The Bank of North Carolina filed a $2.3 million judgment against Wayne Gray for failure to repay a loan for his Spring House Restaurant Corp., according to court documents.
The judgment goes against both Gray, who signed a personal guaranty on the loan, and the restaurant corporation. Gray is seeking reelection to the Myrtle Beach City Council on Nov. 5.
The $2.3 million judgment is identified as a "compromised amount" in court filings, meaning the actual loan amount was higher and doesn’t include interest, late fees, attorney’s fees and other costs.
Gray signed a confession of judgment with the bank on Dec. 28, 2012, which was filed at the Horry County courthouse on Sept. 10. A confession of judgment is a legal term that refers to a type of contract in which a party agrees to let the other party enter a judgment against him or her, usually if a loan isn’t repaid by a certain date or under the terms of the contract.
“This is a byproduct of continuing business obligations,” Gray told The Sun News. “We’re meeting that obligation and the document will be satisfied when we get it paid off.”
According to the confession of judgment: "If any payment is missed, regardless of the reason, BNC may file this confession at any time thereafter (giving the defendant credit for any payments made after the execution of this confession) without any notice and/or right to cure."