Document:

EXHIBIT 10.1

                    100,000,000 (EXPANDABLE TO $150,000,000)

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                   DATED AS OF

                                  MAY 29, 2002

                                      AMONG

                              IRT PROPERTY COMPANY

                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                             AS ADMINISTRATIVE AGENT

                      AMSOUTH BANK AND WELLS FARGO COMPANY,
                             AS DOCUMENTATION AGENTS

                             THE BANKS LISTED HEREIN

                                       AND

                       FIRST UNION SECURITIES, INC. D/B/A
                              WACHOVIA SECURITIES,
                                   AS ARRANGER

<PAGE>
                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     THIS  SECOND  AMENDED  AND  RESTATED  CREDIT AGREEMENT (this "Amendment and
Restatement")  is  dated  as  of  May  29,  2002 among IRT PROPERTY COMPANY (the
"Borrower"), FIRST UNION SECURITIES, INC. d/b/a WACHOVIA SECURITIES, as Arranger
(the  "Arranger"),  WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent
(the  "Administrative  Agent"),  AMSOUTH  BANK  AND  WELLS  FARGO  COMPANY,  as
Documentation  Agents  and  the  BANKS  listed  on  the  signature  pages hereof
(collectively,  the  "Banks");

                              W I T N E S S E T H :
                              - - - - - - - - - -

     WHEREAS, the Borrower, the Banks, and the Administrative Agent executed and
delivered  that  certain  Credit  Agreement,  dated  as  of November 1, 1999, as
amended by that certain First Amended and Restated Credit Agreement, dated as of
November  1,  2000  (the  "Credit  Agreement");

     WHEREAS,  the  Borrower  has  requested  and  the Administrative Agent, the
Arranger  and the Banks have agreed to amend and restate the Credit Agreement in
accordance  with  the  terms  and  conditions  hereof;

     NOW,  THEREFORE,  for  and in consideration of the above premises and other
good  and valuable consideration, the receipt and sufficiency of which hereby is
acknowledged  by the parties hereto, the Borrower, the Administrative Agent, the
Arranger  and  the  Banks  hereby  covenant  and  agree  as  follows:

     1.     Definitions.  Unless  otherwise  specifically  defined  herein, each
term used herein which is defined in the Credit Agreement shall have the meaning
assigned  to  such  term  in  the Credit Agreement.  Each reference to "hereof",
"hereunder",  "herein"  and  "hereby"  and each other similar reference and each
reference  to "this Agreement" and each other similar reference contained in the
Credit  Agreement  shall  from  and  after  the  date hereof refer to the Credit
Agreement  as  amended  and  restated  hereby.

     2.     Restatement.  The  Credit  Agreement as in effect on the date hereof
hereby  is  incorporated  and  restated  in  its  entirety,  together  with  the
amendments  set  forth  herein.

     3.     Amendment  to  Section 1.01.  Section 1.01 of the Credit Agreement
hereby  is  amended  by  (i)  deleting  the  definitions  of  "Borrowing  Base",
"Commitment",  "Consolidated  Total  Asset  Value",  "Consolidated  Total
Liabilities", "Consolidated Unsecured Interest Expense", "Consolidated Unsecured
Senior  Debt",  "Consolidated  Unencumbered  Real  Estate  Assets",  "Year  2000
Compliant  and Ready" and "Y2K Plan", and substituting the following definitions
of  certain  of  such  terms  set  forth  below  and  (ii)  adding the following
definitions  of "Anchor Tenant", "Assets Under Development", "Consolidated Total
Liabilities",  "Consolidated  Unsecured Debt" , "Consolidated Unsecured Interest
Expense",  "Minimum  Aggregate  Occupancy Requirement", "Third Party Development
Property"  and  "Third  Party Development Property Purchase Obligations", all of
such  definitions  to  be  substituted and added in the appropriate alphabetical
order.

     "Anchor Tenant" means any supermarket, drug store, national value retailer,
department  store  or other tenant leasing in excess of 10,000 square feet which
has  the  traffic  generating  qualities  necessary  to  be considered an anchor
tenant.

     "Assets  Under Development" shall mean, at any time, an amount equal to the
sum  of  (A)  100%  of the aggregate amount of cash expenditures made to acquire
each  unimproved  Property then held for development, (B) an amount equal to the
Joint Venture Share of 100% of the aggregate amount of cash expenditures made to
acquire  each  unimproved Joint Venture Property then held for development, plus
(C)  as to Third Party Development Properties, the aggregate amount of all Third
Party  Development  Property  Purchase  Obligations,  plus  (D)  the  sum of the
following  items,  in  each  case with respect to each Property or Joint Venture
Property,  as  the  case  may  be,  as to which (x) actual construction or other
physical  development  or redevelopment activities have commenced (excluding the
preparation  of land and utilities and other predevelopment activities), and (y)
no  certificate of occupancy (or comparable regulatory certification, permit, or
approval, whether temporary or permanent, which permits lawful occupancy of such
Property  or  Joint  Venture  Property  (any  such  certificate  or  comparable
certification, permit, or approval being referred to herein as a "Certificate of
Occupancy"))  shall  have  been  issued  or  received:

