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The booster club has always struggled to pay the loan. Fundraising has gotten harder and harder and to be honest yes funds have dried up a bit. It was a bad loan from the start. The whole story was told at the school board meeting last week. You should watch it.

 

I watched the entire meeting. When considering in volunteering about 80% of the work is normally done by about 20% of the people, I've got to agree with you. I'm involved in another booster club and I expect my contributions and fund raising go to the intended use. If ever once they did not, I would never contribute or raise another penny.

 

I feel everyone originally involved in this have some ownership in this mess. I don't think this loan would be allowed to be made today in today's banking culture. And moving forward I expect the school board never allows anything to be built on school property without the additional money already being given to the school board and securely ear marked in an account for the intended project.

 

I know of another booster club at another school where a former booster club president always said "We've got to make sure the next years booster club finds it in better shape than we found it". That was very wise words from a very wise person.

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Since Pubby posted the meeting yesterday I have watch the better part of it a bit at a time. It was about what one would expect out of a government meeting, too long and often off subject but very enlightening concerning this subject. I applaud the BOE, at least the ones who had the guts to stop payments, for being good stewards of the tax payers dollars. Mr. Albright and Mr. Lester being stand outs as well as Mrs. Cobb. The loan oozes of impropriety and favoritism. The bank "doest protest too much" concerning the origination of the loan and the disappearing guarantors making it look even more suspect. I was disappointed in the BOE members who did not vote. I believe the vote was 4-2 with nine members present. Perhaps the chair cannot vote but come on if you want the job people have the guts to participate on the record. Bottom line the Booster Club is on the hook and I am afraid their officers will see legal recourse. If the club was incorporated properly perhaps the officers have some protection from recourse. The bank is about to eat this one. Maybe they can get a loan from the folks who guaranteed the note in the first place. Chickens commence roosting you have made it home. Oh yeah thanks for the video Pubby and LPPT.

There are only 7 board members, one of those board members sits on the board at the bank. He had to abstain from voting, the superintendent does not get a vote, and the other gentleman is the Board of Education Attorney, he doesn't get a vote either. He also sits on the BOD at the bank.

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The Board of Education has now got a building on their property which will go into foreclosure...If I were Mr. Brock, I'd bulldoze the half of the building which the bank owns. Then write off the rest as a loss.

 

I doubt the school system signed over an interest in the building. It was basically an unsecured loan and has come back to burn them.

 

Shoot I wanted a $15K loan to purchase this 30K lot in Paulding in1998 and was told by Suntrust "we don't do land loans. Have any other collateral? " So even with an interest and great credit I couldn't get a loan. This one has Good 'ol Boy written all over it.

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The Board of Education has now got a building on their property which will go into foreclosure...If I were Mr. Brock, I'd bulldoze the half of the building which the bank owns. Then write off the rest as a loss.

That would be great publicity for a bank that made a bad loan to begin with. This is not good for the bank. They need to resolve it ASAP. Bulldozing is not the way. That will compound their error.

The thing is....the school realized benefits from the booster club. Yes?

How?

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It is also my understanding that Mr. Brock's sister was on the booster board at the time this loan was taken out. The conflicts of interest with everything about this loan is sickening.

Edited by RaidersRock
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That would be great publicity for a bank that made a bad loan to begin with. This is not good for the bank. They need to resolve it ASAP. Bulldozing is not the way. That will compound their error.

How?

I was asking a question. I thought they worked hand and hand for the benefit of the school.

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The thing is....the school realized benefits from the booster club. Yes?

 

Not really - very little of their payment commitment has been met. From the meeting it sounded like any payment that was made by the booster club came from individuals - not from direct fundraising by the booster club.

 

This is a tough one. On one hand the school has the benefit of the building. But, the bank made a stupid loan backed by individuals. If no one pays up then all the signage benefits will be given to the bank. I don't know what the bank is waiting for. Doubt there will ever be any funds from the booster club.

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Not really - very little of their payment commitment has been met. From the meeting it sounded like any payment that was made by the booster club came from individuals - not from direct fundraising by the booster club.

 

This is a tough one. On one hand the school has the benefit of the building. But, the bank made a stupid loan backed by individuals. If no one pays up then all the signage benefits will be given to the bank. I don't know what the bank is waiting for. Doubt there will ever be any funds from the booster club.

Where did you get that information? The booster club paid over $238,000 since the inception of the loan. I know because I was the treasurer of the booster club. I personally wrote a check every month in 2015 and the person before me paid every month. in 2008-2012 the loan was not paid every month. There were times that they would make a lump sum payment of $20,000 but from 2013-2015 the loan was paid on time every month. In 2016 we simply didn't have the money to make all the payments due to a lack of fundraising. The bank has no recourse on the building. The building is owned by the school. The building was not secured by the loan. What was secured was all the booster clubs account receivables and any equipment we owned. However all the equipment that was ever purchased was donated to the school therefore is now school property.

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Where did you get that information? The booster club paid over $238,000 since the inception of the loan. I know because I was the treasurer of the booster club. I personally wrote a check every month in 2015 and the person before me paid every month. in 2008-2012 the loan was not paid every month. There were times that they would make a lump sum payment of $20,000 but from 2013-2015 the loan was paid on time every month. In 2016 we simply didn't have the money to make all the payments due to a lack of fundraising. The bank has no recourse on the building. The building is owned by the school. The building was not secured by the loan. What was secured was all the booster clubs account receivables and any equipment we owned. However all the equipment that was ever purchased was donated to the school therefore is now school property.

