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HomeMy WebLinkAbout090-10�111� 'J � �' ' i� i + \ \\\ � 1�1� ► I�i ! �C� ��, �� `r��.f RESOLUTION SEEKING ACTION BY THE GENERAL ASSEMBLY AND GOVERNOR TO PROHIBIT ALL PREDATORY, USURIOUS LENDING PRACTICES 1N THE COMMONWI =ACTH OF VIRGINIA WHEREAS, the Board of Supervisors of the County of Frederick, Virginia, believes the citizens of the County of Frederick remain concerned over what are perceived to be predatory, usurious lending practices in the County of Frederick and elsewhere in the Commonwealth, including practices that can exploit dedicated, brave women and men called to serve in the United States armed services; and WHEREAS, the Board of Supervisors of the County of Frederick, Virginia, shares these continuing concerns and intends through this Resolution to express the collective sentiments and will of Frederick County citizens that the General Assembly and Governor of Virginia need to take action to prohibit all predatory, usurious lending practices; and WHEREAS, it is essential that the General Assembly and the Governor of Virginia. address this matter as a high priority at the next legislative session, leading to enactment of laws strictly prohibiting and deterring all predatory, usurious lending practices in the Commonwealth of Virginia. NOW, THEREFORE, BE 1T RESOLVED by the Board of Supervisors of the County of Frederick, Virginia, that, at the next legislative session, the General Assembly and the Governor of the Commonwealth of Virginia are hereby requested to enact laws strictly prohibiting and deterring all predatory, usurious lending practices, including but not limited to provisions that would: 1. impose an interest rate cap ofthirty -six percent j36 %j, calculated as an effective annual percentage rate including all fees or charges of any kind, for any consumer credit extended in the Commonwealth of Virginia; Prohibit a creditor's use of a personal check or other device as a means, directly or indirectly, to gain access to a consumer's bank account; and 3. incorporate into the Virginia Code the protections regarding consumer credit to military personnel as reflected in the Military Lending Act, 10, United States Code Section 987. Adopted this 23ra day of June, 2010. VOTE: Richard C. Shickle A�r2 Bill fVi. Ewing Absent Christopher 1=. Collins Aye Gene E. Fisher Aye Charles S. DeHaven, Jr. Aye Gary A. Lofton Aye Gary W. Dave Aye A COPY TESTS: �� Joh�i� ile , Jr., Clerk Bo�fd of Supervisors Resolution i�Q90 --10 °� COUNTY of FRED�R�C�. �� ,�o�n R. Rafley, Jn County Administrator 5401665 -5666 Fax 540/667 -0370 E -mail: jriley @co.frederick.va.us MEMORANDUM TO: Board of Supervisors FROM: {, John R. Riley, Jr., County Administrator � � ` � SUBJECT: Correspondence from the City of Staunton re: Ending Payday Lending DATE: June I7, 2010 Attached please find correspondence from the City of Staunton, Virginia, seeking assistance in ending the practice of payday lending in the Commonwealth. Staff has prepared a resolution similar io that adopted by the City of Staunton seeking the fallowing actions from the General Assembly: 1. Impose an interest rate cap of thirty -six percent (36 %), calculated as an effective annual percentage rate including all fees or charges of any kind, for any consumer credit extended in the Commonwealth of Virginia; 2. Prohibit a creditor's use of a personal check or other device as a means, directly or indirectly, to gain access to a consumer's bank account; and 3. Incorporate into the Virginia Code the protections regarding consumer credit to military personnel as reflected in the Military Lending Act, 10, United States Code Section 987. If the Board concurs with this proposal, staff is seeking action an the attached resolution. If you have any questions on this matter, please contact me. JRR/j et Attachments 107 North Kent Street •Winchester, Virginia 22601 �111� 'J � �' ' i� i + \ \\\ � 1�1� ► I�i ! �C� ��, �� `r��.f RESOLUTION SEEKING ACTION BY THE GENERAL ASSEMBLY AND GOVERNOR TO PROHIBIT ALL PREDATORY, USURIOUS LENDING PRACTICES 1N THE COMMONWI =ACTH OF VIRGINIA WHEREAS, the Board of Supervisors of the County of Frederick, Virginia, believes the citizens of the County of Frederick remain concerned over what are perceived to be predatory, usurious lending practices in the County of Frederick and elsewhere in the Commonwealth, including practices that can exploit dedicated, brave women and men called to serve in the United States armed services; and WHEREAS, the Board of Supervisors of the County of Frederick, Virginia, shares these continuing concerns and intends through this Resolution to