On December 14, 2017, the Department of Defense (“DOD”) published final interpretive rules (the “2017 Interpretive Rule”) amending previously issued interpretive rules on the Military Lending Act (“MLA”). The 2017 Interpretive Rule amends and replaces three specific questions and answers in the interpretive rules issued by the DOD in August 2016 (the “2016 Interpretive Rule”), while also adding a new question. Although the 2017 Interpretive Rule clarifies several ambiguities in the regulation, the limited scope of the Rule leaves many questions unanswered.

BACKGROUND -

In July 2015, the DOD published sweeping changes to its rules implementing the MLA (“MLA Final Rule”). However, as industry participants studied the MLA Final Rule, many ambiguities were identified. Morrison & Foerster, along with several major trade associations, urged the DOD to clarify the ambiguities, and in response, the DOD issued the 2016 Interpretive Rule. Nevertheless, industry groups continued to seek further clarity, given the MLA Final Rule’s effective date in October 2017.