First Western is  asking a federal judge to appoint a caretaker for an $18 million art collection that is collateral for one of the Denver bank’s loans and is reportedly being sold off.

In its Oct. 18 lawsuit, the bank accuses Gerald Peters and his wife Kathleen of defaulting on an $11 million loan and showing “complete disregard” for its fine art collateral. The Peterses are art dealers, real estate moguls, restaurateurs and well-known figures in Santa Fe, N.M.

“It’s just a timing issue; no one over here is too concerned,” said Hether Bearinger, an executive assistant to Gerald Peters and his art galleries. “It should be sorted out soon.”

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