‘‘(C) with respect to a commissioned officer 
of the National Oceanic and Atmospheric Ad-
ministration, means the Secretary of Commerce. 
‘‘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 
‘‘(3) all territory subject to the jurisdiction of the 
United States. 
‘‘(b) APPLICABILITY TO PROCEEDINGS.—This Act ap-
plies to any judicial or administrative proceeding com-
menced 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 com-
menced with respect to the matter, such application may 
be made to any court which would otherwise have jurisdic-
tion over the matter. 
‘‘SEC. 103. PROTECTION OF PERSONS SECONDARILY LIA-
BLE. 
‘‘(a) EXTENSION
OF PROTECTION WHEN ACTIONS 
STAYED, POSTPONED, OR SUSPENDED.—Whenever pursu-
ant to this Act a court stays, postpones, or suspends (1)
the enforcement of an obligation or liability, (2) the pros-
ecution of a suit or proceeding, (3) the entry or enforcement 
of an order, writ, judgment, or decree, or (4) the perform-
ance 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 enforce-
ment of the judgment or decree. 
‘‘(c) BAIL BOND NOT TO BE ENFORCED DURING PE-
RIOD OF MILITARY SERVICE.—A court may not enforce a 
bail bond during the period of military service of the prin-
cipal 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 accord-
ance 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, guar-
antor, endorser, accommodation maker, comaker, or 
other person (whether primarily or secondarily liable 
on an obligation or liability) of the protections pro-
vided under subsections (a) and (b). Any such waiver 
is effective only if it is executed as an instrument sep-
arate 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 depend-
ent 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 indi-
vidual or dependent during the period specified in 
section 106. 
‘‘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 MILI-
TARY 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 or-
dered 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 INDUC-
TION.—A person who has been ordered to report for induc-
tion 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 re-
voked). 
‘‘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 sub-
section (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 cancella-
tion 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 RE-
CEIVED.—For the purposes of this section—
‘‘(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 AF-
FECT CERTAIN FUTURE FINANCIAL TRANS-
ACTIONS. 
‘‘Application by a servicemember for, or receipt by a 
servicemember of, a stay, postponement, or suspension pur-
suant 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 obli-
gation 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 cred-
it to the servicemember in substantially the 
amount or on substantially the terms requested. 
‘‘(3) An adverse report relating to the credit-
worthiness of the servicemember by or to a person en-
gaged in the practice of assembling or evaluating con-
sumer 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 informa-
tion, 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 fol-
lowing: 
‘‘(1) An attorney acting on the behalf of a 
servicemember. 
‘‘(2) An individual possessing a power of attor-
ney. 
‘‘(b) 
APPLICATION.—Whenever 
the 
term 
‘servicemember’ is used in this Act, such term shall be treat-
ed as including a reference to a legal representative of the 
servicemember. 
‘‘TITLE II—GENERAL RELIEF 
‘‘SEC. 201. PROTECTION OF SERVICEMEMBERS AGAINST DE-
FAULT JUDGMENTS. 
‘‘(a) APPLICABILITY OF SECTION.—This section ap-
plies to any civil action or proceeding in which the defend-
ant does not make an appearance. 
‘‘(b) AFFIDAVIT REQUIREMENT.—
‘‘(1) PLAINTIFF TO FILE AFFIDAVIT.—In any ac-
tion or proceeding covered by this section, the court, 
before entering judgment for the plaintiff, shall re-
quire the plaintiff to file with the court an affi-
davit—
‘‘(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 serv-
ice, stating that the plaintiff is unable to deter-
mine 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 judg-
ment until after the court appoints an attorney to 
represent the defendant. If an attorney appointed 
under this section to represent a servicemember can-
not 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 affi-
davits filed in such an action, the court is unable to 
determine whether the defendant is in military serv-
ice, 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 mili-
tary service, the bond shall be available to indemnify 
the defendant against any loss or damage the defend-
ant 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 re-
main in effect until expiration of the time for appeal 
and setting aside of a judgment under applicable Fed-
eral or State law or regulation or under any applica-
ble ordinance of a political subdivision of a State. 
The court may issue such orders or enter such judg-
ments as the court determines necessary to protect the 
rights of the defendant under this Act. 
‘‘(4) SATISFACTION OF REQUIREMENT FOR AFFI-
DAVIT.—The requirement for an affidavit under para-
graph (1) may be satisfied by a statement, declara-
tion, verification, or certificate, in writing, subscribed 
and certified or declared to be true under penalty of 
perjury. 
