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MAABD MAABD MAABD MAABD MAABD MAABD MAABD MAABD Division of Welfare and Supportive Services E-410 Medical Assistance Manual RESOURCES 24 Sept MTL 04/24 TYPES OF RESOURCES (not all inclusive)

PROMISSORY NOTES, FORMAL WRITTEN LOAN AGREEMENTS AND PROPERTY AGREEMENTS RESOURCE TYPE DESCRIPTION

PROMISSORY NOTES, FORMAL WRITTEN LOAN AGREEMENTS AND PROPERTY AGREEMENTS

1. Personal Property

2. Conditional Exclusion

Generally, promissory notes, property agreements and loan agreements may be sold or discounted. If the customer’s statement of value, either alone or combined with other resources, exceeds the resource limit, there is no need to verify current market value. Presume the value is its outstanding principal balance unless reliable evidence shows current market value (CMV) is less.

Evaluate for potential transfer of assets.

If the individual alleges the item is for sale, promissory notes, formal written loan agreements and property agreements are excluded when the customer verifies the item is for sale at market value and no offers to purchase have been received. The item must remain for sale while the customer receives assistance.

"Good Faith" efforts must be made by or on behalf of the customer to qualify under this exclusion. These efforts must continue for the exclusion to remain in effect.

Federal regulations state "good faith efforts" to sell resources consist of taking all necessary and reasonable steps to sell it in the geographic area covered by media (radio, television, and newspaper, etc.) serving the area where the property is located.

"Necessary and reasonable" steps to sell this resource will be to utilize a licensed realtor to list the resource for sale OR advertise the resource is for sale through at least one media source covering the area where the resource is located and posting a 'for sale' sign on the property if applicable. The frequency in advertising property for sale will be at least twice a month.

Example: Newspaper advertisements should appear twice in a month with each length of time the decision of the customer/ representative.

A bona fide negotiable agreement is a resource. The portion of any payment received representing payment on the principal is also a resource. The portion of any payment which represents interest on the principal is unearned income.