7 CFR § 765.154 - Distribution of payments.

---
identifier: "/us/cfr/t7/s765.154"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 765.154 - Distribution of payments."
title_number: 7
title_name: "Agriculture"
section_number: "765.154"
section_name: "Distribution of payments."
chapter_name: "FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE"
subchapter_number: "D"
subchapter_name: "SPECIAL PROGRAMS"
part_number: "765"
part_name: "DIRECT LOAN SERVICING—REGULAR"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301 and 7 U.S.C. 1989."
regulatory_source: "72 FR 63309, Nov. 8, 2007, unless otherwise noted."
cfr_part: "765"
---


# 765.154 Distribution of payments.

The Agency applies both regular and extra payments to each loan in the following order, as applicable:

(a) Recoverable costs and protective advances plus interest;

(b) Deferred non-capitalized interest;

(c) Accrued deferred interest;

(d) Interest accrued to date of payment; and

(e) Loan principal.