PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2835

Public Law 108–189

108th Congress

An Act

To restate, clarify, and revise the Soliders’ and Sailors’ Civil Relief Act of 1940.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. RESTATEMENT OF ACT.

The Soldiers’ and Sailors’ Civil Relief Act of 1940 (50 U.S.C.

App. 501 et seq.) is amended to read as follows:

‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

‘‘(a) SHORT TITLE.—This Act may be cited as the

‘Servicemembers Civil Relief Act’.

‘‘(b) TABLE OF CONTENTS.—The table of contents of this Act

is as follows:

‘‘Sec. 1. Short title; table of contents.

‘‘Sec. 2. Purpose.

‘‘TITLE I—GENERAL PROVISIONS

‘‘Sec. 101. Definitions.

‘‘Sec. 102. Jurisdiction and applicability of Act.

‘‘Sec. 103. Protection of persons secondarily liable.

‘‘Sec. 104. Extension of protections to citizens serving with allied forces.

‘‘Sec. 105. Notification of benefits.

‘‘Sec. 106. Extension of rights and protections to Reserves ordered to report for

military service and to persons ordered to report for induction.

‘‘Sec. 107. Waiver of rights pursuant to written agreement.

‘‘Sec. 108. Exercise of rights under Act not to affect certain future financial transactions.

‘‘Sec. 109. Legal representatives.

‘‘TITLE II—GENERAL RELIEF

‘‘Sec. 201. Protection of servicemembers against default judgments.

‘‘Sec. 202. Stay of proceedings when servicemember has notice.

‘‘Sec. 203. Fines and penalties under contracts.

‘‘Sec. 204. Stay or vacation of execution of judgments, attachments, and garnishments.

‘‘Sec. 205. Duration and term of stays; codefendants not in service.

‘‘Sec. 206. Statute of limitations.

‘‘Sec. 207. Maximum rate of interest on debts incurred before military service.

‘‘TITLE III—RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS,

ASSIGNMENT, LEASES

‘‘Sec. 301. Evictions and distress.

‘‘Sec. 302. Protection under installment contracts for purchase or lease.

‘‘Sec. 303. Mortgages and trust deeds.

‘‘Sec. 304. Settlement of stayed cases relating to personal property.

‘‘Sec. 305. Termination of residential or motor vehicle leases.

‘‘Sec. 306. Protection of life insurance policy.

‘‘Sec. 307. Enforcement of storage liens.

‘‘Sec. 308. Extension of protections to dependents.

50 USC app. 501.

Dec. 19, 2003

[H.R. 100]

117 STAT. 2836 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘TITLE IV—LIFE INSURANCE

‘‘Sec. 401. Definitions.

‘‘Sec. 402. Insurance rights and protections.

‘‘Sec. 403. Application for insurance protection.

‘‘Sec. 404. Policies entitled to protection and lapse of policies.

‘‘Sec. 405. Policy restrictions.

‘‘Sec. 406. Deduction of unpaid premiums.

‘‘Sec. 407. Premiums and interest guaranteed by United States.

‘‘Sec. 408. Regulations.

‘‘Sec. 409. Review of findings of fact and conclusions of law.

‘‘TITLE V—TAXES AND PUBLIC LANDS

‘‘Sec. 501. Taxes respecting personal property, money, credits, and real property.

‘‘Sec. 502. Rights in public lands.

‘‘Sec. 503. Desert-land entries.

‘‘Sec. 504. Mining claims.

‘‘Sec. 505. Mineral permits and leases.

‘‘Sec. 506. Perfection or defense of rights.

‘‘Sec. 507. Distribution of information concerning benefits of title.

‘‘Sec. 508. Land rights of servicemembers.

‘‘Sec. 509. Regulations.

‘‘Sec. 510. Income taxes.

‘‘Sec. 511. Residence for tax purposes.

‘‘TITLE VI—ADMINISTRATIVE REMEDIES

‘‘Sec. 601. Inappropriate use of Act.

‘‘Sec. 602. Certificates of service; persons reported missing.

‘‘Sec. 603. Interlocutory orders.

‘‘TITLE VII—FURTHER RELIEF

‘‘Sec. 701. Anticipatory relief.

‘‘Sec. 702. Power of attorney.

‘‘Sec. 703. Professional liability protection.

‘‘Sec. 704. Health insurance reinstatement.

‘‘Sec. 705. Guarantee of residency for military personnel.

‘‘Sec. 706. Business or trade obligations.

‘‘SEC. 2. PURPOSE.

‘‘The purposes of this Act are—

‘‘(1) to provide for, strengthen, and expedite the national

defense through protection extended by this Act to

servicemembers of the United States to enable such persons

to devote their entire energy to the defense needs of the Nation;

and

‘‘(2) to provide for the temporary suspension of judicial

and administrative proceedings and transactions that may

adversely affect the civil rights of servicemembers during their

military service.

‘‘TITLE I—GENERAL PROVISIONS

‘‘SEC. 101. DEFINITIONS.

‘‘For the purposes of this Act:

‘‘(1) SERVICEMEMBER.—The term ‘servicemember’ means a

member of the uniformed services, as that term is defined

in section 101(a)(5) of title 10, United States Code.

‘‘(2) MILITARY SERVICE.—The term ‘military service’

means—

‘‘(A) in the case of a servicemember who is a member

of the Army, Navy, Air Force, Marine Corps, or Coast

Guard—

‘‘(i) active duty, as defined in section 101(d)(1)

of title 10, United States Code, and

50 USC app. 511.

50 USC app. 502.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2837

‘‘(ii) in the case of a member of the National Guard,

includes service under a call to active service authorized by the President or the Secretary of Defense for

a period of more than 30 consecutive days under section

502(f) of title 32, United States Code, for purposes

of responding to a national emergency declared by

the President and supported by Federal funds;

‘‘(B) in the case of a servicemember who is a commissioned officer of the Public Health Service or the National

Oceanic and Atmospheric Administration, active service;

and

‘‘(C) any period during which a servicemember is

absent from duty on account of sickness, wounds, leave,

or other lawful cause.

‘‘(3) PERIOD OF MILITARY SERVICE.—The term ‘period of

military service’ means the period beginning on the date on

which a servicemember enters military service and ending on

the date on which the servicemember is released from military

service or dies while in military service.

‘‘(4) DEPENDENT.—The term ‘dependent’, with respect to

a servicemember, means—

‘‘(A) the servicemember’s spouse;

‘‘(B) the servicemember’s child (as defined in section

101(4) of title 38, United States Code); or

‘‘(C) an individual for whom the servicemember provided more than one-half of the individual’s support for

180 days immediately preceding an application for relief

under this Act.

‘‘(5) COURT.—The term ‘court’ means a court or an administrative agency of the United States or of any State (including

any political subdivision of a State), whether or not a court

or administrative agency of record.

‘‘(6) STATE.—The term ‘State’ includes—

‘‘(A) a commonwealth, territory, or possession of the

United States; and

‘‘(B) the District of Columbia.

‘‘(7) SECRETARY CONCERNED.—The term ‘Secretary

concerned’—

‘‘(A) with respect to a member of the armed forces,

has the meaning given that term in section 101(a)(9) of

title 10, United States Code;

‘‘(B) with respect to a commissioned officer of the Public

Health Service, means the Secretary of Health and Human

Services; and

‘‘(C) with respect to a commissioned officer of the

National Oceanic and Atmospheric Administration, means

the Secretary of Commerce.

‘‘(8) MOTOR VEHICLE.—The term ‘motor vehicle’ has the

meaning given that term in section 30102(a)(6) of title 49,

United States Code.

‘‘SEC. 102. JURISDICTION AND APPLICABILITY OF ACT.

‘‘(a) JURISDICTION.—This Act applies to—

‘‘(1) the United States;

‘‘(2) each of the States, including the political subdivisions

thereof; and

50 USC app. 512.

117 STAT. 2838 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘(3) all territory subject to the jurisdiction of the United

States.

‘‘(b) APPLICABILITY TO PROCEEDINGS.—This Act applies to any

judicial or administrative proceeding commenced in any court or

agency in any jurisdiction subject to this Act. This Act does not

apply to criminal proceedings.

‘‘(c) COURT IN WHICH APPLICATION MAY BE MADE.—When under

this Act any application is required to be made to a court in

which no proceeding has already been commenced with respect

to the matter, such application may be made to any court which

would otherwise have jurisdiction over the matter.

‘‘SEC. 103. PROTECTION OF PERSONS SECONDARILY LIABLE.

‘‘(a) EXTENSION OF PROTECTION WHEN ACTIONS STAYED, POSTPONED, OR SUSPENDED.—Whenever pursuant to this Act a court

stays, postpones, or suspends (1) the enforcement of an obligation

or liability, (2) the prosecution of a suit or proceeding, (3) the

entry or enforcement of an order, writ, judgment, or decree, or

(4) the performance of any other act, the court may likewise grant

such a stay, postponement, or suspension to a surety, guarantor,

endorser, accommodation maker, comaker, or other person who

is or may be primarily or secondarily subject to the obligation

or liability the performance or enforcement of which is stayed,

postponed, or suspended.

‘‘(b) VACATION OR SET-ASIDE OF JUDGMENTS.—When a judgment

or decree is vacated or set aside, in whole or in part, pursuant

to this Act, the court may also set aside or vacate, as the case

may be, the judgment or decree as to a surety, guarantor, endorser,

accommodation maker, comaker, or other person who is or may

be primarily or secondarily liable on the contract or liability for

the enforcement of the judgment or decree.

‘‘(c) BAIL BOND NOT TO BE ENFORCED DURING PERIOD OF

MILITARY SERVICE.—A court may not enforce a bail bond during

the period of military service of the principal on the bond when

military service prevents the surety from obtaining the attendance

of the principal. The court may discharge the surety and exonerate

the bail, in accordance with principles of equity and justice, during

or after the period of military service of the principal.

‘‘(d) WAIVER OF RIGHTS.—

‘‘(1) WAIVERS NOT PRECLUDED.—This Act does not prevent

a waiver in writing by a surety, guarantor, endorser, accommodation maker, comaker, or other person (whether primarily

or secondarily liable on an obligation or liability) of the protections provided under subsections (a) and (b). Any such waiver

is effective only if it is executed as an instrument separate

from the obligation or liability with respect to which it applies.

‘‘(2) WAIVER INVALIDATED UPON ENTRANCE TO MILITARY

SERVICE.—If a waiver under paragraph (1) is executed by an

individual who after the execution of the waiver enters military

service, or by a dependent of an individual who after the

execution of the waiver enters military service, the waiver

is not valid after the beginning of the period of such military

service unless the waiver was executed by such individual

or dependent during the period specified in section 106.

50 USC app. 513.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2839

‘‘SEC. 104. EXTENSION OF PROTECTIONS TO CITIZENS SERVING WITH

ALLIED FORCES.

