# 1655.1 Definitions.
(a) Definitions generally applicable to the Thrift Savings Plan are set forth at 5 CFR 1690.1.
(b) As used in this part:
*Amortization means* the reduction in a loan by periodic payments of principal and interest according to a schedule of payments.
*Cure period* means the maximum period permitted under 26 CFR 1.72(p)-1 during which a missed loan payment may be made to prevent the loan from being declared a deemed distribution or loan offset.
*Deemed distribution* means a deemed distribution under Internal Revenue Code section 72(p) and the regulations promulgated thereunder. Also referred to as a loan taxation or taxed loan, it means the amount of outstanding principal and interest on a loan that must be reported to the Internal Revenue Service as taxable income as a result of the failure of a participant who has not separated from Government service to:
(i) Make timely loan repayments before the end of the cure period; or
(ii) Repay the loan in full by the maximum term limit.
*General purpose loan* means any TSP loan other than a loan for the purchase or construction of a primary residence.
*Guaranteed funds* means a cashier's check, money order, certified check (*i.e.,* a check certified by the financial institution on which it is drawn), cashier's draft, or treasurer's check from a credit union.
*Loan direct debit repayment* means a loan repayment made directly from a participant's personal savings or checking account.
*Loan issue date* means the date on which the TSP record keeper disburses funds from the participant's account for the loan amount.
*Loan offset* means a loan offset under Internal Revenue Code section 72(p) and the regulations promulgated thereunder. Also referred to as a loan foreclosure, it means the amount of outstanding principal and interest on a loan that must be reported to the Internal Revenue Service as taxable income as the result of the failure of a participant who has separated from Government service to repay his or her loan in full or begin making repayments by the deadline imposed by the TSP record keeper.
*Loan repayment period* means the time over which payments that are required to repay a loan in full are scheduled.
*Principal* or *principal amount* means the amount borrowed by a participant from his or her individual account, or, after reamortization, the amount financed.
*Reamortization* means the recalculation of periodic payments of principal and interest.
*Residential loan* means a TSP loan for the purchase or construction of a primary residence.
[68 FR 35515, June 13, 2003, as amended at 70 FR 32217, June 1, 2005; 87 FR 31692, May 24, 2022; 90 FR 59043, Dec. 18, 2025]
At 87 FR 31692, May 24, 2022, in § 1655.1 a definition of “date of request” was set out; however, the amendment could not be incorporated because no action was given for it.