# 32 C.F.R. § 232.2 (2026): Applicability; examples

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_2

## Section

- **Citation:** 32 C.F.R. § 232.2 (2026)
- **Heading:** Applicability; examples
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 32 CFR: National Defense / Chapter I: OFFICE OF THE SECRETARY OF DEFENSE / Part 232: LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO SERVICE MEMBERS AND DEPENDENTS / § 232.2: § 232.2   Applicability › examples.

## Text

(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.
(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.
(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.
(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.

## Nearby sections

- [32 C.F.R. § 232.1 (2026) § 232.1   Authority, purpose, and coverage.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_1.md)
- [32 C.F.R. § 232.2 (2026) § 232.2   Applicability; examples.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_2.md)
- [32 C.F.R. § 232.3 (2026) § 232.3   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_3.md)
- [32 C.F.R. § 232.4 (2026) § 232.4   Terms of consumer credit extended to covered borrowers.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_4.md)
- [32 C.F.R. § 232.5 (2026) § 232.5   Optional identification of covered borrower.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_5.md)
- [32 C.F.R. § 232.6 (2026) § 232.6   Mandatory loan disclosures.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_6.md)
- [32 C.F.R. § 232.7 (2026) § 232.7   Preemption.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_7.md)
- [32 C.F.R. § 232.8 (2026) § 232.8   Limitations.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_8.md)
- [32 C.F.R. § 232.9 (2026) § 232.9   Penalties and remedies.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_9.md)
- [32 C.F.R. § 232.10 (2026) § 232.10   Administrative enforcement.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_10.md)
- [32 C.F.R. § 232.11 (2026) § 232.11   Servicemembers Civil Relief Act protections unaffected.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_11.md)
- [32 C.F.R. § 232.12 (2026) § 232.12   Effective dates.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_12.md)
- [32 C.F.R. § 232.13 (2026) § 232.13   Compliance dates.](https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_13.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_2. Check the current official text before relying on it. Not legal advice.