THE former treasurer of a village hall who embezzled (pounds) 15,000 from its funds will have to sell her family home to avoid going to prison, a court heard yesterday.

Kathleen Fraser, 44, admitted embezzling the cash belonging to the Duffus Public Hall fund in Moray between 1997 and 2001.

Elgin Sheriff Court heard that Fraser, of Hopeman Road, Duffus, is considering using the sale of her house to pay the debt.

The court was told earlier that Fraser had saved (pounds) 250 towards repaying the money, which she obtained by falsifying signatures to cash cheques relating to the hall fund.

Sheriff Ian Cameron said that, if she was unable to pay the debt, she would be looking at a jail sentence. The case was continued until January 19.

Sharon Ralph, procurator-fiscal, told the court that the hall fund was set up in 1997 after it was damaged in a fire.

There were several bank accounts and Fraser had asked for all the bank correspondence to be forwarded to her.

The court heard that any cheques written against the bank accounts had to be countersigned by both the hall chairman and secretary.

However, Fraser falsified the signatures in order to write cheques and exchange them for cash at the bank.

Miss Ralph told the court that a debt collection agency had been looking into the loss of more than (pounds) 1000 from the accounts. Further investigation found that five of the six bank accounts relating to the hall were overdrawn.

The accounts were frozen and a full audit took place.

Fraser eventually admitted the offence, but said at the time that she had no real experience in dealing with such accounts. She said the money had been used for ''everyday expenses''.

Sentence on Fraser, who is married with three children, was deferred when the court heard she was pursuing a method of repaying the debt which involved the buying and selling of her council home.