     (i)     costs  then  budgeted  to  develop  such  unimproved Property, plus

     (ii)     without duplication, where any such Property is being developed or
redeveloped  in  phases,  as  to  any  phase  which  is still being developed or
redeveloped  and for which a Certificate of Occupancy has not been received, the
cash  expenditures made and costs then budgeted for development or redevelopment
of  such  phase,  plus

     (iii)     an amount equal to the Joint Venture Share of costs then budgeted
to  develop  such  unimproved  Joint  Venture  Property,  plus

     (iv)      without duplication, where any such Joint Venture Property is
being  developed  or redeveloped in phases, as to any phase which is still being
developed  or  redeveloped and for which a Certificate of Occupancy has not been
received,  an  amount  equal to the Joint Venture Share of the cash expenditures
made  and  costs  then  budgeted  for development or redevelopment of such phase
(including  indirect  costs  internally  allocated  in  accordance  with  GAAP).

     "Borrowing  Base"  means the sum of each of the following, as determined by
reference  to  the  most recent Borrowing Base Certificate furnished pursuant to
Section  3.01(h)  or  Section  5.01(k),  as  applicable (and with respect to any
Eligible  Property  which  consists  of  phases,  each  phase  thereof  shall be
separately  categorized into clause (i), (ii) or (iii) below, as appropriate, so
long  as  such  phase  could  be  separately  financed  on a stand-alone basis).

     (i)     an  amount equal to the product of: (x) the quotient of (1) the Net
Operating  Income  (but for the Non-Wholly Owned Eligible Property, include only
the  Non-Wholly  Owned  Eligible  Property  Percentage  thereof) for the 3 month
period ending on the last day of the Fiscal Quarter just ended prior to the date
of determination, from each Eligible Unencumbered Stabilized Property (excluding
percentage rents received during such 3 month period, but including an amortized
value  for percentage rents received during the current Fiscal Year), divided by
(2)  0.0950  (which  is  the  capitalization  rate);  times  (y) 4 (which is the
annualization  factor);  times  (z)  0.60  (which  is  the  advance  rate); plus

     (ii)     an  amount  equal  to  the  lesser of: (A) the product of (x) 0.50
(which  is  the  advance  rate),  times  (y)  the  book value of Construction in
Progress  on  the  last  day  of  the  Fiscal Quarter just ended on all Eligible
Properties  not  subject  to  a  Mortgage  and  (B)  $25,000,000;  plus

     (iii)    an amount equal to the  product  of (x) 0.60 (which is the advance
rate),  times  (y)  the acquisition cost of all Eligible Unencumbered Stabilized
Property  not  owned for the entire 3 month period ending on the last day of the
Fiscal  Quarter  just  ended  prior  to  the  date  of  determination.

     "Commitment"  means,  with  respect to each Bank, (i) the  amount set forth
opposite  the  name  of  such  Bank  on  the signature pages hereof or in a Bank
Joinder Agreement executed and delivered to the Administrative Agent pursuant to
Section  2.15,  and  (ii)  as  to  any Bank which enters into any Assignment and
Acceptance (whether as transferor Bank or as Assignee thereunder), the amount of
such Bank's Commitment after giving effect to such Assignment and Acceptance, in
each  case  as such amount may be reduced from time to time pursuant to Sections
2.09  and  2.10.

     "Consolidated  Total  Asset  Value"  means, on a consolidated basis for the
Borrower/Parent  and  each  Consolidated  Entity,  the  sum  of:

     (i)     the  amount  equal  to the product of:  (x) the quotient of (1) the
Net Operating Income for the 3 month period ending on the last day of the Fiscal
Quarter  just  ended  prior  to  the date of determination (excluding percentage
rents  received during such 3 month period, but including an amortized value for
percentage  rents  received  during the current Fiscal Year), from each Property
(other  than Property owned by Borrower or any Consolidated Entity for less than
three  months),  divided by (2) 0.0950 (which is the capitalization rate); times
(y)  4  (which  is  the  annualization  factor);  plus

     (ii)     an amount equal to the book value of  (x) Construction in Progress
plus (y) Properties consisting of unimproved land, as determined on the last day
of  the  Fiscal  Quarter  just  ended;  plus

     (iii)    an  amount  equal to the acquisition cost of improved Properties
owned  by  Borrower  or  any  Consolidated  Entity  less  than  three months, as
determined  on  the  last  day  of  the  Fiscal  Quarter  just  ended;  plus

     (iv)     an amount equal to the sum of all unrestricted balances on deposit
with  banks  or  other  financial institutions and all restricted cash held by a
Qualified  intermediary  on behalf of the Borrower/Parent or any Guarantor; plus

     (v)      for  any  Subsidiary  which  is not a  Wholly Owned Subsidiary, an
amount  equal  to the book value of the Ownership Percentage of such Subsidiary,
as  shown  on  the  Borrower/parent's  balance  sheet;  plus

     (vi)     without  duplication, the book  value of  all other C onsolidated
Tangible  Assets,  plus