‘‘(c) PENALTY FOR MAKING OR USING FALSE AFFI-
DAVIT.—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 deter-
mines 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 PROCE-
DURES.—A stay of proceedings under subsection (d) shall 
not be controlled by procedures or requirements under sec-
tion 202. 
‘‘(f) SECTION 202 PROTECTION.—If a servicemember 
who is a defendant in an action covered by this section re-
ceives actual notice of the action, the servicemember may 
request a stay of proceeding under section 202. 
‘‘(g) VACATION OR SETTING ASIDE OF DEFAULT JUDG-
MENTS.—
‘‘(1) AUTHORITY FOR COURT TO VACATE OR SET 
ASIDE JUDGMENT.—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 en-
tering 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 af-
fected by reason of that military service in mak-
ing 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 appli-
cation 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 
DEFENDANT HAS NOTICE. 
‘‘(a) APPLICABILITY OF SECTION.—This section ap-
plies to any civil action or proceeding in which the defend-
ant 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 pro-
ceeding. 
‘‘(b) AUTOMATIC STAY.—
‘‘(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 ac-
tion for a period of not less than 90 days, if the con-
ditions in paragraph (2) are met. 
‘‘(2) CONDITIONS FOR STAY.—An application for 
a stay under paragraph (1) shall include the fol-
lowing: 
‘‘(A) A letter or other communication set-
ting forth facts stating the manner in which cur-
rent military duty requirements materially affect 
the servicemember’s ability to appear and stat-
ing a date when the servicemember will be avail-
able 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 for jurisdictional purposes and does not con-
stitute a waiver of any substantive or procedural defense 
(including a defense relating to lack of personal jurisdic-
tion). 
‘‘(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 effect of military duty on the 
servicemember’s ability to appear. Such an applica-
tion may be made by the servicemember at the time 
of the initial application under subsection (b) or 
when it appears that the servicemember is unavail-
able to prosecute or defend the action. The same infor-
mation required under subsection (b)(2) shall be in-
cluded in an application under this subsection. 
‘‘(2) APPOINTMENT
OF
COUNSEL
WHEN
ADDI-
TIONAL 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 sec-
tion 201. 
‘‘(f) INAPPLICABILITY TO SECTION 301.—The protec-
tions 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 pursu-
ant 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 PEN-
ALTIES.—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 mili-
tary service. 
‘‘SEC. 204. STAY OR VACATION OF EXECUTION OF JUDG-
MENTS, ATTACHMENTS, AND GARNISHMENTS. 
‘‘(a) COURT ACTION UPON MATERIAL EFFECT DETER-
MINATION.—If a servicemember, in the opinion of the court, 
is materially affected by reason of military service in com-
plying 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 garnish-
ment 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 ac-
tion 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.
‘‘SEC. 205. DURATION AND TERM OF STAYS; CODEFEND-
ANTS NOT IN SERVICE. 
‘‘(a) PERIOD OF STAY.—A stay of an action, pro-
ceeding, attachment, or execution made pursuant to the pro-
visions 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 co-
defendant 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 mili-
tary 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 po-
litical subdivision of a State) or the United States by or 
against the servicemember or the servicemember’s heirs, ex-
ecutors, administrators, or assigns.
‘‘(b) REDEMPTION OF REAL PROPERTY.—A period of 
military service may not be included in computing any pe-
riod 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 limita-
tion prescribed by or under the internal revenue laws of 
the United States. 
‘‘SEC. 207. MAXIMUM RATE OF INTEREST ON DEBTS IN-
CURRED 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 serv-
ice shall not bear interest at a rate in excess of 6 per-
cent 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 PRIN-
CIPAL.—The amount of any periodic payment due 
from a servicemember under the terms of the instru-
ment that created an obligation or liability covered by 
this section shall be reduced by the amount of the in-
terest 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 rate limitation in subsection 
(a), the servicemember shall provide to the creditor 
written notice and a copy of the military orders call-
ing the servicemember to military service and any or-
ders further extending military service, not later than 
180 days after the date of the servicemember’s termi-
nation 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 serv-
ice. 
‘‘(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 DEFINED.—As used in this section, the 
term ‘interest’ means simple interest plus 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 depend-
ents of a servicemember, during a period of mili-
tary service of the servicemember, from prem-
ises—
‘‘(i) that are occupied or intended to be 
occupied primarily as a residence; and 
‘‘(ii) for which the monthly rent does 
not exceed $1,700, as adjusted under para-
graph (2) for years after 2003; or 
‘‘(B) subject such premises to a distress dur-
ing the period of military service.