‘‘A citizen of the United States who is serving with the forces

of a nation with which the United States is allied in the prosecution

of a war or military action is entitled to the relief and protections

provided under this Act if that service with the allied force is

similar to military service as defined in this Act. The relief and

protections provided to such citizen shall terminate on the date

of discharge or release from such service.

‘‘SEC. 105. NOTIFICATION OF BENEFITS.

‘‘The Secretary concerned shall ensure that notice of the benefits accorded by this Act is provided in writing to persons in military

service and to persons entering military service.

‘‘SEC. 106. EXTENSION OF RIGHTS AND PROTECTIONS TO RESERVES

ORDERED TO REPORT FOR MILITARY SERVICE AND TO

PERSONS ORDERED TO REPORT FOR INDUCTION.

‘‘(a) RESERVES ORDERED TO REPORT FOR MILITARY SERVICE.— A member of a reserve component who is ordered to report for

military service is entitled to the rights and protections of this

title and titles II and III during the period beginning on the date

of the member’s receipt of the order and ending on the date on

which the member reports for military service (or, if the order

is revoked before the member so reports, or the date on which

the order is revoked).

‘‘(b) PERSONS ORDERED TO REPORT FOR INDUCTION.—A person

who has been ordered to report for induction under the Military

Selective Service Act (50 U.S.C. App. 451 et seq.) is entitled to

the rights and protections provided a servicemember under this

title and titles II and III during the period beginning on the date

of receipt of the order for induction and ending on the date on

which the person reports for induction (or, if the order to report

for induction is revoked before the date on which the person reports

for induction, on the date on which the order is revoked).

‘‘SEC. 107. WAIVER OF RIGHTS PURSUANT TO WRITTEN AGREEMENT.

‘‘(a) IN GENERAL.—A servicemember may waive any of the

rights and protections provided by this Act. In the case of a waiver

that permits an action described in subsection (b), the waiver is

effective only if made pursuant to a written agreement of the

parties that is executed during or after the servicemember’s period

of military service. The written agreement shall specify the legal

instrument to which the waiver applies and, if the servicemember

is not a party to that instrument, the servicemember concerned.

‘‘(b) ACTIONS REQUIRING WAIVERS IN WRITING.—The requirement in subsection (a) for a written waiver applies to the following:

‘‘(1) The modification, termination, or cancellation of—

‘‘(A) a contract, lease, or bailment; or

‘‘(B) an obligation secured by a mortgage, trust, deed,

lien, or other security in the nature of a mortgage.

‘‘(2) The repossession, retention, foreclosure, sale, forfeiture,

or taking possession of property that—

‘‘(A) is security for any obligation; or

‘‘(B) was purchased or received under a contract, lease,

or bailment.

‘‘(c) COVERAGE OF PERIODS AFTER ORDERS RECEIVED.—For the

purposes of this section—

50 USC app. 517.

50 USC app. 516.

50 USC app. 515.

Termination

date.

50 USC app. 514.

117 STAT. 2840 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘(1) a person to whom section 106 applies shall be considered to be a servicemember; and

‘‘(2) the period with respect to such a person specified

in subsection (a) or (b), as the case may be, of section 106

shall be considered to be a period of military service.

‘‘SEC. 108. EXERCISE OF RIGHTS UNDER ACT NOT TO AFFECT CERTAIN

FUTURE FINANCIAL TRANSACTIONS.

‘‘Application by a servicemember for, or receipt by a

servicemember of, a stay, postponement, or suspension pursuant

to this Act in the payment of a tax, fine, penalty, insurance premium, or other civil obligation or liability of that servicemember

shall not itself (without regard to other considerations) provide

the basis for any of the following:

‘‘(1) A determination by a lender or other person that

the servicemember is unable to pay the civil obligation or

liability in accordance with its terms.

‘‘(2) With respect to a credit transaction between a creditor

and the servicemember—

‘‘(A) a denial or revocation of credit by the creditor;

‘‘(B) a change by the creditor in the terms of an existing

credit arrangement; or

‘‘(C) a refusal by the creditor to grant credit to the

servicemember in substantially the amount or on substantially the terms requested.

‘‘(3) An adverse report relating to the creditworthiness

of the servicemember by or to a person engaged in the practice

of assembling or evaluating consumer credit information.

‘‘(4) A refusal by an insurer to insure the servicemember.

‘‘(5) An annotation in a servicemember’s record by a creditor

or a person engaged in the practice of assembling or evaluating

consumer credit information, identifying the servicemember as

a member of the National Guard or a reserve component.

‘‘(6) A change in the terms offered or conditions required

for the issuance of insurance.

‘‘SEC. 109. LEGAL REPRESENTATIVES.

‘‘(a) REPRESENTATIVE.—A legal representative of a

servicemember for purposes of this Act is either of the following:

‘‘(1) An attorney acting on the behalf of a servicemember.

‘‘(2) An individual possessing a power of attorney.

‘‘(b) APPLICATION.—Whenever the term ‘servicemember’ is used

in this Act, such term shall be treated as including a reference

to a legal representative of the servicemember.

‘‘TITLE II—GENERAL RELIEF

‘‘SEC. 201. PROTECTION OF SERVICEMEMBERS AGAINST DEFAULT

JUDGMENTS.

‘‘(a) APPLICABILITY OF SECTION.—This section applies to any

civil action or proceeding in which the defendant does not make

an appearance.

‘‘(b) AFFIDAVIT REQUIREMENT.—

‘‘(1) PLAINTIFF TO FILE AFFIDAVIT.—In any action or proceeding covered by this section, the court, before entering judgment for the plaintiff, shall require the plaintiff to file with

the court an affidavit—

50 USC app. 521.

50 USC app. 519.

50 USC app. 518.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2841

‘‘(A) stating whether or not the defendant is in military

service and showing necessary facts to support the affidavit;

or

‘‘(B) if the plaintiff is unable to determine whether

or not the defendant is in military service, stating that

the plaintiff is unable to determine whether or not the

defendant is in military service.

‘‘(2) APPOINTMENT OF ATTORNEY TO REPRESENT DEFENDANT

IN MILITARY SERVICE.—If in an action covered by this section

it appears that the defendant is in military service, the court

may not enter a judgment until after the court appoints an

attorney to represent the defendant. If an attorney appointed

under this section to represent a servicemember cannot locate

the servicemember, actions by the attorney in the case shall

not waive any defense of the servicemember or otherwise bind

the servicemember.

‘‘(3) DEFENDANT’S MILITARY STATUS NOT ASCERTAINED BY

AFFIDAVIT.—If based upon the affidavits filed in such an action,

the court is unable to determine whether the defendant is

in military service, the court, before entering judgment, may

require the plaintiff to file a bond in an amount approved

by the court. If the defendant is later found to be in military

service, the bond shall be available to indemnify the defendant

against any loss or damage the defendant may suffer by reason

of any judgment for the plaintiff against the defendant, should

the judgment be set aside in whole or in part. The bond shall

remain in effect until expiration of the time for appeal and

setting aside of a judgment under applicable Federal or State

law or regulation or under any applicable ordinance of a political subdivision of a State. The court may issue such orders

or enter such judgments as the court determines necessary

to protect the rights of the defendant under this Act.

‘‘(4) SATISFACTION OF REQUIREMENT FOR AFFIDAVIT.—The

requirement for an affidavit under paragraph (1) may be satisfied by a statement, declaration, verification, or certificate,

in writing, subscribed and certified or declared to be true under

penalty of perjury.

‘‘(c) PENALTY FOR MAKING OR USING FALSE AFFIDAVIT.—A person who makes or uses an affidavit permitted under subsection

(b) (or a statement, declaration, verification, or certificate as authorized under subsection (b)(4)) knowing it to be false, shall be fined

as provided in title 18, United States Code, or imprisoned for

not more than one year, or both.

‘‘(d) STAY OF PROCEEDINGS.—In an action covered by this section

in which the defendant is in military service, the court shall grant

a stay of proceedings for a minimum period of 90 days under

this subsection upon application of counsel, or on the court’s own

motion, if the court determines that—

‘‘(1) there may be a defense to the action and a defense

cannot be presented without the presence of the defendant;

or

‘‘(2) after due diligence, counsel has been unable to contact

the defendant or otherwise determine if a meritorious defense

exists.

‘‘(e) INAPPLICABILITY OF SECTION 202 PROCEDURES.—A stay of

proceedings under subsection (d) shall not be controlled by procedures or requirements under section 202.

117 STAT. 2842 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘(f) SECTION 202 PROTECTION.—If a servicemember who is a

defendant in an action covered by this section receives actual notice

of the action, the servicemember may request a stay of proceeding

under section 202.

‘‘(g) VACATION OR SETTING ASIDE OF DEFAULT JUDGMENTS.— ‘‘(1) AUTHORITY FOR COURT TO VACATE OR SET ASIDE JUDG- MENT.—If a default judgment is entered in an action covered

by this section against a servicemember during the

servicemember’s period of military service (or within 60 days

after termination of or release from such military service),

the court entering the judgment shall, upon application by

or on behalf of the servicemember, reopen the judgment for

the purpose of allowing the servicemember to defend the action

if it appears that—

‘‘(A) the servicemember was materially affected by reason of that military service in making a defense to the

action; and

‘‘(B) the servicemember has a meritorious or legal

defense to the action or some part of it.

‘‘(2) TIME FOR FILING APPLICATION.—An application under

this subsection must be filed not later than 90 days after

the date of the termination of or release from military service.

‘‘(h) PROTECTION OF BONA FIDE PURCHASER.—If a court vacates,

sets aside, or reverses a default judgment against a servicemember

and the vacating, setting aside, or reversing is because of a provision

of this Act, that action shall not impair a right or title acquired

by a bona fide purchaser for value under the default judgment.

‘‘SEC. 202. STAY OF PROCEEDINGS WHEN SERVICEMEMBER HAS

NOTICE.

‘‘(a) APPLICABILITY OF SECTION.—This section applies to any

civil action or proceeding in which the defendant at the time of

filing an application under this section—

‘‘(1) is in military service or is within 90 days after termination of or release from military service; and

‘‘(2) has received notice of the action or proceeding.

‘‘(b) STAY OF PROCEEDINGS.—

‘‘(1) AUTHORITY FOR STAY.—At any stage before final judgment in a civil action or proceeding in which a servicemember

described in subsection (a) is a party, the court may on its

own motion and shall, upon application by the servicemember,

stay the action for a period of not less than 90 days, if the

conditions in paragraph (2) are met.

‘‘(2) CONDITIONS FOR STAY.—An application for a stay under

paragraph (1) shall include the following:

‘‘(A) A letter or other communication setting forth facts

stating the manner in which current military duty requirements materially affect the servicemember’s ability to

appear and stating a date when the servicemember will

be available to appear.