     (vii)    the  amount  equal  to  the  product of: (x) the quotient of the
Joint  Venture  Share  of (1) Joint Venture Net Operating Income for the 3 month
period ending on the last day of the Fiscal Quarter just ended prior to the date
of  determination  (excluding  percentage  rents  received  during  such 3 month
period,  but  including  an amortized value for percentage rents received during
the  current Fiscal Year), from each Joint Venture Property (other than Property
owned  by  Borrower  or  any  Consolidated  Entity  for less than three months),
divided  by (2) 0.0950 (which is the capitalization rate); times (y) 4 (which is
the  annualization  factor);  plus

     (viii)    an amount equal to the Joint Venture Share of book value of (A)
Joint  Venture  Construction  In  Progress  plus  (B)  Joint  Venture Properties
consisting  of  unimproved  land,  as  determined  on the last day of the Fiscal
Quarter  just  ended;  plus

     (ix)     an amount equal to the Joint Venture Share of the acquisition cost
of  improved  Joint  Venture  Properties  owned  by Borrower or any Consolidated
Entity  less  than  three  months,  as  determined on the last day of the Fiscal
Quarter  just  ended;  plus

     (x)     only  for  purposes  of calculating Consolidated Total Asset Value
under  Sections  5.16 and 5.20, and without duplication, Third Party Development
Property  and  amounts described in clause (D) of the definition of Assets Under
Development;  plus

     (xi)     without duplication, an amount equal to the Joint Venture Share of
the  book  value of the sum of the following: (a) the total assets of each Joint
Venture,  as  set  forth  or  reflected on the most recent balance sheet of each
Joint Venture, prepared in accordance with GAAP, less (b) all assets which would
be  treated  as  intangible assets for balance sheet presentation purposes under
GAAP,  including,  without limitation, goodwill (whether representing the excess
of  cost  over  book  value  of  assets  acquired,  or  otherwise),  trademarks,
tradenames,  copyrights, patents and technologies, and unamortized debt discount
and  expense.

     "Consolidated  Total  Liabilities"  means  the  total  liabilities  of  the
Borrower/Parent  and  the  Consolidated  Subsidiaries,  on  a consolidated basis
(including liabilities on account of Dividends, whether paid or declared but not
yet  paid,  and all Third Party Development Property Purchase Obligations), plus
the  aggregate  amount of Debt Guaranteed by the Borrower/Parent, the Guarantors
and  the  Subsidiaries  (other  than  the  debt  of any of them), plus (iii) the
Borrower/Parent's  Joint  Venture  Share  of the aggregate amount of Debt of all
Joint  Ventures  at  the  end  of  the  Borrower's  most  recent Fiscal Quarter.

     "Consolidated  Unencumbered  Real Estate Assets" means at any time, for the
Borrower  and  each Consolidated Entity, determined on a consolidated basis, the
sum  of  the  amounts  determined below (without duplication with respect to any
Property),  but  only  for retail shopping center Properties that are located in
the continental United States of America, are of a type substantially consistent
with  the  Borrower's  portfolio  as of March 31, 2002 (except that the Property
known  as "Industrial Property" or "I-85 Charlotte Industrial Property", located
in  Charlotte,  NC, and the Property known as "Venice Plaza", located in Venice,
FL,  shall  be  included) and are either owned or as to which the land is ground
leased  by the Borrower or by a Subsidiary which is a Guarantor (including those
that  pursuant to Section 5.27 were required to become or have elected to become
a  Guarantor):

     (i)     an  amount  equal  to  the  product  of:  (1)  4  (which  is  the
annualization  factor);  times (2)  the quotient of (x) the Net Operating Income
for  the  3 month period ending on the last day of the Fiscal Quarter just ended
prior  to  the  date  of determination, from each such Property not subject to a
Mortgage  and  owned  by  the  Borrower or any Guarantor for at least one Fiscal
Quarter,  divided  by  (y)  0.0950 (which is the capitalization rate); provided,
that  such  Properties  shall be included only to the extent that they, together
with  all  other  such  Properties  included in the calculation pursuant to this
clause  (i),  satisfy  the  Minimum  Aggregate  Occupancy  Requirement;  plus

     (ii)     an amount equal to the acquisition cost of improved Properties not
subject to a Mortgage owned by Borrower or any Guarantor less than three months,
as  determined  on  the last day of the Fiscal Quarter just ended provided, that
such  Properties  shall  be included only to the extent that they, together with
all  other  such  Properties included in the calculation pursuant to this clause
(ii),  satisfy  the  Minimum  Aggregate  Occupancy  Requirement;  plus

     (iii)     an  amount equal to  the  lesser of (1) the sum of the book value
of  owned Properties not subject to a Mortgage and consisting of unimproved land
for which there is an executed lease with an Anchor Tenant, as determined on the
last  day  of the Fiscal Quarter just ended, plus the book value of Construction
in Progress of owned Properties not subject to a Mortgage and (2) 15% of the sum
of  clauses (i) (ii) and (iii) without giving effect to this subclause (iii)(2);

     provided,  however,  that,  in  determining  Consolidated Unencumbered Real
Estate  Assets,  the aggregate amount attributable to all Properties as to which
the  land  is  ground  leased  by  the  Borrower  or a Guarantor pursuant to the
foregoing  shall  not  exceed  7.5%  of  the  sum of clauses (i), (ii) and (iii)
without  giving  effect  to  this  proviso.