‘‘(2) HOUSING PRICE INFLATION ADJUSTMENT.—
(A) For calendar years beginning with 2004, the 
amount under subsection (a)(1)(A)(ii) shall be in-
creased 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.’’. 
‘‘(b) STAY OF EXECUTION.—
‘‘(1) COURT AUTHORITY.—Upon an application 
for eviction or distress with respect to premises cov-
ered 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 grant-
ed 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 impris-
oned 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 per-
son 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 con-
cerned 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 prop-
erty; 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 re-
possessed for such breach without a court order. 
‘‘(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 sub-
section (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 impris-
oned 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 avail-
able 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 ap-
plication 
by 
a 
servicemember 
when 
the 
servicemember’s ability to comply with the contract is 
materially affected by military service, stay the pro-
ceedings 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 OB-
LIGATION.—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 ap-
plication 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 inter-
ests 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 with-
in 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 ap-
proved by the court; or 
‘‘(2) if made pursuant to an agreement as pro-
vided in section 107. 
‘‘(d) PENALTIES.—
‘‘(1) MISDEMEANOR.—A person who knowingly 
makes or causes to be made a sale, foreclosure, or sei-
zure 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 impris-
oned 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, includ-
ing 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 re-
scind 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 con-
dition of foreclosing the mortgage, repossessing the property, 
or rescinding or terminating the contract. 
‘‘SEC. 305. TERMINATION OF LEASES BY LESSEES. 
‘‘(a) COVERED LEASES.—This section applies to the 
lease of premises occupied, or intended to be occupied, by 
a servicemember or a servicemember’s dependents for a resi-
dential, professional, business, agricultural, or similar pur-
pose if—
‘‘(1) the lease is executed by or on behalf of a 
person who thereafter and during the term of the lease 
enters military service; or 
‘‘(2) the servicemember, while in military serv-
ice, executes a 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. 
‘‘(b) NOTICE TO LESSOR.—
‘‘(1) DELIVERY OF NOTICE.—A lease described in 
subsection (a) is terminated when written notice is 
delivered by the lessee to the lessor (or the lessor’s 
grantee) or to the lessor’s agent (or the agent’s grant-
ee). 
‘‘(2) TIME FOR NOTICE.—The written notice may 
be delivered at any time after the lessee’s entry into 
military service or the date of the military orders for 
a permanent change of station or to deploy for a pe-
riod of not less than 90 days.
‘‘(3) NATURE OF NOTICE.—Delivery may be ac-
complished—
‘‘(A) by hand delivery; 
‘‘(B) by private business carrier; or 
‘‘(C) by placing the written notice in an en-
velope with sufficient postage and addressed to
the lessor (or the lessor’s grantee) or to the les-
sor’s agent (or the agent’s grantee) and depos-
iting the written notice in the United States 
mails. 
‘‘(c) EFFECTIVE DATE OF TERMINATION.—
‘‘(1) LEASE
WITH
MONTHLY
RENT.—Termi-
nation of a lease providing for monthly payment of 
rent shall be effective 30 days after the first date on 
which the next rental payment is due and payable 
after the date on which the notice is delivered. 
‘‘(2) OTHER LEASE.—All other leases terminate 
on the last day of the month following the month in 
which the notice is delivered. 
‘‘(d) ARREARAGES IN RENT.—Rents unpaid for the pe-
riod preceding termination shall be paid on a prorated 
basis.
‘‘(e) RENT PAID IN ADVANCE.—Rents paid in advance 
for a period succeeding termination shall be refunded to the 
lessee by the lessor (or the lessor’s assignee or the assignee’s 
agent). 
‘‘(f) 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 re-
quire.
‘‘(g) PENALTIES.—
‘‘(1) MISDEMEANOR.—Any person who know-
ingly seizes, holds, or detains the personal effects, se-
curity deposit, or other property of a servicemember 
or a servicemember’s dependent who lawfully termi-
nates a lease covered by this section, or who know-
ingly 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, includ-
ing 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 obliga-
tion, the assignee of the policy (except the insurer in connec-
tion 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 assign-
ment 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 sub-
section (a)(1); 
‘‘(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 EF-
FECT.—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
value of similar character may not be available to the in-
sured 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 ma-
tures 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 in-
surance proceeds the amount of the unpaid premiums guar-
anteed 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 spe-
cifically 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 de-
ducted 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.—