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• | Service Members Civil Relief Act of 2003

Service Members Civil Relief Act of 2003

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, POSTPONED, 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, accommodation maker, comaker, or other person (whether primarily or secondarily liable on an obligation or liability) of the protections provided under subsections (a) and (b). Any such waiver is effective only if it is executed as an instrument separate from the obligation or 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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PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2839

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 benefits accorded by this Act is provided in writing to persons in military service and to persons entering military service.

SEC. 106. EXTENSION OF RIGHTS AND PROTECTIONS TO RESERVES ORDERED TO REPORT FOR 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 service member 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 service member 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 service member’s period of military service. The written agreement shall specify the legal instrument to which the waiver applies and, if the service member is not a party to that instrument, the service member concerned.

(b) ACTIONS REQUIRING WAIVERS IN WRITING.—The requirement in subsection (a) for a written waiver applies to the following:

(1) The modification, termination, or 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 considered to be a service member; 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 service member for, or receipt by a service member of, a stay, postponement, or suspension pursuant to this Act in the payment of a tax, fine, penalty, insurance premium, or other civil obligation or liability of that service member 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 service member 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 service member—

(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 service member in substantially the amount or on substantially the terms requested.

(3) An adverse report relating to the creditworthiness of the service member 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 service member.

(5) An annotation in a service member’s record by a creditor or a person engaged in the practice of assembling or evaluating consumer credit information, identifying the service member 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 service member for purposes of this Act is either of the following:

(1) An attorney acting on the behalf of a service member.

(2) An individual possessing a power of attorney.

(b) APPLICATION.—Whenever the term ‘service member’ is used in this Act, such term shall be treated as including a reference to a legal representative of the service member.

TITLE II—GENERAL RELIEF

SEC. 201. PROTECTION OF SERVICE MEMBERS 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 proceeding covered by this section, the court, before entering judgment 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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PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2841

(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 service member cannot locate the service member, actions by the attorney in the case shall not waive any defense of the service member or otherwise bind the service member.

(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 political 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 satisfied 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 person who makes or uses an affidavit permitted under subsection (b) (or a statement, declaration, verification, or certificate as authorized under subsection (b)(4)) knowing it to be false, shall be fined as provided in title 18, United States Code, or imprisoned for not more than one year, or both.

(d) STAY OF PROCEEDINGS.—In an action covered by this section in which the defendant is in military service, the court shall grant a stay of proceedings for a minimum period of 90 days under this subsection upon application 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 procedures 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 service member who is a defendant in an action covered by this section receives actual notice of the action, the service member 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 JUDGMENT.— If a default judgment is entered in an action covered by this section against a service member during the service member’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 service member, reopen the judgment for the purpose of allowing the service member to defend the action if it appears that—

(A) the service member was materially affected by reason of that military service in making a defense to the action; and

(B) the service member 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 service member 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 SERVICE MEMBER 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 termination 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 judgment in a civil action or proceeding in which a service member described in subsection (a) is a party, the court may on its own motion and shall, upon application by the service member, 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 requirements materially affect the service member’s ability to appear and stating a date when the service member will be available to appear.

(B) A letter or other communication from the service member’s commanding officer stating that the service member’s current military duty prevents appearance and that military leave is not authorized for the service member 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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PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2843 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 service member 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 service member’s ability to appear. Such an application may be made by the service member at the time of the initial application under subsection (b) or when it appears that the service member 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 service member in the action or proceeding.

(e) COORDINATION WITH SECTION 201.—A service member 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 compliance 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 service member fails to perform an obligation arising under a contract and a penalty is incurred arising from that nonperformance, a court may reduce or waive the fine or penalty if—

(1) the service member was in military service at the time the fine or penalty was incurred; and

(2) the ability of the service member to perform the obligation 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 service member, 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 service member—

(1) stay the execution of any judgment or order entered against the service member; and

(2) vacate or stay an attachment or garnishment of property, money, or debts in the possession of the service member or a third party, whether before or after judgment.

(b) APPLICABILITY.—This section applies to an action or proceeding commenced in a court against a service member before or during the period of the service member’s military service or within 90 days after such service terminates.
50 USC app. 524.
50 USC app. 523.
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117 STAT. 2844 PUBLIC LAW 108–189—DEC. 19, 2003

SEC. 205. DURATION AND TERM OF STAYS; CODEFENDANTS NOT IN SERVICE.