express the collective sentiments and will of Frederick County citizens that the General Assembly and Governor of Virginia need to take action to prohibit all predatory, usurious lending practices; and WHEREAS, it is essential that the General Assembly and the Governor of Virginia. address this matter as a high priority at the next legislative session, leading to enactment of laws strictly prohibiting and deterring all predatory, usurious lending practices in the Commonwealth of Virginia. NOW, THEREFORE, BE 1T RESOLVED by the Board of Supervisors of the County of Frederick, Virginia, that, at the next legislative session, the General Assembly and the Governor of the Commonwealth of Virginia are hereby requested to enact laws strictly prohibiting and deterring all predatory, usurious lending practices, including but not limited to provisions that would: 1. impose an interest rate cap ofthirty -six percent j36 %j, calculated as an effective annual percentage rate including all fees or charges of any kind, for any consumer credit extended in the Commonwealth of Virginia; Prohibit a creditor's use of a personal check or other device as a means, directly or indirectly, to gain access to a consumer's bank account; and 3. incorporate into the Virginia Code the protections regarding consumer credit to military personnel as reflected in the Military Lending Act, 10, United States Code Section 987. Adopted this 23ra day of June, 2010. VOTE: Richard C. Shickle A�r2 Bill fVi. Ewing Absent Christopher 1=. Collins Aye Gene E. Fisher Aye Charles S. DeHaven, Jr. Aye Gary A. Lofton Aye Gary W. Dave Aye A COPY TESTS: �� Joh�i� ile , Jr., Clerk Bo�fd of Supervisors Resolution i�Q90 --10 °� COUNTY of FRED�R�C�. �� ,�o�n R. Rafley, Jn County Administrator 5401665 -5666 Fax 540/667 -0370 E -mail: jriley @co.frederick.va.us MEMORANDUM TO: Board of Supervisors FROM: {, John R. Riley, Jr., County Administrator � � ` � SUBJECT: Correspondence from the City of Staunton re: Ending Payday Lending DATE: June I7, 2010 Attached please find correspondence from the City of Staunton, Virginia, seeking assistance in ending the practice of payday lending in the Commonwealth. Staff has prepared a resolution similar io that adopted by the City of Staunton seeking the fallowing actions from the General Assembly: 1. Impose an interest rate cap of thirty -six percent (36 %), calculated as an effective annual percentage rate including all fees or charges of any kind, for any consumer credit extended in the Commonwealth of Virginia; 2. Prohibit a creditor's use of a personal check or other device as a means, directly or indirectly, to gain access to a consumer's bank account; and 3. Incorporate into the Virginia Code the protections regarding consumer credit to military personnel as reflected in the Military Lending Act, 10, United States Code Section 987. If the Board concurs with this proposal, staff is seeking action an the attached resolution. If you have any questions on this matter, please contact me. JRR/j et Attachments 107 North Kent Street •Winchester, Virginia 22601 C ®�JNT� of �I�EI��IZICI� Johan R. RiIIeY� .�� County Administrator 5401665 -5666 Fax 5401667 -0370 E -mail: jriley @ co.frederick.va.us MEMORANDUM TO: Board of Supervisors FRAM: John R. Riley, Jr., County Administrat E` SUBJECT: Correspondence from the City of Staunton re: Ending Payday Lending DATE: Jung 9, 2010 Attached please find correspondence from the City of Staunton, Virginia, seeking assistance in ending the practice of payday lending in the Commonwealth. ?lease review the attached materials and let me know if you want this resolution placed on the next Board agenda. We would appreciate a response by 12:00 noon an Thursday, June 17, 2010 in order that we would have sufficient time to reformat the resolution and place it in your agenda notebook. If you have any questions on this matter, please contact me. JRRIj et Attachments 107 North Kent Street •Winchester, Virginia 22601 LACY $. KiNG, I�'IAYOR llaV�oR. ME�rz, VicE MAYOR BRIICE A. ELDELZ RicxARn P. BELL CAROLYN W. DULL. �PHIE A. KiER ANDREA W. Oates The Honorable Robert F. McDonnell The Honorable Emmett W. Hanger, Jr The Honorable Richard P. Bell The Honorable R. Steven Landes City Managers County Administrators Dear Colleagues: `���- �� iw� �� ` '�;�5 ��tYs �' . � � �� . . CITY OF STAUNTON 116 W. $EVERLEY STREBT P.O. BOX �$ STAUN'T`ON, VA 24402 540.332.3801(0) 540.851.4001(F) City Managers County Administrators Town. Managers VML Executive Director VaCo Director Virginia First Cities Exec. Director In 2007, Staunton City Council passed a resolution requesting chat the Governor and the General