‘‘(B) A letter or other communication from the

servicemember’s commanding officer stating that the

servicemember’s current military duty prevents appearance

and that military leave is not authorized for the

servicemember at the time of the letter.

‘‘(c) APPLICATION NOT A WAIVER OF DEFENSES.—An application

for a stay under this section does not constitute an appearance

50 USC app. 522.

Deadline.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2843

for jurisdictional purposes and does not constitute a waiver of

any substantive or procedural defense (including a defense relating

to lack of personal jurisdiction).

‘‘(d) ADDITIONAL STAY.—

‘‘(1) APPLICATION.—A servicemember who is granted a stay

of a civil action or proceeding under subsection (b) may apply

for an additional stay based on continuing material affect of

military duty on the servicemember’s ability to appear. Such

an application may be made by the servicemember at the

time of the initial application under subsection (b) or when

it appears that the servicemember is unavailable to prosecute

or defend the action. The same information required under

subsection (b)(2) shall be included in an application under

this subsection.

‘‘(2) APPOINTMENT OF COUNSEL WHEN ADDITIONAL STAY

REFUSED.—If the court refuses to grant an additional stay of

proceedings under paragraph (1), the court shall appoint

counsel to represent the servicemember in the action or proceeding.

‘‘(e) COORDINATION WITH SECTION 201.—A servicemember who

applies for a stay under this section and is unsuccessful may not

seek the protections afforded by section 201.

‘‘(f) INAPPLICABILITY TO SECTION 301.—The protections of this

section do not apply to section 301.

‘‘SEC. 203. FINES AND PENALTIES UNDER CONTRACTS.

‘‘(a) PROHIBITION OF PENALTIES.—When an action for compliance with the terms of a contract is stayed pursuant to this Act,

a penalty shall not accrue for failure to comply with the terms

of the contract during the period of the stay.

‘‘(b) REDUCTION OR WAIVER OF FINES OR PENALTIES.—If a

servicemember fails to perform an obligation arising under a contract and a penalty is incurred arising from that nonperformance,

a court may reduce or waive the fine or penalty if—

‘‘(1) the servicemember was in military service at the time

the fine or penalty was incurred; and

‘‘(2) the ability of the servicemember to perform the obligation was materially affected by such military service.

‘‘SEC. 204. STAY OR VACATION OF EXECUTION OF JUDGMENTS,

ATTACHMENTS, AND GARNISHMENTS.

‘‘(a) COURT ACTION UPON MATERIAL AFFECT DETERMINATION.—

If a servicemember, in the opinion of the court, is materially affected

by reason of military service in complying with a court judgment

or order, the court may on its own motion and shall on application

by the servicemember—

‘‘(1) stay the execution of any judgment or order entered

against the servicemember; and

‘‘(2) vacate or stay an attachment or garnishment of property, money, or debts in the possession of the servicemember

or a third party, whether before or after judgment.

‘‘(b) APPLICABILITY.—This section applies to an action or proceeding commenced in a court against a servicemember before or

during the period of the servicemember’s military service or within

90 days after such service terminates.

50 USC app. 524.

50 USC app. 523.

117 STAT. 2844 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘SEC. 205. DURATION AND TERM OF STAYS; CODEFENDANTS NOT IN

SERVICE.

‘‘(a) PERIOD OF STAY.—A stay of an action, proceeding, attachment, or execution made pursuant to the provisions of this Act

by a court may be ordered for the period of military service and

90 days thereafter, or for any part of that period. The court may

set the terms and amounts for such installment payments as is

considered reasonable by the court.

‘‘(b) CODEFENDANTS.—If the servicemember is a codefendant

with others who are not in military service and who are not entitled

to the relief and protections provided under this Act, the plaintiff

may proceed against those other defendants with the approval

of the court.

‘‘(c) INAPPLICABILITY OF SECTION.—This section does not apply

to sections 202 and 701.

‘‘SEC. 206. STATUTE OF LIMITATIONS.

‘‘(a) TOLLING OF STATUTES OF LIMITATION DURING MILITARY

SERVICE.—The period of a servicemember’s military service may

not be included in computing any period limited by law, regulation,

or order for the bringing of any action or proceeding in a court,

or in any board, bureau, commission, department, or other agency

of a State (or political subdivision of a State) or the United States

by or against the servicemember or the servicemember’s heirs,

executors, administrators, or assigns.

‘‘(b) REDEMPTION OF REAL PROPERTY.—A period of military

service may not be included in computing any period provided

by law for the redemption of real property sold or forfeited to

enforce an obligation, tax, or assessment.

‘‘(c) INAPPLICABILITY TO INTERNAL REVENUE LAWS.—This section does not apply to any period of limitation prescribed by or

under the internal revenue laws of the United States.

‘‘SEC. 207. MAXIMUM RATE OF INTEREST ON DEBTS INCURRED BEFORE

MILITARY SERVICE.

‘‘(a) INTEREST RATE LIMITATION.—

‘‘(1) LIMITATION TO 6 PERCENT.—An obligation or liability

bearing interest at a rate in excess of 6 percent per year

that is incurred by a servicemember, or the servicemember

and the servicemember’s spouse jointly, before the

servicemember enters military service shall not bear interest

at a rate in excess of 6 percent per year during the period

of military service.

‘‘(2) FORGIVENESS OF INTEREST IN EXCESS OF 6 PERCENT.—

Interest at a rate in excess of 6 percent per year that would

otherwise be incurred but for the prohibition in paragraph

(1) is forgiven.

‘‘(3) PREVENTION OF ACCELERATION OF PRINCIPAL.—The

amount of any periodic payment due from a servicemember

under the terms of the instrument that created an obligation

or liability covered by this section shall be reduced by the

amount of the interest forgiven under paragraph (2) that is

allocable to the period for which such payment is made.

‘‘(b) IMPLEMENTATION OF LIMITATION.—

‘‘(1) WRITTEN NOTICE TO CREDITOR.—In order for an obligation or liability of a servicemember to be subject to the interest

Deadline.

50 USC app. 527.

50 USC app. 526.

50 USC app. 525.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2845

rate limitation in subsection (a), the servicemember shall provide to the creditor written notice and a copy of the military

orders calling the servicemember to military service and any

orders further extending military service, not later than 180

days after the date of the servicemember’s termination or

release from military service.

‘‘(2) LIMITATION EFFECTIVE AS OF DATE OF ORDER TO ACTIVE

DUTY.—Upon receipt of written notice and a copy of orders

calling a servicemember to military service, the creditor shall

treat the debt in accordance with subsection (a), effective as

of the date on which the servicemember is called to military

service.

‘‘(c) CREDITOR PROTECTION.—A court may grant a creditor relief

from the limitations of this section if, in the opinion of the court,

the ability of the servicemember to pay interest upon the obligation

or liability at a rate in excess of 6 percent per year is not materially

affected by reason of the servicemember’s military service.

‘‘(d) INTEREST.—As used in this section, the term ‘interest’

includes service charges, renewal charges, fees, or any other charges

(except bona fide insurance) with respect to an obligation or liability.

‘‘TITLE III—RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT, LEASES

‘‘SEC. 301. EVICTIONS AND DISTRESS.

‘‘(a) COURT-ORDERED EVICTION.—

‘‘(1) IN GENERAL.—Except by court order, a landlord (or

another person with paramount title) may not—

‘‘(A) evict a servicemember, or the dependents of a

servicemember, during a period of military service of the

servicemember, from premises—

‘‘(i) that are occupied or intended to be occupied

primarily as a residence; and

‘‘(ii) for which the monthly rent does not exceed

$2,400, as adjusted under paragraph (2) for years after

2003; or

‘‘(B) subject such premises to a distress during the

period of military service.

‘‘(2) HOUSING PRICE INFLATION ADJUSTMENT.—(A) For calendar years beginning with 2004, the amount in effect under

paragraph (1)(A)(ii) shall be increased by the housing price

inflation adjustment for the calendar year involved.

‘‘(B) For purposes of this paragraph—

‘‘(i) The housing price inflation adjustment for any

calendar year is the percentage change (if any) by which—

‘‘(I) the CPI housing component for November of

the preceding calendar year, exceeds

‘‘(II) the CPI housing component for November

of 1984.

‘‘(ii) The term ‘CPI housing component’ means the

index published by the Bureau of Labor Statistics of the

Department of Labor known as the Consumer Price Index,

All Urban Consumers, Rent of Primary Residence, U.S.

City Average.

50 USC app. 531.

117 STAT. 2846 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘(3) PUBLICATION OF HOUSING PRICE INFLATION ADJUST- MENT.—The Secretary of Defense shall cause to be published

in the Federal Register each year the amount in effect under

paragraph (1)(A)(ii) for that year following the housing price

inflation adjustment for that year pursuant to paragraph (2).

Such publication shall be made for a year not later than 60

days after such adjustment is made for that year.

‘‘(b) STAY OF EXECUTION.— ‘‘(1) COURT AUTHORITY.—Upon an application for eviction

or distress with respect to premises covered by this section,

the court may on its own motion and shall, if a request is

made by or on behalf of a servicemember whose ability to

pay the agreed rent is materially affected by military service—

‘‘(A) stay the proceedings for a period of 90 days, unless

in the opinion of the court, justice and equity require

a longer or shorter period of time; or

‘‘(B) adjust the obligation under the lease to preserve

the interests of all parties.

‘‘(2) RELIEF TO LANDLORD.—If a stay is granted under paragraph (1), the court may grant to the landlord (or other person

with paramount title) such relief as equity may require.

‘‘(c) PENALTIES.—

‘‘(1) MISDEMEANOR.—Except as provided in subsection (a),

a person who knowingly takes part in an eviction or distress

described in subsection (a), or who knowingly attempts to do

so, shall be fined as provided in title 18, United States Code,

or imprisoned for not more than one year, or both.

‘‘(2) PRESERVATION OF OTHER REMEDIES AND RIGHTS.—The

remedies and rights provided under this section are in addition

to and do not preclude any remedy for wrongful conversion

(or wrongful eviction) otherwise available under the law to

the person claiming relief under this section, including any

award for consequential and punitive damages.

‘‘(d) RENT ALLOTMENT FROM PAY OF SERVICEMEMBER.—To the

extent required by a court order related to property which is the

subject of a court action under this section, the Secretary concerned

shall make an allotment from the pay of a servicemember to satisfy

the terms of such order, except that any such allotment shall

be subject to regulations prescribed by the Secretary concerned

establishing the maximum amount of pay of servicemembers that

may be allotted under this subsection.

‘‘(e) LIMITATION OF APPLICABILITY.—Section 202 is not

applicable to this section.

‘‘SEC. 302. PROTECTION UNDER INSTALLMENT CONTRACTS FOR PURCHASE OR LEASE.

