Servicemembers Civil Relief Act
PL 108-189 (H.R.100), enacted 12/19/2003

117 STAT. 2835
PUBLIC LAW 108–189—DEC. 19, 2003
Public Law 108–189
108th Congress
An Act
To restate, clarify, and revise the Soliders’ and Sailors’ Civil Relief Act of 1940.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. RESTATEMENT OF ACT.
The Soldiers’ and Sailors’ Civil Relief Act of 1940 (50 U.S.C.
App. 501 et seq.) is amended to read as follows:
‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
‘‘(a) 
SHORT
TITLE.—This 
Act 
may 
be 
cited 
as 
the
‘Servicemembers Civil Relief Act’.
‘‘(b) TABLE OF CONTENTS.—The table of contents of this Act
is as follows:
‘‘Sec. 1. Short title; table of contents.
‘‘Sec. 2. Purpose.
‘‘TITLE I—GENERAL PROVISIONS
‘‘Sec. 101. Definitions.
‘‘Sec. 102. Jurisdiction and applicability of Act.
‘‘Sec. 103. Protection of persons secondarily liable.
‘‘Sec. 104. Extension of protections to citizens serving with allied forces.
‘‘Sec. 105. Notification of benefits.
‘‘Sec. 106. Extension of rights and protections to Reserves ordered to report for
military service and to persons ordered to report for induction.
‘‘Sec. 107. Waiver of rights pursuant to written agreement.
‘‘Sec. 108. Exercise of rights under Act not to affect certain future financial trans-
actions.
‘‘Sec. 109. Legal representatives.
‘‘TITLE II—GENERAL RELIEF
‘‘Sec. 201. Protection of servicemembers against default judgments.
‘‘Sec. 202. Stay of proceedings when servicemember has notice.
‘‘Sec. 203. Fines and penalties under contracts.
‘‘Sec. 204. Stay or vacation of execution of judgments, attachments, and garnish-
ments.
‘‘Sec. 205. Duration and term of stays; codefendants not in service.
‘‘Sec. 206. Statute of limitations.
‘‘Sec. 207. Maximum rate of interest on debts incurred before military service.
‘‘TITLE III—RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS,
ASSIGNMENT, LEASES
‘‘Sec. 301. Evictions and distress.
‘‘Sec. 302. Protection under installment contracts for purchase or lease.
‘‘Sec. 303. Mortgages and trust deeds.
‘‘Sec. 304. Settlement of stayed cases relating to personal property.
‘‘Sec. 305. Termination of residential or motor vehicle leases.
‘‘Sec. 306. Protection of life insurance policy.
‘‘Sec. 307. Enforcement of storage liens.
‘‘Sec. 308. Extension of protections to dependents.
50 USC app. 501.
Dec. 19, 2003
[H.R. 100]
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117 STAT. 2836
PUBLIC LAW 108–189—DEC. 19, 2003
‘‘TITLE IV—LIFE INSURANCE
‘‘Sec. 401. Definitions.
‘‘Sec. 402. Insurance rights and protections.
‘‘Sec. 403. Application for insurance protection.
‘‘Sec. 404. Policies entitled to protection and lapse of policies.
‘‘Sec. 405. Policy restrictions.
‘‘Sec. 406. Deduction of unpaid premiums.
‘‘Sec. 407. Premiums and interest guaranteed by United States.
‘‘Sec. 408. Regulations.
‘‘Sec. 409. Review of findings of fact and conclusions of law.
‘‘TITLE V—TAXES AND PUBLIC LANDS
‘‘Sec. 501. Taxes respecting personal property, money, credits, and real property.
‘‘Sec. 502. Rights in public lands.
‘‘Sec. 503. Desert-land entries.
‘‘Sec. 504. Mining claims.
‘‘Sec. 505. Mineral permits and leases.
‘‘Sec. 506. Perfection or defense of rights.
‘‘Sec. 507. Distribution of information concerning benefits of title.
‘‘Sec. 508. Land rights of servicemembers.
‘‘Sec. 509. Regulations.
‘‘Sec. 510. Income taxes.
‘‘Sec. 511. Residence for tax purposes.
‘‘TITLE VI—ADMINISTRATIVE REMEDIES
‘‘Sec. 601. Inappropriate use of Act.
‘‘Sec. 602. Certificates of service; persons reported missing.
‘‘Sec. 603. Interlocutory orders.
‘‘TITLE VII—FURTHER RELIEF
‘‘Sec. 701. Anticipatory relief.
‘‘Sec. 702. Power of attorney.
‘‘Sec. 703. Professional liability protection.
‘‘Sec. 704. Health insurance reinstatement.
‘‘Sec. 705. Guarantee of residency for military personnel.
‘‘Sec. 706. Business or trade obligations.
‘‘SEC. 2. PURPOSE.
‘‘The purposes of this Act are—
‘‘(1) to provide for, strengthen, and expedite the national
defense 
through 
protection 
extended 
by 
this 
Act 
to
servicemembers of the United States to enable such persons
to devote their entire energy to the defense needs of the Nation;
and
‘‘(2) to provide for the temporary suspension of judicial
and administrative proceedings and transactions that may
adversely affect the civil rights of servicemembers during their
military service.
‘‘TITLE I—GENERAL PROVISIONS
‘‘SEC. 101. DEFINITIONS.
‘‘For the purposes of this Act:
‘‘(1) SERVICEMEMBER.—The term ‘servicemember’ means a
member of the uniformed services, as that term is defined
in section 101(a)(5) of title 10, United States Code.
‘‘(2) 
MILITARY
SERVICE.—The 
term 
‘military 
service’
means—
‘‘(A) in the case of a servicemember who is a member
of the Army, Navy, Air Force, Marine Corps, or Coast
Guard—
‘‘(i) active duty, as defined in section 101(d)(1)
of title 10, United States Code, and
50 USC app. 511.
50 USC app. 502.
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117 STAT. 2837
PUBLIC LAW 108–189—DEC. 19, 2003
‘‘(ii) in the case of a member of the National Guard,
includes service under a call to active service author-
ized by the President or the Secretary of Defense for
a period of more than 30 consecutive days under section
502(f) of title 32, United States Code, for purposes
of responding to a national emergency declared by
the President and supported by Federal funds;
‘‘(B) in the case of a servicemember who is a commis-
sioned officer of the Public Health Service or the National
Oceanic and Atmospheric Administration, active service;
and
‘‘(C) any period during which a servicemember is
absent from duty on account of sickness, wounds, leave,
or other lawful cause.
‘‘(3) PERIOD
OF
MILITARY
SERVICE.—The term ‘period of
military service’ means the period beginning on the date on
which a servicemember enters military service and ending on
the date on which the servicemember is released from military
service or dies while in military service.
‘‘(4) DEPENDENT.—The term ‘dependent’, with respect to
a servicemember, means—
‘‘(A) the servicemember’s spouse;
‘‘(B) the servicemember’s child (as defined in section
101(4) of title 38, United States Code); or
‘‘(C) an individual for whom the servicemember pro-
vided more than one-half of the individual’s support for
180 days immediately preceding an application for relief
under this Act.
‘‘(5) COURT.—The term ‘court’ means a court or an adminis-
trative agency of the United States or of any State (including
any political subdivision of a State), whether or not a court
or administrative agency of record.
‘‘(6) STATE.—The term ‘State’ includes—
‘‘(A) a commonwealth, territory, or possession of the
United States; and
‘‘(B) the District of Columbia.
‘‘(7) 
SECRETARY
CONCERNED.—The 
term 
‘Secretary
concerned’—
‘‘(A) with respect to a member of the armed forces,
has the meaning given that term in section 101(a)(9) of
title 10, United States Code;
‘‘(B) with respect to a commissioned officer of the Public
Health Service, means the Secretary of Health and Human
Services; and
‘‘(C) with respect to a commissioned officer of the
National Oceanic and Atmospheric Administration, means
the Secretary of Commerce.
‘‘(8) MOTOR VEHICLE.—The term ‘motor vehicle’ has the
meaning given that term in section 30102(a)(6) of title 49,
United States Code.
‘‘SEC. 102. JURISDICTION AND APPLICABILITY OF ACT.
