The University of Arkansas System is ready to sue a Pine Bluff housing agency over defaulted loans. UA System attorney Fred Harrison told an auditing committee yesterday that it was time for legal action to recover $55,000 that UAPB loaned to the housing agency. The agency -- Southeast Arkansas Community Development -- is run by Pine Bluff Alderman Billy Freeman. Freeman already faces charges stemming from the agency`s failure to pay back an advance from the city of Pine Bluff. There also have been questions from UA officials about whether UAPB Chancellor Lawrence Davis was allowed to use education funds to help Freeman`s agency.