In the Senate of the United States,
November 21, 2003.
Resolved, That the bill from the House of Representa-
tives (H.R. 100) entitled ‘‘An Act to restate, clarify, and re-
vise the Soliders’ and Sailors’ Civil Relief Act of 1940.’’, do
pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
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’.
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‘‘(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 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.
‘‘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.
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‘‘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
‘‘(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 Presi-
dent and supported by Federal funds;
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‘‘(B) in the case of a servicemember who is
a commissioned officer of the Public Health
Service or the National Oceanic and Atmos-
pheric 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 begin-
ning 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 imme-
diately preceding an application for relief under
this Act.
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‘‘(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 agen-
cy of record.
‘‘(6) STATE.—The term ‘State’ includes—
‘‘(A) a commonwealth, territory, or posses-
sion of the United States; and
‘‘(B) the District of Columbia.
‘‘(7) SECRETARY CONCERNED.—The term ‘Sec-
retary concerned’—
‘‘(A) with respect to a member of the armed
forces, has the meaning given that term in sec-
tion 101(a)(9) of title 10, United States Code;
‘‘(B) with respect to a commissioned officer
of the Public Health Service, means the Sec-
retary of Health and Human Services; and
‘‘(C) with respect to a commissioned officer
of the National Oceanic and Atmospheric Ad-
ministration, 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—
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‘‘(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,
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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
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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.
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‘‘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
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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—
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‘‘(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—
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‘‘(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:
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‘‘(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
affidavit—
‘‘(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-
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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-
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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
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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
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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
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—
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‘‘(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) 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 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
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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 affect 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
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(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.
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‘‘SEC. 204. STAY OR VACATION OF EXECUTION OF JUDG-
MENTS, ATTACHMENTS, AND GARNISHMENTS.
‘‘(a) COURT ACTION UPON MATERIAL AFFECT 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
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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-
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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.—
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‘‘(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.—As used in this section, the term ‘in-
terest’ includes service charges, renewal charges, fees, or any
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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
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 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 in effect under paragraph (1)(A)(ii) shall be
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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.
‘‘(3) PUBLICATION OF HOUSING PRICE INFLATION
ADJUSTMENT.—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 publi-
cation shall be made for a year not later than 60
days after such adjustment is made for that year.
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‘‘(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.
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‘‘(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—
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‘‘(A) the purchase of real or personal prop-
erty (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 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.
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‘‘(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
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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
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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.
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‘‘SEC. 305. TERMINATION OF RESIDENTIAL OR MOTOR VEHI-
CLE LEASES.
‘‘(a) TERMINATION BY LESSEE.—The lessee on a lease
described in subsection (b) may, at the lessee’s option, ter-
minate the lease at any time after—
‘‘(1) the lessee’s entry into military service; or
‘‘(2) the date of the lessee’s military orders de-
scribed 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 sta-
tion or to deploy with a military unit for a pe-
riod 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
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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 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 or-
ders 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 sta-
tion 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 no-
tice 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
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‘‘(B) in the case of a lease of a motor vehi-
cle, by return of the motor vehicle by the lessee
to the lessor (or the lessor’s grantee), or to the les-
sor’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 en-
velope with sufficient postage and with return
receipt requested, and addressed as designated by
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.
‘‘(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 sub-
section (c) is delivered. In the case of any other lease
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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 de-
livered.
‘‘(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 LI-
ABILITIES.—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 termi-
nation charge, but any taxes, summonses, and title and reg-
istration 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.
‘‘(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)
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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 re-
quire.
‘‘(h) 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
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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);
‘‘(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 AF-
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.
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‘‘(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.
‘‘(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 consequential or punitive damages.
‘‘SEC. 307. ENFORCEMENT OF STORAGE LIENS.
‘‘(a) LIENS.—
‘‘(1) LIMITATION
ON
FORECLOSURE
OR
EN-
FORCEMENT.—A person holding a lien on the prop-
erty 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.
