Section He-E 806.27 - Interest Expenses(a) Interest shall be an allowable cost subject to (b) through (e) below:(b) Necessary interest and proper interest as defined in He-E 806.01 on both current and capital indebtedness shall be an allowed cost.(c) To be allowable, interest expense shall be incurred on indebtedness to lenders or lending organizations not related through control, ownership, affiliation or any personal relationship to the borrower;(d) Interest expense shall be reduced by interest income.(e) With respect to loans receivable from an officer, related person, or organization, interest income shall include interest earned on such loan imputed at a rate equal to the highest rate payable on loans payable by the NF provider.(f) The imputed interest described in (e) above shall not be calculated on disallowed borrowing.N.H. Code Admin. R. He-E 806.27
#8547, eff 1-24-06 (formerly He-W 593.12 )