SERVICEMEMBERS CIVIL RELIEF ACT (“SCRA”)
50 U.S.C. App. §§501-597b
1
[Note: The section numbers shown herein are citations to 50 U.S.C. App. §___. The
section numbers from the current Act, as amended, 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. 515a Information for members of the Armed Forces and their dependents on rights
and protections of the Servicemembers Civil Relief Act
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
1
Current as of the end of the 111
th
Congress in 2010. The Servicemembers Civil Relief Act was enacted as P.L.
108-189, effective December 19, 2003. It has been amended by P.L. 108-454 (adding 50 U.S.C. §511 (9) and
amending §517), P.L. 109-163 (adding §515a), P.L. 110-181 (amending 50 U.S.C. App. §§521 and 522), P.L.
110-289 (amending 50 U.S.C. §§527 and 533), P.L. 109-233 (amending 50 U.S.C. App. §594); P.L. 110-389
(amending §§527 and 535 and adding §535a), P.L. 111-97 (amending 50 U.S.C. App. §§568, 571), P.L. 111-
275 (amending §§535 and 535a, and adding §§597, 597a and 597b), effective October 13, 2010, and S.4508,
which amended P.L. 111-289 by extending the “sunset” provision of 50 U.S.C. App. §533(b) to December 31,
2012.
1
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. 535a Termination of telephone service contracts
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
2
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 and spouses of military
personnel
Sec. 596 Business or trade obligations
TITLE VIII – CIVIL LIABILITY
Sec. 597 Enforcement by the Attorney General
Sec. 597a Private right of action
Sec. 597b Preservation of remedies
3
§ 501. Short title [Sec. 1]
This Act [50 U.S.C. App. §§ 501 et seq.] may be cited as the Servicemembers Civil Relief
Act.
§ 502. Purpose [Sec. 2]
The purposes of this Act are—
(1) to provide for, strengthen, and expedite the national defense through protection extended
by this Act to servicemembers of the United States to enable such persons to devote their
entire energy to the defense needs of the Nation; and
(2) to provide for the temporary suspension of judicial and administrative proceedings and
transactions that may adversely affect the civil rights of servicemembers during their military
service.
TITLE I -- GENERAL PROVISIONS
§ 511. Definitions [Sec. 101]
For the purposes of this Act:
(1) Servicemember
The term "servicemember" means a member of the uniformed services, as that term is
defined in section 101(a)(5) of title 10, United States Code.
(2) Military service. The term "military service" means—
(A) in the case of a servicemember who is a member of the Army, Navy, Air
Force, Marine Corps, or Coast Guard—
(i) active duty, as defined in section 101(d)(1) of title 10, United
States Code, and
(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
4
(C) any period during which a servicemember is absent from duty on account
of sickness, wounds, leave, or other lawful cause.
(3) Period of military service. The term "period of military service" means the period
beginning on the date on which a servicemember enters military service and ending on the
date on which the servicemember is released from military service or dies while in military
service.
(4) Dependent. The term "dependent", with respect to a servicemember, means—
(A) the servicemember's spouse;
(B) the servicemember's child (as defined in section 101(4) of title 38, United
States Code); or
(C) an individual for whom the servicemember 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].
(5) Court. The term "court" means a court or an administrative agency of the United
States or of any State (including any political subdivision of a State), whether or not a court
or administrative agency of record.
(6) State. The term "State" includes—
(A) a commonwealth, territory, or possession of the United States; and
(B) the District of Columbia.
(7) Secretary concerned. The term "Secretary concerned"—
(A) with respect to a member of the armed forces, has the meaning given that
term in section 101(a)(9) of title 10, United States Code;
(B) with respect to a commissioned officer of the Public Health Service,
means the Secretary of Health and Human Services; and
(C) with respect to a commissioned officer of the National Oceanic and
Atmospheric Administration, means the Secretary of Commerce.
(8) Motor vehicle. The term "motor vehicle" has the meaning given that term in
section 30102(a)(6) of title 49, United States Code.
(9) Judgment. The term ‘judgment’ means any judgment, decree, order, or ruling,
final or temporary.
2
2
Subsection (9) was added by P.L. 108-454, effective December 10, 2004.
5
§ 512. Jurisdiction and applicability of Act [Sec. 102]
(a) Jurisdiction
This Act applies to—
(1) the United States;
(2) each of the States, including the political subdivisions thereof; and
(3) all territory subject to the jurisdiction of the United States.
(b) Applicability to proceedings
This Act applies to any judicial or administrative proceeding 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.
§ 513. Protection of persons secondarily liable [Sec. 103]
(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.
6
(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 [50 U.S.C. App. §516].
§ 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 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.
§ 515. Notification of benefits [Sec. 105]
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.
§515a. Information for members of the Armed Forces and their dependents on rights
and protections of the Servicemembers Civil Relief Act [Sec. 105a]
(a) Outreach to members. The Secretary concerned shall provide to each member of the
Armed Forces under the jurisdiction of the Secretary pertinent information on the rights and
protections available to members and their dependents under the Servicemembers Civil
Relief Act.