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‘‘(2) LIEN DEFINED.—For the purposes of para-
graph (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 fore-
close 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 mili-
tary service—
‘‘(1) stay the proceeding for a period of time as
justice and equity require; or
‘‘(2) adjust the obligation to preserve the inter-
ests 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
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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 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 rea-
son 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 in-
dividual contract for whole, endowment, universal, or
term life insurance (other than group term life insur-
ance coverage), including any benefit in the nature of
such insurance arising out of membership in any fra-
ternal or beneficial association which—
‘‘(A) provides that the insurer may not—
‘‘(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 pre-
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miums 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 be-
fore 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 busi-
ness that is chartered or authorized to provide insur-
ance 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 pro-
tections 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,
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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 pro-
vided 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 max-
imum 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 bene-
ficiary, as the case may be;
‘‘(2) identify the policy and the insurer; and
‘‘(3) include an acknowledgement that the in-
sured’s rights under the policy are subject to and
modified by the provisions of this title.
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‘‘(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 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 nec-
essary to give this title full force and effect.
‘‘SEC. 404. POLICIES ENTITLED TO PROTECTION AND LAPSE
OF POLICIES.
‘‘(a) DETERMINATION.—The Secretary of Veterans Af-
fairs shall determine whether a policy is entitled to protec-
tion 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 non-
payment of a premium, or interest or indebtedness on a
premium, after the date on which the application for protec-
tion is received by the Secretary.
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‘‘(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 pol-
icy may not be paid to an insured or used to purchase divi-
dend additions without the approval of the Secretary of Vet-
erans Affairs. If such approval is not obtained, the divi-
dends 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 pro-
tected 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 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-
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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.—
‘‘(1) GUARANTEE.—Payment of premiums, and
interest on premiums at the rate specified in section
406, which become due on a policy under the protec-
tion 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 sur-
render value of a policy is less than the amount due
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to pay premiums and interest on premiums on the
policy, the policy shall terminate. Upon such termi-
nation, the United States shall pay the insurer the
difference between the amount due and the cash sur-
render 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 col-
lected 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
BANK-
RUPTCY.—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 cred-
ited to the appropriation for the payment of claims under
this title.
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‘‘SEC. 408. REGULATIONS.
‘‘The Secretary of Veterans Affairs shall prescribe regu-
lations for the implementation of this title.
‘‘SEC. 409. REVIEW OF FINDINGS OF FACT AND CONCLU-
SIONS 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 re-
mains unpaid before or during a period of military service
with respect to a servicemember’s—
‘‘(1) personal property (including motor vehi-
cles); or
‘‘(2) real property occupied for dwelling, profes-
sional, business, or agricultural purposes by a
servicemember or the servicemember’s dependents or
employees—
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‘‘(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 EN-
FORCE TAX ASSESSMENT.—Property described in sub-
section (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 termi-
nation of, or release of the servicemember from, mili-
tary service.
‘‘(c) REDEMPTION.—When property described in sub-
section (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
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from military service. This subsection may not be construed
to shorten any period provided by the law of a State (in-
cluding any political subdivision of a State) for redemp-
tion.
‘‘(d) INTEREST ON TAX OR ASSESSMENT.—Whenever
a servicemember does not pay a tax or assessment on prop-
erty 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 non-
payment. 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
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improvements to the land, during the period of military
service.
‘‘(b) TEMPORARY SUSPENSION OF PERMITS OR LI-
CENSES.—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 suspen-
sion.
‘‘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 suc-
cessor 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
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service, or for 180 days after termination of or release
from military service; or
‘‘(3) during any period of hospitalization or re-
habilitation due to an injury or disability incurred
in the line of duty.
The time within which the entryman or claimant is re-
quired 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 ac-
complish 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.
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‘‘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 hos-
pitalization 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 sub-
section (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 an-
nual 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 loca-
tion shall, before the end of the assessment year in which
military service is begun or within 60 days after the end
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of such assessment year, cause to be filed in the office where
the location notice or certificate is recorded a notice commu-
nicating 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 oper-
ation of a permit or lease.
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‘‘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 ini-
tiated 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 regula-
tion of the Department of the Interior in connection
with the entry, perfection, defense, or further assertion
of rights initiated or acquired before entering mili-
tary service before an officer authorized to provide no-
tary services under section 1044a of title 10, United
States Code, or any superior commissioned officer.
