Litigation

Prior to the receivership, Ecorse School District filed a lawsuit alleging that Ecorse was withholding property tax collections and interest of between $200,000 and $400,000. In 1988, this litigation was settled for $40,000. In addition, a separate interest bearing bank account was established for all Ecorse School District property tax collections. Subsequent to the resolution of this litigation, Ecorse remitted all School District property tax collections and related interest on a timely basis.