When is first loan repayment due?

[emmetttrudy]

I dont see anything in 72p about when the first payment is due. Other than payments must be made quarterly. So I would assume the first payment is due within the first quarter after the loan date. How do other people administer this?

For example, what if someone wanted to take a loan today and not make the first repayment until 3 months from now, and then make repaments monthly subsequent to that?

[masteff]

For what it's worth, here's a prior thread on the topic:

http://benefitslink.com/boards/index.php?/topic/46941-5-years-even-amortization/

I personally would find a 3 month delay before starting monthly payments to be slightly abuse of commercially reasonable terms.

[Tom Poje]

as a side note, I would also add if the loan was for 5 years you have problems, because the 5 year rule starts the date the loan is issued not the date of the first payment.

[ESOP Guy]

Not 100% sure but does a 3 month wait followed by monthly payments blow the level amortization rule?