On May 22, 1998, at 1645 central daylight time, a Cessna 140, N2102N experienced a loss of engine power on takeoff from the Yellow River airport in Holt, Florida. The personal flight was operated by the pilot under the provisions of Title 14 CFR Part 91, and visual flight rules. Visual meteorological conditions prevailed and no flight plan had been filed for the local flight. The commercial pilot was not injured, and the airplane was substantially damaged. The flight was originating at the time of the accident. According to the pilot, the airplane had just come out of overhaul, which included the rebuilding of the engine. The accident flight was the first test flight. After the completion of a thorough preflight, the pilot stated he executed a normal takeoff. As the airplane climbed through 500 feet, the engine had a "sudden but smooth power loss". After attempting to restart the engine, the pilot stated he selected a field for landing and executed an off airport landing. The airplane encountered soft ground and nosed over during the landing roll. Examination of the engine by Textron Lycoming found the engine in excellent condition. The engine was partially disassembled, and continuity was established throughout. The engine timing was checked, magnetos were tested, cylinders were examined, and compression was checked with no discrepancies noted. Lycoming did note however, that the carburetor was not present during the examination eliminating the possibility of an engine run. According to Lycoming, there were no discrepancies found that would have prevented the engine from running.