CFR > Title 32 - National Defense > SUBTITLE A—Department of Defense > CHAPTER I—OFFICE OF THE SECRETARY OF DEFENSE (parts 1 to 399) > SUBCHAPTER M—MISCELLANEOUS (parts 191 to 284) > PART 232—LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO SERVICE MEMBERS AND DEPENDENTS > 232.4—Terms of consumer credit extended to covered borrowers.

232.4—Terms of consumer credit extended to covered borrowers.

(a) Neither a creditor who extends consumer credit to a covered borrower nor an assignee of the creditor shall require the member or dependent to pay a military annual percentage rate (MAPR) with respect to such extension of credit, except as—
(1) Agreed to under the terms of the credit agreement or promissory note;
(2) Authorized by applicable State or Federal law; and
(3) Not specifically prohibited by this part.
(b) A creditor described in paragraph (a) of this section or an assignee may not impose an MAPR greater than 36 percent in connection with an extension of consumer credit to a covered borrower.