Bank of America has agreed to delay the foreclosure sale of the landmark Davies-Reid building on the corner of the Town Square.

According to a document filed in district court, the sale has been postponed to no earlier than Jan. 11 but no later than Jan. 31, unless the court issues a restraining order or injunction.

The sale had been scheduled for Dec. 29, with an opening bid of $2.76 million for the historic stone building on the square, at the intersection of Cache Street and Deloney Avenue, according to the Teton County Sheriff’s Office.

Though not listed on the National Register of Historic Places, the building, for decades the home of Jackson Drug, has a storied past. It is considered a Teton County Building of Historical Significance as recognized by the Historical Preservation Board.

The building opened as Jackson Drug in 1937. It’s owner and builder, Robert Bruce Porter, also owned the Jackson Hole Hereford Ranch, which defines the rural character of South Park and the southern entrance to Jackson.

It became, figuratively and literally, a cornerstone of Jackson’s Town Square. Jackson Drug remained a drugstore until 2001, when Davies-Reid moved in. Four years later, Davies-Reid purchased the building.

The owners of the building, Terrel Reid and Sharon Davies, have filed for an injunction in 9th District Court to prevent the forced bank sale.

According to the injunction request, Bank of America notified Davies-Reid that it was accelerating all loan payments and that it planned to begin foreclosure proceedings.

The notice contended Reid and Davies owed about $2.04 million to the bank. But with a “swap termination fee,” the bank alleged the final amount owed is $2.76 million, the injunction states.

The court filing is requesting the sale be stayed because, it alleges, Bank of America failed to account for a $48,000 “setoff withdrawal” it made from Davies-Reid’s checking account.

Bank of America also included in its calculation costs and fees that are “unreasonable and/or not related” to this loan, the filing claims. Finally, the “swap termination fee” is unenforceable, it states.

“In short, Davies-Reid contends that the foreclosure sale should not be conducted until the dispute over the amount of the secure obligations [is] resolved,” the court filing states.

Moreover, the injunction states the fair-market value of the Davies-Reid property exceeds the amount Bank of America contends it is owed. Bank of America’s own appraiser recently concluded the Davies-Reid property was worth about $3.8 million, more than $1 million more than the bank argues it is owed, the court document states.