IIB 
108TH CONGRESS 
1ST SESSION 
H. R. 100
IN THE SENATE OF THE UNITED STATES 
MAY 8, 2003
Received; read twice and referred to the Committe on Veterans’ Affairs 
AN ACT 
To restate, clarify, and revise the Soldiers’ and Sailors’ Civil 
Relief Act of 1940.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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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 fol-
lows: 
‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
‘‘(a) SHORT TITLE.—This Act may be cited as the 
‘Servicemembers Civil Relief Act’. 
‘‘(b) TABLE OF CONTENTS.—The table of contents 
of this Act is as follows:
‘‘Sec. 1. Short title; table of contents. 
‘‘Sec. 2. Purpose. 
‘‘TITLE I—GENERAL PROVISIONS 
‘‘Sec. 101. Definitions. 
‘‘Sec. 102. Jurisdiction and applicability of Act. 
‘‘Sec. 103. Protection of persons secondarily liable. 
‘‘Sec. 104. Extension of protections to citizens serving with allied forces. 
‘‘Sec. 105. Notification of benefits. 
‘‘Sec. 106. Extension of rights and protections to Reserves ordered to report for 
military service and to persons ordered to report for induction. 
‘‘Sec. 107. Waiver of rights pursuant to written agreement. 
‘‘Sec. 108. Exercise of rights under Act not to affect certain future financial 
transactions. 
‘‘Sec. 109. Legal representatives. 
‘‘TITLE II—GENERAL RELIEF 
‘‘Sec. 201. Protection of servicemembers against default judgments. 
‘‘Sec. 202. Stay of proceedings when servicemember defendant has notice. 
‘‘Sec. 203. Fines and penalties under contracts. 
‘‘Sec. 204. Stay or vacation of execution of judgments, attachments, and gar-
nishments. 
‘‘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 leases by lessees. 
‘‘Sec. 306. Protection of life insurance policy.
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‘‘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. 
‘‘TITLE V—TAXES AND PUBLIC LANDS 
‘‘Sec. 501. Taxes respecting personal property, money, credits, and real prop-
erty. 
‘‘Sec. 502. Rights in public lands. 
‘‘Sec. 503. Desert-land entries. 
‘‘Sec. 504. Mining claims. 
‘‘Sec. 505. Mineral permits and leases. 
‘‘Sec. 506. Perfection or defense of rights. 
‘‘Sec. 507. Distribution of information concerning benefits of title. 
‘‘Sec. 508. Land rights of servicemembers. 
‘‘Sec. 509. Regulations. 
‘‘Sec. 510. Income taxes. 
‘‘Sec. 511. Residence for tax purposes. 
‘‘TITLE VI—ADMINISTRATIVE REMEDIES 
‘‘Sec. 601. Inappropriate use of Act. 
‘‘Sec. 602. Certificates of service; persons reported missing. 
‘‘Sec. 603. Interlocutory orders. 
‘‘TITLE VII—FURTHER RELIEF 
‘‘Sec. 701. Anticipatory relief. 
‘‘Sec. 702. Power of attorney. 
‘‘Sec. 703. Professional liability protection. 
‘‘Sec. 704. Health insurance reinstatement. 
‘‘Sec. 705. Guarantee of residency for military personnel.
‘‘SEC. 2. PURPOSE. 
‘‘The purposes of this Act are—
‘‘(1) to provide for, strengthen, and expedite 
the national defense through protection extended by 
this Act to servicemembers of the United States to
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enable such persons to devote their entire energy to 
the defense needs of the Nation; and 
‘‘(2) to provide for the temporary suspension of 
judicial and administrative proceedings and trans-
actions that may adversely affect the civil rights of 
servicemembers during their military service. 
‘‘TITLE I—GENERAL PROVISIONS 
‘‘SEC. 101. DEFINITIONS. 
‘‘For the purposes of this Act: 
‘‘(1) 
SERVICEMEMBER.—The 
term 
‘servicemember’ means a member of the uniformed 
services, as that term is defined in section 101(a)(5) 
of title 10, United States Code.
‘‘(2) MILITARY SERVICE.—The term ‘military 
service’ means—
‘‘(A) in the case of a servicemember who is 
a member of the Army, Navy, Air Force, Ma-
rine 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
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a period of more than 30 consecutive days 
under section 502(f) of title 32, United 
States Code, for purposes of responding to 
a national emergency declared by the 
President and supported by Federal funds; 
and 
‘‘(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. 
‘‘(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-
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diately preceding an application for relief under 
this Act. 
‘‘(5) COURT.—The term ‘court’ means a court 
or an administrative agency of the United States or 
of any State (including any political subdivision of a 
State), whether or not a court or administrative 
agency of record. 
‘‘(6) STATE.—The term ‘State’ includes—
‘‘(A) a commonwealth, territory, or 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 section 101(a)(9) of title 10, United States 
Code; 
‘‘(B) with respect to a commissioned offi-
cer of the Public Health Service, means the 
Secretary of Health and Human Services; and 
‘‘(C) with respect to a commissioned offi-
cer of the National Oceanic and Atmospheric 
Administration, means the Secretary of Com-
merce.
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‘‘SEC. 102. JURISDICTION AND APPLICABILITY OF ACT. 
‘‘(a) JURISDICTION.—This Act applies to—
‘‘(1) the United States; 
‘‘(2) each of the States, including the political 
subdivisions thereof; and 
‘‘(3) all territory subject to the jurisdiction of 
the United States. 
‘‘(b) APPLICABILITY TO PROCEEDINGS.—This Act 
applies 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 pro-
ceedings. 
‘‘(c) COURT
IN
WHICH
APPLICATION
MAY
BE 
MADE.—When under this Act any application is required 
to be made to a court in which no proceeding has already 
been commenced with respect to the matter, such applica-
tion may be made to any court which would otherwise have 
jurisdiction over the matter. 
‘‘SEC. 103. PROTECTION OF PERSONS SECONDARILY LIA-
BLE. 
‘‘(a) EXTENSION OF PROTECTION WHEN ACTIONS 
STAYED, POSTPONED, OR SUSPENDED.—Whenever pur-
suant to this Act a court stays, postpones, or suspends 
(1) the enforcement of an obligation or liability, (2) the 
prosecution of a suit or proceeding, (3) the entry or en-
forcement of an order, writ, judgment, or decree, or (4)
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the performance of any other act, the court may likewise 
grant such a stay, postponement, or suspension to a sur-
ety, guarantor, endorser, accommodation maker, comaker, 
or other person who is or may be primarily or secondarily 
subject to the obligation or liability the performance or 
enforcement of which is stayed, postponed, or suspended. 
‘‘(b) VACATION OR SET-ASIDE OF JUDGMENTS.—
When a judgment or decree is vacated or set aside, in 
whole or in part, pursuant to this Act, the court may also 
set aside or vacate, as the case may be, the judgment or 
decree as to a surety, guarantor, endorser, accommodation 
maker, comaker, or other person who is or may be pri-
marily or secondarily liable on the contract or liability for 
the enforcement of the judgment or decree. 
‘‘(c) BAIL BOND NOT TO BE ENFORCED DURING 
PERIOD OF MILITARY SERVICE.—A court may not enforce 
a bail bond during the period of military service of the 
principal on the bond when military service prevents the 
surety from obtaining the attendance of the principal. The 
court may discharge the surety and exonerate the bail, in 
accordance with principles of equity and justice, during 
or after the period of military service of the principal. 
