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Around June 1989, petitioner received a notice from the FmHA
indicating that he had defaulted on his loans and that the FmHA
intended to enforce the security agreements against his chattel
by repossessing, foreclosing on, or obtaining a court judgment
against the property. Shortly thereafter, the FmHA foreclosed on
petitioner’s chattel. On or around November 18, 1989, the
chattel was sold at auction by Schlegel Auction & Clerking Co.
(Schlegel Auction) on behalf of the FmHA. On November 27, 1989,
Schlegel Auction issued a joint check to petitioner and the FmHA
for the auction proceeds of $13,790.
On January 31, 1990, the FmHA sent petitioner a letter
indicating that petitioner had defaulted on his 1983 and 1984
loans and that he had an outstanding balance of $35,554 as of
January 31, 1990. The letter also enclosed an Application for
Settlement of Indebtedness. In 1990, the FmHA relieved
petitioner of indebtedness in the amount of $31,238.8
Tribal Council Expenses
Petitioner served on the tribe’s council from October 1983
until March 1990. While serving as a member of the tribal
council, petitioner held various positions, including vice
chairman and assistant secretary/treasurer. Petitioner held
“about 17 different jobs” at various times, including Tobacco
8The record does not indicate the reason for the discrepancy
in petitioner’s outstanding FmHA loan balance as of Jan. 31,
1990, and the amount of indebtedness relieved by the FmHA.
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