2013 US Code
Title 10 - Armed Forces
Subtitle A - General Military Law (§§ 101 - 2925)
Part II - PERSONNEL (§§ 501 - 1805)
Chapter 49 - MISCELLANEOUS PROHIBITIONS AND PENALTIES (§§ 971 - 987)
Section 987 - Terms of consumer credit extended to members and dependents: limitations
Publication Title | United States Code, 2012 Edition, Supplement 1, Title 10 - ARMED FORCES |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 10 - ARMED FORCES Subtitle A - General Military Law PART II - PERSONNEL CHAPTER 49 - MISCELLANEOUS PROHIBITIONS AND PENALTIES Sec. 987 - Terms of consumer credit extended to members and dependents: limitations |
Contains | section 987 |
Date | 2013 |
Laws in Effect as of Date | January 16, 2014 |
Positive Law | Yes |
Disposition | standard |
Source Credit | Added Pub. L. 109-364, div. A, title VI, §670(a), Oct. 17, 2006, 120 Stat. 2266; amended Pub. L. 112-239, div. A, title VI, §§661(a), (b), 662(a), (b), 663, Jan. 2, 2013, 126 Stat. 1785, 1786. |
Statutes at Large References | 54 Stat. 1178 82 Stat. 146 120 Stat. 2266, 2269 126 Stat. 1785, 1786 |
Public Law References | Public Law 90-321, Public Law 109-364, Public Law 112-239 |
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(a)
(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 section.
(b)
(c)
(1)
(A) A statement of the annual percentage rate of interest applicable to the extension of credit.
(B) Any disclosures required under the Truth in Lending Act (15 U.S.C. 1601 et seq.).
(C) A clear description of the payment obligations of the member or dependent, as applicable.
(2)
(d)
(1)
(2)
(A) authorize creditors to charge covered members and their dependents annual percentage rates of interest for any consumer credit or loans higher than the legal limit for residents of the State; or
(B) permit violation or waiver of any State consumer lending protections covering consumer credit for the benefit of residents of the State on the basis of nonresident or military status of a covered member or dependent of such a member, regardless of the member's or dependent's domicile or permanent home of record.
(e)
(1) the creditor rolls over, renews, repays, refinances, or consolidates any consumer credit extended to the borrower by the same creditor with the proceeds of other credit extended to the same covered member or a dependent;
(2) the borrower is required to waive the borrower's right to legal recourse under any otherwise applicable provision of State or Federal law, including any provision of the Servicemembers Civil Relief Act;
(3) the creditor requires the borrower to submit to arbitration or imposes onerous legal notice provisions in the case of a dispute;
(4) the creditor demands unreasonable notice from the borrower as a condition for legal action;
(5) the creditor uses a check or other method of access to a deposit, savings, or other financial account maintained by the borrower, or the title of a vehicle as security for the obligation;
(6) the creditor requires as a condition for the extension of credit that the borrower establish an allotment to repay an obligation; or
(7) the borrower is prohibited from prepaying the loan or is charged a penalty or fee for prepaying all or part of the loan.
(f)
(1)
(2)
(3)
(4)
(5)
(A)
(i) any actual damage sustained as a result, but not less than $500 for each violation;
(ii) appropriate punitive damages;
(iii) appropriate equitable or declaratory relief; and
(iv) any other relief provided by law.
(B)
(C)
(D)
(E)
(i) two years after the date of discovery by the plaintiff of the violation that is the basis for such liability; or
(ii) five years after the date on which the violation that is the basis for such liability occurs.
(6)
(g)
(h)
(2) Such regulations shall establish the following:
(A) Disclosures required of any creditor that extends consumer credit to a covered member or dependent of such a member.
(B) The method for calculating the applicable annual percentage rate of interest on such obligations, in accordance with the limit established under this section.
(C) A maximum allowable amount of all fees, and the types of fees, associated with any such extension of credit, to be expressed and disclosed to the borrower as a total amount and as a percentage of the principal amount of the obligation, at the time at which the transaction is entered into.
(D) Definitions of "creditor" under paragraph (5) and "consumer credit" under paragraph (6) of subsection (i), consistent with the provisions of this section.
(E) Such other criteria or limitations as the Secretary of Defense determines appropriate, consistent with the provisions of this section.
