12 CFR § 1408.40 - Refunds.

---
identifier: "/us/cfr/t12/s1408.40"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 1408.40 - Refunds."
title_number: 12
title_name: "Banks and Banking"
section_number: "1408.40"
section_name: "Refunds."
chapter_name: "FARM CREDIT SYSTEM INSURANCE CORPORATION"
part_number: "1408"
part_name: "COLLECTION OF CLAIMS OWED THE UNITED STATES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 5.58 of the Farm Credit Act (12 U.S.C. 2277a-7); 31 U.S.C. 3701-3719; 5 U.S.C. 5514; 4 CFR parts 101-105; 5 CFR part 550."
regulatory_source: "59 FR 24899, May 13, 1994, unless otherwise noted."
cfr_part: "1408"
---


# 1408.40 Refunds.

(a) In instances where the Corporation is the creditor agency, it shall promptly refund any amounts deducted under the authority of 5 U.S.C. 5514 when:

(1) The debt is waived or otherwise found not to be owed to the United States (unless expressly prohibited by statute or regulations); or

(2) An administrative or judicial order directs the Corporation to make a refund.

(b) Unless required or permitted by law or contract, refunds under this section shall not bear interest.