5 CFR 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 § 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 § 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:
(2) The TSP receives written notice that the participant has died;
(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.
Title 5 published on 13-Apr-2017 04:01
The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 5 CFR Part 1655 after this date.