‘‘(d) WAIVER OF RIGHTS.—
‘‘(1) WAIVERS
NOT
PRECLUDED.—This Act 
does not prevent a waiver in writing by a surety,
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guarantor, 
endorser, 
accommodation 
maker, 
comaker, or other person (whether primarily or sec-
ondarily liable on an obligation or liability) of the 
protections provided under subsections (a) and (b). 
Any such waiver is effective only if it is executed as 
an instrument separate from the obligation or liabil-
ity with respect to which it applies. 
‘‘(2) WAIVER
INVALIDATED
UPON
ENTRANCE 
TO
MILITARY
SERVICE.—If a waiver under para-
graph (1) is executed by an individual who after the 
execution of the waiver enters military service, or by 
a dependent of an individual who after the execution 
of the waiver enters military service, the waiver is 
not valid after the beginning of the period of such 
military service unless the waiver was executed by 
such individual or dependent during the period spec-
ified 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 al-
lied in the prosecution of a war or military action is enti-
tled 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
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provided to such citizen shall terminate on the date of dis-
charge or release from such service. 
‘‘SEC. 105. NOTIFICATION OF BENEFITS. 
‘‘The Secretary concerned shall ensure that notice of 
the benefits accorded by this Act is provided in writing 
to persons in military service and to persons entering mili-
tary 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 MILI-
TARY SERVICE.—A member of a reserve component who 
is ordered to report for military service is entitled to the 
rights and protections of this title and titles II and III 
during the period beginning on the date of the member’s 
receipt of the order and ending on the date on which the 
member reports for military service (or, if the order is re-
voked 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 in-
duction under the Military Selective Service Act (50 
U.S.C. App. 451 et seq.) is entitled to the rights and pro-
tections provided a servicemember under this title and ti-
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tles II and III during the period beginning on the date 
of receipt of the order for induction and ending on the 
date on which the person reports for induction (or, if the 
order to report for induction is revoked before the date 
on which the person reports for induction, on the date on 
which the order is revoked). 
‘‘SEC. 107. WAIVER OF RIGHTS PURSUANT TO WRITTEN 
AGREEMENT. 
‘‘(a) IN GENERAL.—A servicemember may waive any 
of the rights and protections provided by this Act. In the 
case of a waiver that permits an action described in sub-
section (b), the waiver is effective only if made pursuant 
to a written agreement of the parties that is executed dur-
ing 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 con-
cerned. 
‘‘(b) ACTIONS REQUIRING WAIVERS IN WRITING.—
The requirement in subsection (a) for a written waiver ap-
plies to the following: 
‘‘(1) The modification, termination, or cancella-
tion of—
‘‘(A) a contract, lease, or bailment; or
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‘‘(B) an obligation secured by a mortgage, 
trust, deed, lien, or other security in the nature 
of a mortgage. 
‘‘(2) The repossession, retention, foreclosure, 
sale, forfeiture, or taking possession of property 
that—
‘‘(A) is security for any obligation; or 
‘‘(B) was purchased or received under a 
contract, lease, or bailment. 
‘‘(c) COVERAGE OF PERIODS AFTER ORDERS RE-
CEIVED.—For the purposes of this section—
‘‘(1) a person to whom section 106 applies shall 
be considered to be a servicemember; and 
‘‘(2) the period with respect to such a person 
specified in subsection (a) or (b), as the case may 
be, of section 106 shall be considered to be a period 
of military service. 
‘‘SEC. 108. EXERCISE OF RIGHTS UNDER ACT NOT TO AF-
FECT CERTAIN FUTURE FINANCIAL TRANS-
ACTIONS. 
‘‘Application by a servicemember for, or receipt by 
a servicemember of, a stay, postponement, or suspension 
pursuant to this Act in the payment of a tax, fine, penalty, 
insurance premium, or other civil obligation or liability of 
that servicemember shall not itself (without regard to
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other considerations) provide the basis for any of the fol-
lowing: 
‘‘(1) A determination by a lender or other per-
son that the servicemember is unable to pay the civil 
obligation or liability in accordance with its terms. 
‘‘(2) With respect to a credit transaction be-
tween a creditor and the servicemember—
‘‘(A) a denial or revocation of credit by the 
creditor; 
‘‘(B) a change by the creditor in the terms 
of an existing credit arrangement; or 
‘‘(C) a refusal by the creditor to grant 
credit to the servicemember in substantially the 
amount or on substantially the terms requested. 
‘‘(3) An adverse report relating to the credit-
worthiness of the servicemember by or to a person 
engaged in the practice of assembling or evaluating 
consumer credit information. 
‘‘(4) A refusal by an insurer to insure the 
servicemember. 
‘‘(5) An annotation in a servicemember’s record 
by a creditor or a person engaged in the practice of 
assembling or evaluating consumer credit informa-
tion, identifying the servicemember as a member of 
the National Guard or a reserve component.
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‘‘(6) A change in the terms offered or condi-
tions required for the issuance of insurance. 
‘‘SEC. 109. LEGAL REPRESENTATIVES. 
‘‘(a) REPRESENTATIVE.—A legal representative of a 
servicemember for purposes of this Act is either of the 
following: 
‘‘(1) An attorney acting on the behalf of a 
servicemember. 
‘‘(2) An individual possessing a power of attor-
ney. 
‘‘(b) 
APPLICATION.—Whenever 
the 
term 
‘servicemember’ is used in this Act, such term shall be 
treated as including a reference to a legal representative 
of the servicemember. 
‘‘TITLE II—GENERAL RELIEF 
‘‘SEC. 201. PROTECTION OF SERVICEMEMBERS AGAINST 
DEFAULT JUDGMENTS. 
‘‘(a) APPLICABILITY OF SECTION.—This section 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 
action or proceeding covered by this section, the 
court, before entering judgment for the plaintiff,
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shall require 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 
service, stating that the plaintiff is unable to 
determine whether or not the defendant is in 
military service. 
‘‘(2) APPOINTMENT
OF
ATTORNEY
TO
REP-
RESENT DEFENDANT IN MILITARY SERVICE.—If in 
an action covered by this section it appears that the 
defendant is in military service, the court may not 
enter a judgment until after the court appoints an 
attorney to represent the defendant. If an attorney 
appointed under this section to represent a 
servicemember cannot locate the servicemember, ac-
tions 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 af-
fidavits filed in such an action, the court is unable 
to determine whether the defendant is in military
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service, the court, before entering judgment, may re-
quire the plaintiff to file a bond in an amount ap-
proved by the court. If the defendant is later found 
to be in military service, the bond shall be available 
to indemnify the defendant against any loss or dam-
age the defendant may suffer by reason of any judg-
ment for the plaintiff against the defendant, should 
the judgment be set aside in whole or in part. The 
bond shall remain in effect until expiration of the 
time for appeal and setting aside of a judgment 
under applicable Federal or State law or regulation 
or under any applicable ordinance of a political sub-
division of a State. The court may issue such orders 
or enter such judgments as the court determines 
necessary to protect the rights of the defendant 
under this Act. 
