[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1655.16]

[Page 293-294]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1655--LOAN PROGRAM--Table of Contents
 
Sec. 1655.16  Reamortization.

    (a) Reamortization of a loan will occur in the following situations:
    (1) Under the rules stated in Sec. 1655.15;
    (2) Where a participant transfers between agencies and changes pay 
schedules, the loan will be required to be reamortized to reflect the 
changed schedule. A new payroll allotment form must be completed and 
signed by the participant to reflect this changed schedule;
    (3) Where a participant has had his or her loan established on the 
basis of a particular pay schedule (e.g., biweekly), but actual loan 
payments are made on a different pay schedule (e.g., monthly), the loan 
will be reamortized to reflect the correct pay schedule. A new payroll 
allotment form must be completed and signed to reflect the correct pay 
schedule;
    (4) A participant may voluntarily reamortize a loan, subject to the 
following conditions:
    (i) A voluntary reamortization may occur only if the participant is 
not currently required to reamortize the loan under the rules stated in 
this part;
    (ii) An outstanding loan may be voluntarily reamortized only once;

[[Page 294]]

    (iii) Under a voluntary reamortization, the participant can shorten 
or extend the loan repayment period, provided that the new loan 
repayment period, when added to the original loan repayment period, is 
not shorter than one year of scheduled payments and does not exceed 15 
years of scheduled payments, in the case of a loan for the purchase of a 
primary residence, or four years of scheduled payments, in the case of 
all other loans.
    (b) Before a loan can be reamortized, the recordkeeper must receive 
from the participant, within 45 days of the date a Rider to the 
participant's Loan Agreement/Promissory Note was prepared, a signed 
Rider to his or her Loan Agreement/Promissory Note which describes the 
estimated terms and conditions of the reamortized loan and a newly 
signed payroll allotment form. If the 45th day falls on a Saturday, 
Sunday, or Federal holiday, the deadline will be the next business day.
    (c) Upon reamortization, the new principal balance of the loan will 
equal the unpaid principal on the date of reamortization, plus any 
interest due on the unpaid principal.
    (d) [Reserved]
    (e) A loan may only be reamortized if the new principal (as 
described in paragraph (c) of this section) does not exceed the maximum 
loan amount calculated under Sec. 1655.6(b).
    (f) The interest rate on a reamortized loan will be the same as the 
interest rate on the original loan.

[55 FR 979, Jan. 10, 1990, as amended at 61 FR 58757, Nov. 18, 1996]