‘‘(a) JURISDICTION.—This Act applies to—
‘‘(1) the United States;
‘‘(2) each of the States, including the political subdivisions
thereof; and
50 USC app. 512.
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117 STAT. 2838
PUBLIC LAW 108–189—DEC. 19, 2003
‘‘(3) all territory subject to the jurisdiction of the United
States.
‘‘(b) APPLICABILITY TO PROCEEDINGS.—This Act applies to any
judicial or administrative proceeding commenced in any court or
agency in any jurisdiction subject to this Act. This Act does not
apply to criminal proceedings.
‘‘(c) COURT IN WHICH APPLICATION MAY BE MADE.—When under
this Act any application is required to be made to a court in
which no proceeding has already been commenced with respect
to the matter, such application may be made to any court which
would otherwise have jurisdiction over the matter.
‘‘SEC. 103. PROTECTION OF PERSONS SECONDARILY LIABLE.
‘‘(a) EXTENSION OF PROTECTION WHEN ACTIONS STAYED, POST-
PONED, OR SUSPENDED.—Whenever pursuant to this Act a court
stays, postpones, or suspends (1) the enforcement of an obligation
or liability, (2) the prosecution of a suit or proceeding, (3) the
entry or enforcement of an order, writ, judgment, or decree, or
(4) the performance of any other act, the court may likewise grant
such a stay, postponement, or suspension to a surety, guarantor,
endorser, accommodation maker, comaker, or other person who
is or may be primarily or secondarily subject to the obligation
or liability the performance or enforcement of which is stayed,
postponed, or suspended.
‘‘(b) VACATION OR SET-ASIDE OF JUDGMENTS.—When a judgment
or decree is vacated or set aside, in whole or in part, pursuant
to this Act, the court may also set aside or vacate, as the case
may be, the judgment or decree as to a surety, guarantor, endorser,
accommodation maker, comaker, or other person who is or may
be primarily or secondarily liable on the contract or liability for
the enforcement of the judgment or decree.
‘‘(c) BAIL BOND NOT TO BE ENFORCED DURING PERIOD
OF
MILITARY SERVICE.—A court may not enforce a bail bond during
the period of military service of the principal on the bond when
military service prevents the surety from obtaining the attendance
of the principal. The court may discharge the surety and exonerate
the bail, in accordance with principles of equity and justice, during
or after the period of military service of the principal.
‘‘(d) WAIVER OF RIGHTS.—
‘‘(1) WAIVERS NOT PRECLUDED.—This Act does not prevent
a waiver in writing by a surety, guarantor, endorser, accommo-
dation maker, comaker, or other person (whether primarily
or secondarily liable on an obligation or liability) of the protec-
tions provided under subsections (a) and (b). Any such waiver
is effective only if it is executed as an instrument separate
from the obligation or liability with respect to which it applies.
‘‘(2) WAIVER
INVALIDATED
UPON
ENTRANCE
TO
MILITARY
SERVICE.—If a waiver under paragraph (1) is executed by an
individual who after the execution of the waiver enters military
service, or by a dependent of an individual who after the
execution of the waiver enters military service, the waiver
is not valid after the beginning of the period of such military
service unless the waiver was executed by such individual
or dependent during the period specified in section 106.
50 USC app. 513.
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117 STAT. 2839
PUBLIC LAW 108–189—DEC. 19, 2003
‘‘SEC. 104. EXTENSION OF PROTECTIONS TO CITIZENS SERVING WITH
ALLIED FORCES.
‘‘A citizen of the United States who is serving with the forces
of a nation with which the United States is allied in the prosecution
of a war or military action is entitled to the relief and protections
provided under this Act if that service with the allied force is
similar to military service as defined in this Act. The relief and
protections provided to such citizen shall terminate on the date
of discharge or release from such service.
‘‘SEC. 105. NOTIFICATION OF BENEFITS.
‘‘The Secretary concerned shall ensure that notice of the bene-
fits accorded by this Act is provided in writing to persons in military
service and to persons entering military service.
‘‘SEC. 106. EXTENSION OF RIGHTS AND PROTECTIONS TO RESERVES
ORDERED TO REPORT FOR MILITARY SERVICE AND TO
PERSONS ORDERED TO REPORT FOR INDUCTION.
‘‘(a) RESERVES ORDERED TO REPORT FOR MILITARY SERVICE.—
A member of a reserve component who is ordered to report for
military service is entitled to the rights and protections of this
title and titles II and III during the period beginning on the date
of the member’s receipt of the order and ending on the date on
which the member reports for military service (or, if the order
is revoked before the member so reports, or the date on which
the order is revoked).
‘‘(b) PERSONS ORDERED TO REPORT FOR INDUCTION.—A person
who has been ordered to report for induction under the Military
Selective Service Act (50 U.S.C. App. 451 et seq.) is entitled to
the rights and protections provided a servicemember under this
title and titles II and III during the period beginning on the date
of receipt of the order for induction and ending on the date on
which the person reports for induction (or, if the order to report
for induction is revoked before the date on which the person reports
for induction, on the date on which the order is revoked).
‘‘SEC. 107. WAIVER OF RIGHTS PURSUANT TO WRITTEN AGREEMENT.
‘‘(a) IN GENERAL.—A servicemember may waive any of the
rights and protections provided by this Act. In the case of a waiver
that permits an action described in subsection (b), the waiver is
effective only if made pursuant to a written agreement of the
parties that is executed during or after the servicemember’s period
of military service. The written agreement shall specify the legal
instrument to which the waiver applies and, if the servicemember
is not a party to that instrument, the servicemember concerned.
‘‘(b) ACTIONS REQUIRING WAIVERS IN WRITING.—The require-
ment in subsection (a) for a written waiver applies to the following:
‘‘(1) The modification, termination, or cancellation of—
‘‘(A) a contract, lease, or bailment; or
‘‘(B) an obligation secured by a mortgage, trust, deed,
lien, or other security in the nature of a mortgage.
‘‘(2) The repossession, retention, foreclosure, sale, forfeiture,
or taking possession of property that—
‘‘(A) is security for any obligation; or
‘‘(B) was purchased or received under a contract, lease,
or bailment.
‘‘(c) COVERAGE OF PERIODS AFTER ORDERS RECEIVED.—For the
purposes of this section—
50 USC app. 517.
50 USC app. 516.
50 USC app. 515.
Termination
date.
50 USC app. 514.
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117 STAT. 2840
PUBLIC LAW 108–189—DEC. 19, 2003
‘‘(1) a person to whom section 106 applies shall be consid-
ered to be a servicemember; and
‘‘(2) the period with respect to such a person specified
in subsection (a) or (b), as the case may be, of section 106
shall be considered to be a period of military service.
‘‘SEC. 108. EXERCISE OF RIGHTS UNDER ACT NOT TO AFFECT CERTAIN
FUTURE FINANCIAL TRANSACTIONS.
‘‘Application by a servicemember for, or receipt by a
servicemember of, a stay, postponement, or suspension pursuant
to this Act in the payment of a tax, fine, penalty, insurance pre-
mium, or other civil obligation or liability of that servicemember
shall not itself (without regard to other considerations) provide
the basis for any of the following:
‘‘(1) A determination by a lender or other person that
the servicemember is unable to pay the civil obligation or
liability in accordance with its terms.
‘‘(2) With respect to a credit transaction between a creditor
and the servicemember—
‘‘(A) a denial or revocation of credit by the creditor;
‘‘(B) a change by the creditor in the terms of an existing
credit arrangement; or
‘‘(C) a refusal by the creditor to grant credit to the
servicemember in substantially the amount or on substan-
tially the terms requested.
‘‘(3) An adverse report relating to the creditworthiness
of the servicemember by or to a person engaged in the practice
of assembling or evaluating consumer credit information.
‘‘(4) A refusal by an insurer to insure the servicemember.
‘‘(5) An annotation in a servicemember’s record by a creditor
or a person engaged in the practice of assembling or evaluating
consumer credit information, identifying the servicemember as
a member of the National Guard or a reserve component.
‘‘(6) A change in the terms offered or conditions required
for the issuance of insurance.
‘‘SEC. 109. LEGAL REPRESENTATIVES.
‘‘(a) 
REPRESENTATIVE.—A 
legal 
representative 
of 
a
servicemember for purposes of this Act is either of the following:
‘‘(1) An attorney acting on the behalf of a servicemember.