(a) PERIOD OF STAY.—A stay of an action, proceeding, attachment, or execution made pursuant to the provisions of this Act by a court may be ordered for the period of military service and 90 days thereafter, or for any part of that period. The court may set the terms and amounts for such installment payments as is considered reasonable by the court.

(b) CODEFENDANTS.—If the service member 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 service member’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 service member or the service member’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 section 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 service member, or the service member and the service member’s spouse jointly, before the service member 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 service member 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 obligation or liability of a service member to be subject to the interest
Deadline.
50 USC app. 527.
50 USC app. 526.
50 USC app. 525.
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PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2845 rate limitation in subsection (a), the service member shall provide to the creditor written notice and a copy of the military orders calling the service member to military service and any orders further extending military service, not later than 180 days after the date of the service member’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 service member to military service, the creditor shall treat the debt in accordance with subsection (a), effective as of the date on which the service member 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 service member 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 service member’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 CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT, LEASES

SEC. 301. EVICTIONS AND DISTRESS.

(a) COURT-ORDERED EVICTION.—

(1) IN GENERAL.—Except by court order, a landlord (or another person with paramount title) may not—

(A) evict a service member, or the dependents of a service member, during a period of military service of the service member, 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 calendar 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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117 STAT. 2846 PUBLIC LAW 108–189—DEC. 19, 2003

(3) PUBLICATION OF HOUSING PRICE INFLATION ADJUSTMENT.— The Secretary of Defense shall cause to be published in the Federal Register each year the amount in effect under paragraph (1)(A)(ii) for that year following the housing price inflation adjustment for that year pursuant to paragraph (2). Such 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 service member 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 paragraph (1), the court may grant to the landlord (or other person with paramount title) such relief as equity may require.

(c) PENALTIES.—

(1) MISDEMEANOR.—Except as provided in subsection (a), a person who knowingly takes part in an eviction or distress described in subsection (a), or who knowingly attempts to do so, shall be fined as provided in title 18, United States Code, or 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 SERVICE MEMBER.—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 service member 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 service members that may be allotted under this subsection.

(e) LIMITATION OF APPLICABILITY.—Section 202 is not applicable to this section.

SEC. 302. PROTECTION UNDER INSTALLMENT CONTRACTS FOR PURCHASE OR LEASE.

(a) PROTECTION UPON BREACH OF CONTRACT.—

(1) PROTECTION AFTER ENTERING MILITARY SERVICE.—After a service member enters military service, a contract by the service member 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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(2) APPLICABILITY.—This section applies only to a contract for which a deposit or installment has been paid by the service member before the service member enters military service.

(b) PENALTIES.—

(1) MISDEMEANOR.—A person who knowingly resumes possession of property in violation of subsection (a), or in violation of section 107 of this Act, or who knowingly attempts to do so, shall be fined as provided in title 18, United States Code, or 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 service member of all or part of the prior installments or deposits as a condition of terminating the contract and resuming possession of the property;

(2) may, on its own motion, and shall on application by a service member when the service member’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 service member that—

(1) originated before the period of the service member’s military service and for which the service member is still obligated; and

(2) is secured by a mortgage, trust deed, or other security in the nature of a mortgage.

(b) STAY OF PROCEEDINGS AND ADJUSTMENT OF OBLIGATION.— In an action filed during, or within 90 days after, a service member’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 service member when the service member’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 service member’s military service except—

(1) upon a court order granted before such sale, foreclosure, or seizure with a return made and approved by the court; or
Applicability.
50 USC app. 533.
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117 STAT. 2848 PUBLIC LAW 108–189—DEC. 19, 2003

(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 disinterested parties to appraise the property.

(b) EQUITY PAYMENT.—Based on the appraisal, and if undue hardship to the service member’s dependents will not result, the court may order that the amount of the service member’s equity in the property be paid to the service member, or the service member’s dependents, as a condition of foreclosing the mortgage, 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 service member or a service member’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 service member, while in military service, executes the lease and thereafter receives military orders for a permanent change of station or to deploy with a military unit for a period of not less than 90 days.

