Servicemembers Civil Relief Act

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1136 Reported in Senate (RS)]

Calendar No. 393
108th CONGRESS
1st Session
S. 1136

[Report No. 108-197]

To restate, clarify, and revise the Soldiers' and Sailors' Civil Relief
Act of 1940.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 22, 2003

Mr. Specter (for himself, Mr. Bunning, and Mr. Graham of South
Carolina) introduced the following bill; which was read twice and
referred to the Committee on Veterans' Affairs

November 17, 2003

Reported by Mr. Specter, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]

_______________________________________________________________________

A BILL

To restate, clarify, and revise the Soldiers' and Sailors' Civil Relief
Act of 1940.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

<DELETED>SECTION 1. RESTATEMENT OF ACT.</DELETED>

<DELETED>    The Soldiers' and Sailors' Civil Relief Act of 1940 (50
U.S.C. App. 501 et seq.) is amended to read as follows:</DELETED>

<DELETED>``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    ``(a) Short Title.--This Act may be cited as the
`Servicemembers Civil Relief Act'.</DELETED>
<DELETED>    ``(b) Table of Contents.--The table of contents of this
Act is as follows:</DELETED>

<DELETED>``Sec. 1. Short title; table of contents.
<DELETED>``Sec. 2. Purposes.
<DELETED>``TITLE I--GENERAL PROVISIONS

<DELETED>``Sec. 101. Definitions.
<DELETED>``Sec. 102. Jurisdiction and applicability of Act.
<DELETED>``Sec. 103. Protection of persons secondarily liable.
<DELETED>``Sec. 104. Extension of protections to citizens serving with
allied forces.
<DELETED>``Sec. 105. Notification of benefits.
<DELETED>``Sec. 106. Extension of rights and protections to Reserves
ordered to report for military service and
to persons ordered to report for induction.
<DELETED>``Sec. 107. Waiver of rights pursuant to written agreement.
<DELETED>``Sec. 108. Exercise of rights under Act not to affect certain
future financial transactions.
<DELETED>``Sec. 109. Legal representatives.
<DELETED>``TITLE II--GENERAL RELIEF

<DELETED>``Sec. 201. Protection of servicemembers against default
judgments.
<DELETED>``Sec. 202. Stay of proceedings when servicemember defendant
has notice.
<DELETED>``Sec. 203. Fines and penalties under contracts.
<DELETED>``Sec. 204. Stay or vacation of execution of judgments,
attachments, and garnishments.
<DELETED>``Sec. 205. Duration and term of stays; codefendants not in
service.
<DELETED>``Sec. 206. Statute of limitations.
<DELETED>``Sec. 207. Maximum rate of interest on debts incurred before
military service.
<DELETED>``TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS,
ASSIGNMENT, LEASES.

<DELETED>``Sec. 301. Evictions and distress.
<DELETED>``Sec. 302. Protection under installment contracts for
purchase or lease.
<DELETED>``Sec. 303. Mortgages and trust deeds.
<DELETED>``Sec. 304. Settlement of stayed cases relating to personal
property.
<DELETED>``Sec. 305. Termination of leases by lessees.
<DELETED>``Sec. 306. Protection of life insurance policy.
<DELETED>``Sec. 307. Enforcement of storage liens.
<DELETED>``Sec. 308. Extension of protections to dependents.
<DELETED>``TITLE IV--INSURANCE

<DELETED>``Sec. 401. Definitions.
<DELETED>``Sec. 402. Insurance rights and protections.
<DELETED>``Sec. 403. Application for insurance protection.
<DELETED>``Sec. 404. Policies entitled to protection and lapse of
policies.
<DELETED>``Sec. 405. Policy restrictions.
<DELETED>``Sec. 406. Deduction of unpaid premiums.
<DELETED>``Sec. 407. Premiums and interest guaranteed by United States.
<DELETED>``Sec. 408. Regulations.
<DELETED>``Sec. 409. Review of findings of fact and conclusions of law.
<DELETED>``TITLE V--TAXES AND PUBLIC LANDS

<DELETED>``Sec. 501. Taxes respecting personal property, money,
credits, and real property.
<DELETED>``Sec. 502. Rights in public lands.
<DELETED>``Sec. 503. Desert-land entries.
<DELETED>``Sec. 504. Mining claims.
<DELETED>``Sec. 505. Mineral permits and leases.
<DELETED>``Sec. 506. Perfection or defense of rights.
<DELETED>``Sec. 507. Distribution of information concerning benefits of
title.
<DELETED>``Sec. 508. Land rights of servicemembers.
<DELETED>``Sec. 509. Regulations.
<DELETED>``Sec. 510. Income taxes.
<DELETED>``Sec. 511. Residence for tax purposes.
<DELETED>``TITLE VI--ADMINISTRATIVE REMEDIES

<DELETED>``Sec. 601. Inappropriate use of Act.
<DELETED>``Sec. 602. Certificates of service; persons reported missing.
<DELETED>``Sec. 603. Interlocutory orders.
<DELETED>``TITLE VII--FURTHER RELIEF

<DELETED>``Sec. 701. Anticipatory relief.
<DELETED>``Sec. 702. Power of attorney.
<DELETED>``Sec. 703. Professional liability protection.
<DELETED>``Sec. 704. Health insurance reinstatement.
<DELETED>``Sec. 705. Guarantee of residency for military personnel.
<DELETED>``Sec. 706. Business or trade obligations.
<DELETED>``Sec. 707. Return to classes at no extra cost.

