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King City 'Loan' For Downtown Development Remains Unresolved

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An appellate court panel has overturned a lower court’s decision ordering Community Bank of Central California to return $4.4 million to King City.
The city says the money was a deposit, and the city wants the money back. The bank says the money was collateral for a bank loan to the developer of a downtown redevelopment project. Because the developer defaulted on the loan, the bank wants to keep the money.

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