OAR 461-145-0330
Loans and Interest on Loans

(1)

This rule covers proceeds of loans, loan repayments, and interest earned by a lender. If the proceeds of a loan are used to purchase an asset, the asset is evaluated under the other rules in this division of rules.

(2)

For purposes of this rule:

(a)

In the OSIP, OSIPM, and QMB programs:

(A)

“Bona fide loan agreement” means an agreement that:
(i)
Is enforceable under state law;
(ii)
Is in effect at the time the cash proceeds are provided to the borrower; and
(iii)
Includes an obligation to repay and a feasible repayment plan.

(B)

“Negotiable loan agreement” means a loan agreement in which the instrument ownership and the whole amount of money expressed on its face can be transferred from one person to another (i.e., sold) at prevailing market rates.

(b)

In all programs:

(A)

“Reverse-annuity mortgage” means a contract with a financial institution (see OAR 461-001-0000 (Definitions for Chapter 461)) under which the financial institution provides payments against the equity in the home that must be repaid when the homeowner dies, sells the home, or moves.

(B)

The proceeds of a home equity loan or reverse-annuity mortgage (see paragraph (A) of this subsection) are considered loans.

(3)

For payments that a member of the financial group (see OAR 461-110-0530 (Financial Group)) receives as a borrower to be treated as a loan:

(a)

In the OSIP, OSIPM, QMB, and SNAP programs, there must be an oral or written loan agreement, and this agreement must state when repayment of the loan is due to the lender.

(b)

In programs other than the OSIP, OSIPM, QMB, and SNAP programs, there must be a written loan agreement, and this agreement must be signed by the borrower and lender, dated before the borrower receives the proceeds of the loan, and state when repayment of the loan is due to the lender.

(4)

Payments for a purported loan that do not meet the requirements of section (3) of this rule are counted as unearned income.

(5)

When a member of a financial group receives cash proceeds as a borrower from a loan that meets the requirements of section (3) of this rule:

(a)

In all programs, educational loans are treated according to OAR 461-145-0150 (Educational Income).

(b)

In the ERDC, REF, REFM, SNAP, and TANF programs, the loan is excluded. If retained after the month of receipt, the loan proceeds are treated in accordance with OAR 461-140-0070 (Treatment of Excluded Assets).

(c)

In the OSIP, OSIPM, and QMB-DW programs:

(A)

If the loan is a bona fide loan agreement (see paragraph (2)(a)(A) of this rule), the money provided by the lender is not income but is counted as the borrower’s resource if retained in the month following the month of receipt (notwithstanding OAR 461-140-0070 (Treatment of Excluded Assets)).

(B)

If the loan is not a bona fide loan agreement, the money provided by the lender is counted as income in the month received and is counted as a resource if retained in the month following the month it was received.

(d)

In the QMB-BAS, QMB-SMB, and QMB-SMF programs:

(A)

If the loan is a bona fide loan agreement, the money provided by the lender is not considered income.

(B)

If the loan is not a bona fide loan agreement, the money provided by the lender is counted as income in the month received.

(C)

All money provided by the lender is excluded as a resource.

(6)

In the OSIPM (except OSIPM-EPD) program, if an individual or a spouse (see OAR 461-001-0000 (Definitions for Chapter 461)) of an individual uses funds to purchase a mortgage or to purchase or lend money for a promissory note or loan:

(a)

In a transaction occurring on or after July 1, 2006:

(A)

The balance of the payments owing to the individual or spouse of the individual is a transfer of assets for less than fair market value (see OAR 461-001-0000 (Definitions for Chapter 461)), unless all of the following requirements are met:
(i)
The total value of the transaction is being repaid to the individual or spouse of the individual within three months of the life expectancy per the actuarial life expectancy of that individual as established by the Period Life Table of the Office of the Chief Actuary of the Social Security Administration. If the loan, promissory note, or mortgage are jointly owned by the individual and their spouse, the requirements of this section are met if the transaction is repaid according to the life expectancy of either the individual or their spouse.
(ii)
Payments are made in equal amounts over the term of the transaction without any deferrals or balloon payments.
(iii)
The contract is not cancelled upon the death of the individual receiving the payments under this transaction.
(iv) No one other than the estate of the lender is designated as remainder beneficiary.
(B) If any of the requirements in paragraph (a)(A) of this section are not met. payments against the principal and interest are treated as unearned income. The outstanding principal balance of the loan is excluded as a resource.

(b)

In a transaction occurring before July 1, 2006, or for a transaction occurring on or after July 1, 2006, that meets all of the requirements of subsection (a) of this section, the loan is treated as follows:

(A)

Interest income is treated as unearned income.

(B)

If the loan is both a negotiable loan agreement (see paragraph (2)(a)(B) of this rule) and a bona fide loan agreement, the loan is counted as a resource valued at the outstanding principal balance. Payments against the principal are excluded as income.
(C) If the loan does not qualify under paragraph (B) of this subsection, payments against the principal are counted as unearned income. The outstanding principal balance of the loan is excluded as a resource.

(7)

In the OSIP, OSIPM, and QMB-DW programs, if an individual uses funds to purchase a mortgage or to purchase or lend money for a promissory note or loan:

(a)

Interest income is treated as unearned income.

(b)

If the loan is both a negotiable loan agreement and a bona fide loan agreement, the loan is counted as a resource of the lender valued at the outstanding principal balance. Payments against the principal are excluded as income.

