Payments toward DBSA installments
Primary source
Verbatim text below is from the Electronic Code of Federal Regulations (eCFR), a public-domain U.S. government work. Always verify the current version with the eCFR before relying on it for any legal matter.
Full Text
(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.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.