<DELETED>``SEC. 2. PURPOSES.</DELETED>

<DELETED>    ``The purposes of this Act are--</DELETED>
<DELETED>    ``(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</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``TITLE I--GENERAL PROVISIONS</DELETED>

<DELETED>``SEC. 101. DEFINITIONS.</DELETED>

<DELETED>    ``For the purposes of this Act:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) Military service.--</DELETED>
<DELETED>    ``(A) With respect to a member of the
Army, Navy, Air Force, Marine Corps, or Coast Guard,
the term `military service' means active duty, as that
term is defined in section 101(d)(1) of title 10,
United States Code.</DELETED>
<DELETED>    ``(B) Active service of commissioned
officers of the Public Health Service or National
Oceanic and Atmospheric Administration shall be deemed
to be `military service' for the purposes of this
Act.</DELETED>
<DELETED>    ``(C) Service of a member of the National
Guard 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 shall be
deemed to be `military service' for the purposes of
this Act.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(4) Dependent.--The term `dependent', with
respect to a servicemember, means--</DELETED>
<DELETED>    ``(A) the servicemember's
spouse;</DELETED>
<DELETED>    ``(B) the servicemember's child (as
defined in section 101(4) of title 38, United States
Code); or</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(6) State.--The term `State' includes--
</DELETED>
<DELETED>    ``(A) a commonwealth, territory, or
possession of the United States; and</DELETED>
<DELETED>    ``(B) the District of Columbia.</DELETED>
<DELETED>    ``(7) Secretary concerned.--The term `Secretary
concerned'--</DELETED>
<DELETED>    ``(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;</DELETED>
<DELETED>    ``(B) with respect to a commissioned
officer of the Public Health Service, means the
Secretary of Health and Human Services; and</DELETED>
<DELETED>    ``(C) with respect to a commissioned
officer of the National Oceanic and Atmospheric
Administration, means the Secretary of
Commerce.</DELETED>
<DELETED>    ``(8) Motor vehicle.--The term `motor vehicle' has
the meaning given that term in section 30102(a)(6) of title 49,
United States Code.</DELETED>

<DELETED>``SEC. 102. JURISDICTION AND APPLICABILITY OF ACT.</DELETED>

<DELETED>    ``(a) Jurisdiction.--This Act applies to--</DELETED>
<DELETED>    ``(1) the United States;</DELETED>
<DELETED>    ``(2) each of the States, including the political
subdivisions thereof; and</DELETED>
<DELETED>    ``(3) all territory subject to the jurisdiction of
the United States.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 103. PROTECTION OF PERSONS SECONDARILY
LIABLE.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Waiver of Rights.--</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) Waiver invalidated upon entrance to military
service.--If a waiver under paragraph (1) is executed by an
individual who after the execution of the waiver enters
military service, or by a dependent of an individual who after
the execution of the waiver enters military service, the waiver
is not valid after the beginning of the period of such military
service unless the waiver was executed by such individual or
dependent during the period specified in section 106.</DELETED>

<DELETED>``SEC. 104. EXTENSION OF PROTECTIONS TO CITIZENS SERVING WITH
ALLIED FORCES.</DELETED>

<DELETED>    ``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.</DELETED>

<DELETED>``SEC. 105. NOTIFICATION OF BENEFITS.</DELETED>

<DELETED>    ``The Secretary concerned shall ensure that notice of the
benefits accorded by this Act is provided to persons in military
service and to persons entering military service.</DELETED>

<DELETED>``SEC. 106. EXTENSION OF RIGHTS AND PROTECTIONS TO RESERVES
ORDERED TO REPORT FOR MILITARY SERVICE AND TO PERSONS
ORDERED TO REPORT FOR INDUCTION.</DELETED>

<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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, on the date on which the order is
revoked).</DELETED>

<DELETED>``SEC. 107. WAIVER OF RIGHTS PURSUANT TO WRITTEN
AGREEMENT.</DELETED>

<DELETED>    ``(a) In General.--A servicemember may waive any of the
rights and protections provided by this Act. In the case of a waiver
that permits an action described in subsection (b), the waiver is
effective only if made pursuant to a written agreement of the parties
that is executed during or after the servicemember's period of military
service. The written agreement shall specify the legal instrument to
which the waiver applies and, if the servicemember is not a party to
that instrument, the servicemember concerned.</DELETED>
<DELETED>    ``(b) Actions Requiring Waivers in Writing.--The
requirement in subsection (a) for a written waiver applies to the
following:</DELETED>
<DELETED>    ``(1) The modification, termination, or
cancellation of--</DELETED>
<DELETED>    ``(A) a contract, lease, or bailment;
or</DELETED>
<DELETED>    ``(B) an obligation secured by a mortgage,
trust, deed, lien, or other security in the nature of a
mortgage.</DELETED>
<DELETED>    ``(2) The repossession, retention, foreclosure,
sale, forfeiture, or taking possession of property that--
</DELETED>
<DELETED>    ``(A) is security for any obligation;
or</DELETED>
<DELETED>    ``(B) was purchased or received under a
contract, lease, or bailment.</DELETED>
<DELETED>    ``(c) Coverage of Periods After Orders Received.--For the
purposes of this section--</DELETED>
<DELETED>    ``(1) a person to whom section 106 applies shall
be considered to be a servicemember; and</DELETED>
<DELETED>    ``(2) the period with respect to such a person
specified in subsection (a) or (b), as the case may be, of
section 106 shall be considered to be a period of military
service.</DELETED>

<DELETED>``SEC. 108. EXERCISE OF RIGHTS UNDER ACT NOT TO AFFECT CERTAIN
FUTURE FINANCIAL TRANSACTIONS.</DELETED>

<DELETED>    ``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:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) With respect to a credit transaction between
a creditor and the servicemember--</DELETED>
<DELETED>    ``(A) a denial or revocation of credit by
the creditor;</DELETED>
<DELETED>    ``(B) a change by the creditor in the
terms of an existing credit arrangement; or</DELETED>
<DELETED>    ``(C) a refusal by the creditor to grant
credit to the servicemember in substantially the amount
or on substantially the terms requested.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(4) A refusal by an insurer to insure the
servicemember.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(6) A change in the terms offered or conditions
required for the issuance of insurance.</DELETED>

<DELETED>``SEC. 109. LEGAL REPRESENTATIVES.</DELETED>

<DELETED>    ``(a) Representative.--A legal representative of a
servicemember for purposes of this Act is either of the
following:</DELETED>
<DELETED>    ``(1) An attorney acting on the behalf of a
servicemember.</DELETED>
<DELETED>    ``(2) An individual possessing a power of
attorney.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``TITLE II--GENERAL RELIEF</DELETED>