(b) Time of provision. The information required to be provided under subsection (a) to a
member shall be provided at the following times:
(1) During the initial orientation training of the members.
(2) In the case of a member of a reserve component, during the initial
orientation training of the member and when the member is mobilized or otherwise
individually called or ordered to active duty for a period of more than one year.
7
(3) At such other times as the Secretary concerned considers appropriate.
(c) Outreach to dependents. The Secretary concerned may provide to the adult dependents of
members under the jurisdiction of the Secretary pertinent information on the rights and
protections available to members and their dependents under the Servicemembers Civil
Relief Act.
(d) Definitions. In this section, the terms “dependent” and “Secretary concerned” have the
meanings given such terms in section 101 of the Servicemembers Civil Relief Act [50 U.S.C.
App. §511].
§ 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 during the period beginning on the date of the member's receipt of the order
and ending on the date on which the member reports for military service (or, if the order is
revoked before the member so reports, or the date on which the order is revoked).
(b) Persons ordered to report for induction. A person who has been ordered to report for
induction under the Military Selective Service Act (50 U.S.C. App. 451 et seq.) is entitled to
the rights and protections provided a servicemember under this title and titles II and III
during the period beginning on the date of receipt of the order for induction and ending on
the date on which the person reports for induction (or, if the order to report for induction is
revoked before the date on which the person reports for induction, on the date on which the
order is revoked).
§ 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. 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. 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
8
(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.
(d) Coverage of periods after orders received. For the purposes of this section—
(1) a person to whom section 106 [50 U.S.C. App. §516] 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 [50 U.S.C. App. §516] 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 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.
9
(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 is
either of the following:
(1) An attorney acting on the behalf of a servicemember.
(2) An individual possessing a power of attorney.
(b) Application. Whenever the term "servicemember" is used in this Act, such term shall be
treated as including a reference to a legal representative of the servicemember.
10
TITLE II – GENERAL RELIEF
§ 521. Protection of servicemembers against default judgments [Sec. 201]
(a) Applicability of section. This section applies to any civil action or proceeding, including
any child custody proceeding, in which the defendant does not make an appearance.
3
(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.
(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
3
The phrase “including any child custody proceeding” was added by P.L. 110-181, effective January 28, 2008.
11
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 [50 U.S.C. App.
§522].
(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 [50 U.S.C. App. §522].
(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, that action shall not impair a right or title acquired by a bona fide
purchaser for value under the default judgment.
§ 522. Stay of proceedings when servicemember has notice [Sec. 202]
(a) Applicability of section. This section applies to any civil action or proceeding, including
12
any child custody proceeding, in which the plaintiff or defendant at the time of filing an
application under this section
4
--
(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.
4
The word “plaintiff” was added by P.L. 108-454, effective December 10, 2004. The phrase “including any
child custody proceeding” was added by P.L. 110-181, effective January 28, 2008.
13
(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 [50 U.S.C. App. §521]. A servicemember who applies for
a stay under this section and is unsuccessful may not seek the protections afforded by section
201 [50 U.S.C. App. §521].
(f) Inapplicability to section 301 [50 U.S.C. App. §531]. The protections of this section do
not apply to section 301 [50 U.S.C. App. §531].
§ 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, 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.
§ 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.
14
§ 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 by a court may be ordered for the period of military service and
90 days thereafter, or for any part of that period. The court may set the terms and amounts for
such installment payments as is considered reasonable by the court.
(b) Codefendants. If the servicemember is a codefendant with others who are not in military
service and who are not entitled to the relief and protections provided under this Act, the
plaintiff may proceed against those other defendants with the approval of the court.
(c) Inapplicability of section. This section does not apply to sections 202 and 701 [50 U.S.C.
App. §§522 and 591].
§ 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.
§ 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 –
(A) during the period of military service and one year thereafter, in the case of
an obligation or liability consisting of a mortgage, trust deed, or other security
in the nature of a mortgage; or
15
(B) during the period of military service, in the case of any other obligation or
liability.
5
(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) Definitions.
6
In this section:
(1) Interest. The term “interest” includes service charges, renewal charges, fees, or
any other charges (except bona fide insurance) with respect to an obligation or liability.
(2) Obligation or liability. The term “obligation or liability” includes an obligation or
liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage.
(e) Penalty. Whoever knowingly violates subsection (a) shall be fined as provided in title 18,
United States Code, imprisoned for not more than one year, or both.
7
5
The definition of an obligation as either a mortgage debt or “any other obligation” was an amendment
established by §2203 of P.L. 111-289, effective July 30, 2008.
6
The definitions of “interest” and “obligation or liability” were added by §2203 of P.L. 111-289, effective July
30, 2008.
7
The penalty provision of subsection (e) was added by P.L. 110-389, effective October 10, 2008.
