Frame relay Authenticaton by using Virtual template with PPP CHAP

Frame relay don't support Authentication by itslef and use PPP authentication with Virtual template.
Configuration

username ROUTER password 0 cisco
interface Virtual-Template1
ip address 100.100.100.1 255.255.255.0
ppp authentication chap
(virtual template is encapsulated with PPP, no need to add encapsualtion frame-relay)
interface Serial1/0.1 point-to-point
frame-relay interface-dlci 101 ppp Virtual-Template1

once configured the virtual-template interface, Virtual-access interface will come up

Router#show ip int brief
Interface IP-Address OK? Method Status Protocol
FastEthernet0/0 unassigned YES manual administratively down down
FastEthernet0/1 unassigned YES manual administratively down down
Serial1/0 unassigned YES manual up up
Serial1/0.1 unassigned YES unset up up
Serial1/1 unassigned YES manual administratively down down
Serial1/2 unassigned YES manual administratively down down
Serial1/3 unassigned YES manual administratively down down
Virtual-Access1 100.100.100.1 YES TFTP up up
Virtual-Template1 100.100.100.1 YES manual down down
Virtual-Access2 unassigned YES unset down down

Take note that Access interface is up and Virtual template is in down state.

Router#show frame-relay pvc interface serial 1/0.1
PVC Statistics for interface Serial1/0.1 (Frame Relay DTE)
Active Inactive Deleted Static
Local 3 0 0 0
Switched 0 0 0 0
Unused 0 0 0 0

DLCI = 104, DLCI USAGE = LOCAL, PVC STATUS = ACTIVE, INTERFACE = Serial1/0.1

input pkts 55 output pkts 87 in bytes 3112
out bytes 3784 dropped pkts 0 in pkts dropped 0 out pkts dropped 0 out bytes dropped 0 in FECN pkts 0 in BECN pkts 0 out FECN pkts 0 out BECN pkts 0 in DE pkts 0 out DE pkts 0 out bcast pkts 7 out bcast bytes 2316
5 minute input rate 0 bits/sec, 0 packets/sec
5 minute output rate 0 bits/sec, 0 packets/sec pvc create time 00:07:18, last time
pvc status changed 00:04:02
Bound to Virtual-Access1 (up, cloned from Virtual-Template1)

Router#show interfaces virtual-access 1
Virtual-Access1 is up, line protocol is up
Hardware is Virtual Access interface
Internet address is 100.100.100.1/24
MTU 1500 bytes, BW 100000 Kbit, DLY 100000 usec,
reliability 255/255, txload 1/255, rxload 1/255
Encapsulation PPP, LCP Open
Open: IPCP
PPPoFR vaccess, cloned from Virtual-Template1

Router#show interfaces virtual-access 1 configuration
Virtual-Access1 is a PPP over FR PVC (sub)interface
Derived configuration : 95 bytes
!
interface Virtual-Access1
ip address 100.100.100.1 255.255.255.0
ppp authentication chap
end