[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: 5CFR1655.9]

[Page 287-288]
 
                    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) The amount borrowed will be removed from the participant's 
account when the loan is disbursed. Consequently, these funds will no 
longer generate earnings.
    (b) The loan principal will be disbursed from that portion of the 
account represented by employee contributions and attributable earnings, 
pro rata from each TSP Fund in which the account is invested and pro 
rata from tax-deferred and tax-exempt balances.
    (c) Loan payments, including both principal and interest, will be 
credited to the participant's individual account. Loan payments will be 
credited to the appropriate TSP Fund in accordance

[[Page 288]]

with the participant's most recent contribution allocation.

[68 FR 35515, June 13, 2003, as amended at 70 FR 32218, June 1, 2005]