[The Servicemembers Civil Relief Act of 2003 (SCRA), formerly known as the Soldiers' and Sailors' Civil Relief Act of 1940 (SSCRA), is a federal law that provides protections for military members as they enter active duty. It covers issues such as rental agreements, security deposits, prepaid rent, eviction, credit card interest rates, mortgage foreclosure, insurance and tax payments.]
SERVICEMEMBERS CIVIL RELIEF ACT
Public Law 108-189
50 U.S.C. App. §§501–596 (19 Dec 2003)
as amended by Public Law 108-454 (10 Dec 2004)
[Note: The section numbers shown herein are citations to 50 U.S.C. App. §___. If a section appeared in the Soldiers’ and Sailors’ Civil Relief Act, the former SSCRA section number is shown above the citation. The section numbers from P.L. 108-189 (the text of the SCRA as enacted by Congress) are shown after the section titles in bracketed italics.]
INDEX TO SCRA
(section numbers refer to 50 U.S.C. App. §___)
Sec. 501 Short title; table of contents.
Sec. 502 Purpose.
TITLE I – GENERAL PROVISIONS
Sec. 511 Definitions.
Sec. 512 Jurisdiction and applicability of Act.
Sec. 513 Protection of persons secondarily liable.
Sec. 514 Extension of protections to citizens serving with allied forces.
Sec. 515 Notification of benefits.
Sec. 516 Extension of rights and protections to Reserves ordered to report for
military service and to persons ordered to report for induction.
Sec. 517 Waiver of rights pursuant to written agreement.
Sec. 518 Exercise of rights under Act not to affect certain future financial
transactions.
Sec. 519 Legal representatives.
TITLE II – GENERAL RELIEF
Sec. 521 Protection of servicemembers against default judgments.
Sec. 522 Stay of proceedings when servicemember has notice.
Sec. 523 Fines and penalties under contracts
Sec. 524 Stay or vacation of execution of judgments, attachments, and
garnishments.
Sec. 525 Duration and term of stays; codefendants not in service.
Sec. 526 Statute of limitations.
Sec. 527 Maximum rate of interest on debts incurred before military service
TITLE III – RENT, INSTALLMENT CONTRACTS,
MORTGAGES, LIENS, ASSIGNMENT, LEASES
Sec. 531 Evictions and distress.
Sec. 532 Protection under installment contracts for purchase or lease.
Sec. 533 Mortgages and trust deeds.
Sec. 534 Settlement of stayed cases relating to personal property.
Sec. 535 Termination of residential or motor vehicle leases.
Sec. 536 Protection of life insurance policy.
Sec. 537 Enforcement of storage liens.
Sec. 538 Extension of protections to dependents.
TITLE IV – LIFE INSURANCE
Sec. 541 Definitions.
Sec. 542 Insurance rights and protections.
Sec. 543 Application for insurance protection.
Sec. 544 Policies entitled to protection and lapse of policies.
Sec. 545 Policy restrictions.
Sec. 546 Deduction of unpaid premiums.
Sec. 547 Premiums and interest guaranteed by United States.
Sec. 548 Regulations.
Sec. 549 Review of findings of fact and conclusions of law.
TITLE V – TAXES AND PUBLIC LANDS
Sec. 561 Taxes respecting personal property, money, credits, and real property.
Sec. 562 Rights in public lands.
Sec. 563 Desert-land entries.
Sec. 564 Mining claims.
Sec. 565 Mineral permits and leases.
Sec. 566 Perfection or defense of rights.
Sec. 567 Distribution of information concerning benefits of title.
Sec. 568 Land rights of servicemembers.
Sec. 569 Regulations.
Sec. 570 Income taxes.
Sec. 571 Residence for tax purposes.
TITLE VI – ADMINISTRATIVE REMEDIES
Sec. 581 Inappropriate use of Act.
Sec. 582 Certificates of service; persons reported missing.
Sec. 583 Interlocutory orders.
