[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1721.106]

[Page 230-231]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1721--POST-LOAN POLICIES AND PROCEDURES FOR INSURED ELECTRIC LOANS--Table of Contents
 
       Subpart B--Extensions of Payments of Principal and Interest
 
Sec. 1721.106  Repayment of deferred payments.

    (a) Deferments relating to financial hardship. The total amount of 
principal and interest that has been deferred, including interest on 
deferred principal, will be added to the principal balance, and the 
total amount of principal and interest that has been deferred will be 
reamortized over the life of the applicable note beginning in the first 
year the deferral period ends. For example: the amount of interest 
deferred in years 2001, 2002, 2003, 2004, and 2005, will be added to the 
principal balance and reamortized over the life of the applicable note 
for repayment starting in year 2006.
    (b) Deferments relating to the ERC loan program, renewable energy 
project, and the contribution-in-aid of construction. An extension 
agreement is for a term of two (2) years. The installment will be 
recalculated each time the Borrower defers the payment of principal and 
recognition of the deferred amount will begin with the next payment. For 
example: the amount deferred in the October payment will be reamortized 
over a 84 month period starting with the next payment (November if 
paying on a monthly basis). When a Borrower defers principal under any 
of these programs the scheduled payment on the account will increase by 
an amount

[[Page 231]]

sufficient to pay off the deferred amount, with interest, by the date 
specified in the agreement (usually 84 months (28 quarters)).