LUBBOCK, TX (KCBD) - Vista Bank has filed a civil lawsuit in Lubbock County court against Bart Reagor saying he is personally in default $1,448,401.23 on a loan, because he signed a personal guarantee on the note.
The documents say on May 5, 2017, Reagor Dykes Auto Group executed a promissory note payable to Vista Bank in the principal amount of $3 million.
On May 4, 2018, the parties extended the Promissory Note’s maturity date to May 5, 2019, but no other changes were made to the Promissory Note’s terms, according to the documents.
The lawsuit states the Reagor-Dykes entities defaulted by not making payments when they were due, with the last payment occurring on July 6, 2018, and by commencing bankruptcy proceedings.
Bart Reagor signed a commercial guaranty incorporated into the promissory note, unconditionally guaranteeing to pay Vista Bank all principal, interest, collection expenses, and attorneys’ fees.
The lawsuit states on or about August 1, 2018, Reagor-Dykes Auto Group defaulted on the Promissory Note for lack of timely payment on the Promissory Note and by commencing bankruptcy proceedings. Because of this, Defendant, as the personal guarantor of such debt is liable on the indebtedness.
The lawsuit says despite a demand for payment, Reagor has failed to make full payment of the balance of the promissory note.
“Vista’s suit was filed after Mr. Reagor ignored multiple attempts to have him fulfill his personal obligations. Though not adding to Vista’s overall exposure with regards to Reagor-Dykes Auto Group, this lawsuit became a necessary step in recovery,” said Vista Bank’s attorney Fernando Bustos in a news release.
Vista Bank is demanding a jury trial for the case.