     "Consolidated Unsecured Interest Expense" means at any time that portion of
Consolidated  Interest  Expense  attributable  to  Consolidated  Unsecured Debt.

     "Consolidated  Unsecured  Debt"  means  Consolidated  Debt  (including
Consolidated  Debt  that is expressly made subordinate to any other Consolidated
Debt) that is not subject to a Mortgage or any other Lien on any Property of the
Borrower  or  any  Consolidated  Entity.

     "Minimum  Aggregate  Occupancy  Requirement" means,  with  respect to owned
or ground  leased  Properties  included  in  the  calculation  of  Consolidated
Unencumbered  Real Estate Assets, such owned or ground leased Properties that in
the  aggregate  are at least 80% leased and under which rent is being recognized
(pursuant  to written leases which have been signed by both landlord and tenant,
but  including  any  month  to  month  occupancy  by  any  such tenant after the
expiration  of  such  written  lease).

     "Third Party Development Property" means any property that is under
development by a third party but which will become a Property or a Joint Venture
Property  upon the payment by the Borrower, any Consolidated Entity or any Joint
Venture  of  the  portion  of  the  Third  Party  Development  Property Purchase
Obligations  that  pertains  to  such  property.

     "Third Party Development Property Purchase Obligations" means, with respect
to  all written contracts for the purchase of a Third Party Development Property
as  to  which  all  conditions  precedent to the Borrower's, or any Consolidated
Entity's  or  any Joint Venture's obligation to purchase such property have been
satisfied,  the  sum of (i) the aggregate purchase price under all such purchase
contracts  payable by the Borrower or any Consolidated Entity and (ii) the Joint
Venture  Share of the aggregate purchase price under all such purchase contracts
payable  by  a  Joint  Venture.

     4.     Amendment  to Section 2.07(a)(ii).  The table in Section 2.07(a)(ii)
of  the  Credit  Agreement  is  deleted  in  its  entirety  and the following is
substituted  therefor:

                     LEVEL I     LEVEL II     LEVEL III     LEVEL IV     LEVEL V

                                              >=BBB         >=BBB-
                                 >=BBB+                                   <BBB-
                                               or Baa2       or Baa3
Debt Rating          >=A-         or Baa1                                  or
                                               but           but
                                  but                                      Baa3
                                               <BBB+ or      <BBB or
                                   <A-
                                               Baa1          Baa2

Applicable Margin      0.80%      0.85%       0.95%         1.05%          1.30%

     5.     Amendment to Section 2.08.  The table in Section 2.08  of the Credit
Agreement  is deleted in its entirety and the following is substituted therefor:

                  LEVEL I     LEVEL II     LEVEL III     LEVEL IV     LEVEL V
                  =======     ========     =========     ========     =======

                                            >=BB         >=BBB-
                              >=BBB+                                   <BBB-
                                            or Baa2       or Baa3
                  >=A-         or Baa1                                  or
                                            but           but
Debt Rating                    but                                      Baa3
                                            <BBB+ or      <BBB or
                               <A-
                                            Baa1          Baa2

Facility Fee      0.15%        0.15%        0.20%         0.20%         0.30%

     6.     Amendment to Section 3.01.  Section 3.01(j)  of the Credit Agreement
is  deleted in its entirety.  The word "and" is inserted after ";" at the end of
Section  3.01(h); and "; and" is deleted from Section 3.01 (i) and replaced with
".".

     7.     Global  Changes  Regarding  Year 2000.  All references in the Credit
Agreement  to "Year 2000 Compliant and Ready" and "Y2K Plan" are hereby deleted.
The  provisions  of  Sections  4.19 and 5.26  of the Credit Agreement are hereby
deleted  and  the  headings  for  such  sections  are  replaced  with  the words
"Intentionally  Omitted."

     8.  Section  5.16.  Section  5.16 of the Credit Agreement is deleted in its
entirety  and  the  following  is  substituted  therefor:

     SECTION  5.16.  INVESTMENTS.

     Neither  the  Borrower,  the  Parent nor any of the Subsidiaries shall make
Investments  in  any  Person  except  (i)  loans  or  advances  to employees not
exceeding $10,000,000 in the aggregate principal amount outstanding at any time,
in  each  case  made  in  the  ordinary  course  of business and consistent with
practices  existing  on  December 31, 1998; (ii) deposits required by government
agencies  or  public  utilities,  (iii) Investments in direct obligations of the
United  States  Government  maturing  within  one  year,  (iv)  Investments  in
certificates of deposit issued by a commercial bank whose credit is satisfactory
to the Administrative Agent, (v) Investments in commercial paper rated A1 or the
equivalent  thereof  by  S&P  or  P1 or the equivalent thereof by Moody's and in
either  case  maturing  within  6  months  after  the  date of acquisition, (vi)
Investments  in  tender  bonds  the  payment of the principal of and interest on
which  is  fully  supported by a letter of credit issued by a United States bank
whose  long-term certificates of deposit are rated at least AA or the equivalent
thereof  by  S&P  and Aa or the equivalent thereof by Moody's, (vii) Investments
existing  on  March 31, 2002, (viii) Investments in Guarantors (or in any Person
which,  upon  the  making  of  such  Investment, becomes a Guarantor pursuant to
Section  5.27)  and  (ix)  Investments  (A) in partnerships, joint ventures, and
other  non-consolidated  entities  accounted  for  on  an equity basis shall not
exceed  25%  of  Consolidated Total Asset Value; (B) in Assets Under Development
shall  not exceed 20% of Consolidated Total Asset Value; (C) in undeveloped land
shall  not  exceed  10.0% of Consolidated Total Asset Value; and (D) in mortgage
loans shall not exceed 5.0% of Consolidated Total Asset Value.  At no time shall
the  sum  of  items  (ix)(A))  through (ix)(D)) above exceed 25% of Consolidated
Total  Asset  Value;  provided,  however, immediately after giving effect to the
making  of  any  Investment,  no  Default shall have occurred and be continuing.