<DELETED>``SEC. 201. PROTECTION OF SERVICEMEMBERS AGAINST DEFAULT
JUDGMENTS.</DELETED>

<DELETED>    ``(a) Applicability of Section.--This section applies to
any civil action or proceeding in which the defendant does not make an
appearance.</DELETED>
<DELETED>    ``(b) Affidavit Requirement.--</DELETED>
<DELETED>    ``(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--</DELETED>
<DELETED>    ``(A) stating whether or not the defendant
is in military service and showing necessary facts to
support the affidavit; or</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Penalty for Making or Using False Affidavit.--A
person who makes or uses an affidavit permitted under subsection (b)
(or a statement, declaration, verification, or certificate as
authorized under subsection (b)(4)) knowing it to be false, shall be
fined as provided in title 18, United States Code, imprisoned for not
more than one year, or both.</DELETED>
<DELETED>    ``(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--</DELETED>
<DELETED>    ``(1) there may be a defense to the action and a
defense cannot be presented without the presence of the
defendant; or</DELETED>
<DELETED>    ``(2) after due diligence, counsel has been unable
to contact the defendant or otherwise determine if a
meritorious defense exists.</DELETED>
<DELETED>    ``(e) Inapplicability of Section 202 Procedures.--A stay
of proceedings under subsection (d) shall not be controlled by
procedures or requirements under section 202.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(g) Vacation or Setting Aside of Default Judgments.--
</DELETED>
<DELETED>    ``(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--</DELETED>
<DELETED>    ``(A) the servicemember was materially
affected by reason of that military service in making a
defense to the action; and</DELETED>
<DELETED>    ``(B) the servicemember has a meritorious
or legal defense to the action or some part of
it.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 202. STAY OF PROCEEDINGS WHEN SERVICEMEMBER DEFENDANT
HAS NOTICE.</DELETED>

<DELETED>    ``(a) Applicability of Section.--This section applies to
any civil action or proceeding in which the defendant at the time of
filing an application under this section--</DELETED>
<DELETED>    ``(1) is in military service or is within 90 days
after termination of or release from military service;
and</DELETED>
<DELETED>    ``(2) has received notice of the action or
proceeding.</DELETED>
<DELETED>    ``(b) Automatic Stay.--</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) Conditions for stay.--An application for a
stay under paragraph (1) shall include the following:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Application Not a Waiver of Defenses.--An
application for a stay by a servicemember or a servicemember's
representative 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).</DELETED>
<DELETED>    ``(d) Additional Stay.--</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Coordination With Section 201.--A servicemember who
applies for a stay under this section and is unsuccessful may not seek
the protections afforded by section 201.</DELETED>
<DELETED>    ``(f) Inapplicability to Section 301.--The protections of
this section do not apply to section 301.</DELETED>

<DELETED>``SEC. 203. FINES AND PENALTIES UNDER CONTRACTS.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
<DELETED>    ``(1) the servicemember was in military service at
the time the fine or penalty was incurred; and</DELETED>
<DELETED>    ``(2) the ability of the servicemember to perform
the obligation was materially affected by such military
service.</DELETED>

<DELETED>``SEC. 204. STAY OR VACATION OF EXECUTION OF JUDGMENTS,
ATTACHMENTS, AND GARNISHMENTS.</DELETED>

<DELETED>    ``(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--</DELETED>
<DELETED>    ``(1) stay the execution of such judgment or order
entered against the servicemember; and</DELETED>
<DELETED>    ``(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 such
judgment.</DELETED>
<DELETED>    ``(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 60
days after such service terminates.</DELETED>

<DELETED>``SEC. 205. DURATION AND TERM OF STAYS; CODEFENDANTS NOT IN
SERVICE.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Inapplicability of Section.--This section does not
apply to sections 202 and 701.</DELETED>

<DELETED>``SEC. 206. STATUTE OF LIMITATIONS.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 207. MAXIMUM RATE OF INTEREST ON DEBTS INCURRED BEFORE
MILITARY SERVICE.</DELETED>

<DELETED>    ``(a) Interest Rate Limitation.--</DELETED>
<DELETED>    ``(1) 6-percent limit.--An obligation or liability
bearing interest at a rate in excess of 6 percent per year that
is incurred by a servicemember, or the servicemember and the
servicemember's spouse jointly, before the servicemember enters
military service shall not bear interest at a rate in excess of
6 percent per year during the period of military service.</DELETED>
<DELETED>    ``(2) Applicability to student loans.--
Notwithstanding section 428(d) of the Higher Education Act of
1965 (20 U.S.C. 1078(d)), paragraph (1) applies with respect to
an obligation or liability of a servicemember, or the
servicemember and the servicemember's spouse jointly, entered
into under the Higher Education Act of 1965 (20 U.S.C. 1001 et
seq.)</DELETED>
<DELETED>    ``(3) 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.</DELETED>
<DELETED>    ``(4) 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 (3) that is
allocable to the period for which such payment is
made.</DELETED>
<DELETED>    ``(b) Implementation of Limitation.--</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Interest Defined.--As used in this section, the term
`interest' means simple interest plus service charges, renewal charges,
fees, or any other charges (except bona fide insurance) with respect to
an obligation or liability.</DELETED>

<DELETED>``TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS,
ASSIGNMENT, LEASES</DELETED>

