Tower Loan of Mississippi, Inc. - Page 17

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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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