[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: 7CFR1785.68]

[Page 1087-1088]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1785--LOAN ACCOUNT COMPUTATIONS, PROCEDURES AND POLICIES FOR ELECTRIC AND TELEPHONE BORROWERS--Table of Contents
 
  Subpart B--RUS Cushion of Credit Account Computations and Procedures
 
Sec. 1785.68  Establishing an RUS cushion of credit payment account.

    A cushion of credit account shall be automatically established by 
RUS for each borrower who makes a payment after October 1, 1987, in 
excess of amounts then due on an RUS note. Such account will bear 
interest at a rate of 5 percent per annum. All payments on RUS notes 
which are in excess of required payments and not otherwise designated 
shall be deposited in the borrowers' respective cushion of credit 
accounts. Payments received in the month in which an installment is due 
will be applied to the installment due. However, if the regular 
installment payment is received at a later date in the month, the first 
payment received will be applied retroactively to a cushion of credit 
account and the

[[Page 1088]]

second will be applied to the installment due.