Las Vegas Sun

May 26, 2024

Liberace Foundation faces lawsuit over $1.9 million loan

Liberace Museum Closes

Fans wait in line to enter the Liberace Museum on its final day of business after 31 years of operation in Las Vegas, Sunday, October 17, 2010. Launch slideshow »

The non-profit foundation behind the closed Liberace Museum in Las Vegas is being sued by creditors seeking payment on the remainder of a 20-year, $1.9 million loan.

U.S. Bank National Association has filed a complaint in Clark County District Court asking for a receiver to be appointed for the property owned by the Liberace Foundation for the Performing and Creative Arts and Liberace Plaza LLC.

The creditors say the Liberace Foundation has defaulted several times, including failing to make a Feb. 1 payment and all payments after that.

The museum, 1775 E. Tropicana Ave., was closed to the public Oct. 17, 2010, after 31 years of operation. Attendance had dropped from a high of about 450,000 a year to under 50,000.

The foundation owns the plaza the museum shares with businesses in the strip mall on the southwest corner of Tropicana Avenue and Spencer Street.

According to court documents, the holders of the note are asking the court to appoint a receiver to manage and protect the museum and mall property.

The foundation borrowed $1.9 million on May 15, 2000, which was secured by a deed of trust. The note is now owned by U.S. Bank. Monthly payments were to have continue on the first day of each month through June 1, 2020.

Court documents say the collateral on the loan includes “all goods building and other materials, supplies equipment, machinery, fixtures, furniture, furnishings” as well as trade names and trademarks.

The bank issued a notice of default on Aug. 21, then issued a notice of acceleration Aug. 29. The lender also issued a default notice Sept. 19.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy