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LIMITED LIABILITY COMPANIES (LLC): A type of business organization that offers the limited liability of a corporation and the tax benefit of a partnership. LLCs may have one or more members and are treated as corporations for resource purposes. Each LLC member’s proportionate interest is countable, unless an enforceable no-sell agreement exists, or the LLC is inaccessible. Value is determined by dividing the company’s net value (assets less liabilities) by each member’s documented individual interest. Evaluate an uncompensated asset transfer anytime an action is taken (such as entering into a no-sell agreement) that causes the LLC to become inaccessible. LIVESTOCK: Exclude livestock necessary for employment, raised for home consumption or that are pets. Income-producing property policy applies to livestock used to produce income not related to a business/self-employment. This may be referred to as a “run on shares” by another individual. LOANS GIVEN by the HOUSEHOLD/PROMISSORY NOTE: A promissory note or other loan given by an applicant or recipient is considered personal property (usually a liquid asset) and is countable, unless the note/loan is legally inaccessible. The lender holds legal interest and has the legal ability to make available his/her share in the note/loan. The equity value of the note/loan (the principal reduced by any third-party lien) is countable. If a household makes a loan that is considered inaccessible or is shown to have significantly lower market value than the unpaid balance of the loan, the loan will be considered to be an uncompensated transfer of assets (follow policy in CMA 404-1 Asset Transfers, including rebuttal period). The uncompensated asset transfer will be considered the outstanding balance due on the loan as of the date of the lender’s application for nursing home or waiver services. Examples of loans which might be considered inaccessible or have significantly lower market value include, but are not limited to: 1. A loan that is not secured by a lien against property of equal or greater value than the loan amount. 2. A loan that contains provisions for forgiving the loan upon the death of the lender (i.e., when the person loaning the money dies, the loan is considered paid in full). 3. The repayment terms of the loan are not “actuarially sound.” For example, a loan that contains unreasonable repayment provisions, such as a $10,000 loan with a repayment requirement of $10 per month, which cannot be expected to be repaid within the reasonable lifetime of either the lender or borrower. 4. A verbal loan agreement.