TITLE VII – FURTHER RELIEF
Sec. 591 Anticipatory relief.
Sec. 592 Power of attorney.
Sec. 593 Professional liability protection.
Sec. 594 Health insurance reinstatement.
Sec. 595 Guarantee of residency for military personnel.
Sec. 596 Business or trade obligations.
§ 501. Short title [Sec. 1]
This Act [sections 501 to 596 of this Appendix] may be cited as the "Servicemembers Civil Relief Act".
Formerly cited as 50 U.S.C. App. § 510
§ 502. Purpose [Sec. 2]
The purposes of this Act [sections 501 to 596 of this Appendix] are--(1) to provide for, strengthen, and expedite the national defense through protection extended by this Act [said sections] 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.
§ 511. Definitions [Sec. 101]
For the purposes of this Act [sections 501 to 596 of this Appendix]:
(1) Servicemember
The term "servicemember" means a member of the uniformed services, as that term is defined in section 101(a)(5) of title 10, United States Code.
(2) Military service
The term "military service" means--
(A) in the case of a servicemember who is a member of the Army, Navy, Air Force, Marine Corps, or Coast Guard—
(i) active duty, as defined in section 101(d)(1) of title 10, United States Code, and
(ii) in the case of a member of the National Guard, includes service under a call to active service authorized by the President or the Secretary of Defense for a period of more than 30 consecutive days under section 502(f) of title 32, United States Code, for purposes of responding to a national emergency declared by the President and supported by Federal funds;
(B) in the case of a servicemember who is a commissioned 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.
The term "dependent", with respect to a servicemember, means--
(A) the servicemember's spouse;
(B) the servicemember's child (as defined in section 101(4) of title 38, United States Code); or
(C) an individual for whom the servicemember provided more than one-half of the individual's support for 180 days immediately preceding an application for relief under this Act [sections 501 to 596 of this Appendix].
The term "court" means a court or an administrative agency of the United States or of any State (including any political subdivision of a State), whether or not a court or administrative agency of record.
The term "State" includes--
(A) a commonwealth, territory, or possession of the United States; and
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.
The term "motor vehicle" has the meaning given that term in section 30102(a)(6) of title 49, United States Code.
(9) JUDGMENT – The term ‘judgment’ means any judgment, decree, order, or ruling, final or temporary. [Added by P.L. 108-454, 10 Dec 2004.]
§ 512. Jurisdiction and applicability of Act [Sec. 102]
(a) Jurisdiction
This Act [sections 501 to 596 of this Appendix] applies to--(1) the United States;
(2) each of the States, including the political subdivisions thereof; and
(3) all territory subject to the jurisdiction of the United States.
(b) Applicability to proceedings
This Act [sections 501 to 596 of this Appendix] applies to any judicial or administrative proceeding commenced in any court or agency in any jurisdiction subject to this Act [said sections]. This Act [said sections] does not apply to criminal proceedings.(c) Court in which application may be made
When under this Act [sections 501 to 596 of this Appendix] 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.
§ 513. Protection of persons secondarily liable [Sec. 103]
(a) Extension of protection when actions stayed, postponed, or suspended
Whenever pursuant to this Act [sections 501 to 596 of this Appendix] 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 [sections 501 to 596 of this Appendix], 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 [sections 501 to 596 of this Appendix] 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 [section 516 of this Appendix].
§ 514. Extension of protections to citizens serving with allied forces [Sec. 104]
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 [sections 501 to 596 of this Appendix] if that service with the allied force is similar to military service as defined in this Act [sections 501 to 596 of this Appendix]. The relief and protections provided to such citizen shall terminate on the date of discharge or release from such service.
§ 515. Notification of benefits [Sec. 105]
The Secretary concerned shall ensure that notice of the benefits accorded by this Act [sections 501 to 596 of this Appendix] is provided in writing to persons in military service and to persons entering military service.
