TACOMA, Wash. -

LeMay -- America's Car Museum has sued the city of Tacoma and its bank over the handling of a $3.6 million federal loan to finance the museum's construction.

The lawsuit filed Tuesday in Pierce County Superior Court claims the Bank of New York Mellon mishandled the payback of interest on the loan and demand a lump-sum paying to cover its mistake.

The News Tribune reports that museum officials say their discussions with city leaders were unproductive and they went to court to keep the loan from going into default.

Tacoma Mayor Marilyn Strickland told the newspaper that the city has given the museum generous backing for years. She says the interest rates on the loan were structured to help them get on their feet over a long enough period to stabilize them.

The loan represented a key piece of financing for the 165,000-square foot museum that opened downtown in 2012.