tax deductible if interest is credited to participant

[Guest billy bong]

f a participant loan meets all of the requirements for the interest to be deductible,

(i.e. source is not from elective deferrals, lien on residence, non key person) but the

interest is being paid to their individual/fbo account, is it deductible on their personal

tax return?

in irc 72(p)(3), there is no refernce as to where the interest is being paid.