; and (2) the Secretary of Defense shall issue regulations to carry out the amendment made by section 604 and 605. VII Treatment under other laws 701. Insurance and wagering Income-share agreements shall not be treated as a contract for insurance or a betting or wagering contract under any Federal or State law. 702. Payments not considered prepayments With respect to an income-share agreement, any requirement that an individual pay an amount greater than the income-share funding in order to extinguish the income-share agreement obligation earlier than the end of the term shall not be considered a prepayment penalty for purposes of any Federal or State law with respect to prepayment penalties.