Permanent instruments for Agency loans.

CFR · 2024-01-01 · US · Title 7

Agency loans will be evidenced by an instrument determined legally sufficient and in accordance with the following order of preference: (a) (b) (1) (2) (3) (c) (1) The repayment terms concerning interest only installments described in paragraph (b) of this section apply. (2) The instrument shall contain in substance provisions indicating: (i) Principal maturities and due dates; (ii) Regular payments shall be applied first to interest due through the next principal and interest installment due date and then to principal due in chronological order stipulated in the bond; and (iii) Payments on delinquent accounts will be applied in the following sequence: (A) Billed delinquent interest; (B) Past due interest installments; (C) Past due principal installments; (D) Interest installment due; and (E) Principal installment due. (d) (e)

official document · source cfr-2024 · id 7:§ 1780.87