‘‘(2) An individual possessing a power of attorney.
‘‘(b) APPLICATION.—Whenever the term ‘servicemember’ is used
in this Act, such term shall be treated as including a reference
to a legal representative of the servicemember.
‘‘TITLE II—GENERAL RELIEF
‘‘SEC. 201. PROTECTION OF SERVICEMEMBERS AGAINST DEFAULT
JUDGMENTS.
‘‘(a) APPLICABILITY OF SECTION.—This section applies to any
civil action or proceeding in which the defendant does not make
an appearance.
‘‘(b) AFFIDAVIT REQUIREMENT.—
‘‘(1) PLAINTIFF TO FILE AFFIDAVIT.—In any action or pro-
ceeding covered by this section, the court, before entering judg-
ment for the plaintiff, shall require the plaintiff to file with
the court an affidavit—
50 USC app. 521.
50 USC app. 519.
50 USC app. 518.
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117 STAT. 2841
PUBLIC LAW 108–189—DEC. 19, 2003
‘‘(A) stating whether or not the defendant is in military
service and showing necessary facts to support the affidavit;
or
‘‘(B) if the plaintiff is unable to determine whether
or not the defendant is in military service, stating that
the plaintiff is unable to determine whether or not the
defendant is in military service.
‘‘(2) APPOINTMENT OF ATTORNEY TO REPRESENT DEFENDANT
IN MILITARY SERVICE.—If in an action covered by this section
it appears that the defendant is in military service, the court
may not enter a judgment until after the court appoints an
attorney to represent the defendant. If an attorney appointed
under this section to represent a servicemember cannot locate
the servicemember, actions by the attorney in the case shall
not waive any defense of the servicemember or otherwise bind
the servicemember.
‘‘(3) DEFENDANT’S MILITARY STATUS NOT ASCERTAINED BY
AFFIDAVIT.—If based upon the affidavits filed in such an action,
the court is unable to determine whether the defendant is
in military service, the court, before entering judgment, may
require the plaintiff to file a bond in an amount approved
by the court. If the defendant is later found to be in military
service, the bond shall be available to indemnify the defendant
against any loss or damage the defendant may suffer by reason
of any judgment for the plaintiff against the defendant, should
the judgment be set aside in whole or in part. The bond shall
remain in effect until expiration of the time for appeal and
setting aside of a judgment under applicable Federal or State
law or regulation or under any applicable ordinance of a polit-
ical subdivision of a State. The court may issue such orders
or enter such judgments as the court determines necessary
to protect the rights of the defendant under this Act.
‘‘(4) SATISFACTION OF REQUIREMENT FOR AFFIDAVIT.—The
requirement for an affidavit under paragraph (1) may be satis-
fied by a statement, declaration, verification, or certificate,
in writing, subscribed and certified or declared to be true under
penalty of perjury.
‘‘(c) PENALTY FOR MAKING OR USING FALSE AFFIDAVIT.—A per-
son who makes or uses an affidavit permitted under subsection
(b) (or a statement, declaration, verification, or certificate as author-
ized under subsection (b)(4)) knowing it to be false, shall be fined
as provided in title 18, United States Code, or imprisoned for
not more than one year, or both.
‘‘(d) STAY OF PROCEEDINGS.—In an action covered by this section
in which the defendant is in military service, the court shall grant
a stay of proceedings for a minimum period of 90 days under
this subsection upon application of counsel, or on the court’s own
motion, if the court determines that—
‘‘(1) there may be a defense to the action and a defense
cannot be presented without the presence of the defendant;
or
‘‘(2) after due diligence, counsel has been unable to contact
the defendant or otherwise determine if a meritorious defense
exists.
‘‘(e) INAPPLICABILITY OF SECTION 202 PROCEDURES.—A stay of
proceedings under subsection (d) shall not be controlled by proce-
dures or requirements under section 202.
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117 STAT. 2842
PUBLIC LAW 108–189—DEC. 19, 2003
‘‘(f) SECTION 202 PROTECTION.—If a servicemember who is a
defendant in an action covered by this section receives actual notice
of the action, the servicemember may request a stay of proceeding
under section 202.
‘‘(g) VACATION OR SETTING ASIDE OF DEFAULT JUDGMENTS.—
‘‘(1) AUTHORITY FOR COURT TO VACATE OR SET ASIDE JUDG-
MENT.—If a default judgment is entered in an action covered
by 
this 
section 
against 
a 
servicemember 
during 
the
servicemember’s period of military service (or within 60 days
after termination of or release from such military service),
the court entering the judgment shall, upon application by
or on behalf of the servicemember, reopen the judgment for
the purpose of allowing the servicemember to defend the action
if it appears that—
‘‘(A) the servicemember was materially affected by rea-
son of that military service in making a defense to the
action; and
‘‘(B) the servicemember has a meritorious or legal
defense to the action or some part of it.
‘‘(2) TIME FOR FILING APPLICATION.—An application under
this subsection must be filed not later than 90 days after
the date of the termination of or release from military service.
‘‘(h) PROTECTION OF BONA FIDE PURCHASER.—If a court vacates,
sets aside, or reverses a default judgment against a servicemember
and the vacating, setting aside, or reversing is because of a provision
of this Act, that action shall not impair a right or title acquired
by a bona fide purchaser for value under the default judgment.
‘‘SEC. 202. STAY OF PROCEEDINGS WHEN SERVICEMEMBER HAS
NOTICE.
‘‘(a) APPLICABILITY OF SECTION.—This section applies to any
civil action or proceeding in which the defendant at the time of
filing an application under this section—
‘‘(1) is in military service or is within 90 days after termi-
nation of or release from military service; and
‘‘(2) has received notice of the action or proceeding.
‘‘(b) STAY OF PROCEEDINGS.—
‘‘(1) AUTHORITY FOR STAY.—At any stage before final judg-
ment in a civil action or proceeding in which a servicemember
described in subsection (a) is a party, the court may on its
own motion and shall, upon application by the servicemember,
stay the action for a period of not less than 90 days, if the
conditions in paragraph (2) are met.
‘‘(2) CONDITIONS FOR STAY.—An application for a stay under
paragraph (1) shall include the following:
‘‘(A) A letter or other communication setting forth facts
stating the manner in which current military duty require-
ments materially affect the servicemember’s ability to
appear and stating a date when the servicemember will
be available to appear.
‘‘(B) A letter or other communication from the
servicemember’s commanding officer stating that the
servicemember’s current military duty prevents appearance
and that military leave is not authorized for the
servicemember at the time of the letter.
‘‘(c) APPLICATION NOT A WAIVER OF DEFENSES.—An application
for a stay under this section does not constitute an appearance
50 USC app. 522.
Deadline.
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117 STAT. 2843
PUBLIC LAW 108–189—DEC. 19, 2003
for jurisdictional purposes and does not constitute a waiver of
any substantive or procedural defense (including a defense relating
to lack of personal jurisdiction).
‘‘(d) ADDITIONAL STAY.—
‘‘(1) APPLICATION.—A servicemember who is granted a stay
of a civil action or proceeding under subsection (b) may apply
for an additional stay based on continuing material affect of
military duty on the servicemember’s ability to appear. Such
an application may be made by the servicemember at the
time of the initial application under subsection (b) or when
it appears that the servicemember is unavailable to prosecute
or defend the action. The same information required under
subsection (b)(2) shall be included in an application under
this subsection.
‘‘(2) APPOINTMENT
OF
COUNSEL
WHEN
ADDITIONAL
STAY
REFUSED.—If the court refuses to grant an additional stay of
proceedings under paragraph (1), the court shall appoint
counsel to represent the servicemember in the action or pro-
ceeding.
‘‘(e) COORDINATION WITH SECTION 201.—A servicemember who
applies for a stay under this section and is unsuccessful may not
seek the protections afforded by section 201.
‘‘(f) INAPPLICABILITY TO SECTION 301.—The protections of this
section do not apply to section 301.
‘‘SEC. 203. FINES AND PENALTIES UNDER CONTRACTS.
‘‘(a) PROHIBITION OF PENALTIES.—When an action for compli-
ance with the terms of a contract is stayed pursuant to this Act,
a penalty shall not accrue for failure to comply with the terms
of the contract during the period of the stay.
