Document the loan allegation and, if applicable, the value of the resource on the promissy note, loan or ownership agreement page. Analysis: The CR determines that the loan is in good faith. An oral loan agreement is legally enforceable under the applicable state law. A signed statement (Form SSA-2855) from Mr. Tyson confirms that he has acknowledged his commitment to repay and intends to do so using the expected revenues. A Form SSA-2854 completed by the brother confirms that Mr. Tyson is required to pay him the refund. The RC notes that the proceeds of the loan are not income for Mr. Tyson. If the product is retained, it will be a countable resource at the first point of the following month. For more information about Forms SSA-2854 and SSA-2855, see SI 01120.220G in this section.
After reviewing the regional instructions for applicable state law, determine whether the loan is in good faith according to the criteria in Section D. The loan agreement must come into effect at the time the lender provides the money to the borrower. Money given to a person without an obligation to repay at the same time cannot become a loan at a later date. The applicant claims SSI disability benefits and claims a loan: A negotiable and bona bona bona foi loan agreement is a lender`s resource that is valued against the balance of the outstanding principal. (For rebuttal rights, see SI 01120.220E.4. in this section.) The repayment plan is feasible because the applicant intends to use the money expected from the trust to repay the loan. An agreement in good faith is legally valid under the law of the applicable State and is entered into in good faith. EXAMPLE: Mr.
Johnson applied for an ISS in June 2011. He has no income and claims that his son provided him with $200 in cash per month in the form of a loan. Johnson says he wants to take advantage of his SSI benefits if he is approved to repay the loan. When contacted, the son states that even if he wants his father to pay him back, he does not have to pay him back. The Czech Republic asserts that a bona fide loan does not exist because there is no repayment obligation. NOTE: The repayment obligation cannot be subordinated to future income that could be paid. There must be an understanding that the borrower must repay it in order for it to be a bona bona fy loan. Follow these procedures to determine if an informal loan is in good faith and to determine the value of the resources to the individual, if any. All bona bona bona f loans, including educational, personal and business loans, are not considered income. A bona foi loan is a debt that the borrower is required to repay and expresses his intention to repay. If it is determined that the funds received are not derived from a bona fide loan (there is no repayment obligation or the borrower does not intend to repay), the amount received may or may not constitute eligible income. (See ATAP]] > Alaska Temporary Assistance Program MS]]> Manual Section 758-4.) Determine the value of the loan proceeds using procedures appropriate to the type of resource to be evaluated.
For example, if a bank account contains the loan proceeds, check the bank account to see if the account balance exceeds the tolerance for the development of liquid resources. The loan must include a repayment plan or schedule and the borrower`s express intention to repay by pledging real estate or personal property or expected future income (such as pension insurance benefits (RIB) from a year in which the borrower is 62 years of age). The applicant can use the expected income such as Title II, Title XVI, Veterans Benefits, etc. to create a workable repayment plan for the loan, provided that the loan indicates that the applicant must repay the money. This section provides instructions for determining when a cash advance is applicable as a resource and determining its value as a resource. .