<DELETED>``SEC. 301. EVICTIONS AND DISTRESS.</DELETED>

<DELETED>    ``(a) Court-Ordered Eviction.--Except by court order, a
landlord (or another person with paramount title) may not--</DELETED>
<DELETED>    ``(1) evict a servicemember, or the dependents of
a servicemember, during a period of military service of the
servicemember, from premises--</DELETED>
<DELETED>    ``(A) that are occupied or intended to be
occupied primarily as a residence; and</DELETED>
<DELETED>    ``(B) for which the monthly rent does not
exceed the greater of--</DELETED>
<DELETED>    ``(i) $1,950; or</DELETED>
<DELETED>    ``(ii) the monthly basic allowance
for housing to which the servicemember is
entitled under section 403 of title 37, United
States Code; or</DELETED>
<DELETED>    ``(2) subject such premises to a distress during
the period of military service.</DELETED>
<DELETED>    ``(b) Stay of Execution.--</DELETED>
<DELETED>    ``(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--</DELETED>
<DELETED>    ``(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</DELETED>
<DELETED>    ``(B) adjust the obligation under the
lease to preserve the interests of all
parties.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Penalties.--</DELETED>
<DELETED>    ``(1) Misdemeanor.--Except as provided in
subsection (a), a person who knowingly takes part in an
eviction or distress described in subsection (a), or who
knowingly attempts to do so, shall be fined as provided in
title 18, United States Code, imprisoned for not more than one
year, or both.</DELETED>
<DELETED>    ``(2) Preservation of other remedies and rights.--
The remedies and rights provided under this section are in
addition to and do not preclude any remedy for wrongful
conversion (or wrongful eviction) otherwise available under the
law to the person claiming relief under this section, including
any award for consequential and punitive damages.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Limitation of Applicability.--Section 202 is not
applicable to this section.</DELETED>

<DELETED>``SEC. 302. PROTECTION UNDER INSTALLMENT CONTRACTS FOR
PURCHASE OR LEASE.</DELETED>

<DELETED>    ``(a) Protection Upon Breach of Contract.--</DELETED>
<DELETED>    ``(1) Protection after entering military
service.--After a servicemember enters military service, a
contract by the servicemember for--</DELETED>
<DELETED>    ``(A) the purchase of real or personal
property (including a motor vehicle); or</DELETED>
<DELETED>    ``(B) the lease or bailment of such
property,</DELETED>
<DELETED>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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Penalties.--</DELETED>
<DELETED>    ``(1) Misdemeanor.--A person who knowingly resumes
possession of property in violation of subsection (a), or in
violation of section 108, or who knowingly attempts to do so,
shall be fined as provided in title 18, United States Code,
imprisoned for not more than one year, or both.</DELETED>
<DELETED>    ``(2) Preservation of other remedies and rights.--
The remedies and rights provided under this section are in
addition to and do not preclude any remedy for wrongful
conversion otherwise available under law to the person claiming
relief under this section, including any award for
consequential and punitive damages.</DELETED>
<DELETED>    ``(c) Authority of Court.--In a hearing based on this
section, the court--</DELETED>
<DELETED>    ``(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;</DELETED>
<DELETED>    ``(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</DELETED>
<DELETED>    ``(3) may make other disposition as is equitable
to preserve the interests of all parties.</DELETED>

<DELETED>``SEC. 303. MORTGAGES AND TRUST DEEDS.</DELETED>

<DELETED>    ``(a) Mortgage as Security.--This section applies only to
an obligation on real or personal property owned by a servicemember
that--</DELETED>
<DELETED>    ``(1) originated before the period of the
servicemember's military service and for which the
servicemember is still obligated; and</DELETED>
<DELETED>    ``(2) is secured by a mortgage, trust deed, or
other security in the nature of a mortgage.</DELETED>
<DELETED>    ``(b) Stay of Proceedings and Adjustment of Obligation.--
In an action filed during, or within 90 days after, a servicemember's
period of military service to enforce an obligation described in
subsection (a), the court may after a hearing and on its own motion and
shall upon application by a servicemember when the servicemember's
ability to comply with the obligation is materially affected by
military service--</DELETED>
<DELETED>    ``(1) stay the proceedings for a period of time as
justice and equity require, or</DELETED>
<DELETED>    ``(2) adjust the obligation to preserve the
interests of all parties.</DELETED>
<DELETED>    ``(c) Sale or Foreclosure.--A sale, foreclosure, or
seizure of property for a breach of an obligation described in
subsection (a) shall not be valid if made during, or within 90 days
after, the period of the servicemember's military service except--
</DELETED>
<DELETED>    ``(1) upon a court order granted before such sale,
foreclosure, or seizure with a return made and approved by the
court; or</DELETED>
<DELETED>    ``(2) if made pursuant to an agreement as provided
in section 108.</DELETED>
<DELETED>    ``(d) Penalties.--</DELETED>
<DELETED>    ``(1) Misdemeanor.--A person who knowingly makes
or causes to be made a sale, foreclosure, or seizure of
property that is prohibited by subsection (c), or who knowingly
attempts to do so, shall be fined as provided in title 18,
United States Code, imprisoned for not more than one year, or
both.</DELETED>
<DELETED>    ``(2) Preservation of other remedies.--The
remedies and rights provided under this section are in addition
to and do not preclude any remedy for wrongful conversion
otherwise available under law to the person claiming relief
under this section, including consequential and punitive
damages.</DELETED>

<DELETED>``SEC. 304. SETTLEMENT OF STAYED CASES RELATING TO PERSONAL
PROPERTY.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 305. TERMINATION OF LEASES BY LESSEES.</DELETED>