Assembly put an end to payday lending in the Commonwealth of Virginia. We were joined in this effort by sixty localities across the state and numerous consumer groups, advocacy groups and churches. The request was a simple one. We asked that protection against predatory lending granted by the Federal goverrunent to military personnel and their families be extended to every citizen in the Commonwealth. The matter was discussed in the 2008 General Assembly and the result was a patchwork of compromises that were hailed as reform. The attached chart shows the actual interest rates that resulted from that reform. We respectfully disagree that this regulation was significant in protecting our consumers. Eighteen states have now banned this type of lending outright, including all of our bordering states and the District of Columbia. On May 27, 2010, the City of Staunton. renewed its commitment to put an end to usury in the Commonwealth by passing the enclosed resolution. We ask again that you join us in this effort and also encourage you to meet with your legislators and discuss with them the impact that this type of lending has on your comrnunxty and your citizens. We ask that you share this information with your governing body and place the resolution on their agenda for action. You may access the resolution template at the following address: http: l/ www .staunton.va.us /director�partr ,rents -a -g /city_= eouncilla eg nda- ackets/Fa Da %20Lendin %20Resolution %20Tem �ate.doc `;:/ t'� "- \ � � � ` ,_ �,�� ��-� �� X11 R� '�,�,��a�ctk'�J,y,G�s�c� �, �� - . ;- -��_✓ _:j, .� , Virginia First Cities Exec. Director In 2007, Staunton City Council passed a resolution requesting chat the Governor and the General Assembly put an end to payday lending in the Commonwealth of Virginia. We were joined in this effort by sixty localities across the state and numerous consumer groups, advocacy groups and churches. The request was a simple one. We asked that protection against predatory lending granted by the Federal goverrunent to military personnel and their families be extended to every citizen in the Commonwealth. The matter was discussed in the 2008 General Assembly and the result was a patchwork of compromises that were hailed as reform. The attached chart shows the actual interest rates that resulted from that reform. We respectfully disagree that this regulation was significant in protecting our consumers. Eighteen states have now banned this type of lending outright, including all of our bordering states and the District of Columbia. On May 27, 2010, the City of Staunton. renewed its commitment to put an end to usury in the Commonwealth by passing the enclosed resolution. We ask again that you join us in this effort and also encourage you to meet with your legislators and discuss with them the impact that this type of lending has on your comrnunxty and your citizens. We ask that you share this information with your governing body and place the resolution on their agenda for action. You may access the resolution template at the following address: http: l/ www .staunton.va.us /director�partr ,rents -a -g /city_= eouncilla eg nda- ackets/Fa Da %20Lendin %20Resolution %20Tem �ate.doc Once your locality has acted upon this legislative, please send a cagy of your resolution to our Clerk of Council at LaneUA(a7,ci.staunton.va.us. Sincerely, /' � � -� Bruce A. Elder Councilman Attachments T1��� �� �f ��� � ®��� a�>l���r the ��e�sl���on ������ �� the �ner�� �����bl� in I`arch 24U8 Loan Amount Borrower paid Borrower paid Social Security weekly' biweekly recipients and others on ��nonthly income3 $100 688% 362% � 18$% $200 623% 329% 173% $300 601% 318% 167% $400 5�0% 313% 165% $500. 584% 310% 164% Calculated at $20.00 per $1 00.00 + $5.00 verification fee + 36% APR for 2 weeks. (double the pay cycle of the borrower paid weekly) Calculated at $20.00 per $104.00 + $5.00 verification fee + 36% APR far 4 weeks. (double the pay cycle of the borrower paid biweekly) Calculated at $20,00 per $100.00 + $5,00 verification fee + 36% APR for 2 months. (double the pay cycle of tl�e borrower with monthly incoane) RESOLUTION OF THE COUNCIL OF THE CITY OF STAUNTON, VIRGINIA SEEKING ACTION BY THE GENERAL ASSEMBLY AND GOVERNOR TO PROHIBIT ALL PREDATORY, USURIOUS LENDING PRACTICES IN _THE COMMONWEALTH OF VIRGINIA WHEREAS, the Council of the City of Staunton, Virginia, represents the citizens of the City of Staunton, Virginia; WHEREAS, the Council of the City of Staunton, Virginia, believes the citizens of the City of Staunton reinatn concerned over what are perceived to be predatory, usurious lending practices in the City