Goldenpark

BACKGROUND

The loans In February 2008, Goldenpark obtained a loan from Wilshire State Bank (WSB) in the principal amount of $16.9 million (Loan 1). Loan 1 was evidenced by a business loan agreement, promissory note (Note 1), deed of trust, and commercial security agreement, and was secured by certain commercial real property operated as a hotel (the hotel). In April 2008, Goldenpark obtained from WSB a second loan in the principal amount of $1.3 million (Loan 2). Loan 2, like Loan 1, was secured by the hotel and was evidenced by a business loan agreement, promissory note (Note 2), deed of trust, and commercial security agreement. Loan1 required Goldenpark to make monthly payments “with interest calculated on the unpaid principal balances at an interest rate of 6.750%.” The interest rate on Loan 2 was 7.00 percent and was calculated the same way. Both loans defined an “Event of Default” to include Goldenpark’s “fail[ure] to make any payment when due under the Loan.” An Event of Default entitled the lender, “without notice of any kind to Borrower,” to accelerate all payments due under the loan and to exercise various other remedies, including foreclosing on the hotel. A default…