<DELETED>    ``(a) Covered Leases of Real Property.--This section
applies to the 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--</DELETED>
<DELETED>    ``(1) the lease is executed by or on behalf of a
person who thereafter and during the term of the lease enters
military service; or</DELETED>
<DELETED>    ``(2) the servicemember, while in military
service, executes a lease and thereafter receives military
orders for a permanent change of station or to deploy with a
military unit for a period of not less than 90 days.</DELETED>
<DELETED>    ``(b) Covered Leases of Vehicles.--This section applies to
the lease of a motor vehicle used, or intended to be used, by a
servicemember or a servicemember's dependents if the lease is executed
by or on behalf of a person who thereafter and during the term of the
lease enters military service.</DELETED>
<DELETED>    ``(c) Notice to Lessor.--</DELETED>
<DELETED>    ``(1) Delivery of notice.--A lease described in
subsection (a) or (b) is terminated when written notice is
delivered by the lessee to the lessor (or the lessor's grantee)
or to the lessor's agent (or the agent's grantee).</DELETED>
<DELETED>    ``(2) Time for notice.--The written notice may be
delivered at any time after the lessee's entry into military
service or, in the case of a lease described in subsection (a),
the date of the military orders for a permanent change of
station or to deploy for a period of not less than 90
days.</DELETED>
<DELETED>    ``(3) Nature of notice.--Delivery may be
accomplished--</DELETED>
<DELETED>    ``(A) by hand delivery;</DELETED>
<DELETED>    ``(B) by private business carrier;
or</DELETED>
<DELETED>    ``(C) by placing the written notice in an
envelope with sufficient postage and addressed to 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.</DELETED>
<DELETED>    ``(d) Effective Date of Termination.--</DELETED>
<DELETED>    ``(1) Lease with monthly rent.--Termination of a
lease providing for monthly payment of rent shall be effective
30 days after the first date on which the next rental payment
is due and payable after the date on which the notice is
delivered.</DELETED>
<DELETED>    ``(2) Other lease.--All other leases terminate on
the last day of the month following the month in which the
notice is delivered.</DELETED>
<DELETED>    ``(e) Arrearages.--Rents or lease amounts unpaid for the
period preceding termination shall be paid on a prorated
basis.</DELETED>
<DELETED>    ``(f) Amounts Paid in Advance.--Rents or lease amounts
paid in advance for a period succeeding termination shall be refunded
to the lessee by the lessor (or the lessor's assignee or the assignee's
agent).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(h) Penalties.--</DELETED>
<DELETED>    ``(1) Misdemeanor.--Any person who knowingly
seizes, holds, or detains the personal effects, security
deposit, or other property of a servicemember or a
servicemember's dependent who lawfully terminates a lease
covered by this section, or who knowingly interferes with the
removal of such property from premises covered by such lease,
for the purpose of subjecting or attempting to subject any of
such property to a claim for rent or lease payments accruing
after the date of termination of such lease, or attempts to do
so, shall be fined as provided in title 18, United States Code,
imprisoned for not more than one year, or both.</DELETED>
<DELETED>    ``(2) Preservation of other remedies.--The remedy
and rights provided under this section are in addition to and
do not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including any award for consequential or punitive
damages.</DELETED>

<DELETED>``SEC. 306. PROTECTION OF LIFE INSURANCE POLICY.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Exception.--The prohibition in subsection (a) shall
not apply--</DELETED>
<DELETED>    ``(1) if the assignee has the written consent of
the insured made during the period described in subsection
(a);</DELETED>
<DELETED>    ``(2) when the premiums on the policy are due and
unpaid; or</DELETED>
<DELETED>    ``(3) upon the death of the insured.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Treatment of Guaranteed Premiums.--For purposes of
this subsection, premiums guaranteed under the provisions of title IV
shall not be considered due and unpaid.</DELETED>
<DELETED>    ``(e) Penalties.--</DELETED>
<DELETED>    ``(1) Misdemeanor.--A person who knowingly takes
an action contrary to this section, or attempts to do so, shall
be fined as provided in title 18, United States Code,
imprisoned for not more than one year, or both.</DELETED>
<DELETED>    ``(2) Preservation of other remedies.--The remedy
and rights provided under this section are in addition to and
do not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including any consequential or punitive
damages.</DELETED>

<DELETED>``SEC. 307. ENFORCEMENT OF STORAGE LIENS.</DELETED>

<DELETED>    ``(a) Liens.--</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
<DELETED>    ``(1) stay the proceeding for a period of time as
justice and equity require; or</DELETED>
<DELETED>    ``(2) adjust the obligation to preserve the
interests of all parties.</DELETED>
<DELETED>The provisions of this subsection do not affect the scope of
section 303.</DELETED>
<DELETED>    ``(c) Penalties.--</DELETED>
<DELETED>    ``(1) Misdemeanor.--A person who knowingly takes
an action contrary to this section, or attempts to do so, shall
be fined as provided in title 18, United States Code,
imprisoned for not more than one year, or both.</DELETED>
<DELETED>    ``(2) Preservation of other remedies.--The remedy
and rights provided under this section are in addition to and
do not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including any consequential or punitive
damages.</DELETED>

<DELETED>``SEC. 308. EXTENSION OF PROTECTIONS TO DEPENDENTS.</DELETED>

<DELETED>    ``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.</DELETED>

<DELETED>``TITLE IV--INSURANCE</DELETED>

<DELETED>``SEC. 401. DEFINITIONS.</DELETED>

<DELETED>    ``For the purposes of this title:</DELETED>
<DELETED>    ``(1) Policy.--The term `policy' means any
contract for whole, endowment, universal, or term life
insurance, including any benefit in the nature of such
insurance arising out of membership in any fraternal or
beneficial association which--</DELETED>
<DELETED>    ``(A) provides that the insurer may not--
</DELETED>
<DELETED>    ``(i) decrease the amount of
coverage or increase the amount of premiums if
the insured is in military service;
or</DELETED>
<DELETED>    ``(ii) limit or restrict coverage
for any activity required by military service;
and</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) Premium.--The term `premium' means the
amount specified in an insurance policy to be paid to keep the
policy in force.</DELETED>
<DELETED>    ``(3) Insured.--The term `insured' means a
servicemember whose life is insured under a policy.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 402. INSURANCE RIGHTS AND PROTECTIONS.</DELETED>

<DELETED>    ``(a) Rights and Protections.--The rights and protections
under this title apply to the insured when the insured, the insured's
designee, or the insured's beneficiary 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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 403. APPLICATION FOR INSURANCE PROTECTION.</DELETED>

<DELETED>    ``(a) Application Procedure.--An application for
protection under this title shall--</DELETED>
<DELETED>    ``(1) be in writing and signed by the insured, the
insured's designee, or the insured's beneficiary, as the case
may be;</DELETED>
<DELETED>    ``(2) identify the policy and the insurer;
and</DELETED>
<DELETED>    ``(3) include an acknowledgement that the
insured's rights under the policy are subject to and modified
by the provisions of this title.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Notice to the Secretary by the Insured.--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.</DELETED>
<DELETED>    ``(d) Policy Modification.--Upon application for
protection under this title, the insured and the insurer shall have
constructively agreed to any policy modification necessary to give this
title full force and effect.</DELETED>

