DF& A claims lien on Hurst property

The Arkansas Department of Finance and Administration claims a $ 10,050.25 state income tax certificate of indebtedness lien on two tracts of mortgaged property in Hot Springs belonging to Democratic 4th Congressional District candidate Q. Byrum Hurst Jr.

Chambers Bank filed a Complaint in Foreclosure and on Debt in Garland County Circuit Court in March, alleging Hurst has defaulted on a mortgage, originally for $ 100,000, involving property at or near the intersection of Woodbine and Hawthorne, which Hurst executed in 2001.

The foreclosure petition lists the DF& A, Hurst’s wife, Rita, and the Internal Revenue Service as defendants.

Hurst’s campaign manager, Nicole Dorris, issued the following statement Thursday about the DF& A court filing: “It is Q. Byrum Hurst’s belief that he has settled this issue with the state. Either way, this is important to Q. Byrum and he is working with his attorneys to better understand this issue. If additional payments are owed, he will continue to be forthcoming and pay them.”

Hurst had not filed an answer to the bank’s foreclosure action as of Thursday.

Michael J. Wehrle, DF& A revenue legal counsel, stated in an answer to the foreclosure petition on behalf of

DF& A Director Richard Weiss that “DF& A admits it may have an interest in and claim to the property being foreclosed” by reason of the unsatisfied certificate of indebtedness against the Hurst property.

“A certificate of indebtedness creates a statutory lien having the force of a circuit court judgment against all of the taxpayer’s real and personal property located in said county,” Wehrle said.

“Wherefore, DF& A consents to the entry of a decree provided that all parties be held to strict proof of their claims, that the priority of its lien be declared, that the lien be paid from the proceeds of the sale of the property foreclosed, for its cost and for all other proper relief to which it is entitled.”

The foreclosure petition filed by attorney Patrick McDaniel of the Page, Thrailkill and Mcdaniel law firm of Mena asserts that Hurst defaulted on the promissory note “by failing to make payments as agreed upon in said note as modified and said debt is past due and unpaid.”

The foreclosure action claims Hurst owes the bank $ 65,973.69 in principle on the debt, a total of $ 997.21 in unpaid fees and late charges, $ 500.90 in accrued but unpaid interest through March 1, and interest at 16 percent per annum, or currently at $ 29.32 per day, be- ginning March 2 and each day thereafter until paid.

The petition states that the original $ 100,000 promissory was “modified through various changes in terms agreements” in 2003, 2004, 2006, 2008 and 2010.

Hurst has told The SentinelRecord that he is not behind on the loan payments to Chambers Bank.