‘‘(a) PROTECTION UPON BREACH OF CONTRACT.—

‘‘(1) PROTECTION AFTER ENTERING MILITARY SERVICE.—After

a servicemember enters military service, a contract by the

servicemember for—

‘‘(A) the purchase of real or personal property

(including a motor vehicle); or

‘‘(B) the lease or bailment of such property,

may not be rescinded or terminated for a breach of terms

of the contract occurring before or during that person’s military

service, nor may the property be repossessed for such breach

without a court order.

50 USC app. 532.

Deadline.

Federal Register,

publication.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2847

‘‘(2) APPLICABILITY.—This section applies only to a contract

for which a deposit or installment has been paid by the

servicemember before the servicemember enters military

service.

‘‘(b) PENALTIES.— ‘‘(1) MISDEMEANOR.—A person who knowingly resumes

possession of property in violation of subsection (a), or in violation of section 107 of this Act, or who knowingly attempts

to do so, shall be fined as provided in title 18, United States

Code, or imprisoned for not more than one year, or both.

‘‘(2) PRESERVATION OF OTHER REMEDIES AND RIGHTS.—The

remedies and rights provided under this section are in addition

to and do not preclude any remedy for wrongful conversion

otherwise available under law to the person claiming relief

under this section, including any award for consequential and

punitive damages.

‘‘(c) AUTHORITY OF COURT.—In a hearing based on this section,

the court—

‘‘(1) may order repayment to the servicemember of all or

part of the prior installments or deposits as a condition of

terminating the contract and resuming possession of the property;

‘‘(2) may, on its own motion, and shall on application by

a servicemember when the servicemember’s ability to comply

with the contract is materially affected by military service,

stay the proceedings for a period of time as, in the opinion

of the court, justice and equity require; or

‘‘(3) may make other disposition as is equitable to preserve

the interests of all parties.

‘‘SEC. 303. MORTGAGES AND TRUST DEEDS.

‘‘(a) MORTGAGE AS SECURITY.—This section applies only to an

obligation on real or personal property owned by a servicemember

that—

‘‘(1) originated before the period of the servicemember’s

military service and for which the servicemember is still obligated; and

‘‘(2) is secured by a mortgage, trust deed, or other security

in the nature of a mortgage.

‘‘(b) STAY OF PROCEEDINGS AND ADJUSTMENT OF OBLIGATION.—

In an action filed during, or within 90 days after, a servicemember’s

period of military service to enforce an obligation described in

subsection (a), the court may after a hearing and on its own motion

and shall upon application by a servicemember when the

servicemember’s ability to comply with the obligation is materially

affected by military service—

‘‘(1) stay the proceedings for a period of time as justice

and equity require, or

‘‘(2) adjust the obligation to preserve the interests of all

parties.

‘‘(c) SALE OR FORECLOSURE.—A sale, foreclosure, or seizure

of property for a breach of an obligation described in subsection

(a) shall not be valid if made during, or within 90 days after,

the period of the servicemember’s military service except—

‘‘(1) upon a court order granted before such sale, foreclosure, or seizure with a return made and approved by the

court; or

Applicability.

50 USC app. 533.

117 STAT. 2848 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘(2) if made pursuant to an agreement as provided in

section 107.

‘‘(d) PENALTIES.— ‘‘(1) MISDEMEANOR.—A person who knowingly makes or

causes to be made a sale, foreclosure, or seizure of property

that is prohibited by subsection (c), or who knowingly attempts

to do so, shall be fined as provided in title 18, United States

Code, or imprisoned for not more than one year, or both.

‘‘(2) PRESERVATION OF OTHER REMEDIES.—The remedies and

rights provided under this section are in addition to and do

not preclude any remedy for wrongful conversion otherwise

available under law to the person claiming relief under this

section, including consequential and punitive damages.

‘‘SEC. 304. SETTLEMENT OF STAYED CASES RELATING TO PERSONAL

PROPERTY.

‘‘(a) APPRAISAL OF PROPERTY.—When a stay is granted pursuant

to this Act in a proceeding to foreclose a mortgage on or to repossess

personal property, or to rescind or terminate a contract for the

purchase of personal property, the court may appoint three disinterested parties to appraise the property.

‘‘(b) EQUITY PAYMENT.—Based on the appraisal, and if undue

hardship to the servicemember’s dependents will not result, the

court may order that the amount of the servicemember’s equity

in the property be paid to the servicemember, or the

servicemember’s dependents, as a condition of foreclosing the mortgage, repossessing the property, or rescinding or terminating the

contract.

‘‘SEC. 305. TERMINATION OF RESIDENTIAL OR MOTOR VEHICLE

LEASES.

‘‘(a) TERMINATION BY LESSEE.—The lessee on a lease described

in subsection (b) may, at the lessee’s option, terminate the lease

at any time after—

‘‘(1) the lessee’s entry into military service; or

‘‘(2) the date of the lessee’s military orders described in

paragraph (1)(B) or (2)(B) of subsection (b), as the case may

be.

‘‘(b) COVERED LEASES.—This section applies to the following

leases:

‘‘(1) LEASES OF PREMISES.—A lease of premises occupied,

or intended to be occupied, by a servicemember or a

servicemember’s dependents for a residential, professional,

business, agricultural, or similar purpose if—

‘‘(A) the lease is executed by or on behalf of a person

who thereafter and during the term of the lease enters

military service; or

‘‘(B) the servicemember, while in military service, executes the lease and thereafter receives military orders for

a permanent change of station or to deploy with a military

unit for a period of not less than 90 days.

‘‘(2) LEASES OF MOTOR VEHICLES.—A lease of a motor vehicle

used, or intended to be used, by a servicemember or a

servicemember’s dependents for personal or business transportation if—

‘‘(A) the lease is executed by or on behalf of a person

who thereafter and during the term of the lease enters

military service under a call or order specifying a period

Applicability.

50 USC app. 535.

50 USC app. 534.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2849

of not less than 180 days (or who enters military service

under a call or order specifying a period of 180 days or

less and who, without a break in service, receives orders

extending the period of military service to a period of

not less than 180 days); or

‘‘(B) the servicemember, while in military service, executes the lease and thereafter receives military orders for

a permanent change of station outside of the continental

United States or to deploy with a military unit for a period

of not less than 180 days.

‘‘(c) MANNER OF TERMINATION.—

‘‘(1) IN GENERAL.—Termination of a lease under subsection

(a) is made—

‘‘(A) by delivery by the lessee of written notice of such

termination, and a copy of the servicemember’s military

orders, to the lessor (or the lessor’s grantee), or to the

lessor’s agent (or the agent’s grantee); and

‘‘(B) in the case of a lease of a motor vehicle, by

return of the motor vehicle by the lessee to the lessor

(or the lessor’s grantee), or to the lessor’s agent (or the

agent’s grantee), not later than 15 days after the date

of the delivery of written notice under subparagraph (A).

‘‘(2) DELIVERY OF NOTICE.—Delivery of notice under paragraph (1)(A) may be accomplished—

‘‘(A) by hand delivery;

‘‘(B) by private business carrier; or

‘‘(C) by placing the written notice in an envelope with

sufficient postage and with return receipt requested, and

addressed as designated by the lessor (or the lessor’s

grantee) or to the lessor’s agent (or the agent’s grantee),

and depositing the written notice in the United States

mails.

‘‘(d) EFFECTIVE DATE OF LEASE TERMINATION.—

‘‘(1) LEASE OF PREMISES.—In the case of a lease described

in subsection (b)(1) that provides for monthly payment of rent,

termination of the lease under subsection (a) is effective 30

days after the first date on which the next rental payment

is due and payable after the date on which the notice under

subsection (c) is delivered. In the case of any other lease

described in subsection (b)(1), termination of the lease under

subsection (a) is effective on the last day of the month following

the month in which the notice is delivered.

‘‘(2) LEASE OF MOTOR VEHICLES.—In the case of a lease

described in subsection (b)(2), termination of the lease under

subsection (a) is effective on the day on which the requirements

of subsection (c) are met for such termination.

‘‘(e) ARREARAGES AND OTHER OBLIGATIONS AND LIABILITIES.—

Rents or lease amounts unpaid for the period preceding the effective

date of the lease termination shall be paid on a prorated basis.

In the case of the lease of a motor vehicle, the lessor may not

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

and title and registration fees and any other obligation and liability

of the lessee in accordance with the terms of the lease, including

reasonable charges to the lessee for excess wear, use and mileage,

that are due and unpaid at the time of termination of the lease

shall be paid by the lessee.

Deadline.

117 STAT. 2850 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘(f) RENT PAID IN ADVANCE.—Rents or lease amounts paid

in advance for a period after the effective date of the termination

of the lease shall be refunded to the lessee by the lessor (or the

lessor’s assignee or the assignee’s agent) within 30 days of the

effective date of the termination of the lease.

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

a court before the termination date provided in the written notice,

relief granted by this section to a servicemember may be modified

as justice and equity require.

‘‘(h) PENALTIES.—

‘‘(1) MISDEMEANOR.—Any person who knowingly seizes,

holds, or detains the personal effects, security deposit, or other

property of a servicemember or a servicemember’s dependent

who lawfully terminates a lease covered by this section, or

who knowingly interferes with the removal of such property

from premises covered by such lease, for the purpose of subjecting or attempting to subject any of such property to a

claim for rent accruing subsequent to the date of termination

of such lease, or attempts to do so, shall be fined as provided

in title 18, United States Code, or imprisoned for not more

than one year, or both.

‘‘(2) PRESERVATION OF OTHER REMEDIES.—The remedy and

rights provided under this section are in addition to and do

not preclude any remedy for wrongful conversion otherwise

available under law to the person claiming relief under this

section, including any award for consequential or punitive damages.

‘‘SEC. 306. PROTECTION OF LIFE INSURANCE POLICY.

‘‘(a) ASSIGNMENT OF POLICY PROTECTED.—If a life insurance

policy on the life of a servicemember is assigned before military

service to secure the payment of an obligation, the assignee of

the policy (except the insurer in connection with a policy loan)

may not exercise, during a period of military service of the

servicemember or within one year thereafter, any right or option

obtained under the assignment without a court order.

‘‘(b) EXCEPTION.—The prohibition in subsection (a) shall not

apply—

‘‘(1) if the assignee has the written consent of the insured

made during the period described in subsection (a);

‘‘(2) when the premiums on the policy are due and unpaid;

or

‘‘(3) upon the death of the insured.

‘‘(c) ORDER REFUSED BECAUSE OF MATERIAL AFFECT.—A court

which receives an application for an order required under subsection

(a) may refuse to grant such order if the court determines the

ability of the servicemember to comply with the terms of the obligation is materially affected by military service.

‘‘(d) TREATMENT OF GUARANTEED PREMIUMS.—For purposes of

this subsection, premiums guaranteed under the provisions of title

IV of this Act shall not be considered due and unpaid.

