H. R. 100—11
rate limitation in subsection (a), the servicemember shall pro-
vide 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 CON-
TRACTS, MORTGAGES, LIENS, ASSIGN-
MENT, 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 cal-
endar 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.
H. R. 100—12
‘‘(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 para-
graph (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 PUR-
CHASE 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.
H. R. 100—13
‘‘(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 viola-
tion 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 prop-
erty;
‘‘(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 obli-
gated; 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, fore-
closure, or seizure with a return made and approved by the
court; or
H. R. 100—14
‘‘(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 disin-
terested 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 mort-
gage, 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, exe-
cutes 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 transpor-
tation 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