RICHARDSON, Texas – The troubles for Texans CU in its member business loans grew worse as the ailing credit union giant was forced to foreclose on a $6 million note it lent to Tennessee’s Wild Wilderness Resorts.
The undeveloped property, which was part of the gold and water park resort’s initial land acquisition in 2007, is due to be sold in an auction on the Sevier County Courthouse steps at noon on April 27.
Wilderness owes more than $6 million on the property to Texans’ MBL CUSO Credit Union Liquidity, LLC and to developer Universe, LLC.
The Tennessee development is one of several financed by Texans, which has been run under NCUA conservatorship since last April, through its MBL lending programs. Multi-million projects that have gone bad in Illinois, Mississippi, Delaware, Louisiana and elsewhere have sunk the one-time $2.2-billion credit union. Texans has racked up $220 million in losses over the past four years.
