---
kind: "section"
citation: "7 C.F.R. § 766.456"
title: "7"
number: "766.456"
heading: "Payments toward DBSA installments."
url: "https://uscodex.org/cfr/7/766.456"
---

# §766.456. Payments toward DBSA installments.

- (a) **Interest accrual.** Interest will accrue on any principal portion of the DBSA installment at the rate of one eighth of a percent.
- (b) **Due date.** The DBSA amount, including interest accrued on the principal portion of the set-aside, is due on or before the final due date of the loan.
- (c) **Applying payments.** The Agency will apply borrower payments toward DBSA installments first to interest and then to principal.

## Notes

### Authority

Authority: 5 U.S.C. 301, 7 U.S.C. 1989, and 1981d(c).

### Source

Source: 72 FR 63316, Nov. 8, 2007, unless otherwise noted.