     9.     Section  5.23.  Section  5.23  of the Credit Agreement is deleted in
its  entirety  and  the  following  is  substituted  therefor:

     SECTION  5.23.  RATIO  OF  CONSOLIDATED  UNENCUMBERED REAL ESTATE ASSETS TO
CONSOLIDATED  UNSECURED  DEBT.

     The  ratio  of Consolidated Unencumbered Real Estate Assets to Consolidated
Unsecured  Debt  shall  be  greater than 1.70 to 1.00 for all times prior to and
including  May  1,  2003  and  shall  be  greater than 1.75 to 1.00 at all times
thereafter.

     10.     Replacement  of  Exhibit  F.   Exhibit  F  (Form  of  Compliance
Certificate)  to  the  Credit Agreement hereby is deleted and Exhibit F attached
hereto  is  substituted  therefor.

     11.     Replacement  of  Exhibit  L.   Exhibit  L  (Form  of Borrowing Base
Certificate)  to  the  Credit Agreement hereby is deleted and Exhibit L attached
hereto  is  substituted  therefor.

     12.     Extension of Termination  Date. Pursuant to Section  2.06(b) of the
Credit  Agreement,  the  Termination  Date  hereby  is extended to May 29, 2005.

     13.     Restatement of Representations and Warranties.  The Borrower hereby
restates  and  renews each and every representation and warranty heretofore made
by  it  in the Credit Agreement and the other Loan Documents as fully as if made
on the date hereof and with specific reference to this Amendment and Restatement
and  all  other loan documents executed and/or delivered in connection herewith.

     14.     Effect of Amendment. Except as set forth expressly hereinabove,
all  terms  of  the  Credit  Agreement and the other Loan Documents shall be and
remain  in full force and effect, and shall constitute the legal, valid, binding
and  enforceable  obligations  of  the Borrower. The amendments contained herein
shall  be  deemed  to  have  prospective  application  only,  unless  otherwise
specifically  stated  herein.

     15.     Ratification.  The Borrower hereby restates, ratifies and reaffirms
each  and  every  term, covenant and condition set forth in the Credit Agreement
and  the  other  Loan  Documents  effective  as  of  the  date  hereof.

     16.     Counterparts.  This  Amendment  and Restatement  may be executed in
any  number  of  counterparts  and  by  different  parties  hereto  in  separate
counterparts, each of which when so executed and delivered shall be deemed to be
an  original and all of which counterparts, taken together, shall constitute but
one  and  the  same  instrument.

     17.     Section  References.  Section  titles and references used  in  this
Amendment and Restatement shall be without substantive meaning or content of any
kind  whatsoever  and  are not a part of the agreements among the parties hereto
evidenced  hereby.

     18.     No  Default.  To  induce the Agent and the Banks to enter into this
Amendment  and  Restatement  and  to  continue  to make advances pursuant to the
Credit  Agreement,  the  Borrower hereby acknowledges and agrees that, as of the
date  hereof,  and  after giving effect to the terms hereof, there exists (i) no
Default  or Event of Default and (ii) no right of offset, defense, counterclaim,
claim  or  objection  in favor of the Borrower arising out of or with respect to
any  of  the  Loans or other obligations of the Borrower owed to the Banks under
the  Credit  Agreement.

     19.     Further  Assurances.  The  Borrower  agrees  to  take  such further
actions as the Agent shall reasonably request in connection herewith to evidence
the  amendments  herein  contained.

     20.     Governing Law.  This Amendment and Restatement shall be governed by
and  construed  and  interpreted  in  accordance  with, the laws of the State of
Georgia.

