MONTCALM COUNTY, Mich. — A judge granted a temporary restraining order last Wednesday in favor of Union Bank and Lake-Osceola State Bank. The order barred the owners of Lakeside Motor Sports and Nelson's Speed Shop from selling or tampering with assets listed as collateral amid an ongoing lawsuit.
Court documents showed that Union Bank in Lake Odessa lent $300,000 to the company in August of 2020, with Lake-Osceola State Bank in Baldwin also issuing a loan for $750,000.
In loan agreements listed as evidence in the lawsuit, cars, trucks, ATVs and jet skis were listed as collateral in case the company ever defaulted on their loans. According to Union Bank, the company has "various defaults" that have occurred under the agreement.
They add they haven't been able to take possession of the vehicles listed as collateral, with one of the owners calling the items "his babies".
This comes after Nelson's Speed Shop closed on September 21st. In a Facebook post that same day, Nelsons denied the existence of an investigation by the IRS or FBI.
13 ON YOUR SIDE spoke with a manager at Nelson's Monday afternoon for comment on the restraining order and lawsuit, however, they declined to comment.
A hearing is scheduled for Oct. 9 at 8:30 a.m. at the Montcalm County Circuit Court.