---
kind: "section"
citation: "7 C.F.R. § 765.154"
title: "7"
number: "765.154"
heading: "Distribution of payments."
url: "https://uscodex.org/cfr/7/765.154"
---

# §765.154. Distribution of payments.


The Agency applies both regular and extra payments to each loan in the following order, as applicable:

- (a) Recoverable costs and protective advances plus interest;
- (b) Deferred non-capitalized interest;
- (c) Accrued deferred interest;
- (d) Interest accrued to date of payment; and
- (e) **Loan principal.**

## Notes

### Authority

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.

### Source

Source: 72 FR 63309, Nov. 8, 2007, unless otherwise noted.