     21.     Conditions Precedent.  This Amendment and Restatement shall  become
effective  only  upon  receipt  by  the  Administrative  Agent of the following:

     (b)     from  each  of  the  parties  hereto  either  (i)  a  duly executed
counterpart  of  this  Amendment  and Restatement signed by such party or (ii) a
facsimile  transmission  of  such  executed counterpart (with the original to be
sent  to  the  Administrative  Agent  by  overnight  courier);

     (c)     a  certificate  (the  "Closing  Certificate"), dated as of the date
hereof, signed by an Executive Officer (other than the Secretary), to the effect
that,  to  the  best of his or her knowledge, (i) no Default has occurred and is
continuing and (ii) the representations and warranties of the Borrower contained
in  Article  IV  of  the Credit Agreement are true on and as of the date hereof,
unless  such  representations or warranties expressly relate to an earlier date;

     (d)     all  documents which the Administrative Agent or any Bank may
reasonably request relating to the existence of the Borrower and the Guarantors,
the  corporate authority for and the validity of this Amendment and Restatement,
the  Notes,  the Guaranty and any other matters relevant hereto, all in form and
substance  satisfactory  to  the  Administrative  Agent,  including,  without
limitation,  a  certificate  of  each  of  the  Borrower and the Guarantors (the
"Officer's  Certificate"),  signed by the Secretary or an Assistant Secretary of
the  General Partner and the Guarantors, respectively, and as to the names, true
signatures  and  incumbency of the officer or officers of the General Partner or
Guarantors authorized to execute and deliver this Amendment and Restatement, and
certifying  that  the  organizational  documents delivered to the Administrative
Agent and the Banks pursuant to clauses (i) through (iii), inclusive, of Section
3.01(f)  of  the  Credit  Agreement are still in full force and effect as of the
date hereof and have not been amended (or, if and to the extent that any of them
have  been  amended,  attaching  certified  copies  of  the  amendments);  and

     (e)     execution and delivery of the Consent and Reaffirmation of
Guarantors  at the  end  hereof  by  each  of  the  Guarantors.

                       [SIGNATURES COMMENCE ON NEXT PAGE]

<PAGE>
     IN WITNESS WHEREOF, the Borrower, the Administrative Agent, the Syndication
Agent and each of the Banks has caused this Amendment and Restatement to be duly
executed,  under  seal,  by  its  duly authorized officer as of the day and year
first  above  written.

                                IRT  PROPERTY  COMPANY

                                ------------------(SEAL)
                                as  Borrower

                                       By: /s/  James G. Levy
                                          ---------------------
                                       Title: Executive Vice President &
                                              Chief Financial Officer

<PAGE>

Commitment:     $25,000,000      WACHOVIA  BANK,  NATIONAL
                                 ASSOCIATION, as Administrative
                                 Agent and  a  Bank    (SEAL)

                                 By: /s/  Wachovia Bank
                                    ---------------------
                                 Title: Director

<PAGE>

Commitment:     $25,000,000      AMSOUTH  BANK, as Documentation
                                 Agent  and  a  Bank    (SEAL)

                                 By: /s/  Amsouth Bank
                                    ---------------------
                                 Title: Commercial Loan Officer
<PAGE>

Commitment:     $25,000,000      WELLS  FARGO COMPANY, as
                                 Documentation Agent and a Bank   (SEAL)

                                 By:/s/  Wells Fargo Company
                                    -------------------------
                                 Title: Vice President

<PAGE>

Commitment:     $15,000,000       SOUTHTRUST  BANK,
                                  as  a  Bank    (SEAL)

                                  By:/s/  SouthTrust Bank
                                    ----------------------
                                  Title: Assistant Vice President

<PAGE>

Commitment:     $10,000,000       SUNTRUST  BANK,
                                  as  a  Bank   (SEAL)

                                  By:/s/  SunTrust Bank
                                     -------------------
                                  Title:First Vice President

TOTAL  COMMITMENTS:  $100,000,000

<PAGE>

                     CONSENT AND REAFFIRMATION OF GUARANTORS

Each  of the undersigned (i) acknowledges receipt of the foregoing Amendment and
Restatement to Credit Agreement (the "Amendment and Restatement"), (ii) consents
to  the  execution  and delivery of the Amendment and Restatement by the parties
thereto  and  (iii)  reaffirms  all  of  its obligations and covenants under the
Guaranty  Agreement dated as of November 1, 1999 executed by it, and agrees that
none  of  such  obligations and covenants shall be affected by the execution and
delivery  of  the Amendment and Restatement.  This Consent and Reaffirmation may
be  executed  in  any  number of counterparts and by different parties hereto in
separate  counterparts,  each  of  which when so executed and delivered shall be
deemed  to  be  an original and all of which counterparts, taken together, shall
constitute  but  one  and  the  same  instrument.

                                      IRT  CAPITAL  CORPORATION  II ___ (SEAL)

                                      By: /s/  Thomas H. McAuley
                                         ---------------------------
                                      Thomas  H.  McAuley
                                      President

                                      IRT  PARTNERS  L.P.     (SEAL)

                                      By: IRT Property Company, general partner

                                      By: /s/  James G. Levy
                                         --------------------------
                                          James  G.  Levy
                                          Executive  Vice  President  and Chief
                                          Financial  Officer

                                      IRT  MANAGEMENT  COMPANY     (SEAL)

                                      By: /s/  James G. Levy
                                         --------------------------
                                          James  G.  Levy
                                          Treasurer

                                      IRT  ALABAMA,  INC.     (SEAL)

                                      By: /s/  James G. Levy
                                         --------------------------
                                          James  G.  Levy
                                          TreasurerEXHIBIT 10.2

                              IRT PROPERTY COMPANY

                        RESTRICTED STOCK AWARD AGREEMENT

     IRT  Property  Company  (the  "Company") hereby grants to Thomas H. McAuley
(the  "Executive")  60,000  shares of the Company's $1.00 par value common stock
("Common  Stock")  set  forth  herein  ("Restricted  Stock") pursuant to the IRT
Property Company 1998 Long-Term Incentive Plan, and the Executive hereby accepts
such  grant  upon  such  terms  and  conditions.  Capitalized terms used but not
defined  herein  shall  have  the  meanings  specified  in  the  Plan.