‘‘(2) LEGAL STATUS OF AFFIDAVITS.—Such affi-
davits 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
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servicemembers information explaining the provisions of
this title.
‘‘(b) APPLICATION FORMS.—The Secretary concerned
shall provide application forms to servicemembers request-
ing relief under this title.
‘‘(c) INFORMATION FROM SECRETARY OF THE INTE-
RIOR.—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, including mining and min-
eral 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 re-
lease from military service.
‘‘(c) ENTRY APPLICATIONS.—Applications for entry
may be verified before a person authorized to administer
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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 polit-
ical 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 serv-
ice, if a servicemember’s ability to pay such income tax is
materially affected by military service.
‘‘(b) ACCRUAL OF INTEREST OR PENALTY.—No inter-
est 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 sus-
pended for the period of military service of the
servicemember and for an additional period of 270 days
thereafter.
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‘‘(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.—Compensa-
tion 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 juris-
diction 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.
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‘‘(2) EXCEPTION FOR PROPERTY WITHIN MEM-
BER’S DOMICILE OR RESIDENCE.—This subsection ap-
plies to personal property or its use within any tax
jurisdiction other than the servicemember’s domicile
or residence.
‘‘(3) EXCEPTION FOR PROPERTY USED IN TRADE
OR BUSINESS.—This section does not prevent taxation
by a tax jurisdiction with respect to personal prop-
erty used in or arising from a trade or business, if
it has jurisdiction.
‘‘(4) RELATIONSHIP TO LAW OF STATE OF DOMI-
CILE.—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 Fed-
eral Indian reservation shall be taxed by the laws applicable
to Federal Indian reservations and not the State where the
reservation is located.
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‘‘(f) DEFINITIONS.—For purposes of this section:
‘‘(1) PERSONAL PROPERTY.—The term ‘personal
property’ means intangible and tangible property (in-
cluding motor vehicles).
‘‘(2) TAXATION.—The term ‘taxation’ includes li-
censes, 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 jurisdic-
tion’ 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 trans-
fer or acquisition.
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‘‘SEC. 602. CERTIFICATES OF SERVICE; PERSONS REPORTED
MISSING.
‘‘(a) PRIMA FACIE EVIDENCE.—In any proceeding
under this Act, a certificate signed by the Secretary con-
cerned 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 per-
son 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 termi-
nation of or release from military service, or the per-
son’s death during military service.
‘‘(b) CERTIFICATES.—The Secretary concerned shall
furnish a certificate under subsection (a) upon receipt of
an application for such a certificate. A certificate appear-
ing to be signed by the Secretary concerned is prima facie
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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 af-
fected 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 termi-
nation 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.
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‘‘(b) TAX LIABILITY OR ASSESSMENT.—In a case cov-
ered 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 materi-
ally 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 in-
strument in the nature of a mortgage upon real
estate, the court may grant a stay of the enforce-
ment 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 termi-
nation of or release from military service.
‘‘(B) Any stay under this paragraph shall
be—
‘‘(i) for a period equal to the remain-
ing life of the installment contract or other
instrument, plus a period of time equal to
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the period of military service of the
servicemember, or any part of such com-
bined 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 military
service or from the date of application in
equal installments during the combined pe-
riod 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 CON-
TRACTS.—
‘‘(A) In the case of any other obligation, li-
ability, tax, or assessment, the court may grant
a stay of enforcement—
‘‘(i) during the servicemember’s mili-
tary service; and
‘‘(ii) from the date of termination of or
release from military service, or from the
date of application if made after termi-
nation or release from military service.
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‘‘(B) Any stay under this paragraph shall
be—
‘‘(i) for a period of time equal to the
period of the servicemember’s military serv-
ice 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 obli-
gation, 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 assess-
ment for the period of compliance with the terms and condi-
tions of the stay.
‘‘SEC. 702. POWER OF ATTORNEY.
‘‘(a) AUTOMATIC EXTENSION.—A power of attorney of
a servicemember shall be automatically extended for the pe-
riod the servicemember is in a missing status (as defined
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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, par-
ent, 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 EXTEN-
SION.—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 sta-
tus.
