[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1655.13]

[Page 289]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1655_LOAN PROGRAM--Table of Contents
 
Sec.  1655.13  Loan approval and issuance.

    (a) When the completed loan agreement is signed electronically or 
returned by the participant to the TSP record keeper, together with any 
documentation required to be submitted, the loan will be initially 
approved or denied by the TSP record keeper based upon the requirements 
of this part, including the following conditions:
    (1) The participant has signed the promise to repay the loan, has 
agreed to repay the loan through payroll deductions, and has certified 
that the information given is true and complete to the best of the 
participant's knowledge;
    (2) Processing of the loan would not be prohibited by Sec.  1655.19 
relating to court orders;
    (3) The spouse of a FERS or uniformed services participant has 
consented to the loan or, if the spouse's whereabouts are unknown or 
exceptional circumstances make it inappropriate to secure the spouse's 
consent, an exception to the spousal requirement described in Sec.  
1655.18 has been granted;
    (4) The spouse of a CSRS participant has been given notice or, if 
the spouse's whereabouts are unknown, an exception to the spousal 
requirement described in Sec.  1655.18 has been granted;
    (5) When a paper agreement is required, the completed loan 
agreement, including all required supporting documentation, was received 
by the TSP record keeper before the expiration date specified on the 
loan agreement; and
    (6) The participant has met any other conditions that the Executive 
Director may require.
    (b) If approved, the loan will be issued unless:
    (1) The participant's employing agency has reported the 
participant's separation from Government service;
    (2) The TSP receives written notice that the participant has died;
    (3) The participant's account balance on the loan issue date does 
not contain sufficient employee contributions and associated earnings to 
make a loan of at least $1,000;
    (4) A hold on the account is processed before the loan is disbursed; 
or
    (5) A taxable distribution on an outstanding loan is declared before 
the new loan is issued.
    (c) If the loan is otherwise acceptable but the amount available to 
borrow is less than the requested amount (but is at least $1,000), the 
loan will be issued in the maximum amount available at the time of the 
disbursement. In such a case, the periodic payment amount will remain 
the same and the loan term may be shortened.
    (d) The loan issue date is considered to be the date the loan was 
made.
    (e) If a loan disbursement is returned as undeliverable, the TSP 
record keeper will attempt to locate the participant. If the participant 
does not respond within 60 days, the TSP will repay the loan with the 
returned loan proceeds.