‘‘(b) REDUCTION
OR WAIVER
OF FINES
OR PENALTIES.—If a
servicemember fails to perform an obligation arising under a con-
tract and a penalty is incurred arising from that nonperformance,
a court may reduce or waive the fine or penalty if—
‘‘(1) the servicemember was in military service at the time
the fine or penalty was incurred; and
‘‘(2) the ability of the servicemember to perform the obliga-
tion was materially affected by such military service.
‘‘SEC. 204. STAY OR VACATION OF EXECUTION OF JUDGMENTS,
ATTACHMENTS, AND GARNISHMENTS.
‘‘(a) COURT ACTION UPON MATERIAL AFFECT DETERMINATION.—
If a servicemember, in the opinion of the court, is materially affected
by reason of military service in complying with a court judgment
or order, the court may on its own motion and shall on application
by the servicemember—
‘‘(1) stay the execution of any judgment or order entered
against the servicemember; and
‘‘(2) vacate or stay an attachment or garnishment of prop-
erty, money, or debts in the possession of the servicemember
or a third party, whether before or after judgment.
‘‘(b) APPLICABILITY.—This section applies to an action or pro-
ceeding commenced in a court against a servicemember before or
during the period of the servicemember’s military service or within
90 days after such service terminates.
50 USC app. 524.
50 USC app. 523.
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‘‘SEC. 205. DURATION AND TERM OF STAYS; CODEFENDANTS NOT IN
SERVICE.
‘‘(a) PERIOD OF STAY.—A stay of an action, proceeding, attach-
ment, or execution made pursuant to the provisions of this Act
by a court may be ordered for the period of military service and
90 days thereafter, or for any part of that period. The court may
set the terms and amounts for such installment payments as is
considered reasonable by the court.
‘‘(b) CODEFENDANTS.—If the servicemember is a codefendant
with others who are not in military service and who are not entitled
to the relief and protections provided under this Act, the plaintiff
may proceed against those other defendants with the approval
of the court.
‘‘(c) INAPPLICABILITY OF SECTION.—This section does not apply
to sections 202 and 701.
‘‘SEC. 206. STATUTE OF LIMITATIONS.
‘‘(a) TOLLING OF STATUTES OF LIMITATION DURING MILITARY
SERVICE.—The period of a servicemember’s military service may
not be included in computing any period limited by law, regulation,
or order for the bringing of any action or proceeding in a court,
or in any board, bureau, commission, department, or other agency
of a State (or political subdivision of a State) or the United States
by or against the servicemember or the servicemember’s heirs,
executors, administrators, or assigns.
‘‘(b) REDEMPTION
OF REAL PROPERTY.—A period of military
service may not be included in computing any period provided
by law for the redemption of real property sold or forfeited to
enforce an obligation, tax, or assessment.
‘‘(c) INAPPLICABILITY TO INTERNAL REVENUE LAWS.—This sec-
tion does not apply to any period of limitation prescribed by or
under the internal revenue laws of the United States.
‘‘SEC. 207. MAXIMUM RATE OF INTEREST ON DEBTS INCURRED BEFORE
MILITARY SERVICE.
‘‘(a) INTEREST RATE LIMITATION.—
‘‘(1) LIMITATION TO 6 PERCENT.—An obligation or liability
bearing interest at a rate in excess of 6 percent per year
that is incurred by a servicemember, or the servicemember
and 
the 
servicemember’s 
spouse 
jointly, 
before 
the
servicemember enters military service shall not bear interest
at a rate in excess of 6 percent per year during the period
of military service.
‘‘(2) FORGIVENESS OF INTEREST IN EXCESS OF 6 PERCENT.—
Interest at a rate in excess of 6 percent per year that would
otherwise be incurred but for the prohibition in paragraph
(1) is forgiven.
‘‘(3) PREVENTION
OF
ACCELERATION
OF
PRINCIPAL.—The
amount of any periodic payment due from a servicemember
under the terms of the instrument that created an obligation
or liability covered by this section shall be reduced by the
amount of the interest forgiven under paragraph (2) that is
allocable to the period for which such payment is made.
‘‘(b) IMPLEMENTATION OF LIMITATION.—
‘‘(1) WRITTEN NOTICE TO CREDITOR.—In order for an obliga-
tion or liability of a servicemember to be subject to the interest
Deadline.
50 USC app. 527.
50 USC app. 526.
50 USC app. 525.
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rate limitation in subsection (a), the servicemember shall pro-
vide to the creditor written notice and a copy of the military
orders calling the servicemember to military service and any
orders further extending military service, not later than 180
days after the date of the servicemember’s termination or
release from military service.
‘‘(2) LIMITATION EFFECTIVE AS OF DATE OF ORDER TO ACTIVE
DUTY.—Upon receipt of written notice and a copy of orders
calling a servicemember to military service, the creditor shall
treat the debt in accordance with subsection (a), effective as
of the date on which the servicemember is called to military
service.
‘‘(c) CREDITOR PROTECTION.—A court may grant a creditor relief
from the limitations of this section if, in the opinion of the court,
the ability of the servicemember to pay interest upon the obligation
or liability at a rate in excess of 6 percent per year is not materially
affected by reason of the servicemember’s military service.
‘‘(d) INTEREST.—As used in this section, the term ‘interest’
includes service charges, renewal charges, fees, or any other charges
(except bona fide insurance) with respect to an obligation or liability.
‘‘TITLE III—RENT, INSTALLMENT CON-
TRACTS, MORTGAGES, LIENS, ASSIGN-
MENT, LEASES
‘‘SEC. 301. EVICTIONS AND DISTRESS.
‘‘(a) COURT-ORDERED EVICTION.—
‘‘(1) IN GENERAL.—Except by court order, a landlord (or
another person with paramount title) may not—
‘‘(A) evict a servicemember, or the dependents of a
servicemember, during a period of military service of the
servicemember, from premises—
‘‘(i) that are occupied or intended to be occupied
primarily as a residence; and
‘‘(ii) for which the monthly rent does not exceed
$2,400, as adjusted under paragraph (2) for years after
2003; or
‘‘(B) subject such premises to a distress during the
period of military service.
‘‘(2) HOUSING PRICE INFLATION ADJUSTMENT.—(A) For cal-
endar years beginning with 2004, the amount in effect under
paragraph (1)(A)(ii) shall be increased by the housing price
inflation adjustment for the calendar year involved.
‘‘(B) For purposes of this paragraph—
‘‘(i) The housing price inflation adjustment for any
calendar year is the percentage change (if any) by which—
‘‘(I) the CPI housing component for November of
the preceding calendar year, exceeds
‘‘(II) the CPI housing component for November
of 1984.
‘‘(ii) The term ‘CPI housing component’ means the
index published by the Bureau of Labor Statistics of the
Department of Labor known as the Consumer Price Index,
All Urban Consumers, Rent of Primary Residence, U.S.
City Average.
50 USC app. 531.
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PUBLIC LAW 108–189—DEC. 19, 2003
‘‘(3) PUBLICATION
OF
HOUSING
PRICE
INFLATION
ADJUST-
MENT.—The Secretary of Defense shall cause to be published
in the Federal Register each year the amount in effect under
paragraph (1)(A)(ii) for that year following the housing price
inflation adjustment for that year pursuant to paragraph (2).
Such publication shall be made for a year not later than 60
days after such adjustment is made for that year.
‘‘(b) STAY OF EXECUTION.—
‘‘(1) COURT AUTHORITY.—Upon an application for eviction
or distress with respect to premises covered by this section,
the court may on its own motion and shall, if a request is
made by or on behalf of a servicemember whose ability to
pay the agreed rent is materially affected by military service—
‘‘(A) stay the proceedings for a period of 90 days, unless
in the opinion of the court, justice and equity require
a longer or shorter period of time; or
‘‘(B) adjust the obligation under the lease to preserve
the interests of all parties.
‘‘(2) RELIEF TO LANDLORD.—If a stay is granted under para-
graph (1), the court may grant to the landlord (or other person
with paramount title) such relief as equity may require.
