A California bank has sued Shilo Inns and owner Mark Hemstreet, saying he and three of his Inns defaulted on loans of $5-million. The hotels are in Seaside, Newberg and at the Rose Garden in Portland. The federal court suit says Mark Hemstreet also missed interest payments on a $5 million line of credit. The Oregonian reports that California Bank & Trust asks for a receiver to take possession of the properties. Shilo currently lists 43 locations in 10 western states.