‘‘(4) SATISFACTION OF REQUIREMENT FOR AF-
FIDAVIT.—The requirement for an affidavit under 
paragraph (1) may be satisfied by a statement, dec-
laration, verification, or certificate, in writing, sub-
scribed 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 per-
mitted under subsection (b) (or a statement, declaration,
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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 serv-
ice, the court shall grant a stay of proceedings for a min-
imum period of 90 days under this subsection upon appli-
cation of counsel, or on the court’s own motion, if the 
court determines that—
‘‘(1) there may be a defense to the action and 
a defense cannot be presented without the presence 
of the defendant; or 
‘‘(2) after due diligence, counsel has been un-
able 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 
receives actual notice of the action, the servicemember 
may request a stay of proceeding under section 202.
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‘‘(g) VACATION OR SETTING ASIDE OF DEFAULT 
JUDGMENTS.—
‘‘(1) AUTHORITY FOR COURT TO VACATE OR 
SET ASIDE JUDGMENT.—If a default judgment is en-
tered in an action covered by this section against a 
servicemember during the servicemember’s period of 
military service (or within 60 days after termination 
of or release from such military service), the court 
entering the judgment shall, upon application by or 
on behalf of the servicemember, reopen the judgment 
for the purpose of allowing the servicemember to de-
fend 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 ap-
plication 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,
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or reversing is because of a provision of this Act, that ac-
tion shall not impair a right or title acquired by a bona 
fide purchaser for value under the default judgment. 
‘‘SEC. 202. STAY OF PROCEEDINGS WHEN SERVICEMEMBER 
DEFENDANT HAS NOTICE. 
‘‘(a) APPLICABILITY OF SECTION.—This section ap-
plies to any civil action or proceeding in which the defend-
ant at the time of filing an application under this sec-
tion—
‘‘(1) is in military service or is within 90 days 
after termination of or release from military service; 
and 
‘‘(2) has received notice of the action or pro-
ceeding. 
‘‘(b) AUTOMATIC STAY.—
‘‘(1) AUTHORITY FOR STAY.—At any stage be-
fore 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:
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‘‘(A) A letter or other communication set-
ting forth facts stating the manner in which 
current military duty requirements materially 
affect the servicemember’s ability to appear and 
stating a date when the servicemember will be 
available to appear.
‘‘(B) A letter or other communication from 
the servicemember’s commanding officer stating 
that the servicemember’s current military duty 
prevents appearance and that military leave is 
not authorized for the servicemember at the 
time of the letter. 
‘‘(c) APPLICATION NOT A WAIVER OF DEFENSES.—
An application for a stay under this section does not con-
stitute an appearance for jurisdictional purposes and does 
not constitute a waiver of any substantive or procedural 
defense (including a defense relating to lack of personal 
jurisdiction). 
‘‘(d) ADDITIONAL STAY.—
‘‘(1) APPLICATION.—A servicemember who is 
granted a stay of a civil action or proceeding under 
subsection (b) may apply for an additional stay 
based on continuing material affect of military duty 
on the servicemember’s ability to appear. Such an 
application may be made by the servicemember at
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the time of the initial application under subsection 
(b) or when it appears that the servicemember is un-
available to prosecute or defend the action. The 
same information required under subsection (b)(2) 
shall be included in an application under this sub-
section. 
‘‘(2) APPOINTMENT OF COUNSEL WHEN ADDI-
TIONAL
STAY
REFUSED.—If the court refuses to 
grant an additional stay of proceedings under para-
graph (1), the court shall appoint counsel to rep-
resent the servicemember in the action or pro-
ceeding. 
‘‘(e) 
COORDINATION
WITH
SECTION
201.—A 
servicemember who applies for a stay under this section 
and is unsuccessful may not seek the protections afforded 
by section 201. 
‘‘(f) INAPPLICABILITY TO SECTION 301.—The pro-
tections 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 pur-
suant to this Act, a penalty shall not accrue for failure 
to comply with the terms of the contract during the period 
of the stay.
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‘‘(b) REDUCTION OR WAIVER OF FINES OR PEN-
ALTIES.—If a servicemember fails to perform an obliga-
tion 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 per-
form the obligation was materially affected by such 
military service. 
‘‘SEC. 204. STAY OR VACATION OF EXECUTION OF JUDG-
MENTS, ATTACHMENTS, AND GARNISHMENTS. 
‘‘(a) COURT ACTION UPON MATERIAL AFFECT DE-
TERMINATION.—If a servicemember, in the opinion of the 
court, is materially affected by reason of military service 
in complying with a court judgment or order, the court 
may on its own motion and shall on application by the 
servicemember—
‘‘(1) stay the execution of any judgment or 
order entered against the servicemember; and 
‘‘(2) vacate or stay an attachment or garnish-
ment of property, money, or debts in the possession 
of the servicemember or a third party, whether be-
fore or after judgment.
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‘‘(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 
provisions of this Act by a court may be ordered for the 
period of military service and 90 days thereafter, or for 
any part of that period. The court may set the terms and 
amounts for such installment payments as is considered 
reasonable by the court. 
‘‘(b) CODEFENDANTS.—If the servicemember is a 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 
military service may not be included in computing any pe-
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riod limited by law, regulation, or order for the bringing 
of any action or proceeding in a court, or in any board, 
bureau, commission, department, or other agency of a 
State (or political subdivision of a State) or the United 
States by or against the servicemember or the 
servicemember’s heirs, executors, administrators, or as-
signs. 
‘‘(b) REDEMPTION OF REAL PROPERTY.—A period 
of military service may not be included in computing any 
period provided by law for the redemption of real property 
sold or forfeited to enforce an obligation, tax, or assess-
ment. 
‘‘(c) INAPPLICABILITY
TO
INTERNAL
REVENUE 
LAWS.—This section does not apply to any period of limi-
tation 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 obliga-
tion or liability bearing interest at a rate in excess 
of 6 percent per year that is incurred by a 
servicemember, or the servicemember and the 
servicemember’s 
spouse 
jointly, 
before 
the 
servicemember enters military service shall not bear
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interest at a rate in excess of 6 percent per year 
during the period of military service. 
‘‘(2) FORGIVENESS OF INTEREST IN EXCESS OF 
6 PERCENT.—Interest at a rate in excess of 6 per-
cent 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 
interest forgiven under paragraph (2) that is allo-
cable to the period for which such payment is made. 
‘‘(b) IMPLEMENTATION OF LIMITATION.—
‘‘(1) WRITTEN
NOTICE
TO
CREDITOR.—In 
order 
for 
an 
obligation 
or 
liability 
of 
a 
servicemember to be subject to the interest rate limi-
tation in subsection (a), the servicemember shall 
provide to the creditor written notice and a copy of 
the military orders calling the servicemember to mili-
tary service and any orders further extending mili-
tary service, not later than 180 days after the date 
of the servicemember’s termination or release from 
military service.
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‘‘(2) LIMITATION EFFECTIVE AS OF DATE OF 
ORDER TO ACTIVE DUTY.—Upon receipt of written 
notice and a copy of orders calling a servicemember 
to military service, the creditor shall treat the debt 
in accordance with subsection (a), effective as of the 
date on which the servicemember is called to military 
service. 
‘‘(c) CREDITOR PROTECTION.—A court may grant a 
creditor relief from the limitations of this section if, in 
the opinion of the court, the ability of the servicemember 
to pay interest upon the obligation or liability at a rate 
in excess of 6 percent per year is not materially affected 
by reason of the servicemember’s military service. 