(2) LEASES OF MOTOR VEHICLES.—A lease of a motor vehicle used, or intended to be used, by a service member or a service member’s dependents for personal or business transportation if—

(A) the lease is executed by or on behalf of a person who thereafter and during the term of the lease enters military service under a call or order specifying a period
Applicability.
50 USC app. 535.
50 USC app. 534.
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PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2849
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 service member, while in military service, executes the lease and thereafter receives military orders for a permanent change of station outside of the continental United States or to deploy with a military unit for a period of not less than 180 days.

(c) MANNER OF TERMINATION.—

(1) IN GENERAL.—Termination of a lease under subsection (a) is made—

(A) by delivery by the lessee of written notice of such termination, and a copy of the service member’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 paragraph (1)(A) may be accomplished—

(A) by hand delivery;

(B) by private business carrier; or

(C) by placing the written notice in an envelope with sufficient postage and with return receipt requested, and addressed as designated by the lessor (or the lessor’s grantee) or to the lessor’s agent (or the agent’s grantee), and depositing the written notice in the United States mails.

(d) EFFECTIVE DATE OF LEASE TERMINATION.—

(1) LEASE OF PREMISES.—In the case of a lease described in subsection (b)(1) that provides for monthly payment of rent, termination of the lease under subsection (a) is effective 30 days after the first date on which the next rental payment is due and payable after the date on which the notice under subsection (c) is delivered. In the case of any other lease described in subsection (b)(1), termination of the lease under subsection (a) is effective on the last day of the month following the month in which the notice is delivered.

(2) LEASE OF MOTOR VEHICLES.—In the case of a lease described in subsection (b)(2), termination of the lease under subsection (a) is effective on the day on which the requirements of subsection (c) are met for such termination.

(e) ARREARAGES AND OTHER OBLIGATIONS AND LIABILITIES.— Rents or lease amounts unpaid for the period preceding the effective date of the lease termination shall be paid on a prorated basis. In the case of the lease of a motor vehicle, the lessor may not impose an early termination charge, but any taxes, summonses, and title and registration fees and any other obligation and liability of the lessee in accordance with the terms of the lease, including reasonable charges to the lessee for excess wear, use and mileage, that are due and unpaid at the time of termination of the lease shall be paid by the lessee.
Deadline.
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117 STAT. 2850 PUBLIC LAW 108–189—DEC. 19, 2003

(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 service member 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 service member or a service member’s dependent who lawfully terminates a lease covered by this section, or who knowingly interferes with the removal of such property from premises covered by such lease, for the purpose of subjecting or attempting to subject any of such property to a claim for rent accruing subsequent to the date of termination of such lease, or attempts to do so, shall be fined as provided in title 18, United States Code, or imprisoned for not more than one year, or both.

(2) PRESERVATION OF OTHER REMEDIES.—The remedy and rights provided under this section are in addition to and do not preclude any remedy for wrongful conversion otherwise available under law to the person claiming relief under this section, including any award for consequential or punitive damages.

SEC. 306. PROTECTION OF LIFE INSURANCE POLICY.

(a) ASSIGNMENT OF POLICY PROTECTED.—If a life insurance policy on the life of a service member 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 service member 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 service member to comply with the terms of the obligation is materially affected by military service.

(d) TREATMENT OF GUARANTEED PREMIUMS.—For purposes of this subsection, premiums guaranteed under the provisions of title IV of this Act shall not be considered due and unpaid.

(e) PENALTIES.—

(1) MISDEMEANOR.—A person who knowingly takes an action contrary to this section, or attempts to do so, shall be fined as provided in title 18, United States Code, or imprisoned for not more than one year, or both.
50 USC app. 536.
Deadline.
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PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2851

(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 service member may not, during any period of military service of the service member 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 service member 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 service member whose ability to comply with the obligation resulting in the proceeding is materially 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 imprisoned for not more than one year, or both.

(2) PRESERVATION OF OTHER REMEDIES.—The remedy and rights provided under this section are in addition to and do not preclude any remedy for wrongful conversion otherwise available under law to the person claiming relief under this section, including any consequential or punitive damages.

SEC. 308. EXTENSION OF PROTECTIONS TO DEPENDENTS.

Upon application to a court, a dependent of a service member 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 service member’s military service.

TITLE IV—LIFE INSURANCE

SEC. 401. DEFINITIONS.

For the purposes of this title:

(1) POLICY.—The term ‘policy’ means any individual contract 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 membership 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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117 STAT. 2852 PUBLIC LAW 108–189—DEC. 19, 2003

(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 service member whose life is insured under a policy.

