[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: 5CFR1655.9]

[Page 289-290]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1655--LOAN PROGRAM--Table of Contents
 
Sec. 1655.9  Effect of loans on individual account.

    (a) For purposes of earnings allocation, the amount borrowed will be 
removed from the participant's account as of the last valuation date 
prior to the loan issue date. As provided in part

[[Page 290]]

1645, the account will receive no earnings on the amount borrowed for 
the month in which the loan issue date occurs.
    (b) The removal of the principal for earnings allocation purposes 
described in paragraph (a) of this section will be prorated according to 
the investment of the portion of the account represented by employee 
contributions and attributable earnings in the G Fund, the C Fund, and 
in the F Fund as of the most recent valuation date.
    (c) Loan payments, including both principal and interest, will be 
credited to the individual account of the participant repaying the loan 
for the month in which the loan payment is processed by the 
recordkeeper. The loan payments (principal and interest) will be 
credited pro rata to the G Fund, the C Fund, and the F Fund based upon 
the proportions of the interim account balances of the G Fund, the C 
Fund, and the F Fund balances in the borrower's account on the last day 
of the month prior to the month in which the loan payment is processed. 
Earnings on loan payments will be credited as described in 5 CFR part 
1645.

[55 FR 979, Jan. 10, 1990, as amended at 61 FR 58755, Nov. 18, 1996]