Three schools are being sued in federal court by Wells Fargo over an $18.9 million loan default. Fulton Science Academy, Fulton Sunshine Academy and Fulton Educational Services (which operates Fulton Science Academy High), are named in the civil suit filed in U.S. District Court on Dec. 17, the Atlanta Business Chronicle reported.
On. Nov. 1, 2011, the defendants entered an agreement that appointed New York Mellon as trustee of bonds to finance a project to buy land and build a new school. On March 30 2012, Wells Fargo took over as trustee. A real estate deed was used to secure the debt.
"Defendants have failed to meet their repayment obligations for those funds under the terms of the Note. The Note has been accelerated with payment in full demanded," the lawsuit states. "Defendants are in default under the terms of the Note."
Fulton Science Academy Middle School lost its bid for a charter renewal, and had to reopen this year as a private school. Fulton Science Academy High School is in danger of losing its own charter for many of the same reasons.