By Jim Hannah
The Cincinnati Enquirer

COLD SPRING - Fifth Third Bank did not start foreclosure proceedings against First Baptist Church on Friday despite the congregation missing a 5 p.m. deadline to pay off a $4 million loan.

Negotiations slowed when the church's attorneys abruptly quit Thursday, and questions arose over who legally controls the church's finances.

"While it has become difficult to identify the authorized representatives of the church, please be assured that we are committed to finding and negotiating a solution," said Fifth Third Bank spokeswoman Robbie Jennings.

John Roseberry, chairman of the church's trustees, said even he wasn't sure who the legal trustees are.

"I'll probably call all of them, both the newly appointed trustees and the old trustees, when I have something to report," Roseberry said.

A controversial vote - termed illegal by the church's attorneys - on Wednesday replaced the majority of the trustees with people more favorable to Pastor Larry Davis.

The church has been in turmoil since mid-January when its former treasurer asked state police to investigate $500,000 of transfers. Members later learned some transactions involved debit card withdrawals from a church construction account at motels, gambling sites and sport betting tip services.

Davis, who remains pastor, has not returned calls for two days. He has never been named a suspect in the criminal investigation or charged with a crime.

Fifth Third Bank notified the church March 10 that it had defaulted on its loan. Bank attorneys contend the church misled it when it said the loan would be spent only on construction and improvements.

To avoid foreclosure, the bank has asked the church to put up more collateral, give up its right to sue the bank and submit monthly financial statements.

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E-mail jhannah@enquirer.com