James J. Leonard - Page 5

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          from June 2001 through March 2002 to be sent to this address:               
          “8713 Airport Fwy Sui, North Star Plaza II, N. Richland Hills,              
          TX”.  Neither of the two addresses above contained the name of              
          petitioner’s operating division, GE Lighting, and the latter                
          address omitted petitioner’s suite number.                                  
               From the time that the loan was distributed to petitioner in           
          June 2000, no loan payments were ever deducted from petitioner’s            
          paychecks because of petitioner’s transfer to GE Lighting.                  
          Petitioner was aware that no deductions were being made, but he             
          did not remit any payment to the GE Railcar plan.  During this              
          same timeframe, certain child support payments which petitioner             
          was required to make also were not being deducted from his                  
          paychecks.  Petitioner was aware of this fact, and in response he           
          made payments directly to the appropriate child support                     
          enforcement authority.                                                      
               On November 27, 2000, GE Investment Retirement Services sent           
          a letter to petitioner notifying him that no payments had been              
          applied against his loan and requesting that petitioner remit to            
          the GE Railcar plan, by no later than December 29, 2000, either             
          the delinquent payments or the full amount of the loan.  The                
          letter stated that failure to do so would result in a deemed                
          distribution due to a loan default.  In January 2001, a Form                
          1099-R, Distributions From Pensions, Annuities, Retirement or               
          Profit-Sharing Plans, IRAs, Insurance Contracts, etc., was issued           






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