346-57 Loans to applicants for federal supplemental security income. Notwithstanding any laws to the contrary, the department of human services may, out of its operating funds, make loans to any person eligible for public assistance as provided in this chapter who is an applicant for benefits under the federal supplemental security income program or its successor agency subject to the following conditions:

(1) The Federal Bureau of Supplemental Security Income has denied applicant's request for advance payment or finding of presumptive eligibility for supplemental security income;

(2) The loan or loans shall be for a period not to exceed the action of the Federal Bureau of Supplemental Security Income approving or disapproving assistance under its program;

(3) The loan or loans shall bear no interest;

(4) The loan or loans shall not exceed the amount of assistance otherwise available to the applicant under this chapter;

(5) The loan or loans shall be repaid by the applicant out of the retroactive supplemental security income payments, provided that nothing herein shall restrict the federal government from making direct payments to the State for such loan or loans, and provided further that the loan or loans shall be discharged and no repayment shall be required from an applicant whose application for federal supplemental security income assistance has been disapproved;

(6) The applicant shall not be eligible for financial assistance by the department, provided that the applicant shall become eligible for such assistance upon disapproval of the application for federal supplemental security income assistance. [L 1975, c 145, pt of 1(3); am L 1979, c 52, 5; gen ch 1985; am L 1987, c 339, 4]

 

 

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