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‘‘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 or-
dered 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 ac-
tive duty—
‘‘(A) was engaged in the furnishing of
health-care or legal services or other services de-
termined by the Secretary of Defense to be pro-
fessional 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 cov-
erage 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
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carrier in accordance with this subsection upon re-
ceipt 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 sus-
pended pursuant to paragraph (1); and
‘‘(B) shall refund any amount paid for cov-
erage for the period of such suspension or, upon
the election of such servicemember, apply such
amount for the payment of any premium becom-
ing due upon the reinstatement of such coverage.
‘‘(3) NONLIABILITY OF CARRIER DURING SUSPEN-
SION.—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 suspen-
sion of that servicemember’s professional liability in-
surance under this subsection.
‘‘(4) CERTAIN
CLAIMS
CONSIDERED
TO
ARISE
BEFORE
SUSPENSION.—For the purposes of para-
graph (3), a claim based upon the failure of a profes-
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sional to make adequate provision for a patient, cli-
ent, 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 begin-
ning of the period of the suspension of professional li-
ability 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 carrier on the date on
which that servicemember transmits to the insurance
carrier a written request for reinstatement.
‘‘(2) TIME
AND
PREMIUM
FOR
REINSTATE-
MENT.—The request of a servicemember for reinstate-
ment 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
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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 cov-
erage 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 sus-
pended.
‘‘(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 pe-
riod 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 pre-
vent an increase in premium to the extent of any gen-
eral 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.
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‘‘(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 per-
son referred to in subsection (a) and who is covered
by the same professional liability insurance as a per-
son referred to in such subsection; or
‘‘(2) relieve any person of the obligation to pay
premiums for the coverage not required to be sus-
pended.
‘‘(f) STAY OF CIVIL OR ADMINISTRATIVE ACTIONS.—
‘‘(1) STAY OF ACTIONS.—A civil or administra-
tive action for damages on the basis of the alleged
professional negligence or other professional liability
of a servicemember whose professional liability insur-
ance coverage has been suspended under subsection (b)
shall be stayed until the end of the period of the sus-
pension if—
‘‘(A) the action was commenced during the
period of the suspension;
‘‘(B) the action is based on an act or omis-
sion that occurred before the date on which the
suspension became effective; and
‘‘(C) the suspended professional liability in-
surance would, except for the suspension, on its
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face cover the alleged professional negligence or
other professional liability negligence or other
professional liability of the servicemember.
‘‘(2) DATE
OF
COMMENCEMENT
OF
ACTION.—
Whenever a civil or administrative action for dam-
ages 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 PE-
RIOD.—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 insur-
ance 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 cov-
erage is suspended under subsection (b) dies during the pe-
riod of the suspension—
‘‘(1) the requirement for the grant or continu-
ance of a stay in any civil or administrative action
against such servicemember under subsection (f)(1)
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shall terminate on the date of the death of such
servicemember; and
‘‘(2) the carrier of the professional liability in-
surance so suspended shall be liable for any claim for
damages for professional negligence or other profes-
sional 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’ in-
cludes 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—
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‘‘(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 rein-
statement of health care insurance coverage for the health
or physical condition of a servicemember described in sub-
section (a), or any other person who is covered by the insur-
ance 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 pe-
riod of such service;
‘‘(2) an exclusion or a waiting period would not
have been imposed for the condition during the period
of coverage; and
‘‘(3) if the condition relates to the servicemember,
the condition has not been determined by the Sec-
retary 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.
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‘‘(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 PER-
SONNEL.
‘‘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 mili-
tary or naval orders shall not, solely by reason of that
absence—
‘‘(1) be deemed to have lost a residence or domi-
cile 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
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the servicemember not held in connection with the trade or
business may not be available for satisfaction of the obliga-
tion or liability during the servicemember’s military serv-
ice.
‘‘(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 re-
quire.’’.
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
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by section 702 of such Act but excluding the ben-
efits provided by sections 104, 105, and 106, title
IV, and title V (other than sections 501 and 510)
of such Act’’; and
(B) in paragraph (2)(A), by striking ‘‘per-
son 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 amend-
ed 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 Re-
lief Act of 1940 (50 U.S.C. App. 574)’’ in the matter pre-
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ceding 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 Atmos-
pheric 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.
Attest:
Secretary.