(c)

If the loan does not qualify under subsection (b) of this section, the balance of the loan is excluded as a resource. The payments against the principal are counted as income to the lender.

(8)

In the QMB-BAS, QMB-SMB, and QMB-SMF programs, if an individual uses funds to purchase a mortgage or to purchase or lend money for a promissory note or loan:

(a)

Interest income is counted as unearned income.

(b)

Payments against the principal of all loans are excluded as income.

(9)

In all programs other than the OSIP, OSIPM, and QMB programs:

(a)

The interest payment is counted as unearned income.

(b)

The payment of principal is excluded.

Source: Rule 461-145-0330 — Loans and Interest on Loans, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=461-145-0330.

461–145–0000
Achieving a Better Life Experience (ABLE) Act 461–145–0001
Adoption Assistance 461–145–0005
Agent Orange Disability Benefits 461–145–0008
Alaska Permanent Fund Dividend 461–145–0010
Animals 461–145–0020
Annuities 461–145–0022
Annuities 461–145–0025
Approved Accounts 461–145–0030
Bank Account 461–145–0035
Black Lung Benefits 461–145–0040
Burial Arrangements and Burial Fund 461–145–0050
Burial Space and Merchandise 461–145–0060
Cash 461–145–0080
Child Support and Cash Medical Support 461–145–0086
Contributions 461–145–0087
Coronavirus Aid, Relief, and Economic Security (CARES) Act 461–145–0088
Corporations and Business Entities 461–145–0089
Corporations and Other Business Entities 461–145–0090
Disability Benefit 461–145–0100
Disaster Relief 461–145–0105
Disqualifying Income 461–145–0108
Dividends, Interest and Royalties 461–145–0110
Domestic Volunteer Services Act (VISTA, RSVP) and Small Business Act (SCORE, ACE) 461–145–0120
Earned Income 461–145–0130
Earned Income 461–145–0140
Earned Income Tax Credit (EITC) 461–145–0143
Economic Recovery Payment 461–145–0145
Educational Account 461–145–0150
Educational Income 461–145–0170
Energy Assistance Payments 461–145–0175
Family Abuse Prevention Act (FAPA) Payments 461–145–0184
Filipino Veterans Equity Compensation Fund 461–145–0185
Floating Homes and Houseboats 461–145–0190
Food Programs Other Than the SNAP program 461–145–0200
Foster Care Payments and Guardianship Assistance Benefits 461–145–0210
Gifts and Winnings 461–145–0220
Home 461–145–0230
Housing and Urban Development 461–145–0240
Income-Producing Sales Contract 461–145–0250
Income-Producing Property 461–145–0252
Income-Producing Property 461–145–0255
Youth Transitions Program Subsidies 461–145–0259
Indian (Native American) Benefits 461–145–0260
Indian (Native American) Benefits 461–145–0261
Individual Development Account (IDA) 461–145–0270
Inheritance 461–145–0280
In-Kind Income 461–145–0285
Japanese-American Restitution Payments 461–145–0290
Job Corps 461–145–0300
Workforce Investment Act 461–145–0310
Life Estate 461–145–0320
Life Insurance 461–145–0330
Loans and Interest on Loans 461–145–0340
Lodger Income 461–145–0343
Manufactured and Mobile Homes 461–145–0345
Military Income 461–145–0348
Mineral Rights 461–145–0360
Motor Vehicle 461–145–0365
National and Community Services Trust Act (NCSTA), including AmeriCorps (other than AmeriCorps VISTA) 461–145–0370
Older Americans Act 461–145–0380
Pension and Retirement Plans 461–145–0390
Personal Belongings 461–145–0400
Personal Injury Settlement 461–145–0405
Plan for Self-support 461–145–0410
Program Benefits 461–145–0415
Radiation Exposure Compensation Act 461–145–0417
Railroad Retirement Payments 461–145–0420
Real Property 461–145–0430
Real Property Excluded under an Interim Assistance Agreement 461–145–0433
Recreational Vehicles 461–145–0435
Refunds 461–145–0440
Reimbursement 461–145–0455
Resettlement and Placement (R&P) Grants 461–145–0460
Sale of a Resource 461–145–0470
Shelter-in-Kind Income 461–145–0490
Social Security Benefits 461–145–0500
Social Secuirty Death Benefit 461–145–0505
Spousal Support 461–145–0510
SSI 461–145–0520
Stocks, Bonds and Other Securities 461–145–0525
Strikers’ Benefits 461–145–0530
Tax Refund 461–145–0540
Trusts 461–145–0550
Unemployment Compensation Benefit 461–145–0560
Uniform Relocation Act 461–145–0570
USDA Meal Reimbursement 461–145–0580
Veterans’ Benefits 461–145–0582
Victims’ Assistance 461–145–0583
Virtual Currency or Cryptocurrency 461–145–0585
Vocational Rehabilitation Payment 461–145–0590
Workers Compensation 461–145–0600
Work-Related Capital Assets, Equipment, and Inventory 461–145–0810
Deemed Assets 461–145–0820
Deemed Assets 461–145–0830
When to Deem the Assets of a Sponsor of a Noncitizen and How Income is Deemed 461–145–0860
Deemed Assets, Parent of Minor Parent 461–145–0910
Self-Employment 461–145–0915
Self-Employment 461–145–0920
Self-Employment 461–145–0930
Self-Employment 461–145–0931
Additional Exclusions for Farming Costs
Last Updated

Jun. 8, 2021

Rule 461-145-0330’s source at or​.us