WWW arkcity.net

By FOSS FARRAR
Traveler Staff Writer
reporter@arkcity.net

The Hallmark Scottish Inn in Arkansas City was purchased today by an assignee of the bank that had foreclosed on the property, a local defense attorney said.

An assignee of Washington Mutual Bank bought the property for $943,592, the balance of what was owed by the mortgage holder, said Tamara Niles, the Ark City attorney representing two other defendants in the case.

The auction was held by Cowley County Sheriff's Office on the front steps of the county courthouse in Winfield. The only persons present were a sheriff's officer, attorneys for the bank and Niles, she said.

Niles was representing defendants, Priyesh Patel and Minesh Patel, who had waived their redemption rights regarding the hotel property.

"My clients didn't have a mortgage," Niles said. "They had bought the property on contract from the mortgage holder."

Niles said the Patels had run the hotel, also known as Red Carpet Inn.

"The hotel is going to stay in operation," Niles said. "On the 28th of this month, they turn the property over to the purchaser."

Today's auction occurred after a recent Cowley County District Court found that defendants R.K. Hallmark -- doing business as the Hallmark Scottish Inn -- and Rajwant Dhaliwal were in default on a note and guaranty executed in favor of Washington Mutual Bank.

Niles added that her clients anticipated that the hotel would be fully operational.

"They enjoyed working in Ark City and are disappointed to have to turn its operation over," she said. "They would have liked to continue operating the hotel."