§ 516. Extension of rights and protections to reserves ordered to report for military service and to persons ordered to report for induction [Sec. 106]
(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 [of this Appendix] 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 [of this Appendix] 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).
§ 517. Waiver of rights pursuant to written agreement [Sec. 107]
(a) In general
A servicemember may waive any of the rights and protections provided by this Act [sections 501 to 596 of this Appendix]. Any such waiver that applies to an action listed in subsection (b) of this section is effective only if it is in writing and is executed as an instrument separate from the obligation or liability to which it applies. [Preceding sentence added by P.L. 108-454, 10 Dec 2004.] 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 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) Prominent Display of Certain Contract Rights Waivers – Any waiver in writing of a right or protection provided by this Act that applies to a contract, lease, or similar legal instrument must be in at least 12 point type. [Added by P.L. 108-454, 10 Dec 2004.]
(d) Coverage of periods after orders received
For the purposes of this section—(1) a person to whom section 106 [section 516 of this Appendix] applies shall be considered to be a servicemember; and
(2) the period with respect to such a person specified in subsection (a) or (b), as the case may be, of section 106 [section 516 of this Appendix] shall be considered to be a period of military service.
§ 518. Exercise of rights under Act not to affect certain future financial transactions
[Sec. 108]
Application by a servicemember for, or receipt by a servicemember of, a stay, postponement, or suspension pursuant to this Act [sections 501 to 596 of this Appendix] in the payment of a tax, fine, penalty, insurance premium, or other civil obligation or liability of that servicemember shall not itself (without regard to other considerations) provide the basis for any of the following:(1) A determination by a lender or other person that the servicemember is unable to pay the civil 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 substantially 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.
§ 519. Legal representatives [Sec. 109]
(a) Representative
A legal representative of a servicemember for purposes of this Act [sections 501 to 596 of this Appendix] 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 [sections 501 to 596 of this Appendix], such term shall be treated as including a reference to a legal representative of the servicemember.
§ 520. Omitted
TITLE II – GENERAL RELIEF
Formerly cited as 50 U.S.C. App. § 520
§ 521. Protection of servicemembers against default judgments [Sec. 201]
(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--
(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 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 [sections 501 to 596 of this Appendix].
(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 [section 522 of this Appendix].
(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 [section 522 of this Appendix].
(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 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 reason 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 [sections 501 to 596 of this Appendix], that action shall not impair a right or title acquired by a bona fide purchaser for value under the default judgment.
Formerly cited as 50 U.S.C. App. § 521
§ 522. Stay of proceedings when servicemember has notice [Sec. 202]
(a) Applicability of section
This section applies to any civil action or proceeding in which the plaintiff or [“plaintiff” added by P.L. 108-454, 10 Dec 2004] 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 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 requirements materially affect the servicemember's ability to appear and stating a date when the servicemember will be available to appear.
(B) A letter or other communication from the servicemember's commanding officer stating that the servicemember's current military duty prevents appearance and that military leave is not authorized for the servicemember at the time of the letter.
(c) Application not a waiver of defenses
An application for a stay under this section does not constitute an appearance for jurisdictional purposes and does not constitute a waiver of any substantive or procedural defense (including a defense relating to lack of personal jurisdiction).
(d) Additional stay
(1) Application
A servicemember who is granted a stay of a civil action or proceeding under subsection (b) may apply for an additional stay based on continuing material affect of military duty on the servicemember's ability to appear. Such an application may be made by the servicemember at 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 proceeding.
(e) Coordination with section 201 [section 521 of this Appendix]
A servicemember who applies for a stay under this section and is unsuccessful may not seek the protections afforded by section 201 [section 521 of this Appendix].
(f) Inapplicability to section 301 [section 531 of this Appendix]
The protections of this section do not apply to section 301 [section 531 of this Appendix].
