§346-57  Loans to applicants for FederalSupplemental Security Income.  Notwithstanding any laws to the contrary,the department of human services may, out of its operating funds, make loans toany person eligible for public assistance as provided in this chapter who is anapplicant for benefits under the Federal Supplemental Security Income Programor its successor agency subject to the following conditions:

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

(2)  The loan or loans shall be for a period not toexceed the action of the Federal Bureau of Supplemental Security Incomeapproving 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 ofassistance otherwise available to the applicant under this chapter;

(5)  The loan or loans shall be repaid by theapplicant out of the retroactive supplemental security income payments,provided that nothing herein shall restrict the federal government from makingdirect payments to the State for such loan or loans, and provided further thatthe loan or loans shall be discharged and no repayment shall be required froman applicant whose application for Federal Supplemental Security IncomeAssistance has been disapproved;

(6)  The applicant shall not be eligible for financialassistance by the department, provided that the applicant shall become eligiblefor such assistance upon disapproval of the application for FederalSupplemental Security Income Assistance. [L 1975, c 145, pt of §1(3); am L1979, c 52, §5; gen ch 1985; am L 1987, c 339, §4]