L.A. Archdiocese puts schools up as collateral to settle abuse cases

Published: 2008-05-06

WASHINGTON (CNS) -- Seven high schools owned and operated by the Archdiocese of Los Angeles were used as collateral to secure loans to help the archdiocese pay its share of the $720 million settlements with victims of clergy sexual abuse. Archdiocesan spokesman Tod Tamberg said the properties helped secure $175 million in loans late in 2007 to pay most of the diocese's portion of the settlements. The diocese agreed to pay $292 million following negotiated settlements involving 553 claims from sexual abuse victims in 2006 and 2007, according to the archdiocese's most recent financial report covering the year ending last June 30. The school properties were chosen because they could be assessed and appraised within the time frame for paying victims set in the court-negotiated agreements, Tamberg said. The diocese made its payment in December. Negotiated settlements were announced in December 2006 and July 2007. The seven high schools were St. Bernard, Bishop Montgomery, Bishop Amat Memorial, Damien, Bishop Conaty-Our Lady of Loretto, St. Bonaventure and Daniel Murphy.

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