‘‘(c) PENALTIES.—
‘‘(1) MISDEMEANOR.—Except as provided in subsection (a),
a person who knowingly takes part in an eviction or distress
described in subsection (a), or who knowingly attempts to do
so, shall be fined as provided in title 18, United States Code,
or imprisoned for not more than one year, or both.
‘‘(2) PRESERVATION OF OTHER REMEDIES AND RIGHTS.—The
remedies and rights provided under this section are in addition
to and do not preclude any remedy for wrongful conversion
(or wrongful eviction) otherwise available under the law to
the person claiming relief under this section, including any
award for consequential and punitive damages.
‘‘(d) RENT ALLOTMENT FROM PAY OF SERVICEMEMBER.—To the
extent required by a court order related to property which is the
subject of a court action under this section, the Secretary concerned
shall make an allotment from the pay of a servicemember to satisfy
the terms of such order, except that any such allotment shall
be subject to regulations prescribed by the Secretary concerned
establishing the maximum amount of pay of servicemembers that
may be allotted under this subsection.
‘‘(e) 
LIMITATION
OF
APPLICABILITY.—Section 
202 
is 
not
applicable to this section.
‘‘SEC. 302. PROTECTION UNDER INSTALLMENT CONTRACTS FOR PUR-
CHASE OR LEASE.
‘‘(a) PROTECTION UPON BREACH OF CONTRACT.—
‘‘(1) PROTECTION AFTER ENTERING MILITARY SERVICE.—After
a servicemember enters military service, a contract by the
servicemember for—
‘‘(A) the purchase of real or personal property
(including a motor vehicle); or
‘‘(B) the lease or bailment of such property,
may not be rescinded or terminated for a breach of terms
of the contract occurring before or during that person’s military
service, nor may the property be repossessed for such breach
without a court order.
50 USC app. 532.
Deadline.
Federal Register,
publication.
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PUBLIC LAW 108–189—DEC. 19, 2003
‘‘(2) APPLICABILITY.—This section applies only to a contract
for which a deposit or installment has been paid by the
servicemember before the servicemember enters military
service.
‘‘(b) PENALTIES.—
‘‘(1) MISDEMEANOR.—A person who knowingly resumes
possession of property in violation of subsection (a), or in viola-
tion of section 107 of this Act, or who knowingly attempts
to do so, shall be fined as provided in title 18, United States
Code, or imprisoned for not more than one year, or both.
‘‘(2) PRESERVATION OF OTHER REMEDIES AND RIGHTS.—The
remedies and rights provided under this section are in addition
to and do not preclude any remedy for wrongful conversion
otherwise available under law to the person claiming relief
under this section, including any award for consequential and
punitive damages.
‘‘(c) AUTHORITY OF COURT.—In a hearing based on this section,
the court—
‘‘(1) may order repayment to the servicemember of all or
part of the prior installments or deposits as a condition of
terminating the contract and resuming possession of the prop-
erty;
‘‘(2) may, on its own motion, and shall on application by
a servicemember when the servicemember’s ability to comply
with the contract is materially affected by military service,
stay the proceedings for a period of time as, in the opinion
of the court, justice and equity require; or
‘‘(3) may make other disposition as is equitable to preserve
the interests of all parties.
‘‘SEC. 303. MORTGAGES AND TRUST DEEDS.
‘‘(a) MORTGAGE AS SECURITY.—This section applies only to an
obligation on real or personal property owned by a servicemember
that—
‘‘(1) originated before the period of the servicemember’s
military service and for which the servicemember is still obli-
gated; and
‘‘(2) is secured by a mortgage, trust deed, or other security
in the nature of a mortgage.
‘‘(b) STAY OF PROCEEDINGS AND ADJUSTMENT OF OBLIGATION.—
In an action filed during, or within 90 days after, a servicemember’s
period of military service to enforce an obligation described in
subsection (a), the court may after a hearing and on its own motion
and shall upon application by a servicemember when the
servicemember’s ability to comply with the obligation is materially
affected by military service—
‘‘(1) stay the proceedings for a period of time as justice
and equity require, or
‘‘(2) adjust the obligation to preserve the interests of all
parties.
‘‘(c) SALE
OR FORECLOSURE.—A sale, foreclosure, or seizure
of property for a breach of an obligation described in subsection
(a) shall not be valid if made during, or within 90 days after,
the period of the servicemember’s military service except—
‘‘(1) upon a court order granted before such sale, fore-
closure, or seizure with a return made and approved by the
court; or
Applicability.
50 USC app. 533.
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‘‘(2) if made pursuant to an agreement as provided in
section 107.
‘‘(d) PENALTIES.—
‘‘(1) MISDEMEANOR.—A person who knowingly makes or
causes to be made a sale, foreclosure, or seizure of property
that is prohibited by subsection (c), or who knowingly attempts
to do so, shall be fined as provided in title 18, United States
Code, or imprisoned for not more than one year, or both.
‘‘(2) PRESERVATION OF OTHER REMEDIES.—The remedies and
rights provided under this section are in addition to and do
not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including consequential and punitive damages.
‘‘SEC. 304. SETTLEMENT OF STAYED CASES RELATING TO PERSONAL
PROPERTY.
‘‘(a) APPRAISAL OF PROPERTY.—When a stay is granted pursuant
to this Act in a proceeding to foreclose a mortgage on or to repossess
personal property, or to rescind or terminate a contract for the
purchase of personal property, the court may appoint three disin-
terested parties to appraise the property.
‘‘(b) EQUITY PAYMENT.—Based on the appraisal, and if undue
hardship to the servicemember’s dependents will not result, the
court may order that the amount of the servicemember’s equity
in 
the 
property 
be 
paid 
to 
the 
servicemember, 
or 
the
servicemember’s dependents, as a condition of foreclosing the mort-
gage, repossessing the property, or rescinding or terminating the
contract.
‘‘SEC. 305. TERMINATION OF RESIDENTIAL OR MOTOR VEHICLE
LEASES.
‘‘(a) TERMINATION BY LESSEE.—The lessee on a lease described
in subsection (b) may, at the lessee’s option, terminate the lease
at any time after—
‘‘(1) the lessee’s entry into military service; or
‘‘(2) the date of the lessee’s military orders described in
paragraph (1)(B) or (2)(B) of subsection (b), as the case may
be.
‘‘(b) COVERED LEASES.—This section applies to the following
leases:
‘‘(1) LEASES OF PREMISES.—A lease of premises occupied,
or intended to be occupied, by a servicemember or a
servicemember’s dependents for a residential, professional,
business, agricultural, or similar purpose if—
‘‘(A) the lease is executed by or on behalf of a person
who thereafter and during the term of the lease enters
military service; or
‘‘(B) the servicemember, while in military service, exe-
cutes the lease and thereafter receives military orders for
a permanent change of station or to deploy with a military
unit for a period of not less than 90 days.
‘‘(2) LEASES OF MOTOR VEHICLES.—A lease of a motor vehicle
used, or intended to be used, by a servicemember or a
servicemember’s dependents for personal or business transpor-
tation if—
‘‘(A) the lease is executed by or on behalf of a person
who thereafter and during the term of the lease enters
military service under a call or order specifying a period
Applicability.
50 USC app. 535.
50 USC app. 534.
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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, exe-
cutes 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, and a copy of the servicemember’s military
orders, to the lessor (or the lessor’s grantee), or to the
lessor’s agent (or the agent’s grantee); and
‘‘(B) in the case of a lease of a motor vehicle, by
return of the motor vehicle by the lessee to the lessor
(or the lessor’s grantee), or to the lessor’s agent (or the
agent’s grantee), not later than 15 days after the date
of the delivery of written notice under subparagraph (A).
‘‘(2) DELIVERY OF NOTICE.—Delivery of notice under para-
graph (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.
Deadline.
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‘‘(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) within 30 days of the
effective date of the termination of the lease.
‘‘(g) RELIEF
TO LESSOR.—Upon application by the lessor to
a court before the termination date provided in the written notice,
relief granted by this section to a servicemember may be modified
as justice and equity 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 sub-
jecting 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 dam-
ages.
‘‘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 obligation, the assignee of
the policy (except the insurer in connection with a policy loan)
may not exercise, during a period of military service of the
servicemember or within one year thereafter, any right or option
obtained under the 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 subsection (a);
‘‘(2) when the premiums on the policy are due and unpaid;
or
‘‘(3) upon the death of the insured.
