§ 232.3 Definitions. As used in this part: ( a ) *Affiliate* means any person that controls, is controlled by, or is under common control with another person.
( b ) *Billing cycle* has the same meaning as “billing cycle” in Regulation Z.
( c ) *Bureau* means the Consumer Financial Protection Bureau.
( d ) *Closed-end credit* means consumer credit (but for the conditions applicable to consumer credit under this part) other than consumer credit that is “open-end credit” as that term is defined in Regulation Z.
( e ) *Consumer* means a natural person.
( f ) ( 1 ) *Consumer credit* means credit offered or extended to a covered borrower primarily for personal, family, or household purposes, and that is: ( i ) Subject to a finance charge; or
( ii ) Payable by a written agreement in more than four installments.
( 2 ) *Exceptions.* Notwithstanding paragraph (f)(1) of this section, consumer credit does not mean: ( i ) A residential mortgage, which is any credit transaction secured by an interest in a dwelling, including a transaction to finance the purchase or initial construction of the dwelling, any refinance transaction, home equity loan or line of credit, or reverse mortgage;
( ii ) Any credit transaction that is expressly intended to finance the purchase of a motor vehicle when the credit is secured by the vehicle being purchased;
( iii ) Any credit transaction that is expressly intended to finance the purchase of personal property when the credit is secured by the property being purchased;
( iv ) Any credit transaction that is an exempt transaction for the purposes of Regulation Z (other than a transaction exempt under 12 CFR 1026.29) or otherwise is not subject to disclosure requirements under Regulation Z; and
( v ) Any credit transaction or account for credit for which a creditor determines that a consumer is not a covered borrower by using a method and by complying with the recordkeeping requirement set forth in § 232.5(b).
( g ) ( 1 ) *Covered borrower* means a consumer who, at the time the consumer becomes obligated on a consumer credit transaction or establishes an account for consumer credit, is a covered member (as defined in paragraph (g)(2) of this section) or a dependent (as defined in paragraph (g)(3) of this section) of a covered member.
( 2 ) The term “covered member” means a member of the armed forces who is serving on— ( i ) Active duty pursuant to title 10, title 14, or title 32, United States Code, under a call or order that does not specify a period of 30 days or fewer; or
( ii ) Active Guard and Reserve duty, as that term is defined in 10 U.S.C. 101(d)(6).
( 3 ) The term “dependent” with respect to a covered member means a person described in subparagraph (A), (D), (E), or (I) of 10 U.S.C. 1072(2).
( 4 ) Notwithstanding paragraph (g)(1) of this section, covered borrower does not mean a consumer who (though a covered borrower at the time he or she became obligated on a consumer credit transaction or established an account for consumer credit) no longer is a covered member (as defined in paragraph (g)(2) of this section) or a dependent (as defined in paragraph (g)(2) of this section) of a covered member.
( h ) *Credit* means the right granted to a consumer by a creditor to defer payment of debt or to incur debt and defer its payment.
( i ) *Creditor,* except as provided in § 232.8(a), (f), and (g), means a person who is: ( 1 ) Engaged in the business of extending consumer credit; or
( 2 ) An assignee of a person described in paragraph (i)(1) of this section with respect to any consumer credit extended.
( 3 ) For the purposes of this definition, a creditor is engaged in the business of extending consumer credit if the creditor considered by itself and together with its affiliates meets the transaction standard for a “creditor” under Regulation Z with respect to extensions of consumer credit to covered borrowers.
( j ) *Department* means the Department of Defense.
( k ) *Dwelling* means a residential structure that contains one to four units, whether or not the structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home, and manufactured home.
( l ) *Electronic fund transfer* has the same meaning as in the regulation issued by the Bureau to implement the Electronic Fund Transfer Act, as amended from time to time (12 CFR part 1005).
( m ) *Federal credit union* has the same meaning as “Federal credit union” in the Federal Credit Union Act (12 U.S.C. 1752(1)).
( n ) *Finance charge* has the same meaning as “finance charge” in Regulation Z.
( o ) *Insured depository institution* has the same meaning as “insured depository institution” in the Federal Deposit Insurance Act (12 U.S.C. 1813(c)).
( p ) *Military annual percentage rate (MAPR).* The MAPR is the cost of the consumer credit expressed as an annual rate, and shall be calculated in accordance with § 232.4(c).
( q ) *Open-end credit* means consumer credit that (but for the conditions applicable to consumer credit under this part) is “open-end credit” under Regulation Z.
( r ) *Person* means a natural person or organization, including any corporation, partnership, proprietorship, association, cooperative, estate, trust, or government unit.
( s ) *Regulation Z* means any rules, or interpretations thereof, issued by the Bureau to implement the Truth in Lending Act, as amended from time to time, including any interpretation or approval issued by an official or employee duly authorized by the Bureau to issue such interpretations or approvals. However, for any provision of this part requiring a creditor to comply with Regulation Z, a creditor who is subject to Regulation Z (12 CFR part 226) issued by the Board of Governors of the Federal Reserve System must continue to comply with 12 CFR part 226. Words that are not defined in this part have the same meanings given to them in Regulation Z (12 CFR part 1026) issued by the Bureau, as amended from time to time, including any interpretation thereof by the Bureau or an official or employee of the Bureau duly authorized by the Bureau to issue such interpretations. Words that are not defined in this part or Regulation Z, or any interpretation thereof, have the meanings given to them by State or Federal law.
( t ) *Short-term, small amount loan* means a closed-end loan that is— ( 1 ) Subject to and made in accordance with a Federal law (other than 10 U.S.C. 987) that expressly limits the rate of interest that a Federal credit union or an insured depository institution may charge on an extension of credit, provided that the limitation set forth in that law is comparable to a limitation of an annual percentage rate of interest of 36 percent; and
( 2 ) Made in accordance with the requirements, terms, and conditions of a rule, prescribed by the appropriate Federal regulatory agency (or jointly by such agencies), that implements the Federal law described in paragraph (t)(1) of this section, provided further that such law or rule contains— ( i ) A fixed numerical limit on the maximum maturity term, which term shall not exceed 9 months; and
( ii ) A fixed numerical limit on any application fee that may be charged to a consumer who applies for such closed-end loan.