[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: 5CFR1655.18]

[Page 294-295]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1655--LOAN PROGRAM--Table of Contents
 
Sec. 1655.18  Spousal rights.

    (a) Within seven calendar days of a CSRS participant's loan 
application process date, the recordkeeper will send a notice to the 
participant's current spouse that the participant has applied for a 
loan.
    (b) As a condition for approval of the Loan Agreement/Promissory 
Note for a FERS participant, the participant must provide the 
recordkeeper with any evidence the Board requires to demonstrate that 
the current spouse has consented to the loan for which the participant 
has applied.
    (c) A CSRS participant may obtain a waiver of the spousal 
requirement described in paragraph (a) of this section if the 
participant establishes, to the satisfaction of the Executive Director, 
that the spouse's whereabouts are unknown.
    (d) A FERS participant may obtain a waiver of the spousal 
requirement described in paragraph (b) of this section if the 
participant establishes, to the satisfaction of the Executive Director 
that:
    (1) The spouse's whereabouts are unknown; or
    (2) Exceptional circumstances prevent the obtaining of consent.
    (e) The procedures for obtaining an exception to the spousal 
requirements (including the definition of exceptional circumstances) 
described in paragraphs (c) and (d) of this section will be the same as 
the procedures described in 5 CFR part 1650.
    (f)(1) By signing the Loan Application and the Loan Agreement/
Promissory Note, the participant represents that all information 
provided to the TSP during the loan process is true and correct, 
including statements concerning the participant's marital status and 
spouse's address at the time the application is filed and documentation 
that the current spouse has consented to the loan.
    (2) If the Board receives a written allegation from the spouse that 
the participant may have misrepresented his/

[[Page 295]]

her marital status or the spouse's address (in the case of a CSRS 
participant), or that the signature of the spouse of a FERS participant 
was forged, the Board will submit the questioned document to the spouse 
and request that he or she state in writing that the information is 
false or that the spouse's signature has been forged. In the event of an 
alleged forgery, the Board will also request the spouse to provide at 
least three signature samples.
    (3) If the spouse affirms the allegation in accordance with the 
procedure set forth in paragraph (f)(2) of this section and the loan has 
been disbursed, the Board will give the participant an opportunity to 
repay, within 60 days, the unpaid loan principal, plus unpaid interest. 
If the loan is repaid, the Board will not investigate the spouse's 
allegation.
    (4) Paragraph (f)(3) of this section will not apply where the 
participant has received a final divorce decree before the funds are 
received by the Thrift Savings Plan.
    (5) If the unpaid loan principal, plus unpaid interest, is not 
repaid to the Plan in full within the time period provided in paragraph 
(f)(3) of this section, the Board will conduct an investigation into the 
allegation. If the participant has received a final divorce decree 
before the funds are received by the Thrift Savings Plan, the Board will 
begin its investigation immediately.
    (6) If, during its investigation, the Board finds evidence to 
suggest that the participant misrepresented his/her marital status or 
spouse's address (in the case of a CSRS participant), or submitted the 
Loan Agreement/Promissory Note with a forged signature, the Board will 
refer the case to the Department of Justice for criminal prosecution 
and, if the participant is still employed, to the Inspector General or 
other appropriate authority in the participant's employing agency for 
administrative action.
    (7) Upon receipt of an allegation described in paragraph (f)(2) of 
this section, the participant's account will be frozen and no withdrawal 
or loan will be permitted until after:
    (i) 30 days have elapsed since the participant's spouse was sent a 
copy of the questioned document and no written affirmation of the 
alleged false information or forgery (together with signature samples in 
the case of an alleged forgery) has been received by the Board;
    (ii) The loan is repaid pursuant to paragraph (f)(3) of this 
section;
    (iii) The Executive Director concludes that the Board's 
investigation did not yield persuasive evidence that supports the 
spouse's allegation;
    (iv) The Executive Director has been assured in writing by the 
spouse that any future request for a loan or withdrawal comports with 
the applicable requirement of notice or consent; or
    (v) The participant is divorced.

[61 FR 58757, Nov. 18, 1996, as amended at 63 FR 45391, Aug. 26, 1998]