‘‘(d) INTEREST.—As used in this section, the term 
‘interest’ includes service charges, renewal charges, fees, 
or any other charges (except bona fide insurance) with re-
spect 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—
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‘‘(A) evict a servicemember, or the depend-
ents of a servicemember, during a period of 
military service of the servicemember, from 
premises—
‘‘(i) that are occupied or intended to 
be occupied primarily as a residence; and 
‘‘(ii) for which the monthly rent does 
not exceed $1,700, as adjusted under para-
graph (2) for years after 2003; or 
‘‘(B) subject such premises to a distress 
during the period of military service. 
‘‘(2) HOUSING
PRICE
INFLATION
ADJUST-
MENT.—(A) For calendar years beginning with 
2004, the amount under subsection (a)(1)(A)(ii) 
shall be increased by the housing price inflation ad-
justment 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.
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‘‘(ii) The term ‘CPI housing component’ 
means the index published by the Bureau of 
Labor Statistics of the Department of Labor 
known as the Consumer Price Index, All Urban 
Consumers, Rent of Primary Residence, U.S. 
City Average. 
‘‘(b) STAY OF EXECUTION.—
‘‘(1) COURT AUTHORITY.—Upon an application 
for eviction or distress with respect to premises cov-
ered by this section, the court may on its own mo-
tion 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, jus-
tice and equity require a longer or shorter pe-
riod of time; or 
‘‘(B) adjust the obligation under the lease 
to preserve the interests of all parties. 
‘‘(2) RELIEF
TO
LANDLORD.—If a stay is 
granted under paragraph (1), the court may grant 
to the landlord (or other person with paramount 
title) such relief as equity may require. 
‘‘(c) PENALTIES.—
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‘‘(1) MISDEMEANOR.—Except as provided in 
subsection (a), a person who knowingly takes part in 
an eviction or distress described in subsection (a), or 
who knowingly attempts to do so, shall be fined as 
provided in title 18, United States Code, or impris-
oned for not more than one year, or both. 
‘‘(2) PRESERVATION OF OTHER REMEDIES AND 
RIGHTS.—The remedies and rights provided under 
this section are in addition to and do not preclude 
any remedy for wrongful conversion (or wrongful 
eviction) otherwise available under the law to the 
person claiming relief under this section, including 
any award for consequential and punitive damages. 
‘‘(d) 
RENT
ALLOTMENT
FROM
PAY
OF 
SERVICEMEMBER.—To the extent required by a court 
order related to property which is the subject of a court 
action under this section, the Secretary concerned shall 
make an allotment from the pay of a servicemember to 
satisfy the terms of such order, except that any such allot-
ment shall be subject to regulations prescribed by the Sec-
retary concerned establishing the maximum amount of pay 
of servicemembers that may be allotted under this sub-
section. 
‘‘(e) LIMITATION OF APPLICABILITY.—Section 202 is 
not applicable to this section.
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‘‘SEC. 302. PROTECTION UNDER INSTALLMENT CONTRACTS 
FOR PURCHASE OR LEASE. 
‘‘(a) PROTECTION UPON BREACH OF CONTRACT.—
‘‘(1) PROTECTION AFTER ENTERING MILITARY 
SERVICE.—After a servicemember enters military 
service, a contract by the servicemember for—
‘‘(A) the purchase of real or personal prop-
erty; or 
‘‘(B) the lease or bailment of such prop-
erty, 
may not be rescinded or terminated for a breach of 
terms of the contract occurring before or during that 
person’s military service, nor may the property be 
repossessed for such breach without a court order. 
‘‘(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 im-
prisoned 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 otherwise avail-
able under law to the person claiming relief under 
this section, including any award for consequential 
and punitive damages. 
‘‘(c) AUTHORITY OF COURT.—In a hearing based on 
this section, the court—
‘‘(1) 
may 
order 
repayment 
to 
the 
servicemember of all or part of the prior install-
ments 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 
proceedings for a period of time as, in the opinion 
of the court, justice and equity require; or 
‘‘(3) may make other disposition as is equitable 
to preserve the interests of all parties. 
‘‘SEC. 303. MORTGAGES AND TRUST DEEDS. 
‘‘(a) MORTGAGE AS SECURITY.—This section applies 
only to an obligation on real or personal property owned 
by a servicemember that—
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‘‘(1) originated before the period of the 
servicemember’s military service and for which the 
servicemember is still obligated; and 
‘‘(2) is secured by a mortgage, trust deed, or 
other security in the nature of a mortgage. 
‘‘(b) STAY OF PROCEEDINGS AND ADJUSTMENT OF 
OBLIGATION.—In an action filed during, or within 90 days 
after, a servicemember’s period of military service to en-
force an obligation described in subsection (a), the court 
may after a hearing and on its own motion and shall upon 
application by a servicemember when the servicemember’s 
ability to comply with the obligation is materially affected 
by military service—
‘‘(1) stay the proceedings for a period of time 
as justice and equity require, or 
‘‘(2) adjust the obligation to preserve the 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 mili-
tary service except—
‘‘(1) upon a court order granted before such 
sale, foreclosure, or seizure with a return made and 
approved by the court; or
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‘‘(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 
seizure of property that is prohibited by subsection 
(c), or who knowingly attempts to do so, shall be 
fined as provided in title 18, United States Code, or 
imprisoned for not more than one year, or both. 
‘‘(2) PRESERVATION OF OTHER REMEDIES.—
The remedies and rights provided under this section 
are in addition to and do not preclude any remedy 
for wrongful conversion otherwise available under 
law to the person claiming relief under this section, 
including consequential and punitive damages. 
‘‘SEC. 304. SETTLEMENT OF STAYED CASES RELATING TO 
PERSONAL PROPERTY. 
‘‘(a) APPRAISAL
OF PROPERTY.—When a stay is 
granted pursuant to this Act in a proceeding to foreclose 
a mortgage on or to repossess personal property, or to 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
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will not result, the court may order that the amount of 
the servicemember’s equity in the property be paid to the 
servicemember, or the servicemember’s dependents, as a 
condition of foreclosing the mortgage, repossessing the 
property, or rescinding or terminating the contract. 
‘‘SEC. 305. TERMINATION OF LEASES BY LESSEES. 
‘‘(a) COVERED LEASES.—This section applies to the 
lease of premises occupied, or intended to be occupied, by 
a servicemember or a servicemember’s dependents for a 
residential, professional, business, agricultural, or similar 
purpose if—
‘‘(1) the lease is executed by or on behalf of a 
person who thereafter and during the term of the 
lease enters military service; or 
‘‘(2) the servicemember, while in military serv-
ice, executes a lease and thereafter receives military 
orders for a permanent change of station or to de-
ploy with a military unit for a period of not less 
than 90 days. 
‘‘(b) NOTICE TO LESSOR.—
‘‘(1) DELIVERY OF NOTICE.—A lease described 
in subsection (a) is terminated when written notice 
is delivered by the lessee to the lessor (or the lessor’s 
grantee) or to the lessor’s agent (or the agent’s 
grantee).
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‘‘(2) TIME
FOR
NOTICE.—The written notice 
may be delivered at any time after the lessee’s entry 
into military service or the date of the military or-
ders for a permanent change of station or to deploy 
for a period of not less than 90 days.
