Exhibit 4.2

                                 TERM LOAN NOTE

                              Due October 31, 2005



$17,000,000                                                    February 26, 1999
                                                               Roanoke, Virginia


         FOR  VALUE  RECEIVED,  PULASKI  FURNITURE  CORPORATION  ("Pulaski"),  a
Virginia corporation,  and DAWSON FURNITURE COMPANY, INC. ("Dawson"), a Virginia
corporation,  jointly and severally  promise to pay to the order of NATIONSBANK,
N.A. (the "Bank") at its office at 302 South Jefferson Street, Roanoke, Virginia
24011-2010,  or at such other place as the Bank may from time to time  designate
in  writing,   the  principal  sum  of  Seventeen  Million  and  00/100  Dollars
($17,000,000)  in  twenty-seven  (27)  principal  installments  with  the  first
installment due on April 30, 1999, and with subsequent  installments due on each
July 31, October 31, January 31 and April 30 thereafter to and including October
31, 2005 (each an "Installment  Payment Date"),  on which date the entire unpaid
principal  balance and all accrued and unpaid  interest will be due and payable.
Each of the first twelve (12)  installments  shall be in the principal amount of
Three Hundred Seventy-Five  Thousand Dollars ($375,000).  Each of the thirteenth
through the sixteenth  installments  which shall be due and payable on April 30,
2002,  July 31,  2002,  October  31,  2002 and  January 31, 2003 shall be in the
principal amount of Seven Hundred Fifty Thousand Dollars ($750,000). Each of the
seventeenth  through  the  twenty-sixth  installments  which shall be due on the
Installment  Payment Dates  commencing on April 30, 2003 and  continuing on each
Installment  Payment  Date  thereafter  through  July 31,  2005  shall be in the
principal amount of Eight Hundred Seventy-Five Thousand Dollars ($875,000).  The
twenty-seventh  installment,  which shall be due on October 31, 2005 shall be in
the principal amount of Seven Hundred Fifty Thousand Dollars ($750,000). Pulaski
and Dawson also  jointly  and  severally  promise to pay  interest on the unpaid
principal balance of such sum from the date hereof at the rates and on the dates
set forth in the Loan Agreement (as hereinafter defined) until the same shall be
paid in full. In any event, the entire unpaid principal balance of this Note and
all accrued and unpaid interest will be due and payable on October 31, 2005.

         If any  installment of interest is not paid within ten (10) days of its
due date,  Pulaski and Dawson  jointly and severally  agree to pay the holder of
this  Note on  demand a late  charge of two  percent  (2%) of the  amount of the
installment.

         This Note evidences a borrowing  under, and is subject to, the terms of
a Term Loan  Agreement  dated  February 26, 1999 (the "Loan  Agreement")  by and
among Pulaski, Dawson and the Bank.

         Pulaski and Dawson shall have the right to make prepayments as provided
in the Loan Agreement.

         The events of default (the "Events of Default") hereunder are described
in the Credit  Agreement and are  incorporated  herein by reference.  The entire
unpaid  amount of the  principal  of this  Note and all  accrued  interest  will
automatically  become due upon the Event of Default described in Section 10.9 of
the Loan  Agreement.  In the event of any or all of the other Events of Default,
the entire unpaid principal amount of this Note and all accrued interest thereon
may be declared  due and  payable in the manner and with the effect  provided in
the Loan Agreement.

         Presentment,  protest  and  notice of  dishonor  are  hereby  waived by
Pulaski and Dawson and all  endorsers  hereon.  Pulaski  and Dawson  jointly and
severally agree to pay all costs of collection,  including reasonable attorneys'
fees,  if after an Event of  Default  this  Note be  placed  in the  hands of an
attorney  for  collection,  or if after an Event of Default the holder  finds it
necessary  or  desirable  to secure the  services or advice of an attorney  with
regard to collection.

         IN WITNESS WHEREOF,  PULASKI FURNITURE CORPORATION and DAWSON FURNITURE
COMPANY,  INC.  have caused  their  names to be signed by their duly  authorized
officers this date first above written.


                                   PULASKI FURNITURE CORPORATION


                                   By
                                     ---------------------------------
                                   Its
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                                   DAWSON FURNITURE COMPANY, INC.


                                   By
                                     ---------------------------------
                                   Its
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