[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: 32CFR232.9]

[Page 506]
 
                       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. 232.9  Penalties and remedies.

    (a) Misdemeanor. A creditor or assignee who knowingly violates 10 
U.S.C. 987 as implemented by this part shall be fined as provided in 
title 18, United States Code, or imprisoned for not more than one year, 
or both.
    (b) Preservation of other remedies. The remedies and rights provided 
under 10 U.S.C. 987 as implemented by this part are in addition to and 
do not preclude any remedy otherwise available under State or Federal 
law or regulation to the person claiming relief under the statute, 
including any award for consequential damages and punitive damages.
    (c) Contract void. Any credit agreement, promissory note, or other 
contract with a covered borrower that fails to comply with 10 U.S.C. 987 
as implemented by this regulation or which contains one or more 
provisions prohibited under 10 U.S.C. 987 as implemented by this 
regulation is void from the inception of the contract.
    (d) Arbitration. Notwithstanding 9 U.S.C. 2, or any other Federal or 
State law, rule, or regulation, no agreement to arbitrate any dispute 
involving the extension of consumer credit to a covered borrower 
pursuant to this part shall be enforceable against any covered borrower, 
or any person who was a covered borrower when the agreement was made.