‘‘(3) NATURE OF NOTICE.—Delivery may be ac-
complished—
‘‘(A) by hand delivery; 
‘‘(B) by private business carrier; or 
‘‘(C) by placing the written notice in an 
envelope with sufficient postage and addressed 
to the lessor (or the lessor’s grantee) or to the 
lessor’s agent (or the agent’s grantee) and de-
positing the written notice in the United States 
mails. 
‘‘(c) EFFECTIVE DATE OF TERMINATION.—
‘‘(1) LEASE
WITH
MONTHLY
RENT.—Termi-
nation of a lease providing for monthly payment of 
rent shall be effective 30 days after the first date on 
which the next rental payment is due and payable 
after the date on which the notice is delivered. 
‘‘(2) OTHER LEASE.—All other leases terminate 
on the last day of the month following the month in 
which the notice is delivered.
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‘‘(d) ARREARAGES IN RENT.—Rents unpaid for the 
period preceding termination shall be paid on a prorated 
basis.
‘‘(e) RENT PAID IN ADVANCE.—Rents paid in ad-
vance for a period succeeding termination shall be re-
funded to the lessee by the lessor (or the lessor’s assignee 
or the assignee’s agent). 
‘‘(f) RELIEF TO LESSOR.—Upon application by the 
lessor to a court before the termination date provided in 
the written notice, relief granted by this section to a 
servicemember may be modified as justice and equity re-
quire. 
‘‘(g) PENALTIES.—
‘‘(1) MISDEMEANOR.—Any person who know-
ingly seizes, holds, or detains the personal effects, 
security 
deposit, 
or 
other 
property 
of 
a 
servicemember or a servicemember’s dependent who 
lawfully terminates a lease covered by this section, 
or who knowingly interferes with the removal of such 
property from premises covered by such lease, for 
the purpose of subjecting or attempting to subject 
any of such property to a claim for rent accruing 
subsequent to the date of termination of such lease, 
or attempts to do so, shall be fined as provided in
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title 18, United States Code, or imprisoned for not 
more than one year, or both. 
‘‘(2) PRESERVATION OF OTHER REMEDIES.—
The remedy and rights provided under this section 
are in addition to and do not preclude any remedy 
for wrongful conversion otherwise available under 
law to the person claiming relief under this section, 
including any award for consequential or punitive 
damages. 
‘‘SEC. 306. PROTECTION OF LIFE INSURANCE POLICY. 
‘‘(a) ASSIGNMENT OF POLICY PROTECTED.—If a life 
insurance policy on the life of a servicemember is assigned 
before military service to secure the payment of an obliga-
tion, the assignee of the policy (except the insurer in con-
nection with a policy loan) may not exercise, during a pe-
riod of military service of the servicemember or within one 
year thereafter, any right or option obtained under the 
assignment without a court order. 
‘‘(b) EXCEPTION.—The prohibition in subsection (a) 
shall not apply—
‘‘(1) if the assignee has the written consent of 
the insured made during the period described in sub-
section (a)(1); 
‘‘(2) when the premiums on the policy are due 
and unpaid; or
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‘‘(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. 
‘‘(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, 
including any consequential or punitive damages. 
‘‘SEC. 307. ENFORCEMENT OF STORAGE LIENS. 
‘‘(a) LIENS.—
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‘‘(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. 
‘‘(2) LIEN
DEFINED.—For the purposes of 
paragraph (1), the term ‘lien’ includes a lien for 
storage, repair, or cleaning of the property or effects 
of a servicemember or a lien on such property or ef-
fects for any other reason. 
‘‘(b) STAY OF PROCEEDINGS.—In a proceeding to 
foreclose or enforce a lien subject to this section, the court 
may on its own motion, and shall if requested by a 
servicemember whose ability to comply with the obligation 
resulting in the proceeding is materially affected by 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.—
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‘‘(1) MISDEMEANOR.—A person who knowingly 
takes an action contrary to this section, or attempts 
to do so, shall be fined as provided in title 18, 
United States Code, or imprisoned for not more 
than one year, or both.
‘‘(2) PRESERVATION OF OTHER REMEDIES.—
The remedy and rights provided under this section 
are in addition to and do not preclude any remedy 
for wrongful conversion otherwise available under 
law to the person claiming relief under this section, 
including any consequential or punitive damages. 
‘‘SEC. 308. EXTENSION OF PROTECTIONS TO DEPENDENTS. 
‘‘Upon application to a court, a dependent of a 
servicemember is entitled to the protections of this title 
if the dependent’s ability to comply with a lease, contract, 
bailment, or other obligation is materially affected by 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 
contract for whole, endowment, universal, or term 
life insurance, including any benefit in the nature of 
such insurance arising out of membership in any 
fraternal or beneficial association which—
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‘‘(A) provides that the insurer may not—
‘‘(i) decrease the amount of coverage 
or increase the amount of premiums if the 
insured is in military service; 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 
business that is chartered or authorized to provide 
insurance and issue contracts or policies by the laws 
of a State or the United States. 
‘‘SEC. 402. INSURANCE RIGHTS AND PROTECTIONS. 
‘‘(a) RIGHTS AND PROTECTIONS.—The rights and 
protections under this title apply to the insured when the 
insured, the insured’s designee, or the insured’s bene-
ficiary applies in writing for protection under this title,
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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 Sec-
retary of Veterans Affairs shall notify the Secretary con-
cerned of the procedures to be used to apply for the pro-
tections provided under this title. The applicant shall send 
the original application to the insurer and a copy to the 
Secretary of Veterans Affairs. 
‘‘(c) LIMITATION ON AMOUNT.—The total amount of 
life insurance coverage protection provided by this title for 
a servicemember may not exceed $250,000, or an amount 
equal to the Servicemember’s Group Life Insurance 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 designee, or the insured’s beneficiary, 
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 deter-
mine if the policy is entitled to protection under this title. 
‘‘(c) NOTICE
TO
THE SECRETARY
BY
THE IN-
SURED.—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 regula-
tions prescribed by the Secretary. 
‘‘(d) POLICY MODIFICATION.—Upon application for 
protection under this title, the insured and the insurer 
shall have constructively agreed to any policy modification 
necessary to give this title full force and effect. 
‘‘SEC. 404. POLICIES ENTITLED TO PROTECTION AND 
LAPSE OF POLICIES. 
‘‘(a) DETERMINATION.—The Secretary of Veterans 
Affairs shall determine whether a policy is entitled to pro-
tection under this title and shall notify the insured and 
the insurer of that determination. 
‘‘(b) LAPSE PROTECTION.—A policy that the Sec-
retary determines is entitled to protection under this title 
shall not lapse or otherwise terminate or be forfeited for 
the nonpayment of a premium, or interest or indebtedness 
on a premium, after the date of the application for protec-
tion.
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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 
policy may not be paid to an insured or used to purchase 
dividend additions without the approval of the Secretary 
of Veterans Affairs. If such approval is not obtained, the 
dividends or benefits shall be added to the value of the 
policy to be used as a credit when final settlement is made 
with the insurer. 