16
TITLE III – RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS,
ASSIGNMENT, LEASES
§ 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;
8
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
8
The CPI-adjusted maximum rental rate for 2011 is $2,975.54.
17
(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)
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.
(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 [50 U.S.C. §522] is not applicable to this section.
§ 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.
18
(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) Misdemeanor. A person who knowingly resumes possession of property in violation of
subsection (a), or in violation of section 107 of this Act [50 U.S.C. App. §517], 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.
(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.
§ 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 9
months
9
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.
9
The phrase “or within 9 months” in subsections (b) and (c) was added by P.L. 110-289, effective July 30,
2008. The “sunset” of the additional 9 month period of protection was extended to December 31, 2012 by S.
4508, which passed on December 22, 2010.
19
(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 9 months
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 [50 U.S.C. App.
§517].
(d) 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.
§ 534. Settlement of stayed cases relating to personal property [Sec. 304]
(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 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.
§ 535. Termination of residential or motor vehicle leases
10
[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.
10
50 U.S.C. App. §535 is among the most frequently amended sections in the SCRA. Congress has continued
to amend the section as a result of the continuing efforts of landlords and leasing companies to try and defeat
the purpose of the section, which is to allow servicemembers to terminate premises and vehicle leases when
they are not in a position to utilize the premises or vehicles because of their military service. The principal
amendments to this section have been made by P.L. 108-454, effective December 10, 2004, and P.L. 111-275,
effective October 13, 2010.
20
(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 —
21
(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 —
(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) Leases 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) Leases 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.
(1) Leases of premises. Rent amounts for a lease described in subsection (b)(1) that
are unpaid for the period preceding the effective date of the lease termination shall be paid on
a prorated bases. The lessor may not impose an early termination charge, but any taxes,
summonses, or other obligations and liabilities of the lessee in accordance with the terms of
the lease, including reasonable charges to the lessee for excess wear, that are due and unpaid
at the time of termination of the lease shall be paid by the lessee..
(2) Leases of motor vehicles. Lease amounts for a lease described in subsection
(b)(2) that are unpaid for the period preceding the effective date of the lease termination shall
be paid on a prorated basis. The lessor may not impose an early termination charge, but any
taxes, summonses, title and registration fees, or other obligations and liabilities of the lessee
22
in accordance with the terms of the lease, including reasonable charges to the lessee for
excess wear or 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) Misdemeanor. Any person who knowingly seizes, holds, or detains the personal effects,
security deposit, or other property of a servicemember or a servicemember's dependent who
lawfully terminates a lease covered by this section, or who knowingly interferes with the
removal of such property from premises covered by such lease, for the purpose of subjecting
or attempting to subject any of such property to a claim for rent accruing subsequent to the
date of termination of such lease, or attempts to do so, shall be fined as provided in title 18,
United States Code, or imprisoned for not more than one year, or both.
(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.
§535a. Termination of telephone service contracts
11
(a) Terminaiton by servicemember.
(1) Termination. A servicemember may terminate a contract described in subsection
(b) at any time after the date the servicemember receives military orders to relocate for a
period of not less than 90 days to a location that does not support the contract.
(2) Notice. In the case that a servicemember terminates a contract as described in
paragraph (1), the service provider under the contract shall provide such servicemember with
written or electronic notice of the servicemember’s rights under such paragraph.
11
This section was initially added by P.L. 110-389. It was substantially amended by P.L. 111-275, effective
October 13, 2010.
23
(3) Manner of termination. Termination of a contract under paragraph (1) shall be
made by delivery of a written or electronic notice of such termination and a copy of the
servicemember’s military orders to the service provider, delivered in accordance with
industry standards for notification of terminations, together with the date on which the
service is to be terminated.
(b) Covered contracts. A contract described in this subsection is a contract for cellular
telephone service or telephone exchange service entered into by the servicemember before
receiving the military orders referred to in subsection (a)(1).
(c) Retention of telephone number. In the case of a contract terminated under subsection (a)
by a servicemember whose period of relocation is for a period of three years or less, the
service provider under the contract shall, notwithstanding any other provision of law, allow
the servicemember to keep the telephone number the servicemember has under the contract if
the servicemember re-subscribes to the service during the 90-day period beginning on the last
day of such period of relocation.
(d) Family plans. In the case of a contract for cellular telephone service entered into by any
individual in which a servicemember is a designated beneficiary of the contract, the
individual who entered into the contract may terminate the contract –
(1) with respect to the servicemember if the servicemember is eligible to terminate
contracts pursuant to subsection (a); and
(2) with respect to all of the designated beneficiaries of such contract if all such
beneficiaries accompany the servicemember during the servicemember’s period of
relocation.
(e) Other obligations and liabilities. For any contract terminated under this section, the
service provider under the contract may not impose an early termination charge, but any tax
or any other obligation or liability of the servicemember that, in accordance with the terms of
the contract, is due and unpaid or unperformed at the time of termination of the contract shall
be paid or performed by the servicemember. If the servicemember re-subscribes to the
service provided under a covered contract during the 90-day period beginning on the last day
of the servicemember’s period of relocation, the service provider may not impose a charge
for reinstating service, other than the usual and customary charges for the installation or
acquisition of customer equipment imposed on any other subscriber.
