# 32 C.F.R. § 232.7 (2026): Preemption > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_7 ## Section - **Citation:** 32 C.F.R. § 232.7 (2026) - **Heading:** Preemption - **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 / § 232.7: § 232.7 Preemption. ## Text (a) Inconsistent laws. 10 U.S.C. 987 as implemented by this part preempts any State or Federal law, rule or regulation, including any State usury law, to the extent such law, rule or regulation is inconsistent with this part, except that any such law, rule or regulation is not preempted by this part to the extent that it provides protection to a covered borrower greater than those protections provided by 10 U.S.C. 987 and this part. (b) Different treatment under State law of covered borrowers is prohibited. A State may not: (1) Authorize creditors to charge covered borrowers rates of interest for any consumer credit or loans that are higher than the legal limit for residents of the State, or (2) Permit the violation or waiver of any State consumer lending protection covering consumer credit that is for the benefit of residents of the State on the basis of the covered borrower's nonresident or military status, regardless of the covered borrower's domicile or permanent home of record, provided that the protection would otherwise apply to the covered borrower. ## 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) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T32_P232_S232_7. Check the current official text before relying on it. Not legal advice.