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correspondence) includes a copy of a “Dormant Account Status
Approval Form” with respect to the loan, which shows an effective
date of October 6, 1994. The form contains the following
statement: “This memorandum is a request for Authorization to
write off the remaining balance of $1,338,924.32”.2 Under the
heading “1099 Will be Generated”, the preparer marked the space
adjacent to the entry “Not Economic to Pursue and Unsalable”.
The form also contains a brief narrative describing the loan and
the status of collection efforts with respect thereto. The
narrative references a July 1994 asset search that revealed no
assets available for repayment of the loan. The narrative
concludes: “It does not appear to be cost effective to pursue a
collection lawsuit against the obligor.” The form bears the
stamp “REQUEST APPROVED BY OVERSIGHT COMMITTEE SPECIAL ASSET
BANK” with a handwritten date of October 20, 1994.
The FDIC correspondence also includes two pieces of
correspondence between petitioner and Wayne D. Eckstine, a
principal of AMRESCO.3 In a letter to Mr. Eckstine dated
November 1, 1994 (the November 1 letter), petitioner reiterates
his reluctance to provide current financial information in light
of the adverse effect such information may have on certain other
2 The form lists principal of $596,078 and interest of
$742,846.32.
3 AMRESCO apparently managed certain loan accounts on
behalf of the FDIC.
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Last modified: May 25, 2011