HISTORY OF FLIGHT: On July 6, 1993, at 2000 central daylight time, a Taylorcraft BC12-D, N95851, sustained substantial damage near Little Rock, Arkansas, following a loss of control during the takeoff climb. The private pilot and the student pilot rated passenger sustained fatal injuries. Visual meteorological conditions prevailed throughout the area for the local personal flight. Witnesses and relatives interviewed by the investigator-in-charge revealed that the passenger purchased the airplane on July 2, 1993. The private pilot ferried the airplane to Pride Airport, Little Rock, Arkansas, on July 4, 1993. During the afternoon, the student pilot taxied the airplane several times on the grass airstrip, which was bordered by pine trees approximately 60 feet tall. The pilots decided to fly to another local grass airstrip, which was longer and not bordered by obstructions, where the student pilot could practice taxiing the airplane. The private pilot agreed to ferry the airplane to the other grass airstrip. During the initial takeoff climb the airplane veered to the left, realigned with the runway center and climbed above the tree line to 125 feet above the ground. Witnesses reported that the nose fell, the airplane entered a right 360 degree turning vertical descent and impacted the ground nose down. PERSONAL INFORMATION: Records indicated that the private pilot flew a BC12-D airplane for a total of 95 hours from September, 1975, through June, 1976. No additional flight hours were logged until April 25, 1992, when the pilot started logging time in several single engine airplanes. Flight records after September 10, 1992, were not available. The passenger's flight records indicated that he started his flight training on April 25, 1992, and had accumulated 21.2 hours of dual training and 11.6 hours of solo flight time in a Cessna 152. His last recorded flight entry was on April 29, 1993. WRECKAGE AND IMPACT INFORMATION: The airplane came to rest nose down on the west edge of the runway. Pieces of red paint and fabric were located to the southeast and northwest of the propeller blades which were partially buried in the ground. One propeller blade exhibited twisting and the other blade showed bending. Flight control continuity was established. The left and right main fuel tanks, lines, and fittings remained intact. The integrity of the auxiliary fuel tank was compromised; however, physical evidence of fuel spillage was reported at the site. Residual fuel was found in the fuel line to the gascolator and approximately two ounces of fuel were in the gascolator. The engine crankcase rotated and hand compression was established (enclosed report). MEDICAL AND PATHOLOGICAL INFORMATION: The private pilot had in his possession a third class medical certificate with an altered date of May 12, 1992. A review of the medical records by the Office of the Regional Flight Surgeon and the investigator-in-charge revealed that the last valid medical certificate was issued to the pilot on May 12, 1977, and that the Airman Medical Examiner (AME) whose signature appeared on the private pilot's medical had not been an AME since 1981 and was deceased in 1988. The private pilot had applied for and was issued a third class medical certificate on April 22, 1992, based on a pending review of medical records for a history of hypertension. The pilot elected not to provide the records and was subsequently notified that he was not eligible for the medical certificate. The medical certificate was surrendered by the pilot on October 17, 1992. An autopsy was performed by the Arkansas State Crime Laboratory in Little Rock, Arkansas. Conclusions to the cause of death included atherosclerotic heart disease with old myocardial infarction. The pathologist's report in part stated "His severe heart condition may have played a role in the fatal accident." Toxicological findings were negative. ADDITIONAL DATA: The airplane was released to the owner's representative.