(f) Return of advance payments. Not later than 60 days after the effective date of the
termination of a contract under this section, the service provider under the contract shall
refund to the servicemember any fee or other amount to the extent paid for a period
extending until after such date, except for the remainder of the monthly or similar billing
period in which the termination occurs.
(g) Definitions. For purposes of this section:
24
(1) The term “cellular telephone service” means commercial mobile service, as that
term is defined in section 332(d) of the Communications Act of 1934 (47 U.S.C. 332(d)).
(2) The term “telephone exchange service” has the meaning given that term under
section 3 of the Communications Act of 1934 (47 U.S.C. 153).
§ 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) 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.
§ 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.
25
(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 [50 U.S.C. App.
§533].
(c) 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.
§ 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.
TITLE IV – LIFE INSURANCE
§ 541. Definitions [Sec. 401]
For the purposes of this title [50 U.S.C. App. §§541 - 549]:
(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
26
(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.
§ 542. Insurance rights and protections [Sec. 402]
(a) Rights and protections. The rights and protections under this title [50 U.S.C. App. §§541
– 549] 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 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.
§ 543. Application for insurance protection [Sec. 403]
(a) Application procedure. An application for protection under this title [50 U.S.C. App.
§§541 – 549] 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
27
(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 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 [50 U.S.C. App.
§§541 – 549], the insured and the insurer shall have constructively agreed to any policy
modification necessary to give this title [said sections] full force and effect.
§ 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 [50 U.S.C. App. §§541 – 549] 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.
§ 545. Policy restrictions [Sec. 405]
(a) Dividends. While a policy is protected under this title [50 U.S.C. App. §§541 – 549], 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.
28
§ 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 [50 U.S.C. App. §§541
– 549], 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.
§ 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 [50 U.S.C. App. §546], which become due on a policy under the protection of
this title [50 U.S.C. App. §§541 – 549] 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 [said sections].
29
§ 548. Regulations [Sec. 408]
The Secretary of Veterans Affairs shall prescribe regulations for the implementation of this
title [50 U.S.C. App. §§541 – 549].
§ 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 [50 U.S.C. App. §§541 – 549] are subject to review on appeal to the
Board of Veterans' Appeals pursuant to chapter 71 of title 38, United States Code [38 U.S.C.
§§7101 et seq.], and to judicial review only as provided in chapter 72 of such title [38 U.S.C.
§§7251 et seq..].
TITLE V – TAXES AND PUBLIC LANDS
§ 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 of the servicemember from, military service.
(c) Redemption. When property described in subsection (a) is sold or forfeited to enforce the
collection of a tax or assessment, a servicemember shall have the right to redeem or
30
commence an action to redeem the servicemember's property during the period of military
service or within 180 days after termination of or release from military service. This
subsection may not be construed to shorten any period provided by the law of a State
(including any political subdivision of a State) for redemption.
(d) Interest on tax or assessment. Whenever a servicemember does not pay a tax or
assessment on property described in subsection (a) when due, the amount of the tax or
assessment due and unpaid shall bear interest until paid at the rate of 6 percent per year. An
additional penalty or interest shall not be incurred by reason of nonpayment. A lien for such
unpaid tax or assessment may include interest under this subsection.
(e) Joint ownership application. This section applies to all forms of property described in
subsection (a) owned individually by a servicemember or jointly by a servicemember and a
dependent or dependents.
§ 562. Rights in public lands [Sec. 502]
(a) Rights not forfeited. The rights of a servicemember to lands owned or controlled by the
United States, and initiated or acquired by the servicemember under the laws of the United
States (including the mining and mineral leasing laws) before military service, shall not be
forfeited or prejudiced as a result of being absent from the land, or by failing to begin or
complete any work or improvements to the land, during the period of military service.
(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.
§ 563. Desert-land entries [Sec. 503]
(a) Desert-land rights not forfeited. A desert-land entry made or held under the desert-land
laws before the entrance of the entryman or the entryman's successor in interest into military
service shall not be subject to contest or cancellation –
(1) for failure to expend any required amount per acre per year in improvements upon
the claim;
(
2) for failure to effect the reclamation of the claim during the period the entryman or
the entryman's successor in interest is in the military service, or for 180 days after
termination of or release from military service; or
(3) during any period of hospitalization or rehabilitation due to an injury or disability
incurred in the line of duty.
31
The time within which the entryman or claimant is required to make such expenditures and
effect reclamation of the land shall be exclusive of the time periods described in paragraphs
(2) and (3).
(b) Service-related disability. If an entryman or claimant is honorably discharged and is
unable to accomplish reclamation of, and payment for, desert land due to a disability incurred
in the line of duty, the entryman or claimant may make proof without further reclamation or
payments, under regulations prescribed by the Secretary of the Interior, and receive a patent
for the land entered or claimed.
