Daniel C. Greer and Winnie L. Greer - Page 6

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         documents Mr. Greer reviewed prior to purchasing an interest in              
         Madison Recycling Associates (Madison).  On December 16, 1982, Mr.           
         Greer executed a check payable to Madison in the amount of                   
         $50,000.  This check purchased a 5.5-percent limited partnership             
         unit in Madison.                                                             
              The offering memorandum sets forth warnings to potential                
         purchasers, including Mr. Greer, of risks involved, informing                
         these purchasers that “There is a substantial likelihood that the            
         Service will audit the federal income tax returns filed by the               
         partnership and each limited partner.”  Other warnings provided:             
              (a)  This offering involves a high degree of risk.  See                 
              certain business risks and tax risks and consequences;                  
              (b)  an investment in the partnership involves a high                   
              degree of risk and should only be considered by those                   
              who could afford to lose their cash investment and                      
              anticipated tax benefits;                                               
              (c)  the draft legal opinion attached to the private                    
              offering memorandum was prepared for the general                        
              partner’s use only and should not be relied upon by                     
              potential investors;                                                    
              (d)  prospective purchasers should not consider the                     
              contents of the offering memorandum or any other                        
              communications from the partnership or general partner                  
              as legal, tax, accounting, or other expert advice;                      

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