Mississippi Administrative Code
Title 23 - Division of Medicaid
Part 103 - Resources
Chapter 3 - Non-Countable Resources
Rule 23-103-3.4 - Treatment of Loans, Promissory Notes & Property Agreements (SSI)
Universal Citation: MS Code of Rules 23-103-3.4
Current through September 24, 2024
A. SSI policy when the individual is the seller or creditor:
1. Obtain a copy of the
agreement and assume, absent evidence to the contrary, that the written
agreement is bona fide and negotiable.
2. A bona fide, negotiable agreement is a
resource. The goods or money represented in the agreement are not a resource
because they are not accessible.
3.
The debtor's payments against the principal are a conversion of a resource, not
income.
4. The interest portion
received by the lender is unearned income.
5. If retained, principal and interest are
counted as the lenders resource the month following the month of receipt.
a) Example: Debtor pays $500 per month - $350
toward principal and $150 in interest. The $350 is a converted resource. The
$150 is unearned income.
6. If including the original principal
balance (the amount owed to the creditor when the agreement was established)
causes ineligibility on resources, obtain verification of the outstanding
principal balance, i.e., the balance in the month for which a determination is
being made.
7. If including the
outstanding principal balance causes ineligibility on resources use the
outstanding principal balance in determining resources unless one of the
following is submitted:
a) Evidence of a legal
bar to the sale of the agreement ; or
b) An estimate from a knowledgeable source
(in the business of making estimates, such as banks, other financial
institutions, private investors, real estate brokers, etc.) showing that the
CMV of the agreement is less than its outstanding principal balance.
1) The estimate must show name, title, and
address of the source.
8. For agreements determined to be Non-Bona
Fide or Non-Negotiable:
a) A non-bona fide or
non-negotiable agreement is not a resource under SSI policy;
b) The principal and interest paid to the
lender are income, not a resource ; and
c) The goods or money represented in the
agreement may be a resource to the seller if the seller/creditor has access for
his own use
Social Security Act §1902 (r) (2); 42 CFR §435.601(b) (Rev 1994).
Disclaimer: These regulations may not be the most recent version. Mississippi may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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