(c) Filing requirement. In order to obtain the protection of this section, the entryman or
claimant shall, within 180 days after entry into military service, cause to be filed in the land
office of the district where the claim is situated a notice communicating the fact of military
service and the desire to hold the claim under this section.
§ 564. Mining claims [Sec. 504]
(a) Requirements suspended. The provisions of section 2324 of the Revised Statutes of the
United States (38 U.S.C. §28) specified in subsection (b) shall not apply to a
servicemember's claims or interests in claims, regularly located and recorded, during a period
of military service and 180 days thereafter, or during any period of hospitalization or
rehabilitation due to injuries or disabilities incurred in the line of duty.
(b) Requirements. The provisions in section 2324 of the Revised Statutes that shall not apply
under subsection (a) are those which require that on each mining claim located after May 10,
1872, and until a patent has been issued for such claim, not less than $100 worth of labor
shall be performed or improvements made during each year.
(c) Period of protection from forfeiture. A mining claim or an interest in a claim owned by a
servicemember that has been regularly located and recorded shall not be subject to forfeiture
for nonperformance of annual assessments during the period of military service and for 180
days thereafter, or for any period of hospitalization or rehabilitation described in subsection
(a).
(d) Filing requirement. In order to obtain the protections of this section, the claimant of a
mining location shall, before the end of the assessment year in which military service is
begun or within 60 days after the end of such assessment year, cause to be filed in the office
where the location notice or certificate is recorded a notice communicating the fact of
military service and the desire to hold the mining claim under this section.
§ 565. Mineral permits and leases [Sec. 505]
(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
32
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.
§ 566. Perfection or defense of rights [Sec. 506]
(a) Right to take action not affected. This title [50 U.S.C. §§561 – 571] shall not affect the
right of a servicemember to take action during a period of military service that is authorized
by law or regulations of the Department of the Interior, for the perfection, defense, or further
assertion of rights initiated or acquired before entering military service.
(b) Affidavits and proofs.
(1) In general. A servicemember during a period of 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 1044 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.
§ 567. Distribution of information concerning benefits of title [Sec. 507]
(a) Distribution of information by Secretary concerned. The Secretary concerned shall issue
to servicemembers information explaining the provisions of this title [50 U.S.C. App. §§561
– 571].
(b) Application forms. The Secretary concerned shall provide application forms to
servicemembers requesting relief under this title.
(c) Information from Secretary of the Interior. The Secretary of the Interior shall furnish to
the Secretary concerned information explaining the provisions of this title (other than
sections 501, 510, and 511 [50 U.S.C. App. §§561, 570 and 571]) and related application
forms.
33
§ 568. Land rights of servicemembers [Sec. 508]
(a) No age limitations. Any servicemember under the age of 21 in military service shall be
entitled to the same rights under the laws relating to lands owned or controlled by the United
States, including mining and mineral leasing laws, as those servicemembers who are 21 years
of age.
(b) Residency requirement. Any requirement related to the establishment of a residence
within a limited time shall be suspended as to entry by a servicemember or the spouse of
such servicemember
12
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.
§ 569. Regulations [Sec. 509]
The Secretary of the Interior may issue regulations necessary to carry out this title [50 U.S.C.
§§561 – 571] (other than sections 501, 510, and 511 [50 U.S.C. App. §§561, 570 and 571]).
§ 570. Income taxes [Sec. 510]
(a) Deferral of tax. Upon notice to the Internal Revenue Service or the tax authority of a
State or a political subdivision of a State, the collection of income tax on the income of a
servicemember falling due before or during military service shall be deferred for a period not
more than 180 days after termination of or release from military service, if a servicemember's
ability to pay such income tax is materially affected by military service.
(b) Accrual of interest or penalty. No interest or penalty shall accrue for the period of
deferment by reason of nonpayment on any amount of tax deferred under this section.
(c) Statute of limitations. The running of a statute of limitations against the collection of tax
deferred under this section, by seizure or otherwise, shall be suspended for the period of
military service of the servicemember and for an additional period of 270 days thereafter.
(d) Application limitation. This section shall not apply to the tax imposed on employees by
section 3101 of the Internal Revenue Code of 1986 [26 U.S.C. §3101].
§ 571. Residence for tax purposes
13
(a) Residence or domicile.
12
P.L. 111-97 added the phrase “or the spouse of such servicemember”.
13
This section was amended by P.L. 111-97, effective November 11, 2009, by adding subsections (a)(2), (c)
and (d), which result in the inclusion of the spouses of servicemembers within the protection of this section.
34
(1) In general. A servicemember shall neither lose nor acquire a residence or
domicile for purposes of taxation with respect to the person, personal property, or income of
the servicemember by reason of being absent or present in any tax jurisdiction of the United
States solely in compliance with military orders.