<DELETED>``SEC. 404. POLICIES ENTITLED TO PROTECTION AND LAPSE OF
POLICIES.</DELETED>

<DELETED>    ``(a) Determination.--The Secretary of Veterans Affairs
shall determine whether a policy is entitled to protection under this
title and shall notify the insured and the insurer of that
determination.</DELETED>
<DELETED>    ``(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 of the
application for protection.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 405. POLICY RESTRICTIONS.</DELETED>

<DELETED>    ``(a) Dividends.--While a policy is protected under this
title, a dividend or other monetary benefit under a policy may not be
paid to an insured or used to purchase dividend additions without the
approval of the Secretary of Veterans Affairs. If such approval is not
obtained, the dividends or benefits shall be added to the value of the
policy to be used as a credit when final settlement is made with the
insurer.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 406. DEDUCTION OF UNPAID PREMIUMS.</DELETED>

<DELETED>    ``(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, 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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Reporting Requirement.--The amount deducted under
this section, if any, shall be reported by the insurer to the Secretary
of Veterans Affairs.</DELETED>

<DELETED>``SEC. 407. PREMIUMS AND INTEREST GUARANTEED BY UNITED
STATES.</DELETED>

<DELETED>    ``(a) Guarantee of Premiums and Interest by the United
States.--</DELETED>
<DELETED>    ``(1) Guarantee.--Payment of premiums, and
interest on premiums at the rate specified in section 406,
which become due on a policy under the protection of this title
is guaranteed by the United States. If the amount guaranteed is
not paid to the insurer before the period of insurance
protection under this title expires, the amount due shall be
treated by the insurer as a policy loan on the
policy.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Recovery From Insured of Amounts Paid by the United
States.--</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(3) Debt not dischargeable in bankruptcy.--Such
debt payable to the United States is not dischargeable in
bankruptcy proceedings.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 408. REGULATIONS.</DELETED>

<DELETED>    ``The Secretary of Veterans Affairs shall prescribe
regulations for the implementation of this title.</DELETED>

<DELETED>``SEC. 409. REVIEW OF FINDINGS OF FACT AND CONCLUSIONS OF
LAW.</DELETED>

<DELETED>    ``The findings of fact and conclusions of law made by the
Secretary of Veterans Affairs in administering this title may be
reviewed by the Board of Veterans' Appeals and the United States Court
of Appeals for Veterans Claims.</DELETED>

<DELETED>``TITLE V--TAXES AND PUBLIC LANDS</DELETED>

<DELETED>``SEC. 501. TAXES RESPECTING PERSONAL PROPERTY, MONEY,
CREDITS, AND REAL PROPERTY.</DELETED>

<DELETED>    ``(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--
</DELETED>
<DELETED>    ``(1) personal property; or</DELETED>
<DELETED>    ``(2) real property occupied for dwelling,
professional, business, or agricultural purposes by a
servicemember or the servicemember's dependents or employees--
</DELETED>
<DELETED>    ``(A) before the servicemember's entry
into military service; and</DELETED>
<DELETED>    ``(B) during the time the tax or
assessment remains unpaid.</DELETED>
<DELETED>    ``(b) Sale of Property.--</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Redemption.--When property described in subsection
(a) is sold or forfeited to enforce the collection of a tax or
assessment, a servicemember shall have the right to redeem or commence
an action to redeem the servicemember's property during the period of
military service or within 180 days after termination of or release
from military service. This subsection may not be construed to shorten
any period provided by the law of a State (including any political
subdivision of a State) for redemption.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 502. RIGHTS IN PUBLIC LANDS.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 503. DESERT-LAND ENTRIES.</DELETED>

<DELETED>    ``(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--</DELETED>
<DELETED>    ``(1) for failure to expend any required amount
per acre per year in improvements upon the claim;</DELETED>
<DELETED>    ``(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</DELETED>
<DELETED>    ``(3) during any period of hospitalization or
rehabilitation due to an injury or disability incurred in the
line of duty.</DELETED>
<DELETED>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).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 504. MINING CLAIMS.</DELETED>

<DELETED>    ``(a) Requirements Suspended.--The provisions of section
2324 of the Revised Statutes of the United States (30 U.S.C. 28)
specified in subsection (b) shall not apply to a servicemember's claims
or interests in claims, regularly located and recorded, during a period
of military service and 180 days thereafter, or during any period of
hospitalization or rehabilitation due to injuries or disabilities
incurred in the line of duty.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 505. MINERAL PERMITS AND LEASES.</DELETED>

<DELETED>    ``(a) Suspension During Military Service.--A person
holding a permit or lease on the public domain under the Federal
mineral leasing laws who enters military service may suspend all
operations under the permit or lease for the duration of military
service and for 180 days thereafter. The term of the permit or lease
shall not run during the period of suspension, nor shall any rental or
royalties be charged against the permit or lease during the period of
suspension.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Contract Modification.--This section shall not be
construed to supersede the terms of any contract for operation of a
permit or lease.</DELETED>

<DELETED>``SEC. 506. PERFECTION OR DEFENSE OF RIGHTS.</DELETED>

<DELETED>    ``(a) Right To Take Action Not Affected.--This title shall
not affect the right of a servicemember to take action during a period
of military service that is authorized by law or regulations of the
Department of the Interior, for the perfection, defense, or further
assertion of rights initiated or acquired before entering military
service.</DELETED>
<DELETED>    ``(b) Affidavits and Proofs.--</DELETED>
<DELETED>    ``(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 1044a of title 10, United
States Code, or any superior commissioned officer.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 507. DISTRIBUTION OF INFORMATION CONCERNING BENEFITS OF
TITLE.</DELETED>

<DELETED>    ``(a) Distribution of Information by Secretary
Concerned.--The Secretary concerned shall issue to servicemembers
information explaining the provisions of this title.</DELETED>
<DELETED>    ``(b) Application Forms.--The Secretary concerned shall
provide application forms to servicemembers requesting relief under
this title.</DELETED>
<DELETED>    ``(c) Information From Secretary of the Interior.--The
Secretary of the Interior shall furnish to the Secretary concerned
information explaining the provisions of this title (other than
sections 501, 510, and 511) and related application forms.</DELETED>

