Page 187

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

187 1. Promissory notes established before April 1, 2006: a. The fair market value of promissory notes is a countable resource and must be evaluated in accordance with the regulations on consideration of resources in this volume. b. Promissory notes with one or more of the following provisions, indicating they have little or no market value, shall create a rebuttable presumption of a transfer without fair consideration: i) An interest rate lower than the prevailing market rate. ii) A term for repayment longer than the life expectancy of the holder of the note, as determined by the tables at 8.100.7.J.for annuities purchased on or after February 8, 2006. iii) Low payments. iv) Cancellation at the death of the note holder. c. Promissory notes which have been appraised by a note broker as having little or no value shall create a rebuttable presumption of a transfer without fair consideration. 2. Promissory notes established on or after April 1, 2006 but before March 1, 2007 a. Subject to the look-back date described in section 8.100.7.F.2.b for the purpose of calculating the penalty period of ineligibility for a transfer without fair consideration, the value of a promissory note, loan or mortgage which does not meet the criteria in section 8.100.5.M.3.n. is the outstanding balance due as of the date of the individual’s application for Medical Assistance for services, described in section 8.100.7.F.2.c. 3. Promissory notes established on or after March 1, 2007 a. Subject to the look-back date described in section 8.100.7.F.2.b, for the purpose of calculating the penalty period of ineligibility for a transfer without fair consideration, the value of a promissory note, loan or mortgage which does not meet the criteria in section 8.100.5.M.3.o. is the