Food Stamps

1110.020.42 Contracts and Notes

IM-#114 November 5, 2004IM-#125 August 25, 2000

The value of installment contracts (type IC) or notes (type NR) held for the sale of land or other property if the contract or agreement is producing income consistent with its fair market value are not counted as a resource. Also excluded is the value of any property sold under contract or held as security in exchange for a purchase price consistent with the fair market value of that property since the property cannot be sold again.

Enter the installment contract or note receivable on the Liquid Resource (FMW0) screen. This resource type is included in the resource determination unless an excluded amount and excluded reason is entered. To exclude either resource, enter the value of the resource in the Excluded Amount field and use code CB (combination of one or more reasons) in the Excl Rsn field.

Client statement (CS) is acceptable verification, unless the resource or value is questionable or is near the maximum. Questionable information would be information provided by the EU that is inconsistent with other information available. To pend for verification of a resource, leave the verification field blank.

Record a comment regarding verification if other than client statement (CS) is used and any other information necessary to explain how the information affects eligibility, including why the resource is excluded.

Always review the Financial Resource Detail Summary (FMWG) screen prior to authorizing a case action to ensure resources you expect to be included are included in the determination. From the Action Authorization (FM3H) screen, press F15=RESOURCE to view the Financial Resource Detail Summary (FMWG) screen. If the resource is incorrect, select the resource and press F6=DETAILS to return to the appropriate screen and correct the inaccurate information.