---
kind: "section"
citation: "12 C.F.R. § 1408.40"
title: "12"
number: "1408.40"
heading: "Refunds."
url: "https://uscodex.org/cfr/12/1408.40"
---

# §1408.40. Refunds.

- (a) In instances where the Corporation is the creditor agency, it shall promptly refund any amounts deducted under the authority of [5 U.S.C. 5514](/usc/5/5514.md) when:
  - (1) The debt is waived or otherwise found not to be owed to the United States (unless expressly prohibited by statute or regulations); or
  - (2) **An administrative or judicial order directs the Corporation to make a refund.**
- (b) Unless required or permitted by law or contract, refunds under this section shall not bear interest.

## Notes

### Authority

Authority: Sec. 5.58 of the Farm Credit Act (12 U.S.C. 2277a-7); 31 U.S.C. 3701-3719; 5 U.S.C. 5514; 4 CFR parts 101-105; 5 CFR part 550.

### Source

Source: 59 FR 24899, May 13, 1994, unless otherwise noted.