THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Tuesday, January 28, 1997             TAG: 9701280272
SECTION: LOCAL                   PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY CATHERINE KOZAK, STAFF WRITER 
DATELINE: MANTEO                            LENGTH:   40 lines

LOAN STILL NOT PAID OFF BY EX-CANDIDATE FOR SHERIFF

An unsecured $20,000 30-day note that became an issue during former Dare County Commissioner Sammy Smith's bid for sheriff three years ago has reached the 10-year mark without being satisfied.

But Smith says he still intends to pay the loan.

``Well, my attorneys are still working on it,'' Smith said in a brief telephone interview. He added he will pay ``someday, when we get things worked out.''

Smith said he is represented by Grandy attorney Garry Owens and Kill Devil Hills attorney Dan Merrell. When reached Monday in Currituck County, Owens said he has ``done some work previously'' for Smith and will represent him on any developments concerning the loan. Merrell said he has talked about the matter in the past with Smith, ``but he hasn't come in and discussed it lately.''

A judgment of $22,564.36 plus interest was entered against Smith and his wife, Jacqueline Twiford Smith, on May 4, 1993, in Dare County District Court, to be paid to the Resolution Trust Corp.

The loan was originally secured on Nov. 3, 1987, at Great Atlantic Savings Bank in Manteo, which failed in March 1989. The bank was then absorbed into Resolution Trust Corp., a temporary federal agency set up to deal with collapsed savings and loan institutions. When RTC was dissolved in 1995, the Federal Deposit Insurance Corp. took over disposition of remaining delinquent loans.

David Barr, FDIC spokesperson, said RTC had in 1994 turned the delinquent note over to Premiere Financial Service East Ltd. in Kansas City, Mo., to collect from Smith. Called a limited joint partnership, the service pursues a debtor and if it collects on a loan, it receives a portion of the money, Barr said.

A former member of the Kitty Hawk Town Council, Smith won a seat on the Dare County Board of Commissioners in 1992. Smith ran unsuccessfully in May of 1994 against Sheriff A.L ``Bert'' Austin. Smith was defeated when he sought re-election to the Board of Commissioners in last May's primary race.