{"data":{"id":"us/32-cfr-232.2","jurisdiction":"us","citation":"32 CFR 232.2","heading":"Applicability; examples.","body":"(a)(1) Applicability. This part applies to consumer credit extended by a creditor to a covered borrower, as those terms are defined in this part. Nothing in this part applies to a credit transaction or account relating to a consumer who is not a covered borrower at the time he or she becomes obligated on a credit transaction or establishes an account for credit. Nothing in this part applies to a credit transaction or account relating to a consumer (which otherwise would be consumer credit) when the consumer no longer is a covered borrower.\n(2) Examples—(i) Covered borrower. Consumer A is a member of the armed forces but not serving on active duty, and holds an account for closed-end credit with a financial institution. After establishing the closed-end credit account, Consumer A is ordered to serve on active duty, thereby becoming a covered borrower, and soon thereafter separately establishes an open-end line of credit for personal purposes (which is not subject to any exception or temporary exemption) with the financial institution. This part applies to the open-end line of credit, but not to the closed-end credit account.\n(ii) Not a covered borrower. Same facts as described in paragraph (a)(2)(i) of this section. One year after establishing the open-end line of credit, Consumer A ceases to serve on active duty. This part never did apply to the closed-end credit account, and because Consumer A no longer is a covered borrower, this part no longer applies to the open-end line of credit.\n(b) Examples. The examples in this part are not exclusive. To the extent that an example in this part implicates a term or provision of Regulation Z (12 CFR part 1026), issued by the Consumer Financial Protection Bureau to implement the Truth in Lending Act, Regulation Z shall control the meaning of that term or provision.","path":["Title 32—National Defense","Subtitle A—Department of Defense","CHAPTER I—OFFICE OF THE SECRETARY OF DEFENSE","SUBCHAPTER M—MISCELLANEOUS","PART 232—LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO SERVICE MEMBERS AND DEPENDENTS"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-32.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:25:30Z","sha256":"6fa52cf122e9e91a9636b58ce42f2c3c0748fea21e2a0575a69fc05cf3bd494f","source_id":"us-cfr","stale":true,"prev":"us/32-cfr-232.1","next":"us/32-cfr-232.3"},"notice":"GroundRules: Original legal text. Not legal advice."}