Determining the Resource Value of Promissory Notes in which the applicant is the Lender:
The Promissory note is a negotiable agreement:
Assume the resource value is the outstanding principal balance owed on the note unless verification is provided the note cannot be sold for that amount to a third party – at which time its resource value is the amount it can be sold for.
Cash, or real or personal property transferred to the borrower is no longer a resource unless the Lender can access the funds/property for his/her own personal use.
Payments received from the borrower against principal are considered unearned income in the month of receipt, and a resource if retained into the following month.
The Promissory note is bona fide but non-negotiable:
The Promissory note is a resource of the Lender, but the resource value is $0 as it cannot be sold.
Cash, or real or personal property transferred to the borrower is no longer a resource unless the Lender can access the funds/property for his/her own personal use.
Payments received from the borrower against principal are considered unearned income in the month of receipt, and a resource if retained into the following month.
Missouri Department of Social Services Income Maintenance Manual.