‘‘(c) ORDER REFUSED BECAUSE OF MATERIAL AFFECT.—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 obliga-
tion 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 impris-
oned for not more than one year, or both.
50 USC app. 536.
Deadline.
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‘‘(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.—
‘‘(1) LIMITATION
ON
FORECLOSURE
OR
ENFORCEMENT.—A
person holding a lien on the property 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 effects 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 materi-
ally affected by military service—
‘‘(1) stay the proceeding for a period of time as justice
and equity require; or
‘‘(2) adjust the obligation to preserve the interests of all
parties.
The provisions of this subsection do not affect the scope of section
303.
‘‘(c) PENALTIES.—
‘‘(1) MISDEMEANOR.—A person who knowingly takes an
action contrary to this section, or attempts to do so, shall
be fined as provided in title 18, United States Code, or impris-
oned 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 reason 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 individual con-
tract for whole, endowment, universal, or term life insurance
(other than group term life insurance coverage), including any
benefit in the nature of such insurance arising out of member-
ship in any fraternal or beneficial association which—
‘‘(A) provides that the insurer may not—
50 USC app. 541.
50 USC app. 538.
50 USC app. 537.
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‘‘(i) decrease the amount of coverage or require
the payment of an additional amount as premiums
if the insured engages in military service (except
increases in premiums in individual term insurance
based upon age); or
‘‘(ii) limit or restrict coverage for any activity
required by military service; and
‘‘(B) is in force not less than 180 days before 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, cor-
poration, partnership, association, or business that is chartered
or authorized to provide insurance and issue contracts or poli-
cies 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—
‘‘(1) the insured,
‘‘(2) the insured’s legal representative, or
‘‘(3) the insured’s beneficiary in the case of an insured
who is outside a State,
applies in writing for protection under this title, unless the Sec-
retary of Veterans Affairs determines that the insured’s policy
is not entitled to protection under this title.
‘‘(b) NOTIFICATION AND APPLICATION.—The Secretary of Vet-
erans Affairs shall notify the Secretary concerned of the procedures
to be used to apply for the protections 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 insur-
ance 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 maximum limit, whichever
is greater, regardless of the number of policies submitted.
‘‘SEC. 403. APPLICATION FOR INSURANCE PROTECTION.
‘‘(a) APPLICATION PROCEDURE.—An application for protection
under this title shall—
‘‘(1) be in writing and signed by the insured, the insured’s
legal representative, or the insured’s beneficiary, as the case
may be;
‘‘(2) identify the policy and the insurer; and
‘‘(3) include an acknowledgement that the insured’s rights
under the policy are subject to and modified by the provisions
of this title.
‘‘(b) ADDITIONAL REQUIREMENTS.—The Secretary of Veterans
Affairs may require additional information from the applicant, the
insured and the insurer to determine if the policy is entitled to
protection under this title.
‘‘(c) NOTICE TO THE SECRETARY BY THE INSURER.—Upon receipt
of the application of the insured, the insurer shall furnish a report
Reports.
Regulations.
50 USC app. 543.
50 USC app. 542.
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concerning the policy to the Secretary of Veterans Affairs as
required by regulations prescribed by the Secretary.
‘‘(d) POLICY MODIFICATION.—Upon application for protection
under this title, the insured and the insurer shall have construc-
tively agreed to any policy modification necessary to give this title
full force and effect.
‘‘SEC. 404. POLICIES ENTITLED TO PROTECTION AND LAPSE OF POLI-
CIES.
‘‘(a) DETERMINATION.—The Secretary of Veterans Affairs shall
determine whether a policy is entitled to protection under this
title and shall notify the insured and the insurer of that determina-
tion.
‘‘(b) LAPSE PROTECTION.—A policy that the Secretary deter-
mines 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 on which the application for protection is received by the
Secretary.
‘‘(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, withdrawal of dividend accumula-
tion, unearned premiums, or other value of similar character may
not be available to the insured without the approval of the Sec-
retary. 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 matures as a result
of a servicemember’s death or otherwise during the period of protec-
tion of the policy under this title, the insurer in making settlement
shall deduct from the insurance proceeds the amount of the unpaid
premiums 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 deducted 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.—
50 USC app. 547.
50 USC app. 546.
50 USC app. 545.
50 USC app. 544.
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‘‘(1) GUARANTEE.—Payment of premiums, and interest on
premiums at the rate specified in section 406, which become
due on a policy under the protection of this title is guaranteed
by the United States. If the amount guaranteed is not paid
to the insurer before the period of insurance protection under
this title expires, the amount due shall be treated by the
insurer as a policy loan on the policy.
‘‘(2) POLICY TERMINATION.—If, at the expiration of insur-
ance protection under this title, the cash surrender value of
a policy is less than the amount due to pay premiums and
interest on premiums on the policy, the policy shall terminate.
Upon such termination, the United States shall pay the insurer
the difference between the amount due and the cash surrender
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 collected 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 BANKRUPTCY.—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 credited to the appropriation
for the payment of claims under this title.
‘‘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 CONCLUSIONS OF LAW.
‘‘The findings of fact and conclusions of law made by the Sec-
retary of Veterans Affairs in administering this title are subject
to review on appeal to the Board of Veterans’ Appeals pursuant
to chapter 71 of title 38, United States Code, and to judicial review
only as provided in chapter 72 of such title.
‘‘TITLE V—TAXES AND PUBLIC LANDS
‘‘SEC. 
501. 
TAXES 
RESPECTING 
PERSONAL 
PROPERTY, 
MONEY,
CREDITS, AND REAL PROPERTY.
‘‘(a) APPLICATION.—This section applies in any case in which
a tax or assessment, whether general or special (other than a
tax on personal income), falls due and remains unpaid before or
during 
a 
period 
of 
military 
service 
with 
respect 
to 
a
servicemember’s—
‘‘(1) personal property (including motor vehicles); or
‘‘(2) real property occupied for dwelling, professional, busi-
ness, or agricultural purposes by a servicemember or the
servicemember’s dependents or employees—
50 USC app. 561.
50 USC app. 549.
50 USC app. 548.
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‘‘(A) before the servicemember’s entry into military
service; and
‘‘(B) during the time the tax or assessment remains
unpaid.
‘‘(b) SALE OF PROPERTY.—
‘‘(1) LIMITATION ON SALE OF PROPERTY TO ENFORCE TAX
ASSESSMENT.—Property described in subsection (a) may not
be sold to enforce the collection of such tax or assessment
except by court order and upon the determination by the court
that 
military 
service 
does 
not 
materially 
affect 
the
servicemember’s ability to pay the unpaid tax or assessment.
‘‘(2) STAY OF COURT PROCEEDINGS.—A court may stay a
proceeding to enforce the collection of such tax or assessment,
or sale of such property, during a period of military service
of the servicemember and for a period not more than 180
days after the termination of, or release of the servicemember
from, military service.
‘‘(c) REDEMPTION.—When property described in subsection (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 construed to
shorten any period provided by the law of a State (including any
political subdivision of a State) for redemption.
‘‘(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 interest until paid at the
rate of 6 percent per year. An additional 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 mili-
tary 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.
‘‘(b) TEMPORARY SUSPENSION OF PERMITS OR LICENSES.—If a
permittee or licensee under the Act of June 28, 1934 (43 U.S.C.
315 et seq.), enters military service, the permittee or licensee may
suspend the permit or license for the period of military service
and for 180 days after termination of or release from military
service.
‘‘(c) REGULATIONS.—Regulations prescribed by the Secretary of
the Interior shall provide for such suspension of permits and
licenses and for the remission, reduction, or refund of grazing
fees during the period of such suspension.
50 USC app. 562.
Applicability.
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‘‘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 subject to contest or cancellation—
‘‘(1) for failure to expend any required amount per acre
per year in improvements upon the claim;
‘‘(2) for failure to effect the reclamation of the claim during
the period the entryman or the entryman’s successor in interest
is in the military service, or for 180 days after termination
of or release from military service; or
‘‘(3) during any period of hospitalization or rehabilitation
due to an injury or disability incurred in the line of duty.