(2) Spouses. A spouse of a servicemember shall neither lose nor acquire a residence
or domicile for purposes of taxation with respect to the person, personal property, or income
of the spouse by reason of being absent or present in any tax jurisdiction of the United States
solely to be with the servicemember in compliance with the servicemember’s military orders
if the residence or domicile, as the cse may be, is the same for the servicemember and the
spouse.
(b) Military service compensation. Compensation of a servicemember for military service
shall not be deemed to be income for services performed or from sources within a tax
jurisdiction of the United States if the servicemember is not a resident or domiciliary of the
jurisdiction in which the servicemember is serving in compliance with military orders.
(c) Income of a military spouse. Income for services performed by the spouse of a
servicemember shall not be deemed to be income for services performed or from sources
within a tax jurisdiction of the United States if the spouse is not a resident or domiciliary of
the jurisdiction in which the income is earned because the spouse is in the jurisdiction solely
to be with the servicemember serving in compliance with military orders.
(d) Personal property.
(1) Relief from personal property taxes. The personal property of a servicemember or
the spouse of a servicemember shall not be deemed to be located or present in, or to have a
situs for taxation in, the tax jurisdiction in which the servicemember is serving in compliance
with military orders.
(2) Exception for property within member's domicile or residence. This subsection
applies to personal property or its use within any tax jurisdiction other than the
servicemember's or the spouse’s domicile or residence.
(3) Exception for property used in trade or business. This section does not prevent
taxation by a tax jurisdiction with respect to 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.
(e) Increase of tax liability. A tax jurisdiction may not use the military compensation of a
nonresident servicemember to increase the tax liability imposed on other income earned by
the nonresident servicemember or spouse subject to tax by the jurisdiction.
35
(f) Federal Indian reservations. An Indian servicemember whose legal residence or domicile
is a Federal Indian reservation shall be taxed by the laws applicable to Federal Indian
reservations and not the State where the reservation is located.
(g) Definitions. For purposes of this section:
(1) Personal property. The term "personal property" means intangible and tangible
property (including motor vehicles).
(2) Taxation. The term "taxation" includes licenses, fees, or excises imposed with
respect to motor vehicles and their use, if the license, fee, or excise is paid by the
servicemember in the servicemember's State of domicile or residence.
(3) Tax jurisdiction. The term "tax jurisdiction" means a State or a political
subdivision of a State.
TITLE VI – ADMINISTRATIVE REMEDIES
§ 581. Inappropriate use of Act [Sec. 601]
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 [50 U.S.C. App. §§501 et seq.], the court shall enter
such judgment or make such order as might lawfully be entered or made concerning such
transfer or acquisition.
§ 582. Certificates of service; persons reported missing [Sec. 602]
(a) Prima facie evidence. In any proceeding under this Act [50 U.S.C. App. §§501 et seq.], 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.
36
(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 servicemembers in missing status. A servicemember who has been reported
missing is presumed to continue in service until accounted for. A requirement under this Act
[50 U.S.C. App. §§501 et seq.] that begins or ends with the death of a servicemember does
not begin or end until the servicemember's death is reported to, or determined by, the
Secretary concerned or by a court of competent jurisdiction.
§ 583. Interlocutory orders [Sec. 603]
An interlocutory order issued by a court under this Act [50 U.S.C. App. §§501 et seq.] 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
§ 591. Anticipatory relief [Sec. 701]
(a) Application for relief. A servicemember may, during military service or within 180 days
of termination of or release from military service, apply to a court for relief —
(1) from any obligation or liability incurred by the servicemember before the
servicemember's military service; or
(2) from a tax or assessment falling due before or during the servicemember's military
service.
(b) Tax liability or assessment. In a case covered by subsection (a), the court may, if the
ability of the servicemember to comply with the terms of such obligation or liability or pay
such tax or assessment has been materially affected by reason of military service, after
appropriate notice and hearing, grant the following relief:
(1) Stay of enforcement of real estate contracts.
(A) In the case of an obligation payable in installments under a contract for
the purchase of real estate, or secured by a mortgage or other instrument in the
nature of a mortgage upon real estate, the court may grant a stay of the
enforcement of the obligation —
(i) during the servicemember's period of military service; and
37
(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) a period equal to the remaining life of the installment contract or
other instrument, plus a period of time equal to the period of military
service of the servicemember, or any part of such combined period;
and
(ii) subject to payment of the balance of the principal and accumulated
interest due and unpaid at the date of termination or release from the
applicant's military service or from the date of application in equal
installments during the combined period at the rate of interest on the
unpaid balance prescribed in the contract or other instrument
evidencing the obligation, and subject to other terms as may be
equitable.
(2) Stay of enforcement of other contracts
(A) In the case of any other obligation, liability, tax, or assessment, the court
may grant a stay of enforcement —
(i) during the servicemember's military service; and
(ii) from the date of termination of or release from military service, or
from the date of application if made after termination or release from
military service.
