27 Apr 2011

ANZ-Amerika Samoa Bank takes Pago Pago Village Council to court

11:20 am on 27 April 2011

The ANZ-Amerika Samoa Bank has taken the Pago Pago Village Council to court over the Council's failure to pay a loan for the refurbishment of the Pago Pago Community Center, which was destroyed by the 2009 tsunami.

The American Samoa Government owns the land on which the Pago Pago Community Center is located.

The suit filed last week says the Village Council owes the bank more than 410-thousand US dollars in principal and interest.

The bank's suit names the Pago Pago village Council, an established local corporation, and individual council members Mauga Tasi Asuega, Tuaolo Fruean, Fuaatutoa Taufaasau, Vaivao Etelagi, Asuega Lauvai, and the estate of the late Mageo Malu as defendants.

The complaint states that in 2006, the Pago Pago Village Council signed a promissory note promising to pay the principal amount of over 558 thousand US dollars US to the bank.

In the note, the Council promised and agreed that in the case of default in loan payment the whole loan principal and interest shall become immediately due and payable at the option of the bank.