[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: 32CFR232.5]

[Page 504-505]
 
                       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. 232.5  Identification of covered borrower.

    (a) This part shall not apply to a consumer credit transaction if 
the conditions described in paragraphs (a)(1) and (a)(2) of this section 
are met:
    (1) Prior to becoming obligated on the transaction, each applicant 
is provided with a clear and conspicuous ``covered borrower 
identification statement'' substantially similar to the following 
statement and each applicant signs the statement indicating that he or 
she is or is not a covered borrower:

Federal law provides important protections to active duty members of the 
Armed Forces and their dependents. To ensure that these protections are 
provided to eligible applicants, we require you to sign one of the 
following statements as applicable:
I AM a regular or reserve member of the Army, Navy, Marine Corps, Air 
Force, or Coast Guard, serving on active duty under a call or order that 
does not specify a period of 30 days or fewer.
________________________________________________________________________

I AM a dependent of a member of the Armed Forces on active duty as 
described above, because I am the member's spouse, the member's child 
under the age of eighteen years old, or I am an individual for whom the 
member provided more than one-half of my financial support for 180 days 
immediately preceding today's date.
________________________________________________________________________

--OR--

I AM NOT a regular or reserve member of the Army, Navy, Marine Corps, 
Air Force, or Coast Guard, serving on active duty under a call or order 
that does not specify a period of 30 days or fewer (or a dependent of 
such a member).
________________________________________________________________________

Warning: It is important to fill out this form accurately. Knowingly 
making a false statement on a credit application is a crime

    (2) The creditor has not determined, pursuant to the optional 
verification procedures in paragraphs (b) or (c) of this section, that 
any such applicant is a covered borrower.
    (b) The creditor may, but is not required to, verify the status of 
an applicant as a covered borrower by requesting the applicant to 
provide a current (previous month) military leave and earning statement, 
or a military identification card (DD Form 2 for members, DD Form 1173 
for dependents), as described in DoD Instruction 1003.1, Identification 
(ID) Cards for Members of the Uniformed Services, Their Dependents, and 
Other Eligible Individuals, December 5, 1997. Upon such request, 
activated members of the National Guard or Reserves shall also provide a 
copy of the military orders calling the covered member to military 
service and any orders further extending military service.
    (c) The creditor may, but is not required to, verify the status of 
an applicant as a covered borrower by accessing the information 
available at http://www.dmdc.osd.mil/mla/owa/home. Searches require the 
service member's full name, Social Security number, and date of birth.
    (d) This part shall not apply to a consumer credit transaction in 
which the

[[Page 505]]

creditor rolls over, renews, repays, refinances, or consolidates 
consumer credit in accordance with Sec. 232.8(a)(1) if Sec. 
232.5(a)(1) and Sec. 232.5(a)(2) applied to the previous transaction.