(B) Any stay under this paragraph shall be—
(i) for a period of time equal to the period of the servicemember's
military service or any part of such period; and
(ii) subject to payment of the balance of principal and accumulated
interest due and unpaid at the date of termination or release from
military service, or the date of application, in equal periodic
installments during this extended period at the rate of interest as may
be prescribed for this obligation, liability, tax, or assessment, if paid
when due, and subject to other terms as may be equitable.
(c) Effect 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.
38
§ 592. Power of attorney [Sec. 702]
(a) Automatic extension. A power of attorney of a servicemember shall be automatically
extended for the period the servicemember is in a missing status (as defined in section 551(2)
of title 37, United States code) if the power of attorney –
(1) was duly executed by the servicemember —
(A) while in military service; or
(B) before entry into military service but after the servicemember —
(i) received a call or order to report for military service; or
(ii) was notified by an official of the Department of Defense that the
person could receive a call or order to report for military service;
(2) designates the servicemember's spouse, parent, or other named relative as the
servicemember's attorney in fact for certain, specified, or all purposes; and
(3) expires by its terms after the servicemember entered a missing status.
(b) Limitation on power of attorney extension. A power of attorney executed by a
servicemember may not be extended under subsection (a) if the document by its terms clearly
indicates that the power granted expires on the date specified even though the
servicemember, after the date of execution of the document, enters a missing status.
§ 593. Professional liability protection [Sec. 703]
(a) Applicability. This section applies to a servicemember who —
(1) after July 31, 1990, is ordered to active duty (other than for training) pursuant to
sections 688, 12301(a), 12301(g), 12302, 12304, 12306, or 12307 of title 10, United States
Code, or who is ordered to active duty under section 12301(d) of such title during a period
when members are on active duty pursuant to any of the preceding sections; and
(2) immediately before receiving the order to active duty —
(A) was engaged in the furnishing of health-care or legal services or other
services determined by the Secretary of Defense to be professional services;
and
(B) had in effect a professional liability insurance policy that does not
continue to cover claims filed with respect to the servicemember during the
39
period of the servicemember's active duty unless the premiums are paid for
such coverage for such period.
(b) Suspension of coverage.
(1) Suspension. Coverage of a servicemember referred to in subsection (a) by a
professional liability insurance policy shall be suspended by the insurance carrier in
accordance with this subsection upon receipt of a written request from the servicemember by
the insurance carrier.
(2) Premiums for suspended contracts. A professional liability insurance carrier —
(A) may not require that premiums be paid by or on behalf of a
servicemember for any professional liability insurance coverage suspended
pursuant to paragraph (1); and
(B) shall refund any amount paid for coverage for the period of such
suspension or, upon the election of such servicemember, apply such amount
for the payment of any premium becoming due upon the reinstatement of such
coverage.
(3) Nonliability of carrier during suspension. A professional liability insurance
carrier shall not be liable with respect to any claim that is based on professional conduct
(including any failure to take any action in a professional capacity) of a servicemember that
occurs during a period of suspension of that servicemember's professional liability 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 servicemember pursuant to subsection (b) shall be reinstated by the insurance
carrier on the date on which that servicemember transmits to the insurance carrier a written
request for reinstatement.
(2) Time and premium for reinstatement. The request of a servicemember for
reinstatement shall be effective only if the servicemember transmits the request to the
insurance carrier within 30 days after the date on which the servicemember is released from
active duty. The insurance carrier shall notify the servicemember of the due date for payment
40
of the premium of such insurance. Such premium shall be paid by the servicemember within
30 days after receipt of that notice.
(3) Period of reinstated coverage. The period for which professional liability
insurance coverage shall be reinstated for a servicemember under this subsection may not be
less than the balance of the period for which coverage would have continued under the
insurance policy if the coverage had not been suspended.
(d) Increase in premium.
(1) Limitation on premium increases. An insurance carrier may not increase the
amount of the premium charged for professional liability insurance coverage of any
servicemember for the minimum period of the reinstatement of such coverage required under
subsection (c)(3) to an amount greater than the amount chargeable for such coverage for such
period before the suspension.
(2) Exception. Paragraph (1) does not prevent an increase in premium to the extent of
any general increase in the premiums charged by that carrier for the same 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 servicemember 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
servicemember.
41
(2) Date of commencement of action. Whenever a civil or administrative action for
damages is stayed under paragraph (1) in the case of any servicemember, the action shall
have been deemed to have been filed on the date on which the professional liability insurance
coverage of the servicemember is reinstated under subsection (c).
(g) Effect of suspension upon limitations period. In the case of a civil or administrative
action for which a stay could have been granted under subsection (f) by reason of the
suspension of professional liability insurance coverage of the defendant under this section,
the period of the suspension of the coverage shall be excluded from the computation of any
statutory period of limitation on the commencement of such action.
