7 CFR §766.59

1. (a)Interest accrual.
   1. (1)Interest will accrue on any principal portion of the set-aside installment at the same rate charged on the balance of the loan.
   2. (2)If the borrower's set-aside installment is for a loan with a limited resource rate and the Agency modifies that limited resource rate, the interest rate on the set-aside portion will be modified concurrently.
2. (b)Due date. The amount set-aside, including interest accrued on the principal portion of the set-aside, is due on or before the final due date of the loan.
3. (c)Applying payments. The Agency will apply borrower payments toward set-aside installments first to interest and then to principal.