I 

108TH CONGRESS 

1ST SESSION H. R. 3357

To amend the Soldiers’ and Sailors’ Civil Relief Act of 1940 to provide 

protections to members of the Armed Forces who terminate certain 

consumer contracts and real estate residential purchase contracts entered 

into before permanent change of station or deployment orders or motor 

vehicle leases entered into before military service. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 21, 2003

Mr. GIBBONS (for himself, Mr. WYNN, Mr. BEREUTER, and Mr. NORWOOD) 

introduced the following bill; which was referred to the Committee on 

Veterans’ Affairs 

A BILL

To amend the Soldiers’ and Sailors’ Civil Relief Act of 1940 

to provide protections to members of the Armed Forces 

who terminate certain consumer contracts and real estate 

residential purchase contracts entered into before permanent change of station or deployment orders or motor 

vehicle leases entered into before military service.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. TERMINATION OF RESIDENTIAL PURCHASE 

2 CONTRACTS AND CERTAIN CONSUMER CON3 TRACTS. 

4 Article III of the Soldiers’ and Sailors’ Civil Relief 

5 Act of 1940 (50 U.S.C. App. 530 et seq.) is amended by 

6 adding at the end the following new section: 

7 ‘‘SEC. 307. TERMINATION BY SERVICEMEMBERS OF RESI8 DENTIAL PURCHASE CONTRACTS AND CER9 TAIN CONSUMER CONTRACTS ENTERED INTO 

10 BEFORE MILITARY SERVICE OR BEFORE PER11 MANENT CHANGE OF STATION OR DEPLOY12 MENT ORDERS. 

13 ‘‘(a) TERMINATION BY SERVICEMEMBER.—A person 

14 in military service who is a party to a contract described 

15 in subsection (b) may, at the person’s option, terminate 

16 the contract at any time after—

17 ‘‘(1) the date of the entry of the person into 

18 military service; or 

19 ‘‘(2) the date of the military orders of the per20 son described in paragraph (1)(B) or (2)(B) of sub21 section (b), as the case may be. 

22 ‘‘(b) COVERED CONTRACTS.—This section applies to 

23 the following contracts: 

24 ‘‘(1) LEASES OF MOTOR VEHICLES.—A lease of 

25 a motor vehicle used, or intended to be used, by the 
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1 lessee (or dependents of the lessee) for personal or 

2 business transportation if—

3 ‘‘(A) the lease is executed by or on behalf 

4 of a person who thereafter and during the term 

5 of the lease enters military service (or receives 

6 order to enter military service) under a call or 

7 order specifying a period of not less than 90 

8 days (or who enters military service under a call 

9 or order specifying a period of 90 days or less 

10 and who, without a break in service, receives or11 ders extending the period of military service to 

12 a period of not less than 90 days); or 

13 ‘‘(B) the lessee, while in military service, 

14 executes the lease and thereafter receives mili15 tary orders for a permanent change of station 

16 outside of the continental United States or to 

17 deploy with a military unit for a period of not 

18 less than 90 days. 

19 ‘‘(2) TELECOMMUNICATIONS CONTRACTS.—A 

20 telecommunications contract for cellular phone serv21 ice, cable or satellite television service, or internet 

22 service if—

23 ‘‘(A) the contract is executed by or on be24 half of a person who thereafter and during the 

25 term of the contract enters military service (or 
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1 receives order to enter military service)under a 

2 call or order specifying a period of not less than 

3 90 days (or who enters military service under a 

4 call or order specifying a period of 90 days or 

5 less and who, without a break in service, re6 ceives orders extending the period of military 

7 service to a period of not less than 90 days); or 

8 ‘‘(B) the person enters into the contract 

9 while in military service and thereafter receives 

10 military orders for a permanent change of sta11 tion outside of the continental United States, or 

12 to deploy with a military unit for a period of 

13 not less than 90 days, to a location that does 

14 not support continuation of the service under 

15 the contract. 