of Staunton and elsewhere in the Commonwealth, including practices that can exploit dedicated, brave women and men called to serve in the United States armed services; WHEREAS, the Council of the City of Staunton, Virginia, shares these continuing concerns and intends through this Resolution to express the collective sentiments and will of Staunton citizens that the General Assembly and Governor of Virginia need to take action to prohibit all predatory, usurious lending practices; and WHEREAS, it is essential that the General Assembly and the Governor of Virginia address this matter as a high priority at the next legislative session, leading to enactment of laws strictly prohibiting and deterring all predatory, usurious lending practices in the Commonwealth of Virginia. I�TOV`+�, TI;EI:E1rOR;iJ, BE IT RESOLVED by the Council of the City of Staunton, Virginia that, at the next legislative session, the General Assembly and the Governor of the Commonwealth of Virginia are hereby requested to enact laws strictly prohibiting and deterring all predatory, usurious lending practices, including but not limited to provisions that would: l , lmpose an interest rate cap of thirty -six percent (36 %), calculated as an effective aru�ual percentage rate including all fees or charges of any kind, for any consumer credit extended in the Commonwealth of Virginia; 2. Prohibit a creditor's use of a personal check or other device as a means, directly or indirectly, to gain access to a consumer's bank account; and 3. Incorporate into the Virginia Code the protections regarding consumer credit to military personnel as reflected in the Military Lending Act, ] 0 United States Code Section 987. Adopted this 27 "' day of May 20] 0 ' t G— Lacy B. King, Jr., ayor Attest: �,�J� l.�_��,,,,+,� Deborah A. Lane, Clerk of Council Page 453 TITLE 10 —ARMED FORCES § 9$7 axrtellded Pub. L. 107 -107, div. A, title �, § 104$(c)(3), Dec. 28, 2001, 115 Stat. 1226; Pub. L. I08 -375, div, A, title X, §1(]62, Qct. 26, 2004, 118 stet. za5s.) AMENDMENTS 2044 — Subsec. (c)(1). Pub. L. 143 -375, § 1062(a }, suh- stituted ", was sentenced" for "and sentenced" and in- serted before period at end ", and was [ncarcerated as a result of that sentence for not kesa than one year ". Subsec_ (d }, pub. L. I43 -376, §1b62(b), reenacted head- ing without cbange and amended text generally. Prior to amendment, text read as follows: "In a meritorious case, the Secretary of Defense or the Secretary of the military department concerned may authorize an ex- ception to the prohib #tion in subsection (a] for a person descr #bed in paragraph (1) or (4) of subaectfon {c). The authorizg under the preceding sentence may not be del- egated." 240I -- Subsea (a }. pub. L. 107 -1U7 substituted "October 36, 24D4,'° for `the date of the enactment of this aec- tion,' . § 957. Terms of consumer credit extended to members axed dependents: limitations (a) INTEiiEST. —A creditor who extends con- sumer credit to a covered member of the armed farces 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, ex- cept 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 sec- tion. (b) ANNUAL, i'ERCENTAGE RATE. —A creditor de- scribed in subsection (a) may not impose an an- nual percentage rate of interest greater than 36 percent with. respect to the consumer credit ex- tended to a covered member or a dependent of a covered member. (o) MANDATORY I,O(1N DISGLOSIIRES.- (1) INFORMATION REQUIRED. —With respect t0 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. (F3) Any disclosures required under the Truth in Lending Act (15 U.S.G. 1601 et seq,}. (C) A clear description of the payment ob- ligations of the member ar dependent, as ap- plicable. (2) TERMS. —Such disclosures shall be pre- sented in accordance with terms prescribed by the regulations issued by the Board of rxov- ernors of the l +ederal Reserve System to im- plement the Truth fn Lending Act (15 U.S.C. 1601 et seq.). (d) I'ItEEMPTION.- (1) INCONSISTENT LAWS.