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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
(Rule 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULES 13d-1(b) AND (c) AND AMENDMENTS THERETO FILED
PURSUANT TO 13d-2(b)
(AMENDMENT NO. )*
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PAULA Financial
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(Name of Issuer)
Common Stock, $.01 Par Value
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(Title of Class of Securities)
703588 10 3
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(CUSIP Number)
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
Page 1 of 5 Pages
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CUSIP No. 703588 10 3 SCHEDULE 13G Page 2 of 5 Pages
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(1) NAMES OF REPORTING PERSONS.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
PAULA Financial and Subsidiaries Employee Stock Ownership Plan Trust
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF SHARES (5) SOLE VOTING POWER
BENEFICIALLY 0
OWNED BY --------------------------------------------------
EACH REPORTING (6) SHARED VOTING POWER
PERSON WITH 929,446
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(7) SOLE DISPOSITIVE POWER
929,446
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(8) SHARED DISPOSITIVE POWER
0
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
929,446
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(10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* / /
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(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
14.7%
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(12) TYPE OF REPORTING PERSON*
EP
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 703588 10 3 Page 3 of 5 Pages
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ITEM 1(a). Name of Issuer:
PAULA Financial
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ITEM 1(b). Address of Issuer's Principal Executive Offices:
300 N. Lake Avenue, Suite 300, Pasadena, CA 91101.
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ITEM 2(a). Name of Person(s) Filing:
PAULA Financial and Subsidiaries Employee Stock Ownership Plan Trust
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ITEM 2(b). Address of Principal Business Office or, if None, Residence:
300 N. Lake Avenue, Suite 300, Pasadena, CA 91101.
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ITEM 2(c). Citizenship:
The filing person is a trust governed by the laws of the United States
of America.
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ITEM 2(d). Title of Class of Securities:
Common Stock, $.01 Par Value
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ITEM 2(e). CUSIP Number:
703588 10 3
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ITEM 3. If this Statement is filed pursuant to Rules 13d-1(b), or 13d-2(b),
check whether the person filing is a:
(a) / / Broker or dealer registered under Section 15 of the Act,
(b) / / Bank as defined in Section 3(a)(6) of the Act,
(c) / / Insurance Company as defined in Section 3(a)(19) of the Act,
(d) / / Investment Company registered under Section 8 of the Investment
Company Act,
(e) / / Investment Adviser registered under Section 203 of the Investment
Advisers Act of 1940,
(f) /X/ Employee Benefit Plan, Pension Fund which is subject to the
provisions of the Employee Retirement Income Security Act of 1974
or Endowment Fund; SEE 13d-1(b)(1)(ii)(F),
(g) / / Parent Holding Company, in accordance with Rule 13d-1(b)(ii)(G);
SEE Item 7,
(h) / / Group, in accordance with Rule 13d-1(b)(1)(ii)(H)
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CUSIP No. 703588 10 3 Page 4 of 5 Pages
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ITEM 4. Ownership:
If the percent of the class owned, as of December 31 of the year covered by
the statement, or as of the last day of any month described in Rule 13d-1(b)(2),
if applicable, exceeds five percent, provide the following information as of
that date and identify those shares which there is a right to acquire.
(a) Amount beneficially owned:
929,446
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(b) Percent of class:
14.7%
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(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote:
0
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(ii) Shared power to vote or to direct the vote:
929,446
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(iii) Sole power to dispose or to direct the disposition of:
929,446
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(iv) Shared power to dispose or to direct the disposition of:
0
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ITEM 5. Ownership of Five Percent or Less of a Class.
If this statement is being filed to report the fact that as of the date hereof
the reporting person has ceased to be the beneficial owner of more than five
percent of the class of securities, check the following / /.
ITEM 6. Ownership of More than Five Percent on Behalf of Another Person.
The Trust holds the securities on behalf of the beneficiaries of the related
employee benefit plan. None of such beneficiaries holds in excess of 5% of the
class of securities except for Mr. Jeffery Alan Snider. Mr. Snider has
separately reported his interest on Schedule 13D.
ITEM 7. Identification and Classification of the Subsidiary Which Acquired
the Security Being Reported on by the Parent Holding Company.
Not Applicable.
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ITEM 8. Identification and Classification of Members of the Group.
Not Applicable.
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ITEM 9. Notice of Dissolution of Group.
Not Applicable.
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CUSIP No. 703588 10 3 Page 5 of 5 Pages
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ITEM 10. Certification.
By signing below I certify that, to the best of my knowledge and belief, the
securities referred to above were acquired in the ordinary course of business
and were not acquired for the purpose of and do not have the effect of
changing or influencing the control of the issuer of such securities and were
not acquired in connection with or as a participant in any transaction having
such purposes or effect.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete
and correct.
February 3, 1998
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(Date)
Union Bank of California, Trustee
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(Signature)
/s/ Amy Marks
By: ------------------------------------
Amy Marks
Vice President
