Keyser House Bonds v. Keyserhouse Associates

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Petitioner herein, Keyser House Bonds LLC, holds municipal bonds issued by the City of Keyser to finance the construction of the Keyserhouse, a subsidized housing facility located in Keyser, West Virginia. Petitioner filed a declaratory judgment action and motion for injunctive relief alleging events of default by Respondent Keyserhouse Associates LTD Partnership under the Indenture of Trust encumbering the Keyserhouse, including nonpayment of the final installment of principal and interest due on the bonds, and failure to maintain the physical condition of the Keyserhouse. The circuit court entered two orders that, among other things: 1) enjoined petitioner from foreclosing on the Keyserhouse without leave of the court; 2) removed Keyserhouse Associates LTD Partnership from managing the Keyserhouse; 3) directed that the Keyserhouse be sold to an interested purchaser; and 4) ordered Keyserhouse Associates LTD Partnership to make monthly payments in the amount of $5,000 to petitioner as payment toward principal and interest owed on the bonds. As of the filing of this petition, Keyserhouse Associates LTD still owes petitioner an amount in excess of $650,000 on the bonds that matured over a year ago. Petitioner requests that this Court reverse and remand so that it can enforce payments of the bonds through foreclosure.