KNOXVILLE - Citizens National Bank is suing former Knox County Sheriff Tim Hutchison seeking $4.8 million as part of a past due loan.
WBIR-TV reported the lawsuit was filed in McMinn County Chancery Court on Thursday.
Hutchison is a candidate for Knox County mayor.
In court documents, the bank alleges Hutchison and his wife signed promissory notes guaranteeing loans taken out by the now-bankrupt SHE Group LLC, a former Oak Ridge, Tenn., auto company.
Hutchison told WBIR on Friday that he was verbally released from the loan by a senior Citizens National Bank official and that he will be filing a countersuit.
Hutchison also has said he sold his stake in the company in February 2008, but another owner claims the transaction never was finalized.