‘‘(b) SPECIFIC RESTRICTIONS.—While a policy is 
protected under this title, cash value, loan value, with-
drawal of dividend accumulation, unearned premiums, or 
other value of similar character may not be available to 
the insured without the approval of the Secretary. The 
right of the insured to change a beneficiary designation 
or select an optional settlement for a beneficiary shall not 
be affected by the provisions of this title. 
‘‘SEC. 406. DEDUCTION OF UNPAID PREMIUMS. 
‘‘(a) SETTLEMENT OF PROCEEDS.—If a policy 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
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the insurance proceeds the amount of the unpaid pre-
miums guaranteed under this title, together with interest 
due at the rate fixed in the policy for policy loans. 
‘‘(b) INTEREST RATE.—If the interest rate is not 
specifically fixed in the policy, the rate shall be the same 
as for policy loans in other policies issued by the insurer 
at the time the insured’s policy was issued. 
‘‘(c) REPORTING REQUIREMENT.—The amount 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 expira-
tion of insurance protection under this title, the cash 
surrender value of a policy is less than the amount
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due to pay premiums and interest on premiums on 
the policy, the policy shall terminate. Upon such ter-
mination, 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 
regulations 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 may be reviewed by the Board of Veterans’ Appeals 
and the United States Court of Appeals for Veterans 
Claims. 
‘‘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; or 
‘‘(2) real property occupied for dwelling, profes-
sional, business, or agricultural purposes by a 
servicemember or the servicemember’s dependents or 
employees—
‘‘(A) before the servicemember’s entry into 
military service; and
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‘‘(B) during the time the tax or assessment 
remains unpaid. 
‘‘(b) SALE OF PROPERTY.—
‘‘(1) LIMITATION ON SALE OF PROPERTY TO 
ENFORCE TAX ASSESSMENT.—Property described in 
subsection (a) may not be sold to enforce the collec-
tion of such tax or assessment except by court order 
and upon the determination by the court that mili-
tary 
service 
does 
not 
materially 
affect 
the 
servicemember’s ability to pay the unpaid tax or as-
sessment. 
‘‘(2) STAY OF COURT PROCEEDINGS.—A court 
may stay a proceeding to enforce the collection of 
such tax or assessment, or sale of such property, 
during 
a 
period 
of 
military 
service 
of 
the 
servicemember and for a period not more than 180 
days after the termination of, or release of the 
servicemember from, military service. 
‘‘(c) REDEMPTION.—When property described in 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 
from military service. This subsection may not be con-
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strued to shorten any period provided by the law of a State 
(including 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 
property described in subsection (a) when due, the amount 
of the tax or assessment due and unpaid shall bear inter-
est until paid at the rate of 6 percent per year. An addi-
tional penalty or interest shall not be incurred by reason 
of nonpayment. A lien for such unpaid tax or assessment 
may include interest under this subsection. 
‘‘(e) JOINT OWNERSHIP APPLICATION.—This section 
applies to all forms of property described in subsection (a) 
owned individually by a servicemember or jointly by a 
servicemember and a dependent or dependents. 
‘‘SEC. 502. RIGHTS IN PUBLIC LANDS. 
‘‘(a) RIGHTS NOT FORFEITED.—The rights of a 
servicemember to lands owned or controlled by the United 
States, and initiated or acquired by the servicemember 
under the laws of the United States (including the mining 
and mineral leasing laws) before military service, shall not 
be forfeited or prejudiced as a result of being absent from 
the land, or by failing to begin or complete any work or 
improvements to the land, during the period of military 
service.
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‘‘(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 li-
cense 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 
successor in interest into military service shall not be sub-
ject to contest or cancellation—
‘‘(1) for failure to expend any required amount 
per acre per year in improvements upon the claim; 
‘‘(2) for failure to effect the reclamation of the 
claim during the period the entryman or the 
entryman’s successor in interest is in the military 
service, or for 180 days after termination of or re-
lease from military service; or
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‘‘(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 un-
able to accomplish reclamation of, and payment for, desert 
land due to a disability incurred in the line of duty, the 
entryman or claimant may make proof without further 
reclamation or payments, under regulations prescribed by 
the Secretary of the Interior, and receive a patent for the 
land entered or claimed. 
‘‘(c) FILING REQUIREMENT.—In order to obtain the 
protection of this section, the entryman or claimant shall, 
within 180 days after entry into military service, cause 
to be filed in the land office of the district where the claim 
is situated a notice communicating the fact of military 
service and the desire to hold the claim under this section. 
‘‘SEC. 504. MINING CLAIMS. 
‘‘(a) REQUIREMENTS SUSPENDED.—The provisions 
of section 2324 of the Revised Statutes of the United 
States (30 U.S.C. 28) specified in subsection (b) shall not
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apply to a servicemember’s claims or interests in claims, 
regularly located and recorded, during a period of military 
service and 180 days thereafter, or during any period of 
hospitalization or rehabilitation due to injuries or disabil-
ities incurred in the line of duty. 
‘‘(b) REQUIREMENTS.—The provisions in section 
2324 of the Revised Statutes that shall not apply under 
subsection (a) are those which require that on each mining 
claim located after May 10, 1872, and until a patent has 
been issued for such claim, not less than $100 worth of 
labor shall be performed or improvements made during 
each year. 
‘‘(c) PERIOD OF PROTECTION FROM FORFEITURE.—
A mining claim or an interest in a claim owned by a 
servicemember that has been regularly located and re-
corded shall not be subject to forfeiture for nonperform-
ance of annual assessments during the period of military 
service and for 180 days thereafter, or for any period of 
hospitalization or rehabilitation described in subsection 
(a). 
‘‘(d) FILING REQUIREMENT.—In order to obtain the 
protections of this section, the claimant of a mining loca-
tion shall, before the end of the assessment year in which 
military service is begun or within 60 days after the end 
of such assessment year, cause to be filed in the office
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where the location notice or certificate is recorded a notice 
communicating the fact of military service and the desire 
to hold the mining claim under this section. 
‘‘SEC. 505. MINERAL PERMITS AND LEASES. 
‘‘(a) SUSPENSION DURING MILITARY SERVICE.—A 
person holding a permit or lease on the public domain 
under the Federal mineral leasing laws who enters mili-
tary 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 protec-
tion of this section, the permittee or lessee shall, within 
180 days after entry into military service, notify the Sec-
retary of the Interior by registered mail of the fact that 
military service has begun and of the desire to hold the 
claim under this section. 
‘‘(c) CONTRACT MODIFICATION.—This section shall 
not be construed to supersede the terms of any contract 
for operation of a permit or lease. 
‘‘SEC. 506. PERFECTION OR DEFENSE OF RIGHTS. 
‘‘(a) RIGHT TO TAKE ACTION NOT AFFECTED.—
This title shall not affect the right of a servicemember to
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take action during a period of military service that is au-
thorized by law or regulations of the Department of the 
Interior, for the perfection, defense, or further assertion 
of rights initiated or acquired before entering military 
service. 
‘‘(b) AFFIDAVITS AND PROOFS.—
‘‘(1) IN GENERAL.—A servicemember during a 
period of military service may make any affidavit or 
submit any proof required by law, practice, or regu-
lation of the Department of the Interior in connec-
tion with the entry, perfection, defense, or further 
assertion of rights initiated or acquired before enter-
ing military service before an officer authorized to 
provide notary services under section 1044a of title 
10, United States Code, or any superior commis-
sioned officer. 