Formerly cited as 50 U.S.C. App. § 522
§ 523. Fines and penalties under contracts [Sec. 203]
(a) Prohibition of penalties
When an action for compliance with the terms of a contract is stayed pursuant to this Act [sections 501 to 596 of this Appendix], 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 contract and a penalty is incurred arising from that nonperformance, a court may reduce or waive the fine or penalty if--(1) the servicemember was in military service at the time the fine or penalty was incurred; and
(2) the ability of the servicemember to perform the obligation was materially affected by such military service.
Formerly cited as 50 U.S.C. App. § 523
§ 524. Stay or vacation of execution of judgments, attachments, and garnishments [Sec. 204]
(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 property, money, or debts in the possession of the servicemember or a third party, whether before or after judgment.
(b) Applicability
This section applies to an action or proceeding commenced in a court against a servicemember before or during the period of the servicemember's military service or within 90 days after such service terminates.
Formerly cited as 50 U.S.C. App. § 524
§ 525. Duration and term of stays; codefendants not in service [Sec. 205]
(a) Period of stay
A stay of an action, proceeding, attachment, or execution made pursuant to the provisions of this Act [sections 501 to 596 of this Appendix] 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 [sections 501 to 596 of this Appendix], 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 [sections 522 and 591 of this Appendix].Formerly cited as 50 U.S.C. App. § 525
§ 526. Statute of limitations [Sec. 206]
(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 section does not apply to any period of limitation prescribed by or under the internal revenue laws of the United States.
Formerly cited as 50 U.S.C. App. § 526
§ 527. Maximum rate of interest on debts incurred before military service
[Sec. 207]
(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 obligation or liability of a servicemember to be subject to the interest rate limitation in subsection (a), the servicemember shall provide to the creditor written notice and a copy of the military orders 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.
§ 530. Omitted
TITLE III – RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS,
ASSIGNMENT, LEASES
Formerly cited as 50 U.S.C. App. § 530
§ 531. Evictions and distress [Sec. 301]
(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 [Note: for 2004, the amount is $2,465.00]; 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.
(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 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 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 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 [section 522 of this Appendix] is not applicable to this section.
Formerly cited as 50 U.S.C. App.§ 531
§ 532. Protection under installment contracts for purchase or lease [Sec. 302]
(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.
(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 violation of section 107 of this Act [section 517 of this Appendix], 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 property;
(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.
Formerly cited as 50 U.S.C. App. § 532
§ 533. Mortgages and trust deeds [Sec. 303]
(a) Mortgage as security
This section applies only to an obligation on real or personal property owned by a servicemember that--(1) originated before the period of the servicemember's military service and for which the servicemember is still obligated; and
(2) is secured by a mortgage, trust deed, or other security in the nature of a mortgage.
(b) Stay of proceedings and adjustment of 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, foreclosure, or seizure with a return made and approved by the court; or
(2) if made pursuant to an agreement as provided in section 107 [sectyion 517 of this Appendix].
(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.
Formerly cited as 50 U.S.C. App. § 533
§ 534. Settlement of stayed cases relating to personal property [Sec. 304]
(a) Appraisal of property
When a stay is granted pursuant to this Act [sections 501 to 596 of this Appendix] 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 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 mortgage, repossessing the property, or rescinding or terminating the contract.
Formerly cited as 50 U.S.C. App. § 534
§ 535. Termination of residential or motor vehicle leases [Sec. 305]
(a) Termination by lessee
(1) IN GENERAL – The lessee on a lease described in subsection (b) may, at the lessee’s option, terminate the lease at any time after –
(a) the lessee’s entry into military service; or
(b) the date of the lessee’s military orders described in paragraph (1)(B) of (2)(B) of subsection (b), as the case may be.
(2) JOINT LEASES – A lessee’s termination of a lease pursuant to this subsection shall terminate any obligation a dependent of the lessee may have under the lease.