<DELETED>``SEC. 508. LAND RIGHTS OF SERVICEMEMBERS.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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 in military service until 180
days after termination of or release from military service.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 509. REGULATIONS.</DELETED>

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

<DELETED>``SEC. 510. INCOME TAXES.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Application Limitation.--This section shall not
apply to the tax imposed on employees by section 3101 of the Internal
Revenue Code of 1986.</DELETED>

<DELETED>``SEC. 511. RESIDENCE FOR TAX PURPOSES.</DELETED>

<DELETED>    ``(a) Residence or Domicile.--A servicemember shall
neither lose nor acquire a residence or domicile for purposes of
taxation with respect to the person, personal property, or income of
the servicemember by reason of being absent or present in any tax
jurisdiction of the United States solely in compliance with military
orders.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Personal Property.--</DELETED>
<DELETED>    ``(1) Relief from personal property taxes.--The
personal property of a servicemember shall not be deemed to be
located or present in, or to have a situs for taxation in, the
tax jurisdiction in which the servicemember is serving in
compliance with military orders.</DELETED>
<DELETED>    ``(2) Exception for property within member's
domicile or residence.--This subsection applies to personal
property or its use within any tax jurisdiction other than the
servicemember's domicile or residence.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Increase of Tax Liability.--A tax jurisdiction may
not use the military compensation of a nonresident servicemember to
increase the tax liability imposed on other income earned by the
nonresident servicemember or spouse subject to tax by the
jurisdiction.</DELETED>
<DELETED>    ``(e) Federal Indian Reservations.--An Indian
servicemember whose legal residence or domicile is a Federal Indian
reservation shall be taxed by the laws applicable to Federal Indian
reservations and not the State where the reservation is
located.</DELETED>
<DELETED>    ``(f) Definitions.--For purposes of this
section:</DELETED>
<DELETED>    ``(1) Personal property.--The term `personal
property' means intangible and tangible property (including
motor vehicles).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(3) Tax jurisdiction.--The term `tax
jurisdiction' means a State or a political subdivision of a
State.</DELETED>

<DELETED>``TITLE VI--ADMINISTRATIVE REMEDIES</DELETED>

<DELETED>``SEC. 601. INAPPROPRIATE USE OF ACT.</DELETED>

<DELETED>    ``If a court determines, in any proceeding to enforce a
civil right, that any interest, property, or contract has been
transferred or acquired with the intent to delay the just enforcement
of such right by taking advantage of this Act, the court shall enter
such judgment or make such order as might lawfully be entered or made
concerning such transfer or acquisition.</DELETED>

<DELETED>``SEC. 602. CERTIFICATES OF SERVICE; PERSONS REPORTED
MISSING.</DELETED>

<DELETED>    ``(a) Prima Facie Evidence.--In any proceeding under this
Act, a certificate signed by the Secretary concerned is prima facie
evidence as to any of the following facts stated in the
certificate:</DELETED>
<DELETED>    ``(1) That a person named is, is not, has been, or
has not been in military service.</DELETED>
<DELETED>    ``(2) The time and the place the person entered
military service.</DELETED>
<DELETED>    ``(3) The person's residence at the time the
person entered military service.</DELETED>
<DELETED>    ``(4) The rank, branch, and unit of military
service of the person upon entry.</DELETED>
<DELETED>    ``(5) The inclusive dates of the person's military
service.</DELETED>
<DELETED>    ``(6) The monthly pay received by the person at
the date of the certificate's issuance.</DELETED>
<DELETED>    ``(7) The time and place of the person's
termination of or release from military service, or the
person's death during military service.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Treatment of Servicemembers in Missing Status.--A
servicemember who has been reported missing is presumed to continue in
service until accounted for. A requirement under this Act that begins
or ends with the death of a servicemember does not begin or end until
the servicemember's death is reported to, or determined by, the
Secretary concerned or by a court of competent jurisdiction.</DELETED>

<DELETED>``SEC. 603. INTERLOCUTORY ORDERS.</DELETED>

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

<DELETED>``TITLE VII--FURTHER RELIEF</DELETED>

<DELETED>``SEC. 701. ANTICIPATORY RELIEF.</DELETED>

<DELETED>    ``(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--</DELETED>
<DELETED>    ``(1) from any obligation or liability incurred by
the servicemember before the servicemember's military service;
or</DELETED>
<DELETED>    ``(2) from a tax or assessment falling due before
or during the servicemember's military service.</DELETED>
<DELETED>    ``(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:</DELETED>
<DELETED>    ``(1) Stay of enforcement of real estate
contracts.--</DELETED>
<DELETED>    ``(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--</DELETED>
<DELETED>    ``(i) during the servicemember's
period of military service; and</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(B) Any stay under this paragraph shall
be--</DELETED>
<DELETED>    ``(i) for a period equal to the
remaining life of the installment contract or
other instrument, plus a period of time equal
to the period of military service of the
servicemember, or any part of such combined
period; and</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) Stay of enforcement of other contracts.--
</DELETED>
<DELETED>    ``(A) In the case of any other obligation,
liability, tax, or assessment, the court may grant a
stay of enforcement--</DELETED>
<DELETED>    ``(i) during the servicemember's
military service; and</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(B) Any stay under this paragraph shall
be--</DELETED>
<DELETED>    ``(i) for a period of time equal
to the period of the servicemember's military
service or any part of such period;
and</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Affect of Stay on Fine or Penalty.--When a court
grants a stay under this section, a fine or penalty shall not accrue on
the obligation, liability, tax, or assessment for the period of
compliance with the terms and conditions of the stay.</DELETED>

<DELETED>``SEC. 702. POWER OF ATTORNEY.</DELETED>

<DELETED>    ``(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--</DELETED>
<DELETED>    ``(1) was duly executed by the servicemember--
</DELETED>
<DELETED>    ``(A) while in military service;
or</DELETED>
<DELETED>    ``(B) before entry into military service
but after the servicemember--</DELETED>
<DELETED>    ``(i) received a call or order to
report for military service; or</DELETED>
<DELETED>    ``(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;</DELETED>
<DELETED>    ``(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</DELETED>
<DELETED>    ``(3) expires by its terms after the servicemember
entered a missing status.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 703. PROFESSIONAL LIABILITY PROTECTION.</DELETED>