— .Except as provided in subsection (f)(2), this section preempts any State or Federal law, rule, or regulation, in- cluding any State usury law, to the extent that such law, rule, or regulation is inconsist- ent with this section, except that this section shall not preempt any such law, rule, ar repo- lotion that provides protection to a covered member or a dependent of such a member in addition to the protection provided by this section. (2) DIFFERENT TREATMENT ISNDER STATE LAW OF MEMBERS ANA DEPENDENTS PROHIBITED. — States shall not — (A) authorize creditors to charge covered members and their dependents annual per- centage rates of interest for loans higher than the legal limit for residents of the State; or (B) permit violation or waiver of any State consumer lending protections for the benefit of residents of the State on the basis of non- resident or rr�ilitary status of a covered member or dependent of such a member, re- gardless of the member's or dependent's domicile or permanent home of record. (e) LIMITATEONS. —It shall be unlawful for any creditor to extend consumer credit to a covered member or a dependent of such a member with respect to which — (1} the creditor rolls over, renews, repays, re- finances, or consolidates any consumer credit extended to tkle borrower by the same creditor with the proceeds of other credit extended to the same covered member or a dependent; (2) the borrower is required to waive the bor- rower's right to legal recourse under any otherwise applicable provision of State or Fed- eral law, including any provision of the Servicemembers Civil Relief Act; (3) the creditor requires the borrower to sub- mit to arbitration or imposes onerous legal notice provisions in the case of a dispute; (4) the creditor demands unreasonable notice from the borrower as a condition for legal ae- tlon; (5) the creditor uses a check or other method of access to a deposit, savings, ar ether finan- cial account maintained by the borrower, or the title of a vehicle as security far the obligal- tion; (6) the creditor requires as a condition far the extension of credit that the borrower es- tablish an allotment to repay an obligation; or (7) the borrower is prohibited from prepay- ing the loan or is charged a penalty cr fee for prepaying all or part of the loan. (f) PENALTIES AND ii.EMEI�TES.- (l) MISDEMEANOR, —A creditor who know- ingly violates this section shall be iYned as provided in title 1$, or imprisoned for not more than one year, or both. (2) PRESERVATION OF OTHER REMEDIES. --The remedies and rights provided under this se�- tion are in addition to and do not preclude any remedy otherwise available under law to the person claiming relief under this section, in- cluding any award for consequential and puni- tive damages. (3) CONTRACT vOID. —Any credit agreement, promissory note, or other contract prohibited under this section is void !Y`om the inception of such contract. (4) ARBITRATION.— Notwithstanding section 2 of title S, or any other Federal or State law, §9B7 TITLE 10 —ARMED FORCES Page 954 rule, or regulation, no agreement to arbitrate any dispute involving the extensian of con- sumer credit shall be enforceable against any covered member or dependent of such a mem- ber, ar any person who was a covered member ar dependent of that member when the agree- ment was made. (g) SERVICEMEMBER$ CIVIL RELIEF ACT PROTEC- TION$ UNAFI'ECTEIJ.- 1~IOthing in this section may be construed to limit or otherwise affect the applicability of section 247 of the Service - members Civil Relief Act (5D U.S.C. App. 527). (h) REGULATIONS. —(1) The Secretary of De- fense shall prescribe regulations to carry out this section. {2) Sueh regulations shall establish the follow- ing: (A} Disclosures required of any creditor that extends consumer credit to a wavered member or dependent of such a member. (B) The method for calculating the applica- ble annual percentage rate of interest on such obligations, in accordance with the limit es- tablished under this section. (C} A maximum allowable amount of all fees, and the types of fees, associated with any such extension of credit, to be expressed and dis- closed to the borrower as a total amount and as a percentage of the principal amount of the obligation, at the time at which the trans- action is entered into. {D) Definitions of "creditor" under para- graph (6) and ` "consumer credit" cinder para- graph (6} of subsection (i }, consistent with the provisions of this section. (E) Such other criteria or limitations as the Secretary of Defense determines appropriate, consistent with the provisions of this section. (3) In prescribing regulations under this sub- section, the Secretary of Defense shall consult with the following: (A) Tkle Federal Trade Commission. {B) The Board of Governors of the Federal Reserve System. (C) The Office of the Comptroller of the Cur- rency. (D) The Federal Deposit Insurance Corpora- tion. (E) The Office of Thrift Supervision. (F) The National Credit Union Administra- tion. (G) The Treasury Department. (ij DEFlIdITtO:�$. —In this section: (1) COVERED MEMBER. —The term "covered member'° means a member of the armed forces who is— {A) on active duty under a call or order that does not specify a period of 30 days or less; or (B} on active Guard and Reserve Duty. (2) DEPENDENT. —Th0 