(h) Death during period of suspension. If a servicemember whose professional liability
insurance coverage is suspended under subsection (b) dies during the period of the
suspension –
(1) the requirement for the grant or continuance of a stay in any civil or
administrative action against such servicemember under subsection (f)(1) shall terminate on
the date of the death of such servicemember; and
(2) the carrier of the professional liability insurance so suspended shall be liable for
any claim for damages for professional negligence or other professional liability of the
deceased servicemember in the same manner and to the same extent as such carrier would be
liable if the servicemember had died while covered by such insurance but before the claim
was filed.
(i) Definitions. For purposes of this section:
(1) Active duty. The term "active duty" has the meaning given that term in section
101(d)(1) of title 10, United States Code.
(2) Profession. The term "profession" includes occupation.
(3) Professional. The term "professional" includes occupational.
§ 594. Health insurance reinstatement [Sec. 704]
(a) Reinstatement of health insurance. A servicemember who, by reason of military service
as defined in section 703(a)(1) [50 U.S.C. App. §593(a)(1)], is entitled to the rights and
protections of this Act [50 U.S.C. App. §§501 et seq.] 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 servicemember described in subsection (a), or any other
42
person who is covered by the insurance by reason of the coverage of the servicemember,
shall not be subject to an exclusion or a waiting period, if —
(1) the condition arose before or during the period of such service;
(2) an exclusion or a waiting period would not have been imposed for the condition
during the period of coverage; and
(3) in a case in which the condition relates to the servicemember, 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 servicemember entitled to participate in
employer-offered insurance benefits pursuant to the provisions of chapter 43 of title 38,
United States Code [38 U.S.C. §§4301 et seq.].
(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.
(e) Limitation on premium increases.
(1) Premium protections. The amount of the premium for health insurance coverage
that was terminated by a servicemember and required to be reinstated under subsection (a)
may not be increased, for the balance of the period for which coverage would have been
continued had the coverage not been terminated, to an amount greater than the amount
chargeable for such coverage before the termination.
(2) Increases of general applicability not precluded. Paragraph (1) does not prevent
an increase in premium to the extent of any general increase in the premiums charged by the
carrier of the health care insurance for the same health insurance coverage for persons
similarly covered by such insurance during the period between the termination and the
reinstatement.
§ 595. Guarantee of residency for military personnel and spouses of military personnel
14
[Sec. 705]
(a) In general. 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;
14
Subsection (b), covering military spouses, was added by in 2009 by P.L. 111-97.
43
(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.
(b) Spouses. 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 because the person is accompanying the person’s spouse
who is absent from that same 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.
§ 596. Business or trade obligations [Sec. 706]
(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 servicemember has an
obligation or liability for which the servicemember is personally liable, the assets of the
servicemember not held in connection with the trade or business may not be available for
satisfaction of the obligation or liability during the servicemember's military service.
(b) Relief to obligors. Upon application to a court by the holder of an obligation or liability
covered by this section, relief granted by this section to a servicemember may be modified as
justice and equity require.
§597. Enforcement by the Attorney General
15
[Section 801]
(a) Civil action. The Attorney General may commence a civil action in any appropriate
district court of the United States against any person who –
(1) engages in a pattern or practice of violating this Act [50 U.S.C. App. §§501 et
seq.]; of
(2) engages in a violation of this Act that raises an issue of significant public
importance.
(b) Relief. In a civil action commenced under subsection (a), the court may –
(1) grant any appropriate equitable or declaratory relief with respect to the violation
of this Act;
15
This section was added by P.L. 111-275, effective October 13, 2010.
44
(2) award all other appropriate relief, including monetary damages, to any person
aggrieved by the violation; and
(3) may, to vindicate the public interest, assess a civil penalty –
(A) in an amount not exceeding $55,000 for a first violation; and
(B) in an amount not exceeding $110,000 for any subsequent violation.
(c) Intervention. Upon timely application, a person aggrieved by a violation of this Act with
respect to which the civil action is commenced may intervene in such action, and may obtain
such appropriate relief as the person could obtain in a civil action under section 802 [50
U.S.C. App. §597a] with respect to that violation, along with costs and a reasonable attorney
fee.
Sec. 597a. Private right of action
16
[Section 802]
(a) In general. Any person aggrieved by a violation of this Act [50 U.S.C. App. §§501 et
seq.] may in a civil action –
(1) obtain any appropriate equitable or declaratory relief with respect to the violation;
and
(2) recover all other appropriate relief, including monetary damages.
(b) Costs and attorneys fees. The court may award to a person aggrieved by a violation of
this Act who prevails in an action brought under subsection (a) the costs of the action,
including a reasonable attorney fee.
Sec. 597b. Preservation of remedies
17
[Section 803]
Nothing in Section 801 or 802 [50 U.S.C. App. §§597 or 597a] shall be construed to preclude
or limit any remedy otherwise available under other law, including consequential and
punitive damages.
16
This section was added by P.L. 111-275, effective October 13, 2010.
17
This section was added by P.L. 111-275, effective October 13, 2010. As a matter of standardization, the
“preservation of remedies” provisions that had previously been found in the various sections in Title III of the
SCRA were deleted and the provisions of Section 803 are applicable to the entire Act.
45