[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: 32CFR232.7]

[Page 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. 232.7  Preemption.

    (a) Inconsistent laws. 10 U.S.C. 987 as implemented by this part 
preempts any State or Federal law, rule or regulation, including any 
State usury law, to the extent such law, rule or regulation is 
inconsistent with this part, except that any such law, rule or 
regulation is not preempted by this part to the extent that it provides 
protection to a covered borrower greater than those protections provided 
by 10 U.S.C. 987 and this part.
    (b) Different treatment under State law of covered borrowers is 
prohibited. States may not:
    (1) Authorize creditors to charge covered borrowers rates of 
interest that are higher than the legal limit for residents of the 
State, or
    (2) Permit the violation or waiver of any State consumer lending 
protection that is for the benefit of residents of the State on the 
basis of the covered borrower's nonresident or military status, 
regardless of the covered borrower's domicile or permanent home of 
record, provided that the protection would otherwise apply to the 
covered borrower.