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# What is the purpose of MLA Applies?

Selecting MLA Applies defines the transaction as subject to the Military Lending Act and selects MLA-specific documents. MLA transactions are first lien, raw land loans with an installment repayment method and the option of a percent only late charge. With variable rate transactions, periodic caps are required and the interest rate rounding can be up, down, or to the nearest. The following features are not supported when MLA Applies is selected:

- Trusts (as either the borrower or collateral owner), cosigners, or guarantors

- Construction Loans

- Charging a returned payment fee

- The General Interest Law – Home Equity Loan Act

- Assumable loans with variable rates