Equity Determination 415-25-10-12

(Revised 10/00 ML #2629)

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Equity value, as opposed to face value, applies to non-liquid assets and liquid assets. The equity value of an asset is defined as the fair market value minus encumbrance. Fair market value and encumbrances shall be verified by reasonably available documents, statements of knowledgeable officials or citizens, or the household's statement, if reasonable.

 

Whenever an uncounted and a counted asset are combined as security for a single encumbrance, the fair market value of the uncounted asset shall first be applied against the encumbrance and the remainder of the encumbrance deducted from the fair market value of the nonexempt asset.