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Chapter: 1600 Assets Program: RAP 26 Any TCA benefits received that would not have been received had disposal occurred at the beginning of the exclusion period must be considered overpayment and recouped. If the individual remains eligible on the factor of assets after the property is sold, the eligibility specialist must make a complete review of ongoing eligibility. 1660.0550 Indian Land (RAP) Land that is held by an enrolled member of an Indian tribe is excluded from assets if it cannot be sold or transferred without the permission of other individuals, the tribe, or a federal agency. 1660.0553 Life Insurance (RAP) The cash value of a life insurance or annuity policy is included as an asset. The cash value must be verified if the face value of the policy is $5,000 or more or the policy is five years old or more.

In order to be defined as available, the policy must be owned by the individual and the person insured must either be the individual or a member of the assistance group. Policies carried on the individual or a TCA child by relatives or others whose needs or assets are excluded are not considered available. 1660.0555 Verification of Life Insurance (RAP) The individual must provide the following information on life insurance policies the:

1. owner of the policy; 2. individual insured by the policy; 3. amount of the policy's cash surrender value, if any; and 4. amount of any dividends or interest earned on this policy.

The life insurance policy may provide all the necessary information. If not, the information may be obtained from the insurance company or a local agent. However, with the exception of the MSSI and SFP Programs, it is not necessary to see the policy(s) or contact the company unless the cash value must be verified.

For the RAP Program, the cash value must be verified if the face value of the policy is $5,000 or more or the policy is five years old or more. Otherwise, the individual's statement can be accepted. 1660.0556 Loans (RAP) This section describes:

1. loans; 2. promissory notes; 3. property agreements; and 4. student grants, loans, and scholarships.

A loan is a transaction when one party (lender) advances money to another party (borrower) who promises to repay the debt in full within the borrower's lifetime. Repayment of loans may or may not include interest. A loan may take the form of a formal written document or an informal verbal agreement. A formal written loan agreement is a form of a promissory note.

A promissory note is a written, unconditional agreement signed by a person who promises to pay a specific sum of money at a specified time, or on demand, to the person, company, corporation, or institution named on the note. A promissory note may or may not involve the loan of money or goods (e.g., a promissory note may be given in return for goods or service rendered).