That question would not apply to a bank or credit union or S&L. It refers to 32 CFR 232.8, which prohibits creditors from taking a vehicle title as collateral in a covered transaction. Its intent is to prohibit title loans, but it excludes federally insured lenders (because the DOD recognized that banks, s&ls, and CUs often do refinancings or other non-predatory loans secured by a vehicle title. Purchase money loans aren't affected by this prohibition because they aren't covered transactions.
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