term "dependent ", with respect to a covered member, means — (A) the member's spouse; (B) the member's child {as defined in sec- tion 101(4) of title 38); or (C) an individual far wham the member provided more than one -half of the individ- uals sugpart far 180 days immediately pre- ceding an extensian of consumer credit cov- ered by this section. (3) INTEREST. ---The term "interest" includes all cost elements associated with the exten- sion of credit, including fees, service charges, renewal charges, credit insurance premiums, any ancillary product sold with any extension of credit to a servicemember ar the service - rnember's dependent, as applicable, and any other charge or premium with respect to the extension of consumer credit. (4) ANNUAL PERCENTAGE RATE —The term "annual percentage rate" has the same mean- ing as in section 107 of the Truth and Landing Act (15 U.S.C. 16D6), as implemented by regula- tions of the Board of Governors of the Federal Reserve System. For purposes of this section, such term includes alI fees and charges, in- cluding charges and fees for single premium credit insurance and other ancillary products sold in connection with the credit transaction, and such fees and charges shall be included in the calculation_ of the annual percentage rate. (5) CiREDITCR. —The term "creditor" means a peI "SOn- (A) who - (i) is engaged in the business of extend- ing consumer credit; and iii) meets such additional criteria as are specified for such purpose in regulations prescribed under this section; or (B) who is an assignee of a person de- scribed in subparagraph {A) with respect to any consumer credit extended. (6) CONSUMER cI�);i}iT. —The term "consumer credit" has the meaning provided for such term in regulations prescribed under this sec- tion, except that such term does not include (A7 a residential mortgage, or (B) a loan pro- cured in the course of purchasing a car or other personal property, when that loan is of- fered for the express purpose of financing the purchase and is sewured by the oar or personal property procured. (Added Pub. L. 109 --364, div, A, title VI, § 670(a), Oct. 17, 2006, 120 Stat, 2266.) iiPFERENCBS II3 TISxT The Truth in Lending Act, referred to in subset. (c) {1)(B), (2), is title I of Pub. L. 90 -321, May 29, 1968, 82 Stet, 146, as amended, which is classified generally to subchapter I 41601 et seq.) of chapter 41 of 'Title 15, Commerce and Trade. Fos complete classfficatian of this Act to the Cade, see Short Title note set out under section 1691 of Title 15 and Tattles. The Servicemernbers Civil Relief Act, referred to in subsets. (e)(2) and fg), is act Oct. 17, 1940, ch. 868. 54 Stet. 1178, as amended, which is classified to section 501 et seq. of Title 50, Appendix, War and National Defense. For complete classifieatfon o£ ibis Act to the Code, see section 501 of Title 50, Appendix, and Tables. EFFECTIVE DATE 1"ub. L. 109 -364, eliv. A, title VI, §fi70(c), Oct. 17, 2006, 120 Stat. 2269, prov €ded that: `'11) Ix GENERAL.— Except as provided in paragraph (2), section 987 of title 10, United States Code, as added by subsection (a), shall take e?feat on Qetober 1. 2007, or on such earlier date as ntay be prescribed by the Secretary of llefense, and shall apply with respect to extensions of consumer credit on or after such effective date. "(2) AUTHORITY TO RRESCRI$E REGULATiaNS.—Sub- section (h) of such section shall take effect on the date of the enactment of this Act �OCt. 17, 2006]. Page 455 TITLE 1(1 —ARMED F'C}RCES § 99i "(3} pIlgl,tCATION flF EAFILIER EFFECTIVE DATE. —lf the Secretary of Defense prescribes an effective date for sectipn 987 of title 10, United States Code, as added by subsection (a), earlier than ©ctober 1, 2007, the Sec - retal"jr shall publish that date in the Federa€ Register. Such publication shall be made not Tess than 9D days before that earlier effective date." INTERIM REGSILATIaNB Pub. L. 109 -369, div. A, title vZ, § 670(d), Oot. 17, 2006, 120 Stat. 2269, provided that: "The Secretary of Defense may prescribe interim regulations as necessary to carry out such section (this section]. For the purpose of prescribing such [ nterim regulations, the Secretary is excepted from compliance with the notice- and -com- ment requirements of section 553 of title 5, United States Code. All interim rules grescribed under the au- thority of this subsection that are not earlier super- seded by final rules she €1 expire nc later than 270 days after the effective date of section 987 of title 10, United States Code [see Effective Date note above], as added by this section." CHAPTER 5p— MISCELLAIVEOLTS COMMAND RESPONSIBILITIES seq. 991.. Management of deployments of members. 