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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE ELIGIBILITY 11/18 CHAPTER E PAGE 88 Knowledgeable sources include anyone in the business of making such estimates (e.g., banks or other financial institutions, private investors, real estate brokers, etc.). The estimate must show the name, title, and address of the source. 44.2. Negotiable Agreement A negotiable agreement is an agreement (e.g., a loan) whereby the ownership of the instrument itself and the whole amount of money expressed on its face can be transferred (given or sold) from one person to another. Absent evidence to the contrary, assume the agreement is negotiable. 44.3. Bona Fide Agreement A bona fide agreement is an agreement that is legally valid and made in good faith. A loan (oral or written) is bona fide if it meets all of the following requirements. • Enforceable Under State Law A bona fide loan is a contract that is enforceable under Virginia law. • Loan Agreement in Effect at Time of Transaction The loan agreement must be established and in effect at the time that the cash proceeds are provided to the borrower. Money given to an individual with no obligation to repay cannot become a loan at a later date. • Acknowledgement of an Obligation to Repay The obligation to repay must be acknowledged by both the lender and the borrower for a bona fide loan to exist. When money or property is given and accepted based on any understanding other than it is to be repaid by the receiver, there is no loan for AG purposes. A statement by the individual that he or she feels personally responsible to pay back the friend or relative does not create a legal obligation to repay the individual who provided the cash. Similarly, a statement by the lender that the eligible individual is only required to repay the cash if he or she becomes financially able to do so does not create a legal obligation to repay.