‘‘(2) LEGAL STATUS OF AFFIDAVITS.—Such af-
fidavits 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
SEC-
RETARY CONCERNED.—The Secretary concerned shall
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issue to servicemembers information explaining the provi-
sions of this title. 
‘‘(b) APPLICATION
FORMS.—The Secretary con-
cerned shall provide application forms to servicemembers 
requesting 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 
mineral leasing laws, as those servicemembers who are 21 
years of age. 
‘‘(b) RESIDENCY REQUIREMENT.—Any requirement 
related to the establishment of a residence within a limited 
time shall be suspended as to entry by a servicemember 
in military service until 180 days after termination of or 
release from military service. 
‘‘(c) ENTRY APPLICATIONS.—Applications for entry 
may be verified before a person authorized to administer
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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 Inter-
nal Revenue Service or the tax authority of a State or 
a political subdivision of a State, the collection of income 
tax on the income of a servicemember falling due before 
or during military service shall be deferred for a period 
not more than 180 days after termination of or release 
from military service, if a servicemember’s ability to pay 
such income tax is materially affected by military service. 
‘‘(b) ACCRUAL OF INTEREST OR PENALTY.—No in-
terest 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.—Com-
pensation of a servicemember for military service shall not 
be deemed to be income for services performed or from 
sources within a tax jurisdiction of the United States if 
the servicemember is not a resident or domiciliary of the 
jurisdiction in which the servicemember is serving in com-
pliance 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 
applies 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 per-
sonal property used in or arising from a trade or 
business, if it has jurisdiction. 
‘‘(4) RELATIONSHIP
TO
LAW
OF
STATE
OF 
DOMICILE.—Eligibility for relief from personal prop-
erty 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 jurisdic-
tion may not use the military compensation of a non-
resident servicemember to increase the tax liability im-
posed 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 applica-
ble 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 ‘per-
sonal property’ means intangible and tangible prop-
erty (including motor vehicles). 
‘‘(2) TAXATION.—The term ‘taxation’ includes 
licenses, fees, or excises imposed with respect to 
motor vehicles and their use, if the license, fee, or 
excise is paid by the servicemember in the 
servicemember’s State of domicile or residence. 
‘‘(3) TAX JURISDICTION.—The term ‘tax juris-
diction’ means a State or a political subdivision of 
a State. 
‘‘TITLE VI—ADMINISTRATIVE 
REMEDIES 
‘‘SEC. 601. INAPPROPRIATE USE OF ACT. 
‘‘If a court determines, in any proceeding to enforce 
a civil right, that any interest, property, or contract has 
been transferred or acquired with the intent to delay the 
just enforcement of such right by taking advantage of this 
Act, the court shall enter such judgment or make such 
order as might lawfully be entered or made concerning 
such transfer or acquisition.
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‘‘SEC. 602. CERTIFICATES OF SERVICE; PERSONS RE-
PORTED 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 miss-
ing 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 mili-
tary service; or
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‘‘(2) from a tax or assessment falling due be-
fore or during the servicemember’s military service. 
‘‘(b) TAX LIABILITY OR ASSESSMENT.—In a case 
covered by subsection (a), the court may, if the ability of 
the servicemember to comply with the terms of such obli-
gation or liability or pay such tax or assessment has been 
materially affected by reason of military service, after ap-
propriate 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 pur-
chase of real estate, or secured by a mortgage 
or other instrument in the nature of a mortgage 
upon real estate, the court may grant a stay of 
the enforcement of the obligation—
‘‘(i) during the servicemember’s period 
of military service; and 
‘‘(ii) from the date of termination of 
or release from military service, or from 
the date of application if made after termi-
nation of or release from military service. 
‘‘(B) Any stay under this paragraph shall 
be—
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‘‘(i) for a period equal to the remain-
ing life of the installment contract or other 
instrument, plus a period of time equal to 
the period of military service of the 
servicemember, or any part of such com-
bined period; and 
‘‘(ii) subject to payment of the bal-
ance of the principal and accumulated in-
terest due and unpaid at the date of termi-
nation or release from the applicant’s mili-
tary service or from the date of application 
in equal installments during the combined 
period at the rate of interest on the unpaid 
balance prescribed in the contract or other 
instrument evidencing the obligation, and 
subject to other terms as may be equitable. 
‘‘(2) STAY OF ENFORCEMENT OF OTHER 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
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the date of application if made after termi-
nation or release from military service. 
‘‘(B) Any stay under this paragraph shall 
be—
‘‘(i) for a period of time equal to the 
period of the servicemember’s military 
service or any part of such period; and 
‘‘(ii) subject to payment of the bal-
ance 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 install-
ments during this extended period at the 
rate of interest as may be prescribed for 
this obligation, liability, tax, or assessment, 
if paid when due, and subject to other 
terms as may be equitable. 
‘‘(c) AFFECT OF STAY ON FINE OR PENALTY.—
When a court grants a stay under this section, a fine or 
penalty shall not accrue on the obligation, liability, tax, 
or assessment for the period of compliance with the terms 
and conditions of the stay. 
‘‘SEC. 702. POWER OF ATTORNEY. 
‘‘(a) AUTOMATIC EXTENSION.—A power of attorney 
of a servicemember shall be automatically extended for the
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period the servicemember is in a missing status (as de-
fined in section 551(2) of title 37, United States Code) 
if the power of attorney—
‘‘(1) was duly executed by the servicemember—
‘‘(A) while in military service; or 
‘‘(B) before entry into military service but 
after the servicemember—
‘‘(i) received a call or order to report 
for military service; or 
‘‘(ii) was notified by an official of the 
Department of Defense that the person 
could receive a call or order to report for 
military service; 
‘‘(2) designates the servicemember’s spouse, 
parent, 
or 
other 
named 
relative 
as 
the 
servicemember’s attorney in fact for certain, speci-
fied, 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 ex-
pires on the date specified even though the servicemember,
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after the date of execution of the document, enters a miss-
ing status. 
‘‘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 
active duty—
‘‘(A) was engaged in the furnishing of 
health-care or legal services or other services 
determined by the Secretary of Defense to be 
professional services; and 
‘‘(B) had in effect a professional liability 
insurance policy that does not continue to cover 
claims filed with respect to the servicemember 
during the period of the servicemember’s active 
duty unless the premiums are paid for such cov-
erage for such period. 
‘‘(b) SUSPENSION OF COVERAGE.—
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‘‘(1) 
SUSPENSION.—Coverage 
of 
a 
servicemember referred to in subsection (a) by a 
professional liability insurance policy shall be sus-
pended by the insurance carrier in accordance with 
this subsection upon receipt of a written request 
from the servicemember, or the servicemember’s 
legal representative, by the insurance carrier. 
‘‘(2) 
PREMIUMS
FOR
SUSPENDED
CON-
TRACTS.—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 be-
coming due upon the reinstatement of such cov-
erage. 
‘‘(3) NONLIABILITY OF CARRIER DURING SUS-
PENSION.—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 sus-
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pension of that servicemember’s professional liability 
insurance 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 pro-
fessional to make adequate provision for a patient, 
client, or other person to receive professional serv-
ices or other assistance during the period of the pro-
fessional’s active duty service shall be considered to 
be based on an action or failure to take action before 
the beginning of the period of the suspension of pro-
fessional liability insurance under this subsection, 
except in a case in which professional services were 
provided after the date of the beginning of such pe-
riod. 