(4) INSURER.—The term ‘insurer’ includes any firm, corporation, partnership, association, or business that is chartered or authorized to provide insurance and issue contracts or policies by the laws of a State or the United States.

SEC. 402. INSURANCE RIGHTS AND PROTECTIONS.

(a) RIGHTS AND PROTECTIONS.—The rights and protections under this title apply to the insured when—

(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 Secretary of Veterans Affairs determines that the insured’s policy is not entitled to protection under this title.

(b) NOTIFICATION AND APPLICATION.—The Secretary of Veterans Affairs shall notify the Secretary concerned of the procedures to be used to apply for the protections provided under this title. The applicant shall send the original application to the insurer and a copy to the Secretary of Veterans Affairs.

(c) LIMITATION ON AMOUNT.—The total amount of life insurance coverage protection provided by this title for a service member may not exceed $250,000, or an amount equal to the Service member’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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(d) POLICY MODIFICATION.—Upon application for protection under this title, the insured and the insurer shall have constructively agreed to any policy modification necessary to give this title full force and effect.

SEC. 404. POLICIES ENTITLED TO PROTECTION AND LAPSE OF POLICIES.

(a) DETERMINATION.—The Secretary of Veterans Affairs shall determine whether a policy is entitled to protection under this title and shall notify the insured and the insurer of that determination.

(b) LAPSE PROTECTION.—A policy that the Secretary determines is entitled to protection under this title shall not lapse or otherwise terminate or be forfeited for the 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 accumulation, unearned premiums, or other value of similar character may not be available to the insured without the approval of the Secretary. The right of the insured to change a beneficiary designation or select an optional settlement for a beneficiary shall not be affected by the provisions of this title.

SEC. 406. DEDUCTION OF UNPAID PREMIUMS.

(a) SETTLEMENT OF PROCEEDS.—If a policy matures as a result of a service member’s death or otherwise during the period of protection 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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117 STAT. 2854 PUBLIC LAW 108–189—DEC. 19, 2003

(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 insurance 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 Secretary of Veterans Affairs in administering this title are subject to review on appeal to the Board of Veterans’ Appeals pursuant to chapter 71 of title 38, United States Code, and to judicial review only as provided in chapter 72 of such title.

TITLE V—TAXES AND PUBLIC LANDS

SEC. 501. TAXES RESPECTING PERSONAL PROPERTY, MONEY, CREDITS, AND REAL PROPERTY.

(a) APPLICATION.—This section applies in any case in which a tax or assessment, whether general or special (other than a tax on personal income), falls due and remains unpaid before or during a period of military service with respect to a service member’s—

(1) personal property (including motor vehicles); or

(2) real property occupied for dwelling, professional, business, or agricultural purposes by a service member or the service member’s dependents or employees—
50 USC app. 561.
50 USC app. 549.
50 USC app. 548.
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PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2855

(A) before the service member’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 service member’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 service member and for a period not more than 180 days after the termination of, or release of the service member 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 service member shall have the right to redeem or commence an action to redeem the service member’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 service member 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 service member or jointly by a service member and a dependent or dependents.

SEC. 502. RIGHTS IN PUBLIC LANDS.

(a) RIGHTS NOT FORFEITED.—The rights of a service member to lands owned or controlled by the United States, and initiated or acquired by the service member under the laws of the United States (including the mining and mineral leasing laws) before military service, shall not be forfeited or prejudiced as a result of being absent from the land, or by failing to begin or complete any work or improvements to the land, during the period of military service.

(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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117 STAT. 2856 PUBLIC LAW 108–189—DEC. 19, 2003

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 entry man or the entry man’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 entry man or the entry man’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 entry man 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 entry man 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 entry man 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 entry man or claimant shall, within 180 days after entry into military service, cause to be filed in the land office of the district where the claim is situated a notice communicating the fact of military service and the desire to hold the claim under this section.

SEC. 504. MINING CLAIMS.

(a) REQUIREMENTS SUSPENDED.—The provisions of section 2324 of the Revised Statutes of the United States (30 U.S.C. 28) specified in subsection (b) shall not apply to a service member’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 service member 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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SEC. 505. MINERAL PERMITS AND LEASES.

