U.S. National Sues Morrison Knudsen

The U.S. National Bank of Oregon said Thursday it has filed a lawsuit against Morrison Knudsen Corp. demanding payment on a $10.9 million real estate loan.

The lawsuit, filed in U.S. District Court, charges that the troubled Boise, Idaho-based construction company defaulted on a loan made to former Morrison Knudsen subsidiary Emkay Development Co., its real estate development arm until 1988.

The loan was made to Morrison Knudsen on Oct. 31, 1988, and modified Dec. 8, 1994, to include balloon payment by March 31 of half the loan amount, said U.S. National spokeswoman Hannah Graziano.