COLD SPRING, Ky. -- Financial trouble at First Baptist Church of Cold Spring has erupted into loan difficulties according to a story in The Courier-Journal. Kentucky State Police opened an investigation after the church treasurer alerted them of suspicious withdrawals.

Now Fifth Third Bank has notified the church that it will foreclose on a $4 million loan if they do not receive payments immediately. Treasurer Daryl Neltner, who wrote to the state police exposing the financial problems, said the church is current on loan payments.

Church attorneys will meet with bank officials to avoid foreclosure proceedings. Church trustee, Rob Moore, said the bank asked the church to put up $800,000 more collateral including church buses, the parsonage and other assets.

Police are investigating $500,000 in questionable transactions from a church account. Reportedly money from the construction account controlled by the church's pastor, the Rev. Larry Davis, was withdrawn at horse racing tracks and spent at gambling sites.

Davis denies wrongdoing and has not been charged. But the Campbell County congregation of 1,200 is divided over the trouble. Some members, including Neltner, now attend services at Rolling Hills Baptist in Cold Spring.

Remaining members gathered to hear from Davis concerning the financial problems. A shouting match erupted in the sanctuary.

"We're being torn apart," church trustee Rob Moore said afterward. "There are two factions. People have taken sides. This is a power struggle."

"There are people who don't agree with what is going on and wanted to meet elsewhere," Neltner said. "People are under a lot of stress. I'm afraid it's not getting a whole lot better."