     RESTRICTED  STOCK  GRANT

Number  of  shares  of  Restricted  Stock  granted:     60,000
Date  of  Grant:                                        May  30,  2002
Vesting  Date(s)  of  Restricted  Stock:                10%  on  June  1,  2002
                                                        20%  on  June  1,  2003
                                                        30%  on  June  1,  2004
                                                        40%  on  June  1,  2005

Restrictions  applicable  to  Restricted  Stock:

     (a)     The  Restricted  Stock  is  subject  to  each  of  the  following
restrictions.  The  term  "Restricted Shares" means those shares of Common Stock
which  are subject to the restrictions imposed hereunder which restrictions have
not  then  expired  or  terminated.  The  Restricted  Shares  may  not  be sold,
transferred,  exchanged,  pledged, encumbered, or hypothecated to or in favor of
any  party,  other  than the Company or a Subsidiary, or be subject to any lien,
pledge,  hypothecation,  security  interest,  obligation,  or  liability  of the
Executive  to  any  other party, other than the Company or a Subsidiary.  If the
Executive's  employment with the Company or any Subsidiary is terminated for any
reason other than death, Disability, or as provided in paragraph (b) below, then
the Executive shall forfeit all of the Executive's right, title, and interest in
and  to  the Restricted Shares as of the date Executive's employment terminates,
and  such  Restricted  Shares  shall  automatically be reconveyed to the Company
without  further  consideration  or  any  act  or  action by the Executive.  The
restrictions  imposed  under  this  paragraph  (a)  shall apply to all shares of
Common  Stock  or  other  securities issued with respect to the Restricted Stock
hereunder  in  accordance  with  Article  14  of  the  Plan.

     (b)     The  restrictions  imposed under paragraph (a) above will expire on
respective  vesting dates shown above, and the period between the grant date and
the  date  that  the respective restrictions expire is referred to herein as the
"Restricted  Period".  For  example,  if on May 31, 2002 the Executive has since
the  grant  date  been  in the continuous employ of the Company or a Subsidiary,
6,000  shares  will  vest and no longer be Restricted Shares that are subject to
forfeiture.  The  foregoing  and  paragraph  (a) notwithstanding, all Restricted
Shares  held  by  the  Executive  shall  immediately  vest (i) upon the death or
Disability of the Executive, (ii) upon the Executive's termination of employment
without cause or for "good reason" pursuant to Section 7(a)(iii) of that certain
Employment  Agreement  by and between the Company and the Executive, dated as of
May 30, 2002 (the "Employment Agreement"), or (iii) upon any action of the Board
of  Directors or the Compensation Committee to vest such shares earlier than the
scheduled  vesting  date.  For  purposes  hereof,  "Disability"  shall  mean the
absence  of  the  Executive  from  the  Executive's duties with the Company on a
full-time basis for 180 consecutive days as a result of incapacity due to mental
or physical illness which is determined to be total and permanent by a physician
selected  by  the Company or its insurers and acceptable to the Executive or the
Executive's  legal  representative.

     (c)     The  shares  of  Common  Stock  will  be  issued in the name of the
Executive  as  Restricted  Stock,  and the certificates representing such shares
will  be held by the Company during the Restricted Period until vested and until
released  from  any  pledge  of  such  shares  of  Common  Stock of the Company.

     (d)     The  Executive,  as  the beneficial owner of the Restricted Shares,
shall have full voting and dividend rights with respect to the Restricted Shares
during  the  Restricted  Period.

     (e)     Certificates representing shares of Restricted Stock shall bear the
following  legend:

THE SHARES ARE SUBJECT TO A RESTRICTED STOCK AWARD AGREEMENT DATED AS OF May 30,
2002  (THE "AWARD AGREEMENT"), AND NO SHARES NOR ANY RIGHTS OR INTERESTS THEREIN
MAY  BE  SOLD,  EXCHANGED,  PLEDGED,  HYPOTHECATED,  OR OTHERWISE TRANSFERRED OR
DISPOSED  OF  EXCEPT  IN  ACCORDANCE  WITH  THE  AWARD  AGREEMENT.