(3) In prescribing regulations under this subsection, and not less often than once every two years thereafter, the Secretary of Defense shall consult with the following:
(A) The Federal Trade Commission.
(B) The Board of Governors of the Federal Reserve System.
(C) The Office of the Comptroller of the Currency.
(D) The Federal Deposit Insurance Corporation.
(E) The Bureau of Consumer Financial Protection.
(F) The National Credit Union Administration.
(G) The Treasury Department.
(i)
(1)
(A) on active duty under a call or order that does not specify a period of 30 days or less; or
(B) on active Guard and Reserve Duty.
(2)
(3)
(4)
(5)
(A) who—
(i) is engaged in the business of extending consumer credit; and
(ii) meets such additional criteria as are specified for such purpose in regulations prescribed under this section; or
(B) who is an assignee of a person described in subparagraph (A) with respect to any consumer credit extended.
(6)
(Added Pub. L. 109–364, div. A, title VI, §670(a), Oct. 17, 2006, 120 Stat. 2266; amended Pub. L. 112–239, div. A, title VI, §§661(a), (b), 662(a), (b), 663, Jan. 2, 2013, 126 Stat. 1785, 1786.)
REFERENCES IN TEXTThe Truth in Lending Act, referred to in subsec. (c)(1)(B), (2), is title I of Pub. L. 90–321, May 29, 1968, 82 Stat. 146, as amended, which is classified generally to subchapter I (§1601 et seq.) of chapter 41 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 15 and Tables.
The Servicemembers Civil Relief Act, referred to in subsecs. (e)(2) and (g), is act Oct. 17, 1940, ch. 888, 54 Stat. 1178, as amended, which is classified to section 501 et seq. of Title 50, Appendix, War and National Defense. For complete classification of this Act to the Code, see section 501 of Title 50, Appendix, and Tables.
AMENDMENTS2013—Subsec. (d)(2)(A). Pub. L. 112–239, §661(a)(1), inserted "any consumer credit or" before "loans".
Subsec. (d)(2)(B). Pub. L. 112–239, §661(a)(2), inserted "covering consumer credit" after "State consumer lending protections".
Subsec. (f)(5), (6). Pub. L. 112–239, §662(a), (b), added pars. (5) and (6).
Subsec. (h)(3). Pub. L. 112–239, §661(b)(1), inserted "and not less often than once every two years thereafter," after "under this subsection," in introductory provisions.
Subsec. (h)(3)(E). Pub. L. 112–239, §661(b)(2), added subpar. (E) and struck out former subpar. (E) which read as follows: "The Office of Thrift Supervision."
Subsec. (i)(2). Pub. L. 112–239, §663, amended par. (2) generally. Prior to amendment, par. (2) defined the term "dependent".
EFFECTIVE DATE OF 2013 AMENDMENTPub. L. 112–239, div. A, title VI, §661(c), Jan. 2, 2013, 126 Stat. 1785, provided that:
"(1)
"(2)
"(A) the date that is one year after the date of the enactment of this Act [Jan. 2, 2013]; or
"(B) such earlier date as the Secretary shall specify in the modification of regulations required by paragraph (1).
"(3)
Pub. L. 112–239, div. A, title VI, §662(c), Jan. 2, 2013, 126 Stat. 1786, provided that: "The amendment made by subsection (a) [amending this section] shall apply with respect to consumer credit extended on or after the date of the enactment of this Act [Jan. 2, 2013]."
EFFECTIVE DATEPub. L. 109–364, div. A, title VI, §670(c), Oct. 17, 2006, 120 Stat. 2269, provided that:
"(1)
"(2)
"(3)
Pub. L. 109–364, div. A, title VI, §670(d), Oct. 17, 2006, 120 Stat. 2269, provided that: "The Secretary of Defense may prescribe interim regulations as necessary to carry out such section [this section]. For the purpose of prescribing such interim regulations, the Secretary is excepted from compliance with the notice-and-comment requirements of section 553 of title 5, United States Code. All interim rules prescribed under the authority of this subsection that are not earlier superseded by final rules shall expire no later than 270 days after the effective date of section 987 of title 10, United States Code [see Effective Date note above], as added by this section."
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