Enter the monthly loan amount (plus extra money) in the MONTHLY LOAN AMOUNT field on the Household Expenses and Contributions page. Determine if an ISM loan is in good faith at the first interview or during the PERC. When documenting a loan: Determine the actual value of the external ISM provided to the borrower by the lender as if there were no ISM loan. For example, if the lender pays a $300 utility bill and there are three members in the household, $100 is creditable as an ISM to the eligible person. The money provided to the borrower is no longer the lender`s resource because the lender cannot access it for its own use; The loan agreement replaces cash as the lender`s resource. If there is no bona fide loan, document the credit determination in the SSI claims system on a DROC screen and receive the amount of the third party payment(s) for food or accommodation, or both. Write down this information in the SSI claims system on the Support and Maintenance in Kind page. Determine the amount of ISM received after normal external ISM development procedures. The agreement is not a resource of the lender because the loan cannot be sold. If you are submitting a deferred development application, there is no need to create a RT log, as the PERC is used to fully develop the person`s expected living conditions for the period following the end of the ISM loan.
A bona fide loan did not exist at the time of application (28.01.2008), as no loan agreement was concluded on the basis of the application statements; The repayment plan or schedule must specify the value of the food or accommodation, or both, borrowed and the terms of repayment (p.B. how much will be repaid per week or month, etc.). For an ISM loan, the value of the „dwelling“ is based on the household costs listed in SI 00835.465. NOTE: For cases other than MSSICS, use SSA-5062 (Claimant`s Declaration of Food or Shelter Loan) to document the borrower`s statement and SSA-L5063-F3 (Declaration of Food or Accommodation Provided to Others) to document the lender`s review of the loan statement. Fax the paper forms to the appropriate electronic file. Document the loan allegation and your determination of resources on the MSSICS page, which corresponds to the type of loan product retained by the person (p.B HCHR pages, RFIA). Even if the Social Security Administration (SSA) determines that the loan agreement may be oral or written and has different requirements, as a trustee, for example to the CPT, appropriate documentation of a written agreement must be provided to make payments from a beneficiary`s account. What for? A trustee is responsible for and is required to keep receipts/invoices, contracts, agreements and so many records to support any payment from a beneficiary`s escrow account for special needs in case of audit by the government or government agencies and/or for forensic accounting (Urbatsch & Fuller, 2016). In addition, a trustee has a fiduciary duty to ensure that the amount requested for a disbursement to a friend or family member for a loan is reasonable with proper documentation and that the recipient`s funds last as long as possible. If the application for repayment of a loan is too high and the appropriate documentation is not provided, it is highly likely that a request for payment will be rejected and/or the trustee may apply for a court order before approval. Payment of credit card debt All bona fide loans, including educational, personal and business loans, are not included in income. A bona fide loan is a debt that the borrower is required to repay and that expresses his intention to repay.
If the agreement is a resource, let`s assume that its value is its outstanding capital balance. If the person wants to refute the value, follow the instructions IF 01120.220E.4. in this section. If the established agreement meets all the requirements to be a bona fide loan, the food and accommodation received from 31.07.2009 are not eligible as income, as the loan agreement was in effect at the time the son provided the ISM. For bona fide loans arising from ISM requirements, see SI 00835.482B. (in this section). The loan agreement must be enforceable as an oral or written contract under the applicable state law. Look for the regional directorates in SI 01120.220.
For a list of countries that have specific requirements for processing loans to minors, see PS 01500.000 Program Requirements – In-Kind Support and Maintenance within PolicyNet „POMS Index“. For requirements for processing loans to minors in the state of Oregon, see PS 01415.041. Mr Johnson applied for SSI in June 2010. He has no income and no resources and says his daughter provides him with food and shelter in the form of a loan. Upon request, the daughter explains that Mr. Johnson will only have to reimburse her if he begins to receive his Title XVI benefits. If the person has a bona fide loan from ISM and claims that the loan covers the portion on a pro rata basis, follow these steps to determine the person`s living conditions for the period covered by THE LOAN from ISM: DDS completes its assessment and enters a medical allowance on 06.05.2009. Mr. Ford receives his first SSI cheque on 19.06.2009. When the RT newspaper is due on 07.07.2009, the CR will contact Mr. Ford to determine his living conditions from 07.01.2009 and to conclude the loan from the ISM.
If the person claims that an ISM loan will continue beyond the month of drilling, treat the claim as a new ISM loan that the RC must develop to determine if the new loan agreement is in good faith. The following five conditions must be met for a loan agreement to be a bona fide loan from the ISM. All subsequent bona fide credit requirements must be assessed separately, starting sequentially with requirement #1. Mr. Applewhite applied to SSI in January 2010, claiming that he had no income or resources. He lives with his sister, who provides him with food and shelter worth (on a pro rata basis) $825 a month. He claims that he has a loan from the ISM contract with his sister. The repayment plan states that Mr. Applewhite will repay the loan by: The bona fide nature of a loan must be reviewed and documented on file. Commercial and educational loans can usually be verified by posting a copy of the written loan agreement or a document that marks the payment as a loan.
In the case of personal loans, the verification must include at least the acknowledgement by the borrower and the lender that there is an obligation to repay the loan and confirmation by the borrower that he intends to repay the loan (with or without interest). Document the loan application and the date the borrower and lender entered into the agreement on a DROC screen in the SSI claim system; If the value of the loan agreement could affect the eligibility of resources: If the person and the lender do not claim that the loan in good faith covers the entire proportionate portion, follow these steps to determine if the person has received an eligible ISM: Assuming that the bona fide loan agreement is negotiable, it is a resource, unless the lender raises questions about the negotiability of the agreement, and wants to refute this hypothesis. .