‘‘(e) PENALTIES.—

‘‘(1) MISDEMEANOR.—A person who knowingly takes an

action contrary to this section, or attempts to do so, shall

be fined as provided in title 18, United States Code, or imprisoned for not more than one year, or both.

50 USC app. 536.

Deadline.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2851

‘‘(2) PRESERVATION OF OTHER REMEDIES.—The remedy and

rights provided under this section are in addition to and do

not preclude any remedy for wrongful conversion otherwise

available under law to the person claiming relief under this

section, including any consequential or punitive damages.

‘‘SEC. 307. ENFORCEMENT OF STORAGE LIENS.

‘‘(a) LIENS.— ‘‘(1) LIMITATION ON FORECLOSURE OR ENFORCEMENT.—A

person holding a lien on the property or effects of a

servicemember may not, during any period of military service

of the servicemember and for 90 days thereafter, foreclose or

enforce any lien on such property or effects without a court

order granted before foreclosure or enforcement.

‘‘(2) LIEN DEFINED.—For the purposes of paragraph (1),

the term ‘lien’ includes a lien for storage, repair, or cleaning

of the property or effects of a servicemember or a lien on

such property or effects for any other reason.

‘‘(b) STAY OF PROCEEDINGS.—In a proceeding to foreclose or

enforce a lien subject to this section, the court may on its own

motion, and shall if requested by a servicemember whose ability

to comply with the obligation resulting in the proceeding is materially affected by military service—

‘‘(1) stay the proceeding for a period of time as justice

and equity require; or

‘‘(2) adjust the obligation to preserve the interests of all

parties.

The provisions of this subsection do not affect the scope of section

303.

‘‘(c) PENALTIES.— ‘‘(1) MISDEMEANOR.—A person who knowingly takes an

action contrary to this section, or attempts to do so, shall

be fined as provided in title 18, United States Code, or imprisoned for not more than one year, or both.

‘‘(2) PRESERVATION OF OTHER REMEDIES.—The remedy and

rights provided under this section are in addition to and do

not preclude any remedy for wrongful conversion otherwise

available under law to the person claiming relief under this

section, including any consequential or punitive damages.

‘‘SEC. 308. EXTENSION OF PROTECTIONS TO DEPENDENTS.

‘‘Upon application to a court, a dependent of a servicemember

is entitled to the protections of this title if the dependent’s ability

to comply with a lease, contract, bailment, or other obligation is

materially affected by reason of the servicemember’s military

service.

‘‘TITLE IV—LIFE INSURANCE

‘‘SEC. 401. DEFINITIONS.

‘‘For the purposes of this title:

‘‘(1) POLICY.—The term ‘policy’ means any individual contract for whole, endowment, universal, or term life insurance

(other than group term life insurance coverage), including any

benefit in the nature of such insurance arising out of membership in any fraternal or beneficial association which—

‘‘(A) provides that the insurer may not—

50 USC app. 541.

50 USC app. 538.

50 USC app. 537.

117 STAT. 2852 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘(i) decrease the amount of coverage or require

the payment of an additional amount as premiums

if the insured engages in military service (except

increases in premiums in individual term insurance

based upon age); or

‘‘(ii) limit or restrict coverage for any activity

required by military service; and

‘‘(B) is in force not less than 180 days before the

date of the insured’s entry into military service and at

the time of application under this title.

‘‘(2) PREMIUM.—The term ‘premium’ means the amount

specified in an insurance policy to be paid to keep the policy

in force.

‘‘(3) INSURED.—The term ‘insured’ means a servicemember

whose life is insured under a policy.

‘‘(4) INSURER.—The term ‘insurer’ includes any firm, corporation, partnership, association, or business that is chartered

or authorized to provide insurance and issue contracts or policies by the laws of a State or the United States.

‘‘SEC. 402. INSURANCE RIGHTS AND PROTECTIONS.

‘‘(a) RIGHTS AND PROTECTIONS.—The rights and protections

under this title apply to the insured when—

‘‘(1) the insured,

‘‘(2) the insured’s legal representative, or

‘‘(3) the insured’s beneficiary in the case of an insured

who is outside a State,

applies in writing for protection under this title, unless the Secretary of Veterans Affairs determines that the insured’s policy

is not entitled to protection under this title.

‘‘(b) NOTIFICATION AND APPLICATION.—The Secretary of Veterans Affairs shall notify the Secretary concerned of the procedures

to be used to apply for the protections provided under this title.

The applicant shall send the original application to the insurer

and a copy to the Secretary of Veterans Affairs.

‘‘(c) LIMITATION ON AMOUNT.—The total amount of life insurance coverage protection provided by this title for a servicemember

may not exceed $250,000, or an amount equal to the

Servicemember’s Group Life Insurance maximum limit, whichever

is greater, regardless of the number of policies submitted.

‘‘SEC. 403. APPLICATION FOR INSURANCE PROTECTION.

‘‘(a) APPLICATION PROCEDURE.—An application for protection

under this title shall—

‘‘(1) be in writing and signed by the insured, the insured’s

legal representative, or the insured’s beneficiary, as the case

may be;

‘‘(2) identify the policy and the insurer; and

‘‘(3) include an acknowledgement that the insured’s rights

under the policy are subject to and modified by the provisions

of this title.

‘‘(b) ADDITIONAL REQUIREMENTS.—The Secretary of Veterans

Affairs may require additional information from the applicant, the

insured and the insurer to determine if the policy is entitled to

protection under this title.

‘‘(c) NOTICE TO THE SECRETARY BY THE INSURER.—Upon receipt

of the application of the insured, the insurer shall furnish a report

Reports.

Regulations.

50 USC app. 543.

50 USC app. 542.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2853

concerning the policy to the Secretary of Veterans Affairs as

required by regulations prescribed by the Secretary.

‘‘(d) POLICY MODIFICATION.—Upon application for protection

under this title, the insured and the insurer shall have constructively agreed to any policy modification necessary to give this title

full force and effect.

‘‘SEC. 404. POLICIES ENTITLED TO PROTECTION AND LAPSE OF POLICIES.

‘‘(a) DETERMINATION.—The Secretary of Veterans Affairs shall

determine whether a policy is entitled to protection under this

title and shall notify the insured and the insurer of that determination.

‘‘(b) LAPSE PROTECTION.—A policy that the Secretary determines is entitled to protection under this title shall not lapse

or otherwise terminate or be forfeited for the nonpayment of a

premium, or interest or indebtedness on a premium, after the

date on which the application for protection is received by the

Secretary.

‘‘(c) TIME APPLICATION.—The protection provided by this title

applies during the insured’s period of military service and for a

period of two years thereafter.

‘‘SEC. 405. POLICY RESTRICTIONS.

‘‘(a) DIVIDENDS.—While a policy is protected under this title,

a dividend or other monetary benefit under a policy may not be

paid to an insured or used to purchase dividend additions without

the approval of the Secretary of Veterans Affairs. If such approval

is not obtained, the dividends or benefits shall be added to the

value of the policy to be used as a credit when final settlement

is made with the insurer.

‘‘(b) SPECIFIC RESTRICTIONS.—While a policy is protected under

this title, cash value, loan value, withdrawal of dividend accumulation, unearned premiums, or other value of similar character may

not be available to the insured without the approval of the Secretary. The right of the insured to change a beneficiary designation

or select an optional settlement for a beneficiary shall not be

affected by the provisions of this title.

‘‘SEC. 406. DEDUCTION OF UNPAID PREMIUMS.

‘‘(a) SETTLEMENT OF PROCEEDS.—If a policy matures as a result

of a servicemember’s death or otherwise during the period of protection of the policy under this title, the insurer in making settlement

shall deduct from the insurance proceeds the amount of the unpaid

premiums guaranteed under this title, together with interest due

at the rate fixed in the policy for policy loans.

‘‘(b) INTEREST RATE.—If the interest rate is not specifically

fixed in the policy, the rate shall be the same as for policy loans

in other policies issued by the insurer at the time the insured’s

policy was issued.

‘‘(c) REPORTING REQUIREMENT.—The amount deducted under

this section, if any, shall be reported by the insurer to the Secretary

of Veterans Affairs.

‘‘SEC. 407. PREMIUMS AND INTEREST GUARANTEED BY UNITED

STATES.

‘‘(a) GUARANTEE OF PREMIUMS AND INTEREST BY THE UNITED

STATES.—

50 USC app. 547.

50 USC app. 546.

50 USC app. 545.

50 USC app. 544.

117 STAT. 2854 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘(1) GUARANTEE.—Payment of premiums, and interest on

premiums at the rate specified in section 406, which become

due on a policy under the protection of this title is guaranteed

by the United States. If the amount guaranteed is not paid

to the insurer before the period of insurance protection under

this title expires, the amount due shall be treated by the

insurer as a policy loan on the policy.

‘‘(2) POLICY TERMINATION.—If, at the expiration of insurance protection under this title, the cash surrender value of

a policy is less than the amount due to pay premiums and

interest on premiums on the policy, the policy shall terminate.

Upon such termination, the United States shall pay the insurer

the difference between the amount due and the cash surrender

value.

‘‘(b) RECOVERY FROM INSURED OF AMOUNTS PAID BY THE UNITED

STATES.—

‘‘(1) DEBT PAYABLE TO THE UNITED STATES.—The amount

paid by the United States to an insurer under this title shall

be a debt payable to the United States by the insured on

whose policy payment was made.

‘‘(2) COLLECTION.—Such amount may be collected by the

United States, either as an offset from any amount due the

insured by the United States or as otherwise authorized by

law.

‘‘(3) DEBT NOT DISCHARGEABLE IN BANKRUPTCY.—Such debt

payable to the United States is not dischargeable in bankruptcy

proceedings.

‘‘(c) CREDITING OF AMOUNTS RECOVERED.—Any amounts

received by the United States as repayment of debts incurred by

an insured under this title shall be credited to the appropriation

for the payment of claims under this title.

‘‘SEC. 408. REGULATIONS.

‘‘The Secretary of Veterans Affairs shall prescribe regulations

for the implementation of this title.

‘‘SEC. 409. REVIEW OF FINDINGS OF FACT AND CONCLUSIONS OF LAW.

‘‘The findings of fact and conclusions of law made by the Secretary of Veterans Affairs in administering this title are subject

to review on appeal to the Board of Veterans’ Appeals pursuant

to chapter 71 of title 38, United States Code, and to judicial review

only as provided in chapter 72 of such title.

‘‘TITLE V—TAXES AND PUBLIC LANDS

‘‘SEC. 501. TAXES RESPECTING PERSONAL PROPERTY, MONEY,

CREDITS, AND REAL PROPERTY.

