Section 17-1725.1-53 - Treatment of promissory notes, loans and mortgages(a) The assets used by an individual who requires coverage of long-term care services or their community spouse, to secure a promissory note, loan or mortgage on or after February 8, 2006, shall not be considered transferred if all of the following conditions apply to the promissory note, loan or mortgage: (1) The repayment term is actuarially sound;(2) It is irrevocable and cannot be sold;(3) Equal payments are made throughout the term of the contract with no deferral or balloon payments; and(4) The balance cannot be cancelled upon the death of the institutionalized individual or the community spouse.(b) If the provisions of subsection (a) are not met, the transferred amount is equal to the outstanding balance owed as of the date of the individual's request for coverage of long-term care services.(c) The portion of the funds used to secure a promissory note, loan or mortgage prior to February 8, 2006, that is not actuarially sound and is payable beyond the life expectancy of the owner of the funds shall be considered transferred.Haw. Code R. § 17-1725.1-53
[Eff 09/30/13] (Auth: HRS § 346-14; 42 C.F.R. §431.10; 42 U.S.C. §1396 p(c)) (Imp: 42 U.S.C. §1396 p(c))