The time within which the entryman or claimant is required to
make such expenditures and effect reclamation of the land shall
be exclusive of the time periods described in paragraphs (2) and
(3).
‘‘(b) SERVICE-RELATED DISABILITY.—If an entryman or claimant
is honorably discharged and is unable to 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 commu-
nicating 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 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 disabilities
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 recorded shall not be subject to forfeiture
for nonperformance 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 location 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 where the location notice or certificate
Deadline.
50 USC app. 564.
Deadline.
50 USC app. 563.
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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 military service may suspend all operations
under the permit or lease for the duration of military service and
for 180 days thereafter. The term of the permit or lease shall
not run during the period of suspension, nor shall any rental
or royalties be charged against the permit or lease during the
period of suspension.
‘‘(b) NOTIFICATION.—In order to obtain the protection of this
section, the permittee or lessee shall, within 180 days after entry
into military service, notify the Secretary of the Interior by reg-
istered 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 con-
strued 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 take action during a
period of military service that is authorized by law or regulations
of the Department of the Interior, for the perfection, defense, or
further assertion of rights initiated or acquired before entering
military service.
‘‘(b) AFFIDAVITS AND PROOFS.—
‘‘(1) IN GENERAL.—A servicemember during a period of mili-
tary service may make any affidavit or submit any proof
required by law, practice, or regulation of the Department
of the Interior in connection with the entry, perfection, defense,
or further assertion of rights initiated or acquired before
entering military service before an officer authorized to provide
notary services under section 1044a of title 10, United States
Code, or any superior commissioned officer.
‘‘(2) LEGAL STATUS OF AFFIDAVITS.—Such affidavits shall
be binding in law and subject to the same penalties as pre-
scribed by section 1001 of title 18, United State Code.
‘‘SEC. 507. DISTRIBUTION OF INFORMATION CONCERNING BENEFITS
OF TITLE.
‘‘(a) DISTRIBUTION
OF
INFORMATION
BY
SECRETARY
CON-
CERNED.—The Secretary concerned shall issue to servicemembers
information explaining the provisions of this title.
‘‘(b) APPLICATION FORMS.—The Secretary concerned shall pro-
vide application forms to servicemembers requesting relief under
this title.
‘‘(c) INFORMATION FROM SECRETARY
OF
THE INTERIOR.—The
Secretary of the Interior shall furnish to the Secretary concerned
information explaining the provisions of this title (other than sec-
tions 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,
50 USC app. 568.
50 USC app. 567.
50 USC app. 566.
Deadline.
50 USC app. 565.
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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 sus-
pended 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 oaths under sec-
tion 1044a of title 10, United States Code, or under the laws
of the State where the land is situated.
‘‘SEC. 509. REGULATIONS.
‘‘The Secretary of the Interior may issue regulations necessary
to carry out this title (other than sections 501, 510, and 511).
‘‘SEC. 510. INCOME TAXES.
‘‘(a) DEFERRAL OF TAX.—Upon notice to the Internal Revenue
Service or the tax authority of a State or a 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 interest 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 suspended for the period of military
service of the servicemember and for an additional period of 270
days thereafter.
‘‘(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.—Compensation 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 compliance with military orders.
‘‘(c) PERSONAL PROPERTY.—
‘‘(1) RELIEF FROM PERSONAL PROPERTY TAXES.—The per-
sonal 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.
‘‘(2) EXCEPTION FOR PROPERTY WITHIN MEMBER’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.
Applicability.
50 USC app. 571.
50 USC app. 570.
50 USC app. 569.
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‘‘(3) EXCEPTION FOR PROPERTY USED IN TRADE OR BUSI-
NESS.—This section does not prevent taxation by a tax jurisdic-
tion with respect to personal property used in or arising from
a trade or business, if it has jurisdiction.
‘‘(4) RELATIONSHIP TO LAW OF STATE OF DOMICILE.—Eligi-
bility for relief from personal property taxes under this sub-
section is not contingent on whether or not such taxes are
paid to the State of domicile.
‘‘(d) INCREASE OF TAX LIABILITY.—A tax jurisdiction may not
use the military compensation of a nonresident servicemember to
increase the tax liability imposed on other income earned by the
nonresident servicemember or spouse subject to tax by the jurisdic-
tion.
‘‘(e) FEDERAL INDIAN RESERVATIONS.—An Indian servicemember
whose legal residence or domicile is a Federal Indian reservation
shall be taxed by the laws applicable to Federal Indian reservations
and not the State where the reservation is located.
‘‘(f) DEFINITIONS.—For purposes of this section:
‘‘(1) PERSONAL
PROPERTY.—The term ‘personal property’
means intangible and tangible property (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 jurisdiction’ 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.
‘‘SEC. 602. CERTIFICATES OF SERVICE; PERSONS REPORTED MISSING.
‘‘(a) PRIMA FACIE EVIDENCE.—In any proceeding under this
Act, a certificate signed by the Secretary concerned 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 person 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 termination of
or release from military service, or the person’s death during
military service.
50 USC app. 582.
50 USC app. 581.
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‘‘(b) CERTIFICATES.—The Secretary concerned shall furnish a
certificate under subsection (a) upon receipt of an application for
such a certificate. A certificate appearing to be signed by the Sec-
retary concerned is prima facie evidence of its contents and of
the signer’s authority to issue it.
‘‘(c) TREATMENT
OF SERVICEMEMBERS
IN MISSING STATUS.—
A servicemember who has been reported missing is presumed to
continue in service until accounted for. A requirement under this
Act that begins or ends with the death of a servicemember does
not begin or end until the servicemember’s death is reported to,
or determined by, the Secretary concerned or by a court of com-
petent 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 affected 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 termination of or release
from military service, apply to a court for relief—
‘‘(1) from any obligation or liability incurred by the
servicemember before the servicemember’s military service; or
‘‘(2) from a tax or assessment falling due before or during
the servicemember’s military service.
‘‘(b) TAX LIABILITY OR ASSESSMENT.—In a case covered by sub-
section (a), the court may, if the ability of the servicemember
to comply with the terms of such obligation or liability or pay
such tax or assessment has been materially affected by reason
of military service, after appropriate notice and hearing, grant
the following relief:
‘‘(1) STAY OF ENFORCEMENT OF REAL ESTATE CONTRACTS.—
‘‘(A) In the case of an obligation payable in installments
under a contract for the purchase of real estate, or secured
by a mortgage or other 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 termination of or release from military
service.
‘‘(B) Any stay under this paragraph shall be—
‘‘(i) for a period equal to the remaining 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 combined
period; and
‘‘(ii) subject to payment of the balance of the prin-
cipal and accumulated interest due and unpaid at the
date of termination or release from the applicant’s
50 USC app. 591.
50 USC app. 583.
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military 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 CONTRACTS.—
‘‘(A) In the case of any other obligation, liability, tax,
or assessment, the court may grant a stay of enforcement—
‘‘(i) during the servicemember’s military service;
and
‘‘(ii) from the date of termination of or release
from military service, or from the date of application
if made after termination 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 balance of principal
and accumulated interest due and unpaid at the date
of termination or release from military service, or the
date of application, in equal periodic installments
during this extended period at the rate of interest
as may be prescribed for this 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 period the
servicemember is in a missing status (as defined 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, specified, or all purposes; and
‘‘(3) expires by its terms after the servicemember entered
a missing status.
‘‘(b) LIMITATION ON POWER OF ATTORNEY EXTENSION.—A power
of attorney executed by a servicemember may not be extended
under subsection (a) if the document by its terms clearly indicates
that the power granted expires on the date specified even though
the servicemember, after the date of execution of the document,
enters a missing status.
50 USC app. 592.
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PUBLIC LAW 108–189—DEC. 19, 2003
‘‘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 ordered 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 coverage for such period.
‘‘(b) SUSPENSION OF COVERAGE.—
‘‘(1) SUSPENSION.—Coverage of a servicemember referred
to in subsection (a) by a professional liability insurance policy
shall be suspended by the insurance carrier in accordance with
this subsection upon receipt of a written request from the
servicemember by the insurance carrier.
