To amend the Soldiers' and Sailors' Civil Relief Act of 1940 to provide protections to servicemembers who terminate motor vehicle or residential leases entered into before permanent change of station or deployment orders or motor vehicle leases entered into before military service.

SECTION 1. TERMINATION OF RESIDENTIAL OR MOTOR VEHICLE LEASES.

    Section 304 of the Soldiers' and Sailors' Civil Relief Act of 1940 
(50 U.S.C. App. 534) is amended to read as follows:

``SEC. 304. TERMINATION BY LESSEES OF RESIDENTIAL OR MOTOR VEHICLE 
              LEASES ENTERED INTO BEFORE MILITARY SERVICE OR BEFORE 
              PERMANENT CHANGE OF STATION OR DEPLOYMENT ORDERS.

    ``(a) Termination by Lessee.--The lessee on a lease described in 
subsection (b) may, at the lessee's option, terminate the lease at any 
time after--
            ``(1) the lessee's entry into military service; or
            ``(2) the date of the lessee's military orders described in 
        paragraph (1)(B) or (2)(B) of subsection (b), as the case may 
        be.
    ``(b) Covered Leases.--This section applies to the following 
leases:
            ``(1) Leases of premises.--A lease of premises occupied, or 
        intended to be occupied, by a servicemember or a 
        servicemember's dependents for a residential, professional, 
        business, agricultural, or similar purpose if--
                    ``(A) the lease is executed by or on behalf of a 
                person who thereafter and during the term of the lease 
                enters military service; or
                    ``(B) the servicemember, while in military service, 
                executes the lease and thereafter receives military 
                orders for a permanent change of station or to deploy 
                with a military unit for a period of not less than 90 
                days.
            ``(2) Leases of motor vehicles.--A lease of a motor vehicle 
        used, or intended to be used, by a servicemember or a 
        servicemember's dependents for personal or business 
        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 orders 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 station 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 notice 
                of such termination to the lessor (or the lessor's 
                grantee), or to the lessor's agent (or the agent's 
                grantee); and
                    ``(B) in the case of a lease of a motor vehicle, by 
                return of the motor vehicle by the lessee to the lessor 
                not later than 10 days after the date of the delivery 
                of notice under subparagraph (A).
            ``(2) Nature 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 envelope 
                with sufficient postage and with return receipt 
                requested, and addressed as designated by the lessor 
                (or the lessor's grantee) or to the lessor's agent (or 
                the agent's grantee), and depositing 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 
        subsection (c) is delivered. In the case of any other lease 
        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 delivered.
            ``(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 Liabilities.--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 
termination charge, but any taxes, summonses, and title and 
registration 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).
    ``(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 require.
    ``(h) Penalties.--
            ``(1) Misdemeanor.--Any person who knowingly 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 
        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.''.

Summary: Amends the Soldiers' and Sailors' Civil Relief Act of 1940 to allow a lessee to terminate a residential or motor vehicle lease which was entered into before military service or before receiving permanent change of station or deployment orders at any time after: (1) entry into military service; or (2) the date of the lessee's station or deployment orders. (Currently, a lessee may terminate only a residential lease and only after entry into military service.)