[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: 5CFR1655.18]

[Page 291-292]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1655_LOAN PROGRAM--Table of Contents
 
Sec.  1655.18  Spousal rights.

    (a) Spouse of CSRS participant. (1) Before a loan is disbursed to a 
CSRS participant, the TSP record keeper will send a notice to the 
participant's current spouse that the participant has applied for a 
loan.
    (2) A CSRS participant may obtain an exception to the requirement 
described in paragraph (a)(1) of this section if the participant 
establishes, to the satisfaction of the Executive Director, that the 
spouse's whereabouts are unknown as described in paragraph (c) of this 
section.
    (b) Spouse of FERS or uniformed services participant. (1) Before a 
loan agreement is approved for a FERS or uniformed services participant, 
the spouse must consent to the loan by signing the loan agreement.
    (2) A FERS or uniformed services participant may obtain an exception 
to the requirement described in paragraph (b)(1) of this section if the 
participant establishes, to the satisfaction of the Executive Director, 
that:
    (i) The spouse's whereabouts are unknown; or
    (ii) Exceptional circumstances prevent the participant from 
obtaining the spouse's consent.
    (c) Exception to spousal requirements. The procedures for obtaining 
an exception to the spousal requirements described in paragraphs (a)(1) 
and (b)(1) of this section are the same as the procedures described in 5 
CFR part 1650, subpart G.
    (d) Certification of truthfulness. (1) By signing the loan 
application and the loan agreement, electronically or on paper, the 
participant certifies, under penalty of perjury, that all information 
provided to the TSP during the loan process is true and complete, 
including statements concerning the participant's marital status, the 
spouse's address at the time the application is filed, or the current 
spouse's consent to the loan.

[[Page 292]]

    (2) If the Board receives a written allegation from the spouse that 
the participant may have misrepresented his or 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 information or document in question to the spouse and request 
that he or she state in writing that the information is false or that 
the spouse's signature was forged. In the event of an alleged forgery, 
the Board will also request the spouse to provide at least three samples 
of his or her signature.
    (3) If the spouse affirms the allegation, in accordance with the 
procedure set forth in paragraph (d)(2) of this section, and the loan 
has been disbursed, the Board will give the participant an opportunity 
to repay the unpaid loan principal and interest within 60 days. If the 
loan is repaid during this period, the Board will not investigate the 
spouse's allegation.
    (4) Paragraph (d)(3) of this section will not apply if the 
participant has received a final divorce decree before the Thrift 
Savings Plan receives the funds.
    (5) If the unpaid loan principal and interest are not repaid to the 
Plan in full within the time period provided in paragraph (d)(3) of this 
section, the Board will conduct an investigation into the allegation. If 
the participant has received a final divorce decree before the Thrift 
Savings Plan receives the funds, the Board will begin its investigation 
immediately.
    (6) If, during its investigation, the Board finds evidence to 
suggest that the participant misrepresented his or her marital status or 
spouse's address (in the case of a CSRS participant), or submitted the 
loan agreement 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 (d)(2) of 
this section, the participant's account will be frozen and no loan will 
be permitted until after:
    (i) Thirty (30) days have elapsed since the participant's spouse was 
sent a copy of the information or document in question, and the Board 
has received no written affirmation of the alleged false information or 
forgery (together with signature samples, if required);
    (ii) The loan is repaid pursuant to paragraph (d)(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.

[68 FR 35515, June 13, 2003, as amended at 68 FR 74451, Dec. 23, 2003]