‘‘(a) APPLICATION.—This section applies in any case in which

a tax or assessment, whether general or special (other than a

tax on personal income), falls due and remains unpaid before or

during a period of military service with respect to a

servicemember’s—

‘‘(1) personal property (including motor vehicles); or

‘‘(2) real property occupied for dwelling, professional, business, or agricultural purposes by a servicemember or the

servicemember’s dependents or employees—

50 USC app. 561.

50 USC app. 549.

50 USC app. 548.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2855

‘‘(A) before the servicemember’s entry into military

service; and

‘‘(B) during the time the tax or assessment remains

unpaid.

‘‘(b) SALE OF PROPERTY.—

‘‘(1) LIMITATION ON SALE OF PROPERTY TO ENFORCE TAX

ASSESSMENT.—Property described in subsection (a) may not

be sold to enforce the collection of such tax or assessment

except by court order and upon the determination by the court

that military service does not materially affect the

servicemember’s ability to pay the unpaid tax or assessment.

‘‘(2) STAY OF COURT PROCEEDINGS.—A court may stay a

proceeding to enforce the collection of such tax or assessment,

or sale of such property, during a period of military service

of the servicemember and for a period not more than 180

days after the termination of, or release of the servicemember

from, military service.

‘‘(c) REDEMPTION.—When property described in subsection (a)

is sold or forfeited to enforce the collection of a tax or assessment,

a servicemember shall have the right to redeem or commence an

action to redeem the servicemember’s property during the period

of military service or within 180 days after termination of or release

from military service. This subsection may not be construed to

shorten any period provided by the law of a State (including any

political subdivision of a State) for redemption.

‘‘(d) INTEREST ON TAX OR ASSESSMENT.—Whenever a

servicemember does not pay a tax or assessment on property

described in subsection (a) when due, the amount of the tax or

assessment due and unpaid shall bear interest until paid at the

rate of 6 percent per year. An additional penalty or interest shall

not be incurred by reason of nonpayment. A lien for such unpaid

tax or assessment may include interest under this subsection.

‘‘(e) JOINT OWNERSHIP APPLICATION.—This section applies to

all forms of property described in subsection (a) owned individually

by a servicemember or jointly by a servicemember and a dependent

or dependents.

‘‘SEC. 502. RIGHTS IN PUBLIC LANDS.

‘‘(a) RIGHTS NOT FORFEITED.—The rights of a servicemember

to lands owned or controlled by the United States, and initiated

or acquired by the servicemember under the laws of the United

States (including the mining and mineral leasing laws) before military service, shall not be forfeited or prejudiced as a result of

being absent from the land, or by failing to begin or complete

any work or improvements to the land, during the period of military

service.

‘‘(b) TEMPORARY SUSPENSION OF PERMITS OR LICENSES.—If a

permittee or licensee under the Act of June 28, 1934 (43 U.S.C.

315 et seq.), enters military service, the permittee or licensee may

suspend the permit or license for the period of military service

and for 180 days after termination of or release from military

service.

‘‘(c) REGULATIONS.—Regulations prescribed by the Secretary of

the Interior shall provide for such suspension of permits and

licenses and for the remission, reduction, or refund of grazing

fees during the period of such suspension.

50 USC app. 562.

Applicability.

117 STAT. 2856 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘SEC. 503. DESERT-LAND ENTRIES.

‘‘(a) DESERT-LAND RIGHTS NOT FORFEITED.—A desert-land entry

made or held under the desert-land laws before the entrance of

the entryman or the entryman’s successor in interest into military

service shall not be subject to contest or cancellation—

‘‘(1) for failure to expend any required amount per acre

per year in improvements upon the claim;

‘‘(2) for failure to effect the reclamation of the claim during

the period the entryman or the entryman’s successor in interest

is in the military service, or for 180 days after termination

of or release from military service; or

‘‘(3) during any period of hospitalization or rehabilitation

due to an injury or disability incurred in the line of duty.

The time within which the entryman or claimant is required to

make such expenditures and effect reclamation of the land shall

be exclusive of the time periods described in paragraphs (2) and

(3).

‘‘(b) SERVICE-RELATED DISABILITY.—If an entryman or claimant

is honorably discharged and is unable to accomplish reclamation

of, and payment for, desert land due to a disability incurred in

the line of duty, the entryman or claimant may make proof without

further reclamation or payments, under regulations prescribed by

the Secretary of the Interior, and receive a patent for the land

entered or claimed.

‘‘(c) FILING REQUIREMENT.—In order to obtain the protection

of this section, the entryman or claimant shall, within 180 days

after entry into military service, cause to be filed in the land

office of the district where the claim is situated a notice communicating the fact of military service and the desire to hold the

claim under this section.

‘‘SEC. 504. MINING CLAIMS.

‘‘(a) REQUIREMENTS SUSPENDED.—The provisions of section 2324

of the Revised Statutes of the United States (30 U.S.C. 28) specified

in subsection (b) shall not apply to a servicemember’s claims or

interests in claims, regularly located and recorded, during a period

of military service and 180 days thereafter, or during any period

of hospitalization or rehabilitation due to injuries or disabilities

incurred in the line of duty.

‘‘(b) REQUIREMENTS.—The provisions in section 2324 of the

Revised Statutes that shall not apply under subsection (a) are

those which require that on each mining claim located after May

10, 1872, and until a patent has been issued for such claim, not

less than $100 worth of labor shall be performed or improvements

made during each year.

‘‘(c) PERIOD OF PROTECTION FROM FORFEITURE.—A mining claim

or an interest in a claim owned by a servicemember that has

been regularly located and recorded shall not be subject to forfeiture

for nonperformance of annual assessments during the period of

military service and for 180 days thereafter, or for any period

of hospitalization or rehabilitation described in subsection (a).

‘‘(d) FILING REQUIREMENT.—In order to obtain the protections

of this section, the claimant of a mining location shall, before

the end of the assessment year in which military service is begun

or within 60 days after the end of such assessment year, cause

to be filed in the office where the location notice or certificate

Deadline.

50 USC app. 564.

Deadline.

50 USC app. 563.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2857

is recorded a notice communicating the fact of military service

and the desire to hold the mining claim under this section.

‘‘SEC. 505. MINERAL PERMITS AND LEASES.

‘‘(a) SUSPENSION DURING MILITARY SERVICE.—A person holding

a permit or lease on the public domain under the Federal mineral

leasing laws who enters military service may suspend all operations

under the permit or lease for the duration of military service and

for 180 days thereafter. The term of the permit or lease shall

not run during the period of suspension, nor shall any rental

or royalties be charged against the permit or lease during the

period of suspension.

‘‘(b) NOTIFICATION.—In order to obtain the protection of this

section, the permittee or lessee shall, within 180 days after entry

into military service, notify the Secretary of the Interior by registered mail of the fact that military service has begun and of

the desire to hold the claim under this section.

‘‘(c) CONTRACT MODIFICATION.—This section shall not be construed to supersede the terms of any contract for operation of

a permit or lease.

‘‘SEC. 506. PERFECTION OR DEFENSE OF RIGHTS.

‘‘(a) RIGHT TO TAKE ACTION NOT AFFECTED.—This title shall

not affect the right of a servicemember to take action during a

period of military service that is authorized by law or regulations

of the Department of the Interior, for the perfection, defense, or

further assertion of rights initiated or acquired before entering

military service.

‘‘(b) AFFIDAVITS AND PROOFS.—

‘‘(1) IN GENERAL.—A servicemember during a period of military service may make any affidavit or submit any proof

required by law, practice, or regulation of the Department

of the Interior in connection with the entry, perfection, defense,

or further assertion of rights initiated or acquired before

entering military service before an officer authorized to provide

notary services under section 1044a of title 10, United States

Code, or any superior commissioned officer.

‘‘(2) LEGAL STATUS OF AFFIDAVITS.—Such affidavits shall

be binding in law and subject to the same penalties as prescribed by section 1001 of title 18, United State Code.

‘‘SEC. 507. DISTRIBUTION OF INFORMATION CONCERNING BENEFITS

OF TITLE.

‘‘(a) DISTRIBUTION OF INFORMATION BY SECRETARY CONCERNED.—The Secretary concerned shall issue to servicemembers

information explaining the provisions of this title.

‘‘(b) APPLICATION FORMS.—The Secretary concerned shall provide application forms to servicemembers requesting relief under

this title.

‘‘(c) INFORMATION FROM SECRETARY OF THE INTERIOR.—The

Secretary of the Interior shall furnish to the Secretary concerned

information explaining the provisions of this title (other than sections 501, 510, and 511) and related application forms.

‘‘SEC. 508. LAND RIGHTS OF SERVICEMEMBERS.

‘‘(a) NO AGE LIMITATIONS.—Any servicemember under the age

of 21 in military service shall be entitled to the same rights under

the laws relating to lands owned or controlled by the United States,

50 USC app. 568.

50 USC app. 567.

50 USC app. 566.

Deadline.

50 USC app. 565.

117 STAT. 2858 PUBLIC LAW 108–189—DEC. 19, 2003

including mining and mineral leasing laws, as those servicemembers

who are 21 years of age.

‘‘(b) RESIDENCY REQUIREMENT.—Any requirement related to the

establishment of a residence within a limited time shall be suspended as to entry by a servicemember in military service until

180 days after termination of or release from military service.

‘‘(c) ENTRY APPLICATIONS.—Applications for entry may be

verified before a person authorized to administer oaths under section 1044a of title 10, United States Code, or under the laws

of the State where the land is situated.

‘‘SEC. 509. REGULATIONS.

‘‘The Secretary of the Interior may issue regulations necessary

to carry out this title (other than sections 501, 510, and 511).

‘‘SEC. 510. INCOME TAXES.

‘‘(a) DEFERRAL OF TAX.—Upon notice to the Internal Revenue

Service or the tax authority of a State or a political subdivision

of a State, the collection of income tax on the income of a

servicemember falling due before or during military service shall

be deferred for a period not more than 180 days after termination

of or release from military service, if a servicemember’s ability

to pay such income tax is materially affected by military service.

‘‘(b) ACCRUAL OF INTEREST OR PENALTY.—No interest or penalty

shall accrue for the period of deferment by reason of nonpayment

on any amount of tax deferred under this section.

‘‘(c) STATUTE OF LIMITATIONS.—The running of a statute of

limitations against the collection of tax deferred under this section,

by seizure or otherwise, shall be suspended for the period of military

service of the servicemember and for an additional period of 270

days thereafter.

‘‘(d) APPLICATION LIMITATION.—This section shall not apply to

the tax imposed on employees by section 3101 of the Internal

Revenue Code of 1986.

‘‘SEC. 511. RESIDENCE FOR TAX PURPOSES.

‘‘(a) RESIDENCE OR DOMICILE.—A servicemember shall neither

lose nor acquire a residence or domicile for purposes of taxation

with respect to the person, personal property, or income of the

servicemember by reason of being absent or present in any tax

jurisdiction of the United States solely in compliance with military

orders.

