Saying they are owed millions in unpaid loans, two banks have moved to foreclose on the main campuses of the Deal Yeshiva, a 300-student Jewish school once led by embattled real estate investor Solomon Dwek. But late Tuesday, the yeshiva’s lawyer said one of the lenders, Amboy National Bank, had agreed to issue the yeshiva a new $4.7 million, 18-month, interest-only balloon loan that will pay off the overdue loans.

The foreclosure lawsuits that were filed against the yeshiva, which has buildings in West Long Branch and Ocean Township, came after the nonprofit group in recent months stopped making payments on more than $5.3 million in loans, according to Amboy and the second bank, Sovereign Bank.

The new Amboy loan “will give them some breathing room to get their financial house in order and to get their contribution list back up. Like any nonprofit they rely on contributions,” said William F. Maderer, the yeshiva’s lawyer. “They fully expect and anticipate their sources of income and contributions will allow them to move forward.”

Solomon Dwek was vice president of the yeshiva but resigned following his arrest in May on federal bank fraud charges.

The loans were secured by five yeshiva properties that include both of the yeshiva’s schoolhouses and two rabbi residences. Dwek’s parents reportedly live at one of those homes in Ocean Township, a property assessed at $1.1 million, that is now targeted for foreclosure.

PNC Bank has accused Dwek of bouncing a $25.2 million check that left the institution with a $21 million shortfall in April. A Superior Court judge later froze Dwek’s assets. Dwek’s holdings, worth as much as $420 million, are being sold to pay 84 banks, investors and others who claim Dwek owes them more than $338 million.

It is unclear why the yeshiva stopped paying the loans. Its assets are not under court control.

APP