(b) Covered leases
This section applies to the following leases:(1) Leases of premises
A lease of premises occupied, or intended to be occupied, by a servicemember or a servicemember's dependents for a residential, professional, business, agricultural, or similar purpose if--
(A) the lease is executed by or on behalf of a person who thereafter and during the term of the lease enters military service; or
(B) the servicemember, while in military service, executes the lease and thereafter receives military orders for a permanent change of station or to deploy with a military unit or as an individual in support of a military operation for a period of not less than 90 days.
(2) Leases of motor vehicles
A lease of a motor vehicle used, or intended to be used, by a servicemember or a servicemember's dependents for personal or business transportation if--
(A) the lease is executed by or on behalf of a person who thereafter and during the term of the lease enters military service under a call or order specifying a period of not less than 180 days (or who enters military service under a call or order specifying a period of 180 days or less and who, without a break in service, receives orders extending the period of military service to a period of not less than 180 days); or
(B) the servicemember, while in military service, executes the lease and thereafter receives military orders –
(i) for a change of permanent station –
(I) from a location in the continental United States to a location outside the continental United States; or
(II) from a location in a State outside the continental United States to any location outside that State; or
(ii) to deploy with a military unit or as an individual in support of a military operation 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 paragraph (1)(A) may be accomplished--
(B) by private business carrier; or
(C) by placing the written notice in an envelope with sufficient postage and with return receipt requested, and addressed as designated by the lessor (or the lessor's grantee) or to the lessor's agent (or the agent's grantee), and depositing the written notice in the United States mails.
(d) Effective date of lease termination
(1) Lease of premises
In the case of a lease described in subsection (b)(1) that provides for monthly payment of rent, termination of the lease under subsection (a) is effective 30 days after the first date on which the next rental payment is due and payable after the date on which the notice under subsection (c) is delivered. In the case of any other lease described in subsection (b)(1), termination of the lease under subsection (a) is effective on the last day of the month following the month in which the notice is delivered.
(2) Lease of motor vehicles
In the case of a lease described in subsection (b)(2), termination of the lease under subsection (a) is effective on the day on which the requirements of subsection (c) are met for such termination.
(e) Arrearages and other obligations and liabilities
Rents or lease amounts unpaid for the period preceding the effective date of the lease termination shall be paid on a prorated basis. In the case of the lease of a motor vehicle, the lessor may not impose an early termination charge, but any taxes, summonses, and title and registration fees and any other obligation and liability of the lessee in accordance with the terms of the lease, including reasonable charges to the lessee for excess wear, use and mileage, that are due and unpaid at the time of termination of the lease shall be paid by the lessee.
(f) Rent paid in advance
Rents or lease amounts paid in advance for a period after the effective date of the termination of the lease shall be refunded to the lessee by the lessor (or the lessor's assignee or the assignee's agent) 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
Any person who knowingly seizes, holds, or detains the personal effects, security deposit, or other property of a servicemember or a servicemember's dependent who lawfully terminates a lease covered by this section, or who knowingly interferes with the removal of such property from premises covered by such lease, for the purpose of subjecting or attempting to subject any of such property to a claim for rent accruing subsequent to the date of termination of such lease, or attempts to do so, shall be fined as provided in title 18, United States Code, or imprisoned for not more than one year, or both.
(2) Preservation of other remedies
The remedy and rights provided under this section are in addition to and do not preclude any remedy for wrongful conversion otherwise available under law to the person claiming relief under this section, including any award for consequential or punitive damages.
(i) Definitions –
(1) MILITARY ORDERS – The term ‘military orders’, with respect to a servicemember, means official military orders, or any notification, certification, or verification from the servicemember’s commanding officer, with respect to the servicemember’s current or future military duty status.
(2) CONUS – The term ‘continental United States’ means the 48 contiguous States and the District of Columbia.
[Various provisions of Section 535 were amended or added by P.L. 108-454, 10 Dec 2004.]
§ 536. Protection of life insurance policy [Sec. 306]
(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 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
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.