16 ‘‘(3) CONTRACT FOR PURCHASE OF RESI17 DENCE.—A contract for the purchase of real prop18 erty occupied, or intended to be occupied, by a per19 son (or dependents of a person) for a residential 

20 purpose if before the contract is closed the person 

21 who executed the contract—

22 ‘‘(A) enters military service or receives or23 ders to enter military service; or 
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1 ‘‘(B) receives orders for a permanent 

2 change of station or to deploy with a military 

3 unit for a period of not less than 90 days. 

4 ‘‘(c) MANNER OF TERMINATION.—

5 ‘‘(1) IN GENERAL.—Termination of a contract 

6 under subsection (a) is made—

7 ‘‘(A) by delivery by the person in military 

8 service of written notice of such termination to 

9 the other party to the contract (or that person’s 

10 grantee or agent); and 

11 ‘‘(B) in the case of a lease of a motor vehi12 cle, by return of the motor vehicle by the lessee 

13 to the lessor not later than 10 days after the 

14 date of the delivery of notice under subpara15 graph (A). 

16 ‘‘(2) NATURE OF NOTICE.—Delivery of notice 

17 under paragraph (1)(A) may be accomplished—

18 ‘‘(A) by hand delivery; 

19 ‘‘(B) by private business carrier; or 

20 ‘‘(C) by placing the written notice in an 

21 envelope with sufficient postage and with return 

22 receipt requested, and addressed as designated 

23 by the party to be notified (or that party’s 

24 grantee or agent), and depositing the written 

25 notice in the United States mails. 
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1 ‘‘(d) EFFECTIVE DATE OF CONTRACT TERMI2 NATION.—

3 ‘‘(1) LEASE OF MOTOR VEHICLES.—In the case 

4 of a contract described in subsection (b)(1), termi5 nation of the lease under subsection (a) is effective 

6 on the day on which the requirements of subsection 

7 (c) are met for such termination. 

8 ‘‘(2) OTHER CONTRACTS.—In the case of a con9 tract described in subsection (b)(2) or (b)(3) termi10 nation of the contract is effective on the day on 

11 which the notice is delivered. 

12 ‘‘(e) ARREARAGES AND OTHER OBLIGATIONS AND

13 LIABILITIES.—In the case of a contract described in sub14 section (b)(1) or (b)(2), contract amounts unpaid for the 

15 period preceding the effective date of the contract termi16 nation shall be paid on a prorated basis. In the case of 

17 the lease of a motor vehicle, the lessor may not impose 

18 an early termination charge, but any taxes, summonses, 

19 and title and registration fees and any other obligation 

20 and liability of the lessee in accordance with the terms 

21 of the lease, including reasonable charges to the lessee for 

22 excess wear, use and mileage, that are due and unpaid 

23 at the time of termination of the lease shall be paid by 

24 the lessee. 
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1 ‘‘(f) REFUND OF LEASE AMOUNTS PAID IN AD2 VANCE.—Lease amounts paid in advance for a period after 

3 the effective date of the termination of the lease shall be 

4 refunded to the lessee by the lessor (or the lessor’s as5 signee or the assignee’s agent). 

6 ‘‘(g) RELIEF TO LESSOR.—Upon application by the 

7 other party to the contract to a court before the termi8 nation date provided in the written notice, relief granted 

9 by this section to a person in military service may be modi10 fied as justice and equity require. 

11 ‘‘(h) PENALTIES.—

12 ‘‘(1) MISDEMEANOR.—Any person who know13 ingly seizes, holds, or detains the personal effects, 

14 security deposit, or other property of a person in 

15 military service (or of a dependent of a person in 

16 military service) who lawfully terminates a contract 

17 covered by this section, or who knowingly interferes 

18 with the removal of such property from premises 

19 covered by such contract, for the purpose of sub20 jecting or attempting to subject any of such property 

21 to a claim for contract payments accruing subse22 quent to the date of termination of such lease, or at23 tempts to do so, shall be fined as provided in title 

24 18, United States Code, or imprisoned for not more 

25 than one year, or both. 
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1 ‘‘(2) PRESERVATION OF OTHER REMEDIES.—

2 The remedy and rights provided under this section 

3 are in addition to and do not preclude any remedy 

4 for wrongful conversion otherwise available under 

5 law to the person claiming relief under this section, 

6 including any award for consequential or punitive 

7 damages.’’.

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