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Programs |
Manual Section |
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ALTCS |
An ALTCS customer has a property agreement with his cousin. The terms of the contract are as follows:
The customer’s cousin must pay $1,300 each month to pay the balance of $150,000 in exchange for the customer’s property.
There is no interest on the amount owed.
The contract does not state that it is non-negotiable.
According to the payment schedule, $125,000 is still owed on the property agreement at the time of application. Since the property agreement does not clearly state that it is non-negotiable, the remaining principal balance of $125,000 is a countable resource to the customer. The $1,300 payments made to the customer are counted as a resource and not counted as income.
An ALTCS customer has a promissory note with her grandson. The terms of the promissory note are as follows:
The customer gave her grandson $50,000 to help him buy his new home.
Her grandson will pay $1,500 each month until the balance is paid.
The agreement clearly states that it is non-negotiable.
The customer’s grandson owes $15,000 on the note at the time of application. Since the note is clearly identified as non-negotiable, it is a transfer. The customer got $35,000 as compensation, so the remaining $15,000 is uncompensated.
In the same month as her application, a customer entered a loan agreement with her friend. The terms of the agreement are as follows:
The customer got $10,000 cash from her friend to help pay for medical costs
The customer will pay $500 a month to her friend until the loan is repaid
The contact does not state that it is non-negotiable.
The $10,000 the customer gets from the loan is not counted as income in the month received. Any amount remaining from the loan is counted as a resource in the month after the month she receives the money. The negotiability of the agreement does not affect treatment when the customer is the borrower.