Donald R. Martin - Page 8

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                    personal residence with the understanding that, if other security                                                                                      
                    interests provided by Jackson (described next) had sufficient                                                                                          
                    value, Trust Co. would return petitioner's property.  Petitioner                                                                                       
                    had about $100,000 in equity in his home at the time.                                                                                                  
                              Petitioner asked Jackson to provide collateral for the                                                                                       
                    consolidated loan.  Jackson owned a house financed by a first                                                                                          
                    mortgage from First Federal in Winder, Georgia.  The first                                                                                             
                    mortgage was $202,000.  Jackson sold the house to Ken and                                                                                              
                    Victoria O'Key (the O'Keys) and took back a second mortgage.  The                                                                                      
                    O'Keys agreed to pay Jackson, who would then make payments to                                                                                          
                    First Federal on the first mortgage and keep the payments on the                                                                                       
                    second mortgage.  Jackson assigned the second mortgage to                                                                                              
                    petitioner which petitioner gave to Trust Co.  Jackson also gave                                                                                       
                    petitioner the following security interests which petitioner gave                                                                                      
                    to Trust Co.:  (a) A second deed from Neighbors Group, Inc., for                                                                                       
                    seven tracts of land in Deer Lake Estates; and (b) a second deed                                                                                       
                    to secure debt (not otherwise described in the record) on a small                                                                                      
                    strip shopping mall in Statham, Georgia.  Petitioner also gave                                                                                         
                    Trust Co. the fourth or fifth mortgage on the restaurant building                                                                                      
                    that Jackson had given petitioner in February 1991.                                                                                                    
                              None of the security interests were in foreclosure when they                                                                                 
                    were assigned to petitioner.  Petitioner used them as collateral                                                                                       
                    for the $80,000 consolidated loan he made in October 1991.                                                                                             







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