Page 13

Chapter: 1600 Assets

Program: FS 10 1610.0562 Student Grants, Loans and Scholarships (FS) Any grants, loans, gifts or scholarships received by the individual for educational expenses are excluded as an asset, even if the loan or other money is received in a lump sum and deposited as cash in a bank. Excluded funds commingled in an account with other funds are excluded for six months from the date they were combined. Excluded funds kept in a separate account are excluded from assets for an unlimited amount of time. The individual must provide information on the amount and type of the grant, loan, gift or scholarship. 1610.0563 Personal Property (FS) Personal property includes personal effects such as clothing, jewelry, tools of a trade, and pets, in addition to household goods such as furniture and appliances. Generally, personal property is excluded as an asset. 1610.0566 Stocks and Bonds (FS) Investments include the value of stocks and bonds. The current market quotation is considered the asset value. Information sufficient to establish ownership is required in order to determine if the stock/bond value must be included/excluded. Sources of information on the current market value of stocks and bonds may be secured from the bank, investment company, newspapers, and the like. The source and date of the quotation must be recorded. 1610.0570 Mutual Fund Shares (FS) A mutual fund is a company that buys and sells securities and other property as its primary business. Mutual fund shares are generally liquid assets and must count as an asset. The value of mutual funds is determined in the same way as stock values are determined. 1610.0571 Bonds (FS) A bond is a written obligation to pay a sum of money at a future specified date. It is a negotiable instrument and is transferable. Therefore, bonds are included as assets.

A state or local government issues municipal bonds. Corporations issue corporate bonds. Government bonds are issued by an agency of the federal government and, except for U.S. Savings Bonds, are transferable.

A bond must be held until the specified date of maturity before it can be redeemed for its face value. The current cash value of a bond before maturity is determined by the market for it.

If there is a great demand for a bond, its market value may be more than the face value; or if there is little demand, the bond's current market value may be substantially less than the face value. The current price of a bond can generally be determined as it would be for a stock.

When an individual requests that a bond be sold, about seven to ten days are usually required for the individual to receive the proceeds. 1610.0572 Savings Bonds (FS) Savings Bonds are countable assets. The value at the time the bond is sold is the asset value. The value of the bond depends on the time elapsed from the date of issue. Do not use the table sometimes provided on the back of the bond to determine its value. The tables often do not reflect changes in interest rates. A bank must be contacted to determine the current value.

A U.S. Savings Bond is an obligation of the federal government, but unlike other government bonds it is not transferable - that is, it can only be sold back to the government.