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Chapter: 1600 Assets Program: TCA 28 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). 1620.0559 Verification (TCA) Documentation or information containing the type, amount, and unpaid balance of loan is required. This information may be secured from the legal document in the individual's possession, or the person to whom the money was loaned. 1620.0562 Student Grants, Loans and Scholarships (TCA) Any grants, loans, gifts or scholarships received by the individual for educational expenses are excluded as an asset. This is true even if the loan or other money is received in a lump sum and deposited as cash in a bank. The individual must provide information on the amount and type of the grant, loan, gift or scholarship. 1620.0563 Personal Property (TCA) 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. 1620.0564 Personal Property Excluded as an Asset (TCA) Personal effects and household goods are excluded as assets. 1620.0566 Stocks and Bonds (TCA) 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. 1620.0567 Definition of Stocks (TCA) Shares of stock represent ownership in a corporation. The shares of many corporations are traded on the New York Stock Exchange or the American Stock Exchange. Many stocks are also traded “over-the-counter”.

Most stocks, for incorporation purposes, are assigned a certain value known as “par value”. Par value has no relation to the actual market value of a stock.

The value of a stock is normally determined by the demand for it when it is bought and sold. As the result of constant trading, the value of stocks varies daily. To establish the value of a stock, use the most current closing price.

The individual is required to furnish stock certificates unless the stock is being held for the individual by a securities firm. If so, the eligibility specialist must obtain the individual’s copy of the firm’s most recent statement concerning the individual’s account.