[Code of Federal Regulations]
[Title 32, Volume 2]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR232.1]

[Page 501-502]
 
                       TITLE 32--NATIONAL DEFENSE
 
        CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE (CONTINUED)
 
PART 232_LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO SERVICE MEMBERS 
 
Sec. 232.1  Authority, purpose, and coverage.

    (a) Authority. This part is issued by the Department of Defense to 
implement 10 U.S.C. 987.
    (b) Purpose. The purpose of this part is to impose limitations on 
the cost and terms of certain defined extensions

[[Page 502]]

of consumer credit to Service members and their dependents, and to 
provide additional consumer disclosures for such transactions.
    (c) Coverage. This part defines the types of consumer credit 
transactions, creditors, and borrowers covered by the regulation, 
consistent with the provisions of 10 U.S.C. 987. In addition, the 
regulation:
    (1) Provides the maximum allowable amount of all charges, and the 
types of charges, that may be associated with a covered extension of 
consumer credit;
    (2) Requires creditors to disclose to covered borrowers the cost of 
the transaction as a total dollar amount and as an annualized percentage 
rate referred to as the Military Annual Percentage Rate or MAPR, which 
must be disclosed before the borrower becomes obligated on the 
transaction. The disclosures required by this regulation differ from and 
are in addition to the disclosures that must be provided to consumers 
under the Federal Truth in Lending Act;
    (3) Provides for the method creditors shall use in calculating the 
MAPR, and;
    (4) Contains such other criteria and limitations as the Secretary of 
Defense has determined appropriate, consistent with the provisions of 10 
U.S.C. 987.