‘‘(c) REINSTATEMENT OF COVERAGE.—
‘‘(1) 
REINSTATEMENT
REQUIRED.—Profes-
sional 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 reinstate-
ment. 
‘‘(2) TIME
AND
PREMIUM
FOR
REINSTATE-
MENT.—The request of a servicemember for rein-
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statement 
shall 
be 
effective 
only 
if 
the 
servicemember transmits the request to the insur-
ance 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 in-
surance. Such premium shall be paid by the 
servicemember within 30 days after receipt of that 
notice. 
‘‘(3) PERIOD OF REINSTATED COVERAGE.—The 
period for which professional liability insurance 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 suspended. 
‘‘(d) INCREASE IN PREMIUM.—
‘‘(1) LIMITATION ON PREMIUM INCREASES.—
An insurance carrier may not increase the amount 
of the premium charged for professional liability in-
surance coverage of any servicemember for the min-
imum period of the reinstatement of such coverage 
required under subsection (c)(3) to an amount 
greater than the amount chargeable for such cov-
erage for such period before the suspension.
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‘‘(2) EXCEPTION.—Paragraph (1) does not pre-
vent an increase in premium to the extent of any 
general increase in the premiums charged by that 
carrier for the same professional liability coverage 
for persons similarly covered by such insurance dur-
ing the period of the suspension. 
‘‘(e) CONTINUATION OF COVERAGE OF UNAFFECTED 
PERSONS.—This section does not—
‘‘(1) require a suspension of professional liabil-
ity insurance protection for any person who is not a 
person referred to in subsection (a) and who is cov-
ered by the same professional liability insurance as 
a person referred to in such subsection; or 
‘‘(2) relieve any person of the obligation to pay 
premiums for the coverage not required to be 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 in-
surance coverage has been suspended under sub-
section (b) shall be stayed until the end of the period 
of the suspension if—
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‘‘(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 
insurance would, except for the suspension, on 
its face cover the alleged professional negligence 
or other professional liability negligence or 
other 
professional 
liability 
of 
the 
servicemember. 
‘‘(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 
PERIOD.—In the case of a civil or administrative action 
for which a stay could have been granted under subsection 
(f) by reason of the suspension of professional liability in-
surance coverage of the defendant under this section, the 
period of the suspension of the coverage shall be excluded
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from the computation of any statutory period of limitation 
on the commencement of such action. 
‘‘(h) DEATH DURING PERIOD OF SUSPENSION.—If 
a servicemember whose professional liability insurance 
coverage is suspended under subsection (b) dies during the 
period of the suspension—
‘‘(1) the requirement for the grant or continu-
ance of a stay in any civil or administrative action 
against such servicemember under subsection (f)(1) 
shall terminate on the date of the death of such 
servicemember; and 
‘‘(2) the carrier of the professional liability in-
surance so suspended shall be liable for any claim 
for damages for professional negligence or other pro-
fessional 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) The term ‘active duty’ has the meaning 
given that term in section 101(d)(1) of title 10, 
United States Code. 
‘‘(2) The term ‘profession’ includes occupation.
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‘‘(3) The term ‘professional’ includes occupa-
tional. 
‘‘SEC. 704. HEALTH INSURANCE REINSTATEMENT. 
‘‘(a) REINSTATEMENT OF HEALTH INSURANCE.—A 
servicemember who, by reason of military service as de-
fined in section 703(a)(1), is entitled to the rights and 
protections of this Act shall also be entitled upon termi-
nation or release from such service to reinstatement of any 
health insurance that—
‘‘(1) was in effect on the day before such serv-
ice commenced; and 
‘‘(2) was terminated effective on a date during 
the period of such service. 
‘‘(b) NO EXCLUSION OR WAITING PERIOD.—The re-
instatement of health care insurance coverage for the 
health or physical condition of a servicemember described 
in subsection (a), or any other person who is covered by 
the insurance by reason of the coverage of the 
servicemember, shall not be subject to an exclusion or a 
waiting period, if—
‘‘(1) the condition arose before or during the 
period of such service; 
‘‘(2) an exclusion or a waiting period would not 
have been imposed for the condition during the pe-
riod of coverage; and
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‘‘(3) 
if 
the 
condition 
relates 
to 
the 
servicemember, the condition has not been deter-
mined by the Secretary of Veterans Affairs to be a 
disability incurred or aggravated in the line of duty 
(within the meaning of section 105 of title 38, 
United States Code). 
‘‘(c) EXCEPTIONS.—Subsection (a) does not apply to 
a servicemember entitled to participate in employer-of-
fered insurance benefits pursuant to the provisions of 
chapter 43 of title 38, United States Code. 
‘‘(d) TIME FOR APPLYING FOR REINSTATEMENT.—
An application under this section must be filed not later 
than 120 days after the date of the termination of or re-
lease 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 Cam-
paign Act of 1971 (2 U.S.C. 431)) or a State or local 
office, a person who is absent from a State in compliance 
with military or naval orders shall not, solely by reason 
of that absence—
‘‘(1) be deemed to have lost a residence or 
domicile in that State, without regard to whether or 
not the person intends to return to that State;
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‘‘(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. 2. CONFORMING AMENDMENTS. 
(a) MILITARY SELECTIVE SERVICE ACT.—Section 14 
of the Military Selective Service Act (50 U.S.C. App. 464) 
is repealed. 
(b) TITLE 5, UNITED STATES CODE.—
(1) Section 5520a(k)(2)(A) of title 5, United 
States Code, is amended by striking ‘‘Soldiers’ and 
Sailors’ Civil Relief Act of 1940’’ and inserting 
‘‘Servicemembers Civil Relief Act’’; and 
(2) Section 5569(e) of title 5, United States 
Code, is amended—
(A) in paragraph (1), by striking ‘‘provided 
by the Soldiers’ and Sailors’ Civil Relief Act of 
1940’’ and all that follows through ‘‘of such 
Act’’ 
and 
inserting 
‘‘provided 
by 
the 
Servicemembers Civil Relief Act, including the 
benefits provided by section 702 of such Act 
but excluding the benefits provided by sections 
104, 105, and 106, title IV, and title V (other 
than sections 501 and 510) of such Act’’; and
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(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 strik-
ing ‘‘Soldiers’ and Sailors’ Civil Relief Act’’ and inserting 
‘‘Servicemembers Civil Relief Act’’. 
(e) PUBLIC HEALTH SERVICE ACT.—Section 212(e) 
of the Public Health Service Act (42 U.S.C. 213(e)) is 
amended by striking ‘‘Soldiers’ and Sailors’ Civil Relief 
Act of 1940’’ and inserting ‘‘Servicemembers Civil Relief 
Act’’. 
(f) ELEMENTARY AND SECONDARY EDUCATION ACT 
OF 1965.—Section 8001 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7701) is amended by 
striking ‘‘section 514 of the Soldiers’ and Sailors’ Civil 
Relief Act of 1940 (50 U.S.C. App. 574)’’ in the matter 
preceding paragraph (1) and inserting ‘‘section 511 of the 
Servicemembers Civil Relief Act’’.
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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.
Passed the House of Representatives May 7, 2003. 
Attest: 
JEFF TRANDAHL, 
Clerk.