H. R. 100
One Hundred Eighth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, two thousand and three
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 trans-
actions.
‘‘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 garnish-
ments.
‘‘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.
H. R. 100—2
‘‘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
H. R. 100—3
‘‘(ii) in the case of a member of the National Guard,
includes service under a call to active service author-
ized 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 commis-
sioned 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 pro-
vided 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 adminis-
trative 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
H. R. 100—4
‘‘(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, POST-
PONED, 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, accommo-
dation maker, comaker, or other person (whether primarily
or secondarily liable on an obligation or liability) of the protec-
tions 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.
H. R. 100—5
‘‘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 bene-
fits 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 require-
ment 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—
H. R. 100—6
‘‘(1) a person to whom section 106 applies shall be consid-
ered 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 pre-
mium, 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 substan-
tially 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 pro-
ceeding covered by this section, the court, before entering judg-
ment for the plaintiff, shall require the plaintiff to file with
the court an affidavit—
H. R. 100—7
‘‘(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 polit-
ical 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 satis-
fied 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 per-
son who makes or uses an affidavit permitted under subsection
(b) (or a statement, declaration, verification, or certificate as author-
ized 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 proce-
dures or requirements under section 202.
H. R. 100—8
‘‘(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 rea-
son 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 termi-
nation 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 judg-
ment 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 require-
ments 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
H. R. 100—9
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 pro-
ceeding.
‘‘(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 compli-
ance 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 con-
tract 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 obliga-
tion 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 prop-
erty, 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 pro-
ceeding 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.
H. R. 100—10
‘‘SEC. 205. DURATION AND TERM OF STAYS; CODEFENDANTS NOT IN
SERVICE.
‘‘(a) PERIOD OF STAY.—A stay of an action, proceeding, attach-
ment, 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 sec-
tion 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 obliga-
tion or liability of a servicemember to be subject to the interest