992. Consumer education: financial services. AMENDMENTS 2006 —Pub. I,. 109 -163, div. A, title V, §578(x)(2), Jan. 6, 2006, 119 Stat. 3276, added item 992. 991. iVIanagemexit of deglayments of members (a) MANAGEME25T RESPONSIBILITIES. —(1) The deglayment (ar potential deployment) of a mem- ber of the aa�med forces shall be managed to en- sure that the member is not deployed, or con- tinued in a deployment, on any day an which the fatal number of days on which the member has been deployed — (A) out of the preceding 365 days would ex- ceed the one -year high - deployment threshold; ar (E) out of the preceding 730 days would ex- ceed the two -year high - deglayment threshold. (2) In this subsection: (A) The term "one -year high - deployment threshold °' rneans- (i) 220 days; or (ii) a lower number of days prescribed by the Secretary of Defense, acting through the CJnder Secretary of Defense for Personnel and Readiness. (B) The term "two -year high- deployment threshold" measas- (i) 400 days; or (ii) a lower number of days prescribed by the Secretary of Defense, acting through the Under Secretary of Defense far Personnel and Readiness. (3) A member may be deployed, or continued in a deployment, without regard to paragraph (1) if the deglayment, or continued deployment, is approved by the Secretary of Defense. The au- thority of the Secretary under the preceding sentence may only be delegated to— (A) acivilian officer of the Departm8nt of Defense appointed by the President, by and with the advise and consent of the Senate, or a member of the Senior Executive Service; or $B) a general or flag officer in that member's chain of command (including an officer in the grade of colonel, or in the case of the Navy, captain, serving in a general or flag officer po- sition who has been selected for promotion to the grade of brigadier general or rear admiral (lower half) in a report of a selection beard convened udder section 61I(a) or 19101$a} of this title that has been approved by the Presi- dent). (b) DEPLOYMENT DEFINED. ---(1) F'Dr the pur- poses of this section, a member of the armed forces shall be considered to be deployed or in a deployment an any day an wYlich, pursuant to orders, the member is performing service in a training exercise or operation at a location or under circumstances that make it impossible or infeasible for the member to spend off -duty time in the housing in which the member resides when on garrison duty at the member's perma- nent duty station or lzomeport, as the case may be. (2) In the case of a member of a resexve compo- nent who is performing active service pursuant to orders that do not establish a permanent change of station, the housing referred to in paragraph (1) is any housing (which may include the member's residene@) that the member usu- alIy occupies .for use during off -duty time when on garrison duty at the member's permanent duty station ar homeport, as the case may be. (3) For the purposes of this section, a member is not deployed or ixa a deployment when the member is— (A) performing service as a student or train- ee at a school (including any Government school}; (B) performing administrative, guard, or de- tail duties in garrison at the member's perma- nent duty station; or (C) unavailable solely because of- (i) ahospitalization of the member at the member's permanent duty station or home - port or in the immediate vicinity of the member's permanent residence; or (ii) a disciplinary action taken against the member. (4) Tile Secretary of Defense may prescribe a definition of deployment for the purposes of this section other than the definition specified in paragraphs (1} and (2). Any such definition may not take effect until 90 days after the date on which the Secretary notifies the Committee on Armed Services of the Senate and the Commit- tee on Armed Services of the House of Il.ep- resentatives of the revised standard definition of deployment. (c) RECORDKEEPINCx. —The Secretary of each military department shall establish a system for tracking and recording the number of days that each member of the armed forces under the ju- risdiction of the Secretary is deployed. (d) 1DTATIUIVAL SECURITY WAIVER AU'I'FipRITY.- The Secretary of the military department con- cerned may suspend the applicability of this se�- tion to a member or any group of members under the Secretary's. jurisdiction when the Sec- retary determines that such a waiver is nec- essary in the national security interests of the United States. (e) INAPPLICABILITY TO COAST GUARD. - -This section does not apply to a member of the Coast