I noticed that most of the principal hade been paid. I think that the bank is fortunate to have gotten that much paid. I have worked with many volunteers over the years. No matter how passionate and devoted when their plates get full volunteering often gets cut. It was not wise no matter how generous and caring the motive. I appreciate all your efforts and other volunteers that have made a great booster club for these kids. You just can not count on volunteers to stay committed for the life of such a long loan. As I said I think the booster club and the bank should come to an agreement of forgiveness of the balance and an honorary, permanent sponsorship of the bank. I have banked with Georgia Heritage for many years. It always feels personal, I know the faces and they know me. I often run into friends and acquaintances when I am in there. It feels like community, and I believe they felt they were doing a good thing when they made the loan. It's simply good business to follow the letter of the agreement if possible. Hopefully the booster club can get a pay off amount for the principal and meet it. A lesson learned by all.

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We tried to come to an agreement. Basically the bank told us no. We asked them to drop the balance down to $150,000 and fix it for 10 yrs at an interest rate of 5%. That would have been a $1595 payment and the loan would have had an end in site. We were told no. We even offered to name the field house after the bank. They wouldn't bend.

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We tried to come to an agreement. Basically the bank told us no. We asked them to drop the balance down to $150,000 and fix it for 10 yrs at an interest rate of 5%. That would have been a $1595 payment and the loan would have had an end in site. We were told no. We even offered to name the field house after the bank. They wouldn't bend.

My understanding is the booster club could dissolve and the loan never be paid back is that right?

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My understanding is the booster club could dissolve and the loan never be paid back is that right?

That is correct. The booster club membership voted to disband on Monday. This loan shouldn't have ever been approved. It was bad loan from the start. The booster club could never afford it.

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It is also my understanding that Mr. Brock's sister was on the booster board at the time this loan was taken out. The conflicts of interest with everything about this loan is sickening.

Also need look at history of the bank.

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Where did you get that information? The booster club paid over $238,000 since the inception of the loan. I know because I was the treasurer of the booster club. I personally wrote a check every month in 2015 and the person before me paid every month. in 2008-2012 the loan was not paid every month. There were times that they would make a lump sum payment of $20,000 but from 2013-2015 the loan was paid on time every month. In 2016 we simply didn't have the money to make all the payments due to a lack of fundraising. The bank has no recourse on the building. The building is owned by the school. The building was not secured by the loan. What was secured was all the booster clubs account receivables and any equipment we owned. However all the equipment that was ever purchased was donated to the school therefore is now school property.

I forgot about interest payments. Mainly had the thought of the beginning balance vs current balance. Somewhere around $75K has been retired from the beginning balance.

 

The bank rep said they had "rights to signage" on the building or stadium area - can't recall his exact words. I've only been to the stadium a few times - is that the main place where advertisements are?

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The thing is....the school realized benefits from the booster club. Yes?

 

indirectly and long term --- the best football programs will get the best facilities AND best athletes (students) through school choice....

 

just look at McEachern in the 80s & 90s with their facility and players and scholars {although that was b4 school choice, there was plenty of students with fake addresses so they could go there}

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We tried to come to an agreement. Basically the bank told us no. We asked them to drop the balance down to $150,000 and fix it for 10 yrs at an interest rate of 5%. That would have been a $1595 payment and the loan would have had an end in site. We were told no. We even offered to name the field house after the bank. They wouldn't bend.

 

Somewhere I read how much principal & interest $ had been paid so far, but now I can't find it.

Adding principal & interest $ already paid to the bank and your offer of a $150k loan @ 5% plus the $41k interest it would generate and the good advertisement of the field house being named for the bank, might not look so bad now.

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In this case everything they brought in went to pay the loan and it was still not enough.

Don't think that is true. The ladies with the booster club said there was extensive expenses to refurbish and replace helmets this year.

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Hopefully, in time, things will work out, for East Paulding Football Booster Club.....May take a while.

 

From currently working with four other football programs in my line of work, I do know these Booster Clubs, along with East, do a lot for their teams, players, coaches, and programs.

 

I do hope EP's Booster Club, can progress, move forward, and be able to help their team out......

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Hopefully, in time, things will work out, for East Paulding Football Booster Club.....May take a while.

 

From currently working with four other football programs in my line of work, I do know these Booster Clubs, along with East, do a lot for their teams, players, coaches, and programs.

 

I do hope EP's Booster Club, can progress, move forward, and be able to help their team out......

There is no East Paulding Football Booster Club any more.

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Don't think that is true. The ladies with the booster club said there was extensive expenses to refurbish and replace helmets this year.

Because they stopped trying to pay the loan and used the money on the kids. The school paid about $13,000 at least twice. They should never have done that and the BOE put a stop to it.

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Hopefully, the parents and school can get together soon to form a new boosters club and everything get settled back down.

I recall reading awhile ago, that if the booster club disbanded, that they would not be able to reorganize again, ever. Is that not true?

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I recall reading awhile ago, that if the booster club disbanded, that they would not be able to reorganize again, ever. Is that not true?

 

I'm not a legal expert by any means, but I did stay at a Comfort Inn last week. That said, I'd be really surprised if they couldn't organize another club on campus that did the same thing, just didn't call itself a "The East Paulding Booster Club" or whatever their original legal name was.

 

That is the whole idea behind corporate entities. How many times have you heard of a building going bankrupt, just to be back in business under a new name in weeks?

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I'm not a legal expert by any means, but I did stay at a Comfort Inn last week. That said, I'd be really surprised if they couldn't organize another club on campus that did the same thing, just didn't call itself a "The East Paulding Booster Club" or whatever their original legal name was.

 

That is the whole idea behind corporate entities. How many times have you heard of a building going bankrupt, just to be back in business under a new name in weeks?

I tend to agree with you. But the parents decided to move forward.

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