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CODE OF COLORADO REGULATIONS 10 CCR 2505-10 8.100 Medical Services Board

142 ii) In order to determine the fair market value, the applicant shall obtain three estimates of fair market value from a private note broker, who is engaged in the business of purchasing such notes. In order to obtain the estimates and locate willing buyers, the note shall be advertised in a newspaper with state wide circulation under business or investment opportunities. iii) A note or similar instrument which transferred funds or assets for less than fair consideration shall be considered as a transfer for less than fair consideration and a period of ineligibility shall be imposed. n. Promissory notes established on or after April 1, 2006 and before March 1, 2007 are treated as follows: i) The value of a promissory note, loan or mortgage is an available countable resource unless the note, loan or mortgage: 1) Has a repayment term that is actuarially sound based on the individual’s life expectancy, found in the tables at 8.100.7.J, for annuities purchased on or after February 8, 2006; 2) Provides for payments to be made in equal amounts during the term of the loan, with no deferral and no balloon payments made; and 3) Prohibits the cancellation of the balance upon the death of the lender. ii) The value of a promissory note, loan or mortgage which does not meet the criteria in outlined in 8.100.5.M.3.n.i)1)-3) is the outstanding balance due as of the date of the individual’s application for HCBS, PACE or institutional services and is subject to the transfer of assets without fair consideration provisions as outlined in section 8.100.7.F.

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Page 142

Official source

CODE OF COLORADO REGULATIONS 10 CCR 2505-10 8.100 Medical Services Board

142 ii) In order to determine the fair market value, the applicant shall obtain three estimates of fair market value from a private note broker, who is engaged in the business of purchasing such notes. In order to obtain the estimates and locate willing buyers, the note shall be advertised in a newspaper with state wide circulation under business or investment opportunities. iii) A note or similar instrument which transferred funds or assets for less than fair consideration shall be considered as a transfer for less than fair consideration and a period of ineligibility shall be imposed. n. Promissory notes established on or after April 1, 2006 and before March 1, 2007 are treated as follows: i) The value of a promissory note, loan or mortgage is an available countable resource unless the note, loan or mortgage: 1) Has a repayment term that is actuarially sound based on the individual’s life expectancy, found in the tables at 8.100.7.J, for annuities purchased on or after February 8, 2006; 2) Provides for payments to be made in equal amounts during the term of the loan, with no deferral and no balloon payments made; and 3) Prohibits the cancellation of the balance upon the death of the lender. ii) The value of a promissory note, loan or mortgage which does not meet the criteria in outlined in 8.100.5.M.3.n.i)1)-3) is the outstanding balance due as of the date of the individual’s application for HCBS, PACE or institutional services and is subject to the transfer of assets without fair consideration provisions as outlined in section 8.100.7.F.