Page:United States Statutes at Large Volume 120.djvu/2297

 120 STAT. 2266

PUBLIC LAW 109–364—OCT. 17, 2006

(c) REPORT REQUIRED.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report containing the results of the study and any related findings, conclusions, and recommendations that the Secretary considers to be appropriate concerning the access of disabled persons to morale, welfare, and recreation facilities and activities, and specifically the Secretary’s conclusions on making accessible golf carts available at all military golf courses for use by disabled persons authorized to use such courses.

Subtitle F—Other Matters SEC. 670. LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO SERVICEMEMBERS AND DEPENDENTS.

(a) TERMS OF CONSUMER CREDIT.—Chapter 49 of title 10, United States Code, is amended by adding at the end the following new section:

Regulations.

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‘‘§ 987. Terms of consumer credit extended to members and dependents: limitations ‘‘(a) INTEREST.—A creditor who extends consumer credit to a covered member of the armed forces or a dependent of such a member shall not require the member or dependent to pay interest with respect to the extension of such 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 section. ‘‘(b) ANNUAL PERCENTAGE RATE.—A creditor described in subsection (a) may not impose an annual percentage rate of interest greater than 36 percent with respect to the consumer credit extended to a covered member or a dependent of a covered member. ‘‘(c) MANDATORY LOAN DISCLOSURES.— ‘‘(1) INFORMATION REQUIRED.—With respect to any extension of consumer credit (including any consumer credit originated or extended through the internet) to a covered member or a dependent of a covered member, a creditor shall provide to the member or dependent the following information orally and in writing before the issuance of the credit: ‘‘(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) TERMS.—Such disclosures shall be presented in accordance with terms prescribed by the regulations issued by the Board of Governors of the Federal Reserve System to implement the Truth in Lending Act (15 U.S.C. 1601 et seq.). ‘‘(d) PREEMPTION.— ‘‘(1) INCONSISTENT LAWS.—Except as provided in subsection (f)(2), this section preempts any State or Federal law, rule, or regulation, including any State usury law, to the extent that such law, rule, or regulation is inconsistent with this section, except that this section shall not preempt any such law, rule, or regulation that provides protection to a covered

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