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2875.10.10 INCOME FROM CONTRACT SALES (C)

When property is sold on contract, any payment of interest received as a result of the sales contract, including the interest portion of a periodic payment, is unearned income. The portion of the payment which represents principal is considered a non-exempt resource.

The equity value of a contract is to be considered a resource except when the contract contains a clause that prohibits the owner from selling or transferring the contract. In such an instance, the equity value is exempt. 2880.00.00 LUMP SUM PAYMENTS

A lump sum is any type of cumulative payment made to an individual. A payment of retroactive benefits such as SSI, Social Security, Veterans' benefits, or a refund of Medicare Part B premiums is considered a lump sum.

Insurance settlements, inheritances, and lottery winnings are also examples of lump sum payments. When evaluating a lump sum, the eligibility worker must carefully determine whether it is a recurring payment or a non-recurring payment. Non-recurring means the payment is a one- time payment; is not expected to be received from the same source for the same reason as a lump sum again.

Conversely, if a payment is expected to be received again from the same source, it is considered to be a recurring lump sum payment. Each assistance program has specific requirements for the treatment of lump sum payments as resources or income. The SNAP and TANF cash assistance (f32) resource provisions are contained in section 2615.65.05. Lump sum income provisions are contained in sections, 2880.05. 2880.05.00 RECURRING LUMP SUM PAYMENTS

Money received in the form of recurring lump sum payments are considered as income. At the time it becomes known that a series of lump sum payments will be received it is considered income to the AG. Recurring lump sum payments are counted as income in the month received, unless specifically excluded from consideration as income by other federal laws.

SSI payments to individuals whose disability is based on Drug Addiction and/or Alcoholism (DAA) may receive retroactive payments in installments for two or more months depending on the amount due the individual. Because these payments will be recurring, they must be counted as income instead of a resource. The individual will receive a notice from SSA indicating whether one or more installments will be issued, when to expect each installment and the amount of each installment.

SSI has begun to issue recurring lump sum payments to recipients who are due retroactive amounts that equal or exceed 12 times the benefit rate. These retroactive benefits will be paid in no more than 3 installments and the installment payments will be made at 6-month intervals.