County sues business over loan

AMSTERDAM – A high-end locker manufacturing company in Amsterdam is being served an eviction notice after being sued by Montgomery County over a defaulted loan.

Embassy Millwork Inc. is a high-end locker manufacturer. Its sister company is ProZone Lockers. Both companies – which are owned by Mike Caruso of Schenectady – moved into the former Universal Custom Millwork building in the Edson Street Industrial Park during the first quarter of 2011. The property is owned by NBT Bank.

The Montgomery County Business Development Center agreed to give Embassy Millwork the loan in 2012 to help them improve the company. The money was used for machinery equipment.

In July, Montgomery County filed a lawsuit against Caruso and Embassy Millwork after they defaulted on the loan.

“The term of the loan was a seven-year loan,” Kenneth Rose, chief executive officer of the Montgomery County Business Development Center, said, “and [Embassy Millwork] made about a year’s worth of payments and then they went delinquent in their payments.”

The county is looking for Embassy to repay them $268,778 plus interest, court costs, disbursements and attorney fees.

The county also is entitled to the possession of the collateral which is worth $300,000 in the form of machinery. Embassy currently has the collateral.

“We’ve taken action to protect our collateral in relation to the loan, which is the machinery equipment inside the facility,” Rose said.

Attorney Charles J. Tallent, representing the county, said NBT Bank foreclosed on Embassy Millwork’s property.

The county is currently waiting for NBT to “finalize their actions in relation to the company.”

“Embassy Millworks is being served an eviction notice from NBT,” Rose said. “That’s where we’re currently at in this process.”

Rose believes the company is still operating and using the collateral on the premises. He said NBT will take the necessary steps to retrieve the collateral and alleviate the problem for the county.

“Now everything is contingent upon NBT,” Rose said.

NBT Bank representatives were unavailable for comment.

Casey Croucher can be reached at