Formerly cited as 50 U.S.C. App. § 536
§ 537. Enforcement of storage liens [Sec. 306]
(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 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 [section 533 of this Appendix].
(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.
§ 538. Extension of protections to dependents [Sec. 308]
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.
§ 540. Omitted
TITLE IV – LIFE INSURANCE
Formerly cited as 50 U.S.C. App. § 540
§ 541. Definitions [Sec. 401]
For the purposes of this title [sections 541 to 549 of this Appendix]:(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--
(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, 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.
Formerly cited as 50 U.S.C. App. § 541
§ 542. Insurance rights and protections [Sec. 402]
(a) Rights and protections
The rights and protections under this title [sections 541 to 549 of this Appendix] 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 [said sections], unless the Secretary of Veterans Affairs determines that the insured's policy is not entitled to protection under this title [said sections].
(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 [said sections]. 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 [said sections] 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.
Formerly cited as 50 U.S.C. App. § 542
§ 543. Application for insurance protection [Sec. 403]
(a) Application procedure
An application for protection under this title [sections 541 to 549 of this Appendix] 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 [said sections].
(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 [said sections].
(c) Notice to the Secretary by the insurer
Upon receipt of the application of the insured, the insurer shall furnish a report concerning the policy to the Secretary of Veterans Affairs as required by regulations prescribed by the Secretary.
(d) Policy modification
Upon application for protection under this title [sections 541 to 549 of this Appendix], the insured and the insurer shall have constructively agreed to any policy modification necessary to give this title [said sections] full force and effect.
Formerly cited as 50 U.S.C. App. § 543§ 544. Policies entitled to protection and lapse of policies [Sec. 404]
(a) Determination
The Secretary of Veterans Affairs shall determine whether a policy is entitled to protection under this title [sections 541 to 549 of this Appendix] 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 [said sections] 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 [said sections] applies during the insured's period of military service and for a period of two years thereafter.
Formerly cited as 50 U.S.C. App. § 544§ 545. Policy restrictions [Sec. 405]
(a) Dividends
While a policy is protected under this title [sections 541 to 549 of this Appendix], 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 [sections 541 to 549 of this Appendix], 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 [said sections].
Formerly cited as 50 U.S.C. App. § 545§ 546. Deduction of unpaid premiums [Sec. 406]
(a) Settlement of proceeds
If a policy matures as a result of a servicemember's death or otherwise during the period of protection of the policy under this title [sections 541 to 549 of this Appendix], the insurer in making settlement shall deduct from the insurance proceeds the amount of the unpaid premiums guaranteed under this title [said sections], 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.
Formerly cited as 50 U.S.C. App. § 546
§ 547. Premiums and interest guaranteed by United States [Sec. 407]
(a) Guarantee of premiums and interest by the United States(1) Guarantee
Payment of premiums, and interest on premiums at the rate specified in section 406 [section 546 of this Appendix], which become due on a policy under the protection of this title [sections 541 to 549 of this Appendix] 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 [said sections] 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 [sections 541 to 549 of this Appendix], 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 [sections 541 to 549 of this Appendix] 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 [sections 541 to 549 of this Appendix] shall be credited to the appropriation for the payment of claims under this title [said sections].
Formerly cited as 50 U.S.C. App. § 547
§ 548. Regulations [Sec. 408]
The Secretary of Veterans Affairs shall prescribe regulations for the implementation of this title [sections 541 to 549 of this Appendix].§ 549. Review of findings of fact and conclusions of law [Sec. 409]
The findings of fact and conclusions of law made by the Secretary of Veterans Affairs in administering this title [sections 541 to 549 of this Appendix] 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.§§ 550 to 554. Omitted
§ 560. Omitted
TITLE V – TAXES AND PUBLIC LANDS
Formerly cited as 50 U.S.C. App. § 560
§ 561. Taxes respecting personal property, money, credits, and real property
[Sec. 501]
(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, business, or agricultural purposes by a servicemember or the servicemember's dependents or employees--
(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 o