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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE ELIGIBILITY 11/18 CHAPTER E PAGE 87 44.1. Determining When A Loan Counts As A Resource 44.1.1. Eligible Individual Is The Borrower - All Loans Loans are not resources in the month of receipt but become resources if retained to the month following the month of receipt. Bona Fide or Not Bona Fide determines whether or not the cash provided to the borrower is counted as income in the month of receipt. See Loan Proceeds Chapter I – 42. 44.1.2. Eligible Individual Is The Lender Assume that the bona fide loan agreement is negotiable and is a resource, unless the lender raises questions about the negotiability of the agreement and wants to rebut this assumption. The agreement is counted as a resource starting in the month after the month that the lender provides the proceeds to the borrower. 44.1.2.1. Value Assume that the agreement’s resource value is its outstanding principal balance unless the lender disagrees and wants to rebut this assumption. Example: Prior to filing for AG, Mr. Jones made a $1,500 cash loan to his brother. Subsequently, Mr. Jones received $300 in repayment. At the time of filing for AG, the outstanding principal balance for the loan was $1,200. The worker counted $1,200 as a resource. 44.1.2.1.1. Rebuttal Rights If the outstanding principal balance combined with the individual’s other resources cause ineligibility, inform the individual that the outstanding principal balance will be used in determining resources unless he or she submits: • Evidence of a legal bar to the sale of the agreement; or • An estimate from a knowledgeable source, showing that the CMV of the agreement is less than its outstanding principal balance.