Morgan gave evidence that a story Bungles told on the stand on Monday was true.

Daley had said money exchanged between him and the defence's star witness, Tafari Clarke, was part of a loan agreement.

According to Daley, the money was owed by Lennard Miller, uncle of Tafari Clarke, and was not extortion funds.

Daley, the former head of the St Catherine North Division, was arrested on July 31 last year after he was videotaped collecting $15,000 from Tafari Clarke. The money had been marked by detectives from the Anti-Corruption Branch. It is alleged that Daley collected $65,000 from the complainant between May 2007 and July 2008.

Morgan told the court that he served as a justice of the peace and assisted Miller in October 2003 during the process of receiving the loan.

Miller, who was known by Morgan for a little over 10 years before his death and lived three houses away from the justice of the peace, sought Morgan's assistance in taking the loan of $250,000 from Daley.

Examined loan document

Morgan told the court that Miller and Daley went to his house and Miller asked him to look at the loan document to see if it was all right for him to take the loan.

The teacher said that he told Miller that the document was acceptable, but there needed to be some conditions with regard to the repayment of the loan. Morgan told the court that he wrote on the back of the document the conditions of repaying the loan, and both parties agreed to it.

According to Morgan, Miller was to initiate payment in January 2004 with a sum of $20,000 and continue from there with a monthly payment of $10,000.

The men then signed to the conditions of the loan, indicating that they were satisfied with Morgan's written agreement.

When Assistant Director of Public Prosecutions Dirk Harrison asked Morgan if he was aware of the contents of the document, the justice of the peace told the court that he did not remember all the details.

Morgan said he could only clearly remember that it was addressed to Miller in the sum of $250,000.

Morgan was later asked by the prosecution if he had seen the necessity for the document to be copied.

However, Morgan said that he did not see a reason to copy the document and still did not see a reason, since both parties were in good spirits when they went to him and seemed to have a mutual understanding of the situation.

The trial will resume on November 2 and will go until the 13th in the Corporate Area Resident Magistrate's Court.