(a) SUSPENSION DURING MILITARY SERVICE.—A person holding a permit or lease on the public domain under the Federal mineral leasing laws who enters military service may suspend all operations under the permit or lease for the duration of military service and for 180 days thereafter. The term of the permit or lease shall not run during the period of suspension, nor shall any rental or royalties be charged against the permit or lease during the period of suspension.

(b) NOTIFICATION.—In order to obtain the protection of this section, the permittee or lessee shall, within 180 days after entry into military service, notify the Secretary of the Interior by registered mail of the fact that military service has begun and of the desire to hold the claim under this section.

(c) CONTRACT MODIFICATION.—This section shall not be construed to supersede the terms of any contract for 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 service member 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 service member during a period of military 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 prescribed by section 1001 of title 18, United State Code.

SEC. 507. DISTRIBUTION OF INFORMATION CONCERNING BENEFITS OF TITLE.

(a) DISTRIBUTION OF INFORMATION BY SECRETARY CONCERNED.— The Secretary concerned shall issue to service members information explaining the provisions of this title.

(b) APPLICATION FORMS.—The Secretary concerned shall provide application forms to service members 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 sections 501, 510, and 511) and related application forms.

SEC. 508. LAND RIGHTS OF SERVICE MEMBERS.

(a) NO AGE LIMITATIONS.—Any service member 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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117 STAT. 2858 PUBLIC LAW 108–189—DEC. 19, 2003 including mining and mineral leasing laws, as those service members who are 21 years of age.

(b) RESIDENCY REQUIREMENT.—Any requirement related to the establishment of a residence within a limited time shall be suspended as to entry by a service member 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 section 1044a of title 10, United States Code, or under the laws of the State where the land is situated.

SEC. 509. REGULATIONS.

The Secretary of the Interior may issue regulations necessary to carry out this title (other than sections 501, 510, and 511).

SEC. 510. INCOME TAXES.

(a) DEFERRAL OF TAX.—Upon notice to the Internal Revenue Service or the tax authority of a State or a political subdivision of a State, the collection of income tax on the income of a service member 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 service member’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 service member 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 service member shall neither lose nor acquire a residence or domicile for purposes of taxation with respect to the person, personal property, or income of the service member 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 service member 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 service member is not a resident or domiciliary of the jurisdiction in which the service member is serving in compliance with military orders.

(c) PERSONAL PROPERTY.—

(1) RELIEF FROM PERSONAL PROPERTY TAXES.—The personal property of a service member shall not be deemed to be located or present in, or to have a situs for taxation in, the tax jurisdiction in which the service member 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 service member’s domicile or residence.
Applicability.
50 USC app. 571.
50 USC app. 570.
50 USC app. 569.
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PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2859

(3) EXCEPTION FOR PROPERTY USED IN TRADE OR BUSINESS.— This section does not prevent taxation by a tax jurisdiction 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.—Eligibility for relief from personal property taxes under this subsection is not contingent on whether or not such taxes are paid to the State of domicile.

(d) INCREASE OF TAX LIABILITY.—A tax jurisdiction may not use the military compensation of a nonresident service member to increase the tax liability imposed on other income earned by the nonresident service member or spouse subject to tax by the jurisdiction.

(e) FEDERAL INDIAN RESERVATIONS.—An Indian service member 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 service member in the service member’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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117 STAT. 2860 PUBLIC LAW 108–189—DEC. 19, 2003

(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 Secretary concerned is prima facie evidence of its contents and of the signer’s authority to issue it.

(c) TREATMENT OF SERVICE MEMBERS IN MISSING STATUS.— A service member 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 service member does not begin or end until the service member’s death is reported to, or determined by, the Secretary concerned or by a court of competent jurisdiction.

SEC. 603. INTERLOCUTORY ORDERS.

An interlocutory order issued by a court under this Act may be revoked, modified, or extended by that court upon its own motion or otherwise, upon notification to affected parties as required by the court.

TITLE VII—FURTHER RELIEF

SEC. 701. ANTICIPATORY RELIEF.

(a) APPLICATION FOR RELIEF.—A service member 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 service member before the service member’s military service; or

(2) from a tax or assessment falling due before or during the service member’s military service.