‘‘(2) PREMIUMS FOR SUSPENDED CONTRACTS.—A professional
liability insurance carrier—
‘‘(A) may not require that premiums be paid by or
on behalf of a servicemember for any professional liability
insurance coverage suspended pursuant to paragraph (1);
and
‘‘(B) shall refund any amount paid for coverage for
the period of such suspension or, upon the election of
such servicemember, apply such amount for the payment
of any premium becoming due upon the reinstatement of
such coverage.
‘‘(3) NONLIABILITY
OF
CARRIER
DURING
SUSPENSION.—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
suspension of that servicemember’s professional liability insur-
ance under this subsection.
‘‘(4) CERTAIN CLAIMS CONSIDERED TO ARISE BEFORE SUSPEN-
SION.—For the purposes of paragraph (3), a claim based upon
the failure of a professional to make adequate provision for
a patient, client, or other person to receive professional services
or other assistance during the period of the professional’s active
duty service shall be considered to be based on an action
or failure to take action before the beginning of the period
of the suspension of professional liability insurance under this
subsection, except in a case in which professional services were
provided after the date of the beginning of such period.
‘‘(c) REINSTATEMENT OF COVERAGE.—
‘‘(1) 
REINSTATEMENT
REQUIRED.—Professional 
liability
insurance coverage suspended in the case of any servicemember
pursuant to subsection (b) shall be reinstated by the insurance
50 USC app. 593.
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117 STAT. 2863
PUBLIC LAW 108–189—DEC. 19, 2003
carrier on the date on which that servicemember transmits
to the insurance carrier a written request for reinstatement.
‘‘(2) TIME AND PREMIUM FOR REINSTATEMENT.—The request
of a servicemember for reinstatement shall be effective only
if the servicemember transmits the request to the insurance
carrier within 30 days after the date on which the
servicemember is released from active duty. The insurance
carrier shall notify the servicemember of the due date for
payment of the premium of such insurance. Such premium
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 coverage 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 
insurance 
coverage 
of 
any
servicemember for the minimum period of the reinstatement
of such coverage required under subsection (c)(3) to an amount
greater than the amount chargeable for such coverage for such
period before the suspension.
‘‘(2) EXCEPTION.—Paragraph (1) does not prevent an
increase in premium to the extent of any general increase
in the premiums charged by that carrier for the same profes-
sional liability coverage for persons similarly covered by such
insurance during the period of the suspension.
‘‘(e) CONTINUATION OF COVERAGE OF UNAFFECTED PERSONS.—
This section does not—
‘‘(1) require a suspension of professional liability insurance
protection for any person who is not a person referred to in
subsection (a) and who is covered 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 suspended.
‘‘(f) STAY OF CIVIL OR ADMINISTRATIVE ACTIONS.—
‘‘(1) STAY OF ACTIONS.—A civil or administrative action
for damages on the basis of the alleged professional negligence
or other professional liability of a servicemember whose profes-
sional liability insurance coverage has been suspended under
subsection (b) shall be stayed until the end of the period of
the suspension if—
‘‘(A) the action was commenced during the period of
the suspension;
‘‘(B) the action is based on an act or omission 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.
Deadline.
Notification.
Deadline.
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117 STAT. 2864
PUBLIC LAW 108–189—DEC. 19, 2003
‘‘(2) DATE OF COMMENCEMENT OF ACTION.—Whenever a civil
or administrative action for damages 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 insurance coverage of the defendant under
this section, the period of the suspension of the coverage shall
be excluded from the computation of any statutory period of limita-
tion 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 continuance 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 insurance so
suspended shall be liable for any claim for damages for profes-
sional negligence or other professional liability of the deceased
servicemember in the same manner and to the same extent
as such carrier would be liable if the servicemember had died
while covered by such insurance but before the claim was
filed.
‘‘(i) DEFINITIONS.—For purposes of this section:
‘‘(1) ACTIVE DUTY.—The term ‘active duty’ has the meaning
given that term in section 101(d)(1) of title 10, United States
Code.
‘‘(2) PROFESSION.—The term ‘profession’ includes occupa-
tion.
‘‘(3) 
PROFESSIONAL.—The 
term 
‘professional’ 
includes
occupational.
‘‘SEC. 704. HEALTH INSURANCE REINSTATEMENT.
‘‘(a) REINSTATEMENT OF HEALTH INSURANCE.—A servicemember
who, by reason of military service as defined in section 703(a)(1),
is entitled to the rights and protections of this Act shall also
be entitled upon termination or release from such service to
reinstatement of any health insurance that—
‘‘(1) was in effect on the day before such service commenced;
and
‘‘(2) was terminated effective on a date during the period
of such service.
‘‘(b) NO EXCLUSION OR WAITING PERIOD.—The reinstatement
of health care insurance coverage for the health or physical condi-
tion 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 period of coverage; and
50 USC app. 594.
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117 STAT. 2865
PUBLIC LAW 108–189—DEC. 19, 2003
‘‘(3) if the condition relates to the servicemember, the condi-
tion has not been determined 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-offered 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 release from military service.
‘‘SEC. 705. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.
‘‘For the purposes of voting for any Federal office (as defined
in section 301 of the Federal Election Campaign Act of 1971 (2
U.S.C. 431)) or a State or local office, a person who is absent
from a State in compliance with 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;
‘‘(2) be deemed to have acquired a residence or domicile
in any other State; or
‘‘(3) be deemed to have become a resident in or a resident
of any other State.
‘‘SEC. 706. BUSINESS OR TRADE OBLIGATIONS.
‘‘(a) AVAILABILITY OF NON-BUSINESS ASSETS TO SATISFY OBLIGA-
TIONS.—If the trade or business (without regard to the form in
which such trade or business is carried out) of a servicemember
has an obligation or liability for which the servicemember is person-
ally liable, the assets of the servicemember not held in connection
with the trade or business may not be available for satisfaction
of the obligation or liability during the servicemember’s military
service.
‘‘(b) RELIEF TO OBLIGORS.—Upon application to a court by the
holder of an obligation or liability covered by this section, relief
granted by this section to a servicemember may be modified as
justice and equity require.’’.
SEC. 2. CONFORMING AMENDMENTS.
(a) MILITARY SELECTIVE SERVICE ACT.—Section 14 of the Mili-
tary 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 Sol-
diers’ 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
50 USC app. 596.
50 USC app. 595.
Deadline.
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117 STAT. 2866
PUBLIC LAW 108–189—DEC. 19, 2003
LEGISLATIVE HISTORY—H.R. 100 (S. 1136):
HOUSE REPORTS: No. 108–81 (Comm. on Veterans’ Affairs).
SENATE REPORTS: No. 108–197 accompanying S. 1136 (Comm. on Veterans’ Af-
fairs).
CONGRESSIONAL RECORD, Vol. 149 (2003):
May 7, considered and passed House.
Nov. 21, considered and passed Senate, amended, in lieu of S. 1136.
Dec. 8, House concurred in Senate amendment.
(B) in paragraph (2)(A), by striking ‘‘person in the
military service’’ and inserting ‘‘servicemember’’.
(c) TITLE 10, UNITED STATES CODE.—Section 1408(b)(1)(D) of
title 10, United States Code, is amended by striking ‘‘Soldiers’
and Sailors’ Civil Relief Act of 1940’’ and inserting ‘‘Servicemembers
Civil Relief Act’’.
(d) INTERNAL
REVENUE
CODE.—Section 7654(d)(1) of the
Internal Revenue Code of 1986 is amended by striking ‘‘Soldiers’
and Sailors’ Civil Relief Act’’ and inserting ‘‘Servicemembers Civil
Relief Act’’.
(e) PUBLIC HEALTH SERVICE ACT.—Section 212(e) of the Public
Health Service Act (42 U.S.C. 213(e)) is amended by striking ‘‘Sol-
diers’ 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’’.
(g) NOAA COMMISSIONED OFFICER CORPS ACT OF 2002.—Sec-
tion 262(a)(2) of National Oceanic and Atmospheric Administration
Commissioned Officer Corps Act of 2002 (33 U.S.C. 3072(a)(2))
is amended to read as follows:
‘‘(2) The Servicemembers Civil Relief Act.’’.
SEC. 3. EFFECTIVE DATE.
The amendment made by section 1 shall apply to any case
that is not final before the date of the enactment of this Act.
Approved December 19, 2003.
Applicability.
50 USC app. 501
note.
26 USC 7654.
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