‘‘(b) MILITARY SERVICE COMPENSATION.—Compensation of a

servicemember for military service shall not be deemed to be income

for services performed or from sources within a tax jurisdiction

of the United States if the servicemember is not a resident or

domiciliary of the jurisdiction in which the servicemember is serving

in compliance with military orders.

‘‘(c) PERSONAL PROPERTY.—

‘‘(1) RELIEF FROM PERSONAL PROPERTY TAXES.—The personal property of a servicemember shall not be deemed to

be located or present in, or to have a situs for taxation in,

the tax jurisdiction in which the servicemember is serving

in compliance with military orders.

‘‘(2) EXCEPTION FOR PROPERTY WITHIN MEMBER’S DOMICILE

OR RESIDENCE.—This subsection applies to personal property

or its use within any tax jurisdiction other than the

servicemember’s domicile or residence.

Applicability.

50 USC app. 571.

50 USC app. 570.

50 USC app. 569.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2859

‘‘(3) EXCEPTION FOR PROPERTY USED IN TRADE OR BUSI- NESS.—This section does not prevent taxation by a tax jurisdiction with respect to personal property used in or arising from

a trade or business, if it has jurisdiction.

‘‘(4) RELATIONSHIP TO LAW OF STATE OF DOMICILE.—Eligibility for relief from personal property taxes under this subsection is not contingent on whether or not such taxes are

paid to the State of domicile.

‘‘(d) INCREASE OF TAX LIABILITY.—A tax jurisdiction may not

use the military compensation of a nonresident servicemember to

increase the tax liability imposed on other income earned by the

nonresident servicemember or spouse subject to tax by the jurisdiction.

‘‘(e) FEDERAL INDIAN RESERVATIONS.—An Indian servicemember

whose legal residence or domicile is a Federal Indian reservation

shall be taxed by the laws applicable to Federal Indian reservations

and not the State where the reservation is located.

‘‘(f) DEFINITIONS.—For purposes of this section:

‘‘(1) PERSONAL PROPERTY.—The term ‘personal property’

means intangible and tangible property (including motor

vehicles).

‘‘(2) TAXATION.—The term ‘taxation’ includes licenses, fees,

or excises imposed with respect to motor vehicles and their

use, if the license, fee, or excise is paid by the servicemember

in the servicemember’s State of domicile or residence.

‘‘(3) TAX JURISDICTION.—The term ‘tax jurisdiction’ means

a State or a political subdivision of a State.

‘‘TITLE VI—ADMINISTRATIVE REMEDIES

‘‘SEC. 601. INAPPROPRIATE USE OF ACT.

‘‘If a court determines, in any proceeding to enforce a civil

right, that any interest, property, or contract has been transferred

or acquired with the intent to delay the just enforcement of such

right by taking advantage of this Act, the court shall enter such

judgment or make such order as might lawfully be entered or

made concerning such transfer or acquisition.

‘‘SEC. 602. CERTIFICATES OF SERVICE; PERSONS REPORTED MISSING.

‘‘(a) PRIMA FACIE EVIDENCE.—In any proceeding under this

Act, a certificate signed by the Secretary concerned is prima facie

evidence as to any of the following facts stated in the certificate:

‘‘(1) That a person named is, is not, has been, or has

not been in military service.

‘‘(2) The time and the place the person entered military

service.

‘‘(3) The person’s residence at the time the person entered

military service.

‘‘(4) The rank, branch, and unit of military service of the

person upon entry.

‘‘(5) The inclusive dates of the person’s military service.

‘‘(6) The monthly pay received by the person at the date

of the certificate’s issuance.

‘‘(7) The time and place of the person’s termination of

or release from military service, or the person’s death during

military service.

50 USC app. 582.

50 USC app. 581.

117 STAT. 2860 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘(b) CERTIFICATES.—The Secretary concerned shall furnish a

certificate under subsection (a) upon receipt of an application for

such a certificate. A certificate appearing to be signed by the Secretary concerned is prima facie evidence of its contents and of

the signer’s authority to issue it.

‘‘(c) TREATMENT OF SERVICEMEMBERS IN MISSING STATUS.— A servicemember who has been reported missing is presumed to

continue in service until accounted for. A requirement under this

Act that begins or ends with the death of a servicemember does

not begin or end until the servicemember’s death is reported to,

or determined by, the Secretary concerned or by a court of competent jurisdiction.

‘‘SEC. 603. INTERLOCUTORY ORDERS.

‘‘An interlocutory order issued by a court under this Act may

be revoked, modified, or extended by that court upon its own motion

or otherwise, upon notification to affected parties as required by

the court.

‘‘TITLE VII—FURTHER RELIEF

‘‘SEC. 701. ANTICIPATORY RELIEF.

‘‘(a) APPLICATION FOR RELIEF.—A servicemember may, during

military service or within 180 days of termination of or release

from military service, apply to a court for relief—

‘‘(1) from any obligation or liability incurred by the

servicemember before the servicemember’s military service; or

‘‘(2) from a tax or assessment falling due before or during

the servicemember’s military service.

‘‘(b) TAX LIABILITY OR ASSESSMENT.—In a case covered by subsection (a), the court may, if the ability of the servicemember

to comply with the terms of such obligation or liability or pay

such tax or assessment has been materially affected by reason

of military service, after appropriate notice and hearing, grant

the following relief:

‘‘(1) STAY OF ENFORCEMENT OF REAL ESTATE CONTRACTS.—

‘‘(A) In the case of an obligation payable in installments

under a contract for the purchase of real estate, or secured

by a mortgage or other instrument in the nature of a

mortgage upon real estate, the court may grant a stay

of the enforcement of the obligation—

‘‘(i) during the servicemember’s period of military

service; and

‘‘(ii) from the date of termination of or release

from military service, or from the date of application

if made after termination of or release from military

service.

‘‘(B) Any stay under this paragraph shall be—

‘‘(i) for a period equal to the remaining life of

the installment contract or other instrument, plus a

period of time equal to the period of military service

of the servicemember, or any part of such combined

period; and

‘‘(ii) subject to payment of the balance of the principal and accumulated interest due and unpaid at the

date of termination or release from the applicant’s

50 USC app. 591.

50 USC app. 583.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2861

military service or from the date of application in equal

installments during the combined period at the rate

of interest on the unpaid balance prescribed in the

contract or other instrument evidencing the obligation,

and subject to other terms as may be equitable.

‘‘(2) STAY OF ENFORCEMENT OF OTHER CONTRACTS.—

‘‘(A) In the case of any other obligation, liability, tax,

or assessment, the court may grant a stay of enforcement—

‘‘(i) during the servicemember’s military service;

and

‘‘(ii) from the date of termination of or release

from military service, or from the date of application

if made after termination or release from military

service.

‘‘(B) Any stay under this paragraph shall be—

‘‘(i) for a period of time equal to the period of

the servicemember’s military service or any part of

such period; and

‘‘(ii) subject to payment of the balance of principal

and accumulated interest due and unpaid at the date

of termination or release from military service, or the

date of application, in equal periodic installments

during this extended period at the rate of interest

as may be prescribed for this obligation, liability, tax,

or assessment, if paid when due, and subject to other

terms as may be equitable.

‘‘(c) AFFECT OF STAY ON FINE OR PENALTY.—When a court

grants a stay under this section, a fine or penalty shall not accrue

on the obligation, liability, tax, or assessment for the period of

compliance with the terms and conditions of the stay.

‘‘SEC. 702. POWER OF ATTORNEY.

‘‘(a) AUTOMATIC EXTENSION.—A power of attorney of a

servicemember shall be automatically extended for the period the

servicemember is in a missing status (as defined in section 551(2)

of title 37, United States Code) if the power of attorney—

‘‘(1) was duly executed by the servicemember—

‘‘(A) while in military service; or

‘‘(B) before entry into military service but after the

servicemember—

‘‘(i) received a call or order to report for military

service; or

‘‘(ii) was notified by an official of the Department

of Defense that the person could receive a call or

order to report for military service;

‘‘(2) designates the servicemember’s spouse, parent, or other

named relative as the servicemember’s attorney in fact for

certain, specified, or all purposes; and

‘‘(3) expires by its terms after the servicemember entered

a missing status.

‘‘(b) LIMITATION ON POWER OF ATTORNEY EXTENSION.—A power

of attorney executed by a servicemember may not be extended

under subsection (a) if the document by its terms clearly indicates

that the power granted expires on the date specified even though

the servicemember, after the date of execution of the document,

enters a missing status.

50 USC app. 592.

117 STAT. 2862 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘SEC. 703. PROFESSIONAL LIABILITY PROTECTION.

‘‘(a) APPLICABILITY.—This section applies to a servicemember

who—

‘‘(1) after July 31, 1990, is ordered to active duty (other

than for training) pursuant to sections 688, 12301(a), 12301(g),

12302, 12304, 12306, or 12307 of title 10, United States Code,

or who is ordered to active duty under section 12301(d) of

such title during a period when members are on active duty

pursuant to any of the preceding sections; and

‘‘(2) immediately before receiving the order to active duty—

‘‘(A) was engaged in the furnishing of health-care or

legal services or other services determined by the Secretary

of Defense to be professional services; and

‘‘(B) had in effect a professional liability insurance

policy that does not continue to cover claims filed with

respect to the servicemember during the period of the

servicemember’s active duty unless the premiums are paid

for such coverage for such period.

‘‘(b) SUSPENSION OF COVERAGE.—

‘‘(1) SUSPENSION.—Coverage of a servicemember referred

to in subsection (a) by a professional liability insurance policy

shall be suspended by the insurance carrier in accordance with

this subsection upon receipt of a written request from the

servicemember by the insurance carrier.

‘‘(2) PREMIUMS FOR SUSPENDED CONTRACTS.—A professional

liability insurance carrier—

‘‘(A) may not require that premiums be paid by or

on behalf of a servicemember for any professional liability

insurance coverage suspended pursuant to paragraph (1);

and

‘‘(B) shall refund any amount paid for coverage for

the period of such suspension or, upon the election of

such servicemember, apply such amount for the payment

of any premium becoming due upon the reinstatement of

such coverage.

‘‘(3) NONLIABILITY OF CARRIER DURING SUSPENSION.—A

professional liability insurance carrier shall not be liable with

respect to any claim that is based on professional conduct

(including any failure to take any action in a professional

capacity) of a servicemember that occurs during a period of

suspension of that servicemember’s professional liability insurance under this subsection.

‘‘(4) CERTAIN CLAIMS CONSIDERED TO ARISE BEFORE SUSPENSION.—For the purposes of paragraph (3), a claim based upon

the failure of a professional to make adequate provision for

a patient, client, or other person to receive professional services

or other assistance during the period of the professional’s active

duty service shall be considered to be based on an action

or failure to take action before the beginning of the period

of the suspension of professional liability insurance under this

subsection, except in a case in which professional services were

provided after the date of the beginning of such period.

