Bank starts foreclosure process on AC inn

Mortgage foreclosure proceedings against Hallmark Scottish Inn, 1617 N. Summit St., Arkansas City, have been initiated in Cowley County District Court in Winfield.

Washington Mutual Bank, a federal savings association, filed the civil case against R. K. Hallmark, Inc., doing business as Hallmark Scottish Inn, doing business as Scottish Inn; Rajwant K. Dhaliwal, also known as Rajwant K . Dhaliwaz, Rajwant K. Dhaliwal doing business as R. K. Hallmark, Inc., U.S. Small Business Administration, Priyesh D. Patel and Minesh D. Patel.

The resident agent is listed as Rajwant Dhaliwal of Round Rock, Texas. A person answering the phone at the business said a manager would not be available for comment until late Wednesday. The person said the owner was out of the country.

The bank claims it loaned the defendants, in conjunction with the small business administration, $924,000 in March 2000. As of June 30 2007, $885,197 was due, along with costs and reasonable attorney fees, according to court records.

The defendants have at least 20 days to reply to the accusations.