§766.59. Payments toward set-aside installments.
7 C.F.R. § 766.59
Interest accrual.
Interest will accrue on any principal portion of the set-aside installment at the same rate charged on the balance of the loan.
If the borrower's set-aside installment is for a loan with a limited resource rate and the Agency modifies that limited resource rate, the interest rate on the set-aside portion will be modified concurrently.
Due date. The amount set-aside, including interest accrued on the principal portion of the set-aside, is due on or before the final due date of the loan.
Applying payments. The Agency will apply borrower payments toward set-aside installments first to interest and then to principal.
Notes, amendments, and revision history
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.