7 CFR § 766.456 - Payments toward DBSA installments.

---
identifier: "/us/cfr/t7/s766.456"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 766.456 - Payments toward DBSA installments."
title_number: 7
title_name: "Agriculture"
section_number: "766.456"
section_name: "Payments toward DBSA installments."
chapter_name: "FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE"
subchapter_number: "D"
subchapter_name: "SPECIAL PROGRAMS"
part_number: "766"
part_name: "DIRECT LOAN SERVICING—SPECIAL"
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, 7 U.S.C. 1989, and 1981d(c)."
regulatory_source: "72 FR 63316, Nov. 8, 2007, unless otherwise noted."
cfr_part: "766"
---


# 766.456 Payments toward DBSA installments.

(a) *Interest accrual.* Interest will accrue on any principal portion of the DBSA installment at the rate of one eighth of a percent.

(b) *Due date.* The DBSA amount, including interest accrued on the principal portion of the set-aside, is due on or before the final due date of the loan.

(c) *Applying payments.* The Agency will apply borrower payments toward DBSA installments first to interest and then to principal.