First Community Bank, N.A. v. Community Youth Center

By Judge W. Allan Sharrett

First Community Bank, N.A., seeks a declaratory judgment that it has valid title to property formerly owned by Community Youth Center (“CYC”). For the reasons that follow, the Court grants the motion seeking declaratory judgment.

Five years after the Virginia State Corporation Commission (“SCC”) terminated CYC’s corporate status for failure to pay its registration fee, the president, vice president, and treasurer of CYC, all three of whom also served on the board of directors for CYC, obtained a loan on behalf of the corporation from First Community Bank to install a…