(b) TAX LIABILITY OR ASSESSMENT.—In a case covered by subsection (a), the court may, if the ability of the service member 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 service member’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 service member, or any part of such combined period; and

(ii) subject to payment of the balance of the principal and accumulated interest due and unpaid at the date of termination or release from the applicant’s
50 USC app. 591.
50 USC app. 583.
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PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2861 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 service member’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 service member’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 service member shall be automatically extended for the period the service member 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 service member—

(A) while in military service; or

(B) before entry into military service but after the service member—

(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 service member’s spouse, parent, or other named relative as the service member’s attorney in fact for certain, specified, or all purposes; and

(3) expires by its terms after the service member entered a missing status.

(b) LIMITATION ON POWER OF ATTORNEY EXTENSION.—A power of attorney executed by a service member 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 service member, after the date of execution of the document, enters a missing status.
50 USC app. 592.
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117 STAT. 2862 PUBLIC LAW 108–189—DEC. 19, 2003
SEC. 703. PROFESSIONAL LIABILITY PROTECTION.

(a) APPLICABILITY.—This section applies to a service member 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 service member during the period of the service member’s active duty unless the premiums are paid for such coverage for such period.

(b) SUSPENSION OF COVERAGE.—

(1) SUSPENSION.—Coverage of a service member 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 service member 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 service member 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 service member, 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 service member that occurs during a period of suspension of that service member’s professional liability insurance under this subsection.

(4) CERTAIN CLAIMS CONSIDERED TO ARISE BEFORE SUSPENSION.— 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 service member pursuant to subsection (b) shall be reinstated by the insurance 50 USC app. 593.
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(2) TIME AND PREMIUM FOR REINSTATEMENT.—The request of a service member for reinstatement shall be effective only if the service member transmits the request to the insurance carrier within 30 days after the date on which the service member is released from active duty. The insurance carrier shall notify the service member of the due date for payment of the premium of such insurance. Such premium shall be paid by the service member 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 service member 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 service member 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 professional 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 service member whose professional 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 service member.
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 service member, the action shall have been deemed to have been filed on the date on which the professional liability insurance coverage of the service member 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 limitation on the commencement of such action.

(h) DEATH DURING PERIOD OF SUSPENSION.—If a service member 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 service member under subsection (f)(1) shall terminate on the date of the death of such service member; and(2) the carrier of the professional liability insurance so suspended shall be liable for any claim for damages for professional negligence or other professional liability of the deceased service member in the same manner and to the same extent as such carrier would be liable if the service member 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 occupation.

(3) PROFESSIONAL.—The term ‘professional’ includes occupational.

SEC. 704. HEALTH INSURANCE REINSTATEMENT.

(a) REINSTATEMENT OF HEALTH INSURANCE.—A service member 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 condition of a service member described in subsection (a), or any other person who is covered by the insurance by reason of the coverage of the service member, 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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PUBLIC LAW 108–189—DEC. 19, 2003 117 STAT. 2865

(3) if the condition relates to the service member, the condition 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 service member 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 OBLIGATIONS.— If the trade or business (without regard to the form in which such trade or business is carried out) of a service member has an obligation or liability for which the service member is personally liable, the assets of the service member not held in connection with the trade or business may not be available for satisfaction of the obligation or liability during the service member’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 service member may be modified as justice and equity require.’’.

SEC. 2. CONFORMING AMENDMENTS.

(a) MILITARY SELECTIVE SERVICE ACT.—Section 14 of the Military Selective Service Act (50 U.S.C. App. 464) is repealed.

(b) TITLE 5, UNITED STATES CODE.— (1) Section 5520a(k)(2)(A) of title 5, United States Code, is amended by striking Soldiers’ and Sailors’ Civil Relief Act of 1940’’ and inserting Service members Civil Relief Act’’; and (2) Section 5569(e) of title 5, United States Code, is amended — (A) in paragraph (1), by striking provided by the Soldiers’ and Sailors’ Civil Relief Act of 1940’’ and all that follows through of such Act’’ and inserting provided by the Service members 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’ Affairs).
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.
Æ

(B) in paragraph (2)(A), by striking person in the military service’’ and inserting service member’’.

(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 Service members 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 Service members Civil Relief Act’’.

(e) PUBLIC HEALTH SERVICE ACT.—Section 212(e) of the Public Health Service Act (42 U.S.C. 213(e)) is amended by striking Soldiers’ and Sailors’ Civil Relief Act of 1940’’ and inserting Service members 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 Service members Civil Relief Act’’.

(g) NOAA COMMISSIONED OFFICER CORPS ACT OF 2002.—Section 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 Service members 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.

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