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Know more in 30 seconds - Chambersburg Transit Authority

October 22, 2006

The issue: The Chambersburg Transit Authority ceased operations in July 2004 after piling up hundreds of thousands of dollars in debt over the previous five years. State and federal subsidies meant for capital purchases - such as buses - instead went to pay for day-to-day operations.

What happened: M.A. Brightbill Body Works Inc., a Lebanon, Pa., company that sells municipal and commercial buses, filed suit in Franklin County Court recently. The suit seeks the balance of $177,106 the company was to be paid for selling two 26-passenger buses to the authority in 2001.

According to the suit, the authority failed to make payments, and Brightbill added a 1 percent per month finance charge onto the unpaid principal. The authority was able to pay the added finance charge for a time, but failed to make payments after January 2003, according to the suit.

Brightbill in January 2004 received a court judgment against the authority, which was ordered to pay the $177,106 plus interest, according to court documents. The authority later ceased operations, and Brightbill repossessed the buses and sold them for a total of $78,000, according to court records.

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What's next: The Chambersburg Borough Council will discuss the lawsuit in executive session during Monday's council meeting.

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