       ******************************************************************

The  following  additional terms shall apply to this Restricted Stock Agreement:

     1.     TAX  WITHHOLDING.  Prior  to  the  delivery  of  any  certificate or
certificates for shares acquired upon the vesting of Restricted Stock hereunder,
the  Executive must satisfy federal, state and local withholding tax obligations
by  either  (a)  delivering  to the Company whole shares of Common Stock, or (b)
directing  the  Company  to withhold certain of such shares, or (c) remitting to
the Company a sufficient amount of cash to satisfy the withholding requirements.
No  election  to  satisfy withholding under (a) or (b) shall be effective unless
approved  by  the Board of Directors of the Company, in its sole discretion.  If
withholding  is  to  be satisfied under either (a) or (b), the Common Stock used
for  payment  shall have a Fair Market Value (as determined by the Board) on the
date  of delivery or withholding, which shall be the date the withholding tax is
determined,  equal  to  the  minimum  amount  of  the taxes to be withheld.  Any
election  by  the Executive to satisfy withholding under (a) or (b) must be made
in  writing, signed by the Executive and delivered by the Executive prior to the
date  the amount of the withholding tax is determined, and shall be irrevocable.
The  portion  of  any  withholding tax represented by a fractional share must be
paid  in  cash.  The  obligations  of  the  Company under this Agreement will be
conditional  on  such  payment  or  arrangements,  and  the  Company, and, where
applicable,  its  Subsidiaries  will,  to  the extent permitted by law, have the
right  to  deduct  any  such  withholding  amounts  from any payment of any kind
otherwise  due  to  the  Executive.

     2.     PAYMENT  OF WITHHOLDING OBLIGATIONS.  Prior to the delivery of stock
certificates to the Executive pursuant to vesting of shares of Restricted Stock,
the  Executive shall deliver to the Company his check and/or a stock certificate
registered  in  the name of the Executive duly assigned to the Company (with the
assignment  guaranteed  by  a  bank,  trust company, member firm of the New York
Stock  Exchange ("NYSE") or other participant in a Signature Guarantee Medallion
Program),  or  directions  for  withholding  of shares (as applicable) which the
Board  of  Directors  has  permitted  the  Executive  to transfer for satisfying
federal  and  state  withholding  tax  obligations.

     3.     NO  RIGHT  OF CONTINUED EMPLOYMENT.  Nothing in this Agreement shall
interfere  with  or  limit  in any way the right of the Company or Subsidiary to
terminate  the Executive's employment at any time, nor confer upon the Executive
any  right to continue in the employ of the Company or any Parent or Subsidiary.
This  Agreement  is not intended to, nor shall it effect any change in the terms
or  interpretation  of any employment or change in control agreement between the
Company  or  any  Subsidiary  and  the  Executive.

     4.     DELIVERY  OF SHARES.  Certificates representing the shares of Common
Stock  will  be delivered by the Company to the Executive as soon as practicable
after  vesting  of  the  Restricted  Stock and any release from pledge, but such
delivery  may  be  postponed  for such period as may be required for the Company
with  reasonable  diligence  to  comply if deemed advisable by the Company, with
registration  requirements  under  the  1933 Act, listing requirements under the
rules  of  the  NYSE, applicable withholding requirements and requirements under
any  other  law  or  regulation  applicable  to the issuance or transfer of such
shares.

     5.     SUCCESSORS.  This  Agreement  shall be binding upon and inure to the
benefit  of  the  Parties'  respective  permitted  successors  and  assigns,  in
accordance  with  the  terms  of  this  Restricted  Stock  Award  Agreement.

     6.     PLAN  CONTROLS.  The  terms  contained  in the Plan are incorporated
into  and made a part of this Agreement, and this Agreement shall be governed by
and  construed  in  accordance  with  the  Plan.  In  the event of any actual or
alleged  conflict  between the provisions of the Plan and the provisions of this
Agreement,  the  provisions  of the Plan shall be controlling and determinative.

     7.     MISCELLANEOUS.  This Agreement shall be governed by and construed in
accordance  with  the  laws  of  the State of Georgia.  All shares of Restricted
Stock,  and  shares  of  Common Stock resulting after the Restricted Period from
such  shares  of  Restricted  Stock are hereby pledged to secure the Executive's
obligations  under a Secured Promissory Note and a Pledge Agreement of even date
herewith  and all certificates representing all such shares shall be held by the
Company  until  all  of the Executive's obligations under the Secured Promissory
Note  and  Pledge  Agreement have been irrevocably paid in full, or otherwise in
the  Company's  sole  discretion, as and to the extent such shares are released.

                      [signatures appear on following page]

<PAGE>

     IN  WITNESS  WHEREOF,  IRT Property Company, acting by and through its duly
authorized officers, has caused this Agreement to be executed, and the Executive
has  executed  this  Agreement,  all  as  of  May  30,  2002.

                             IRT  PROPERTY  COMPANY

                             By: /s/  James G. Levy
                                -------------------
                             Name:  James  G.  Levy
                             Date:   May  30,  2002

     As  of  May  30,  2002, I hereby accept the above Restricted Stock grant in
accordance  with  and  subject  to the terms and conditions set forth above, and
pledge  all such Restricted Stock to the Company, and I agree that any shares of
Common  Stock,  together  with  all  substitutions  and  replacements  therefore
received  by me hereunder will not be sold or otherwise disposed of by me except
in  a  manner  in compliance with applicable securities laws.  I agree to notify
the Company at least five business days in advance of any proposed sale or other
disposition of any such shares following the vesting thereof and as permitted by
the  Pledge  Agreement.

                              /s/  Thomas H. McAuley
                              ----------------------
                              Executive

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