Valuation; value of transferable promissory note. Petitioner filed a motion for summary determination and respondent failed to answer. The issue was whether petitioner’s resources exceeded $2,000 during the month in question. Approximately six years prior to the application, in 2002, Petitioner had loaned $66,000 under a promissory note that paid $15 of principal, no interest each month until the loan was paid off. The affidavit of an expert who was a CPA, PFS, CFP stated that the note was worth approximately $360 due to the long-term payout, small monthly payments and unsecured status of the note. The witness also stated he would not buy the note or advise anyone to purchase it. A second affidavit from the Executive Vice-President of a bank stated he valued the note at only $90 due to the unsecured status of the note, low monthly payments and extremely long pay-back period. He also stated he would not buy the note and would not advise anyone to do so. Because the unrefuted affidavit testimony of two knowledgeable sources determined the note was not marketable, the motion was granted and the note was valued at zero dollars.

OSAH-Columbia-Woodard-2-2009.pdf (February 20, 2009)