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on Highway 80; I forget the name of it. And he didn’t
make it with the restaurant.
[Trustmark] had a lien on his house, and I had a
buyer for the house, so I went up there and got
[Trustmark] to sell me their position. And we
subsequently foreclosed on that house, and I did make
some money, which reduced the debt some on the
settlement of that house. * * *
Q. And after that occurred, what happened to make you
finally conclude that the loan was uncollectible?
A. Well since that time -- since he lost -- it was
Fisherman’s Wharf was the restaurant -- since he lost
that restaurant, and he went to prison in my knowledge
George has never worked since then.
We assume that the loan that Lee was referring to was the
original loan in 1985, which was refinanced in 1988 and again in
1989. The parties have treated the 1989 note as merely a
continuation of the debt which was refinanced in 1988 by AFLIC,
and we see no difference in result by doing the same.
Assuming the 1989 note was a continuation of the earlier
debt, without anything more than Lee’s testimony, we are not
persuaded that the debt was worthless. The only evidence that
petitioner (or AFLIC) attempted to collect on the debt was the
purchase of the Coopers’ home in the 1988 foreclosure sale.
Petitioner has not shown that Cooper was without any other assets
which could have provided payment in an action to collect on the
debt. Moreover, even if the debt was worthless, the record does
not establish that it became worthless in 1989. Matheney Ford
became insolvent no later than 1988. AFLIC foreclosed on the
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