---
kind: "section"
citation: "7 C.F.R. § 766.59"
title: "7"
number: "766.59"
heading: "Payments toward set-aside installments."
url: "https://uscodex.org/cfr/7/766.59"
---

# §766.59. Payments toward set-aside installments.

- (a) **Interest accrual.**
  - (1) Interest will accrue on any principal portion of the set-aside installment at the same rate charged on the balance of the loan.
  - (2) 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.
- (b) **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.
- (c) **Applying payments.** The Agency will apply borrower payments toward set-aside 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.