Elgin Military Museum defaults on loan for HMCS Ojibwa
The Canadian Press
Published Friday, March 13, 2015 4:26PM EDT
Last Updated Friday, March 13, 2015 4:32PM EDT
A municipality is on the hook for $6 million after a local museum defaulted on a loan it took out in order to bring a Cold War-era submarine to the Lake Erie community of Port Burwell.
The Elgin Military Museum -- located in the municipality of Bayham -- borrowed the money from the Royal Bank so it could bring HMCS Ojibwa to Port Burwell in 2012.
The municipality guaranteed the loan, but now the bank is calling it in, saying the museum has defaulted on its payments.
It was hoped the submarine would be a huge tourist attraction but attendance has been lower than expected.