The fair market value of liquid resources and the fair market value less encumbrances (equity) of non-liquid resources are used to determine the total countable resources available to the HH/AG.

1. (1) The following are counted as liquid resources for Food Stamps and AFDC unless otherwise specified:

   1. (a) Cash on hand
   2. (b) A checking or savings account in a bank or other savings institution including credit union. (In a checking account, only that amount which exceeds known monthly income is counted as a resource.)
   3. (c) Savings certificates
   4. (d) Stocks or bonds

   5. (e) Burial Agreements - See Section 1240-01-04-.05 (9)(b)

      1. 1. If the burial agreement was purchased prior to 7/01/81 and has not been declared irrevocable by court, it will be considered a resource.
      2. 2. If purchased after 7/01/81 and the contract does not contain a statement that the “contract is irrevocable” the agreement must be counted as a resource.

   6. (f) Proceeds from sale of property if received as a lump sum.

      1. 1. AFDC Only. Lump sum proceeds from the sale of exempt property will also be exempt for a period of up to three months following the month of sale if intended to be used to replace the exempt resource.
   7. (g) Proceeds from estate settlement if received as a lump sum.

   8. (h) Other Non-recurring Lump Sum/Retroactive Payments

      1. 1. Food Stamps Only - Lump sum liquid resources such as the following are considered a resource in the month received, unless specifically excluded from consideration as a resource by other federal laws:
   9. (i) Retroactive Payments such as RSDI, Veterans Benefits, Unemployment Compensation and Workers Compensation
   10. (ii) Windfalls, cash gifts, prizes and awards
   11. (iii) Income tax refunds
   12. (iv) Tax rebates and credits
   13. (v) Refunds of security deposits on rental property or utilities

   14. (vi) Vacation pay withdrawn in a lump sum payment by an employee who has been laid off. If the employee chooses not to withdraw his/her vacation pay and leaves the vacation time with the employer in case he/she is called back to work, the value of the vacation pay is counted as a resource.

       1. 2. AFDC Only
   15. (i) Income tax refunds are a non-recurring lump sum payment that is considered a resource in the month received, and thereafter if retained.
   16. (ii) Non-recurring lump sum payments countable as income (such as retroactive RSDI, VA, etc.) are considered a resource only if retained beyond the benefit month(s) for which they are budgeted as income.

2. (2) Countable Non-liquid Resources.

   1. (a) Food Stamps/AFDC. Unless otherwise exempt, the equity in all non-liquid resources shall be counted as a resource. Examples are as follows:

      1. 1. Non-exempt licensed and unlicensed vehicles
      2. 2. Non-exempt buildings
      3. 3. Non-exempt land
      4. 4. Recreational properties
      5. 5. Property such as boats, vacation homes and mobile homes, or other property not specifically excluded.

   2. (b) AFDC Only

      1. 1. Non-exempt personal property
      2. 2. Insurance policies
   3. (i) The total cash value of all policies is considered in relation to the personal property reserve.
   4. (ii) The owner of insurance is considered to be the insured person named in the policy, unless otherwise specified by the insurance company.

Authority: T.C.A. §§ 14-8-104, 14-8-106, and 14-27-104; PL 97-35; 45 C.F.R. 224.50; 7 C.F.R. 273.8(c); and C.F.R. 244.50. Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal and new rule filed July 20, 1982; effective October 13, 1982. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed December 2, 1983; effective January 1, 1984. Amendment filed April 30, 1985; effective July 14, 1985. Amendment filed October 9, 1987; effective January 27, 1988.