foreclosure of a Greeley County elevator.

Security State Bank foreclosed on Sunbelt Grain in December. It claims owners Jim and Kathy Shafer were in default on a $4.9 million loan the couple used to purchase the facilities in 2006. The bank and two farmer creditors forced the group into bankruptcy.

At issue is the $3.78 million sale of the elevator's grain.

The bank staked a claim to $3.2 million of it, but U.S. Chief Bankruptcy Judge Robert Nugent gave the bank just $1.1 million in his order.

It could be months before a decision is made about who gets the remaining $2.7 million.


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