‘‘(c) REINSTATEMENT OF COVERAGE.—

‘‘(1) REINSTATEMENT REQUIRED.—Professional liability

insurance coverage suspended in the case of any servicemember

pursuant to subsection (b) shall be reinstated by the insurance

50 USC app. 593.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2863

carrier on the date on which that servicemember transmits

to the insurance carrier a written request for reinstatement.

‘‘(2) TIME AND PREMIUM FOR REINSTATEMENT.—The request

of a servicemember for reinstatement shall be effective only

if the servicemember transmits the request to the insurance

carrier within 30 days after the date on which the

servicemember is released from active duty. The insurance

carrier shall notify the servicemember of the due date for

payment of the premium of such insurance. Such premium

shall be paid by the servicemember within 30 days after receipt

of that notice.

‘‘(3) PERIOD OF REINSTATED COVERAGE.—The period for

which professional liability insurance coverage shall be

reinstated for a servicemember under this subsection may not

be less than the balance of the period for which coverage

would have continued under the insurance policy if the coverage

had not been suspended.

‘‘(d) INCREASE IN PREMIUM.—

‘‘(1) LIMITATION ON PREMIUM INCREASES.—An insurance

carrier may not increase the amount of the premium charged

for professional liability insurance coverage of any

servicemember for the minimum period of the reinstatement

of such coverage required under subsection (c)(3) to an amount

greater than the amount chargeable for such coverage for such

period before the suspension.

‘‘(2) EXCEPTION.—Paragraph (1) does not prevent an

increase in premium to the extent of any general increase

in the premiums charged by that carrier for the same professional liability coverage for persons similarly covered by such

insurance during the period of the suspension.

‘‘(e) CONTINUATION OF COVERAGE OF UNAFFECTED PERSONS.—

This section does not—

‘‘(1) require a suspension of professional liability insurance

protection for any person who is not a person referred to in

subsection (a) and who is covered by the same professional

liability insurance as a person referred to in such subsection;

or

‘‘(2) relieve any person of the obligation to pay premiums

for the coverage not required to be suspended.

‘‘(f) STAY OF CIVIL OR ADMINISTRATIVE ACTIONS.—

‘‘(1) STAY OF ACTIONS.—A civil or administrative action

for damages on the basis of the alleged professional negligence

or other professional liability of a servicemember whose professional liability insurance coverage has been suspended under

subsection (b) shall be stayed until the end of the period of

the suspension if—

‘‘(A) the action was commenced during the period of

the suspension;

‘‘(B) the action is based on an act or omission that

occurred before the date on which the suspension became

effective; and

‘‘(C) the suspended professional liability insurance

would, except for the suspension, on its face cover the

alleged professional negligence or other professional

liability negligence or other professional liability of the

servicemember.

Deadline.

Notification.

Deadline.

117 STAT. 2864 PUBLIC LAW 108–189—DEC. 19, 2003

‘‘(2) DATE OF COMMENCEMENT OF ACTION.—Whenever a civil

or administrative action for damages is stayed under paragraph

(1) in the case of any servicemember, the action shall have

been deemed to have been filed on the date on which the

professional liability insurance coverage of the servicemember

is reinstated under subsection (c).

‘‘(g) EFFECT OF SUSPENSION UPON LIMITATIONS PERIOD.—In

the case of a civil or administrative action for which a stay could

have been granted under subsection (f) by reason of the suspension

of professional liability insurance coverage of the defendant under

this section, the period of the suspension of the coverage shall

be excluded from the computation of any statutory period of limitation on the commencement of such action.

‘‘(h) DEATH DURING PERIOD OF SUSPENSION.—If a

servicemember whose professional liability insurance coverage is

suspended under subsection (b) dies during the period of the

suspension—

‘‘(1) the requirement for the grant or continuance of a

stay in any civil or administrative action against such

servicemember under subsection (f)(1) shall terminate on the

date of the death of such servicemember; and

‘‘(2) the carrier of the professional liability insurance so

suspended shall be liable for any claim for damages for professional negligence or other professional liability of the deceased

servicemember in the same manner and to the same extent

as such carrier would be liable if the servicemember had died

while covered by such insurance but before the claim was

filed.

‘‘(i) DEFINITIONS.—For purposes of this section:

‘‘(1) ACTIVE DUTY.—The term ‘active duty’ has the meaning

given that term in section 101(d)(1) of title 10, United States

Code.

‘‘(2) PROFESSION.—The term ‘profession’ includes occupation.

‘‘(3) PROFESSIONAL.—The term ‘professional’ includes

occupational.

‘‘SEC. 704. HEALTH INSURANCE REINSTATEMENT.

‘‘(a) REINSTATEMENT OF HEALTH INSURANCE.—A servicemember

who, by reason of military service as defined in section 703(a)(1),

is entitled to the rights and protections of this Act shall also

be entitled upon termination or release from such service to

reinstatement of any health insurance that—

‘‘(1) was in effect on the day before such service commenced;

and

‘‘(2) was terminated effective on a date during the period

of such service.

‘‘(b) NO EXCLUSION OR WAITING PERIOD.—The reinstatement

of health care insurance coverage for the health or physical condition of a servicemember described in subsection (a), or any other

person who is covered by the insurance by reason of the coverage

of the servicemember, shall not be subject to an exclusion or a

waiting period, if—

‘‘(1) the condition arose before or during the period of

such service;

‘‘(2) an exclusion or a waiting period would not have been

imposed for the condition during the period of coverage; and

50 USC app. 594.

PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2865

‘‘(3) if the condition relates to the servicemember, the condition has not been determined by the Secretary of Veterans

Affairs to be a disability incurred or aggravated in the line

of duty (within the meaning of section 105 of title 38, United

States Code).

‘‘(c) EXCEPTIONS.—Subsection (a) does not apply to a

servicemember entitled to participate in employer-offered insurance

benefits pursuant to the provisions of chapter 43 of title 38, United

States Code.

‘‘(d) TIME FOR APPLYING FOR REINSTATEMENT.—An application

under this section must be filed not later than 120 days after

the date of the termination of or release from military service.

‘‘SEC. 705. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

‘‘For the purposes of voting for any Federal office (as defined

in section 301 of the Federal Election Campaign Act of 1971 (2

U.S.C. 431)) or a State or local office, a person who is absent

from a State in compliance with military or naval orders shall

not, solely by reason of that absence—

‘‘(1) be deemed to have lost a residence or domicile in

that State, without regard to whether or not the person intends

to return to that State;

‘‘(2) be deemed to have acquired a residence or domicile

in any other State; or

‘‘(3) be deemed to have become a resident in or a resident

of any other State.

‘‘SEC. 706. BUSINESS OR TRADE OBLIGATIONS.

‘‘(a) AVAILABILITY OF NON-BUSINESS ASSETS TO SATISFY OBLIGATIONS.—If the trade or business (without regard to the form in

which such trade or business is carried out) of a servicemember

has an obligation or liability for which the servicemember is personally liable, the assets of the servicemember not held in connection

with the trade or business may not be available for satisfaction

of the obligation or liability during the servicemember’s military

service.

‘‘(b) RELIEF TO OBLIGORS.—Upon application to a court by the

holder of an obligation or liability covered by this section, relief

granted by this section to a servicemember may be modified as

justice and equity require.’’.

SEC. 2. CONFORMING AMENDMENTS.

(a) MILITARY SELECTIVE SERVICE ACT.—Section 14 of the Military Selective Service Act (50 U.S.C. App. 464) is repealed.

(b) TITLE 5, UNITED STATES CODE.—

(1) Section 5520a(k)(2)(A) of title 5, United States Code,

is amended by striking ‘‘Soldiers’ and Sailors’ Civil Relief Act

of 1940’’ and inserting ‘‘Servicemembers Civil Relief Act’’; and

(2) Section 5569(e) of title 5, United States Code, is

amended—

(A) in paragraph (1), by striking ‘‘provided by the Soldiers’ and Sailors’ Civil Relief Act of 1940’’ and all that

follows through ‘‘of such Act’’ and inserting ‘‘provided by

the Servicemembers Civil Relief Act, including the benefits

provided by section 702 of such Act but excluding the

benefits provided by sections 104, 105, and 106, title IV,

and title V (other than sections 501 and 510) of such

Act’’; and

50 USC app. 596.

50 USC app. 595.

Deadline.

117 STAT. 2866 PUBLIC LAW 108–189—DEC. 19, 2003

LEGISLATIVE HISTORY—H.R. 100 (S. 1136):

HOUSE REPORTS: No. 108–81 (Comm. on Veterans’ Affairs).

SENATE REPORTS: No. 108–197 accompanying S. 1136 (Comm. on Veterans’ Affairs).

CONGRESSIONAL RECORD, Vol. 149 (2003):

May 7, considered and passed House.

Nov. 21, considered and passed Senate, amended, in lieu of S. 1136.

Dec. 8, House concurred in Senate amendment.

Æ

(B) in paragraph (2)(A), by striking ‘‘person in the

military service’’ and inserting ‘‘servicemember’’.

(c) TITLE 10, UNITED STATES CODE.—Section 1408(b)(1)(D) of

title 10, United States Code, is amended by striking ‘‘Soldiers’

and Sailors’ Civil Relief Act of 1940’’ and inserting ‘‘Servicemembers

Civil Relief Act’’.

(d) INTERNAL REVENUE CODE.—Section 7654(d)(1) of the

Internal Revenue Code of 1986 is amended by striking ‘‘Soldiers’

and Sailors’ Civil Relief Act’’ and inserting ‘‘Servicemembers Civil

Relief Act’’.

(e) PUBLIC HEALTH SERVICE ACT.—Section 212(e) of the Public

Health Service Act (42 U.S.C. 213(e)) is amended by striking ‘‘Soldiers’ and Sailors’ Civil Relief Act of 1940’’ and inserting

‘‘Servicemembers Civil Relief Act’’.

(f) ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.—

Section 8001 of the Elementary and Secondary Education Act of

1965 (20 U.S.C. 7701) is amended by striking ‘‘section 514 of the

Soldiers’ and Sailors’ Civil Relief Act of 1940 (50 U.S.C. App.

574)’’ in the matter preceding paragraph (1) and inserting ‘‘section

511 of the Servicemembers Civil Relief Act’’.

(g) NOAA COMMISSIONED OFFICER CORPS ACT OF 2002.—Section 262(a)(2) of National Oceanic and Atmospheric Administration

Commissioned Officer Corps Act of 2002 (33 U.S.C. 3072(a)(2))

is amended to read as follows:

‘‘(2) The Servicemembers Civil Relief Act.’’.

SEC. 3. EFFECTIVE DATE.

The amendment made by section 1 shall apply to any case

that is not final before the date of the enactment of this Act.

Approved December 19, 2003.

Applicability.

50 USC app. 501

note.

26 USC 7654.