<DELETED>    ``(a) Applicability.--This section applies to a
servicemember who--</DELETED>
<DELETED>    ``(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</DELETED>
<DELETED>    ``(2) immediately before receiving the order to
active duty--</DELETED>
<DELETED>    ``(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</DELETED>
<DELETED>    ``(B) had in effect a professional
liability insurance policy that does not continue to
cover claims filed with respect to the servicemember
during the period of the servicemember's active duty
unless the premiums are paid for such coverage for such
period.</DELETED>
<DELETED>    ``(b) Suspension of Coverage.--</DELETED>
<DELETED>    ``(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, or the servicemember's legal
representative, by the insurance carrier.</DELETED>
<DELETED>    ``(2) Premiums for suspended contracts.--A
professional liability insurance carrier--</DELETED>
<DELETED>    ``(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</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Reinstatement of Coverage.--</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) Time and premium for reinstatement.--The
request of a servicemember for reinstatement shall be effective
only if the servicemember transmits the request to the
insurance carrier within 30 days after the date on which the
servicemember is released from active duty. The insurance
carrier shall notify the servicemember of the due date for
payment of the premium of such insurance. Such premium shall be
paid by the servicemember within 30 days after receipt of that
notice.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Increase in Premium.--</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Continuation of Coverage of Unaffected Persons.--
This section does not--</DELETED>
<DELETED>    ``(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</DELETED>
<DELETED>    ``(2) relieve any person of the obligation to pay
premiums for the coverage not required to be
suspended.</DELETED>
<DELETED>    ``(f) Stay of Civil or Administrative Actions.--</DELETED>
<DELETED>    ``(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--</DELETED>
<DELETED>    ``(A) the action was commenced during the
period of the suspension;</DELETED>
<DELETED>    ``(B) the action is based on an act or
omission that occurred before the date on which the
suspension became effective; and</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
<DELETED>    ``(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</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(i) Definitions.--For purposes of this
section:</DELETED>
<DELETED>    ``(1) The term `active duty' has the meaning given
that term in section 101(d)(1) of title 10, United States
Code.</DELETED>
<DELETED>    ``(2) The term `profession' includes
occupation.</DELETED>
<DELETED>    ``(3) The term `professional' includes
occupational.</DELETED>

<DELETED>``SEC. 704. HEALTH INSURANCE REINSTATEMENT.</DELETED>

<DELETED>    ``(a) Reinstatement of Health Insurance.--A servicemember
who, by reason of military service as defined in section 703(a)(1), is
entitled to the rights and protections of this Act shall also be
entitled upon termination or release from such service to reinstatement
of any health insurance that--</DELETED>
<DELETED>    ``(1) was in effect on the day before such service
commenced; and</DELETED>
<DELETED>    ``(2) was terminated effective on a date during
the period of such service.</DELETED>
<DELETED>    ``(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 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--</DELETED>
<DELETED>    ``(1) the condition arose before or during the
period of such service;</DELETED>
<DELETED>    ``(2) an exclusion or a waiting period would not
have been imposed for the condition during the period of
coverage; and</DELETED>
<DELETED>    ``(3) if 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).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 705. GUARANTEE OF RESIDENCY FOR MILITARY
PERSONNEL.</DELETED>

<DELETED>    ``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--</DELETED>
<DELETED>    ``(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;</DELETED>
<DELETED>    ``(2) be deemed to have acquired a residence or
domicile in any other State; or</DELETED>
<DELETED>    ``(3) be deemed to have become a resident in or a
resident of any other State.</DELETED>

<DELETED>``SEC. 706. BUSINESS OR TRADE OBLIGATIONS.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 707. RETURN TO CLASSES AT NO ADDITIONAL COST.</DELETED>

<DELETED>    ``(a) In General.--Each institution of higher education
that receives Federal assistance or participates in a program assisted
under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) shall
permit each student who is enrolled in the institution and enters into
military service--</DELETED>
<DELETED>    ``(1) to return to the institution of higher
education after completion of the period of military service;
and</DELETED>
<DELETED>    ``(2) complete, at no additional cost, each class
the student was unable to complete as a result of the period of
military service.</DELETED>
<DELETED>    ``(b) Institution of Higher Education Defined.--In this
section, the term `institution of higher education' has the meaning
given the term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).''.</DELETED>

<DELETED>SEC. 2. CONFORMING AMENDMENTS.</DELETED>

<DELETED>    (a) Military Selective Service Act.--Section 14 of the
Military Selective Service Act (50 U.S.C. App. 464) is
repealed.</DELETED>
<DELETED>    (b) Title 5, United States Code.--(1) Section
5520a(k)(2)(A) of title 5, United States Code, is amended by striking
``Soldiers' and Sailors' Civil Relief Act of 1940'' and inserting
``Servicemembers Civil Relief Act''; and</DELETED>
<DELETED>    (2) Section 5569(e) of title 5, United States Code, is
amended--</DELETED>
<DELETED>    (A) in paragraph (1), by striking ``provided by
the Soldiers' and Sailors' Civil Relief Act of 1940'' and all
that follows through ``of such Act'' and inserting ``provided
by the Servicemembers Civil Relief Act, including the benefits
provided by section 702 of such Act but excluding the benefits
provided by sections 104 and 106, title IV, and title V (other
than sections 501 and 510) of such Act''; and</DELETED>
<DELETED>    (B) in paragraph (2), by striking ``person in the
military service'' and inserting ``servicemember''.</DELETED>
<DELETED>    (c) Title 10, United States Code.--Section 1408(b)(1)(D)
of title 10, United States Code, is amended by striking ``Soldiers' and
Sailors' Civil Relief Act of 1940'' and inserting ``Servicemembers
Civil Relief Act''.</DELETED>
<DELETED>    (d) Internal Revenue Code.--Section 7654(d)(1) of the
Internal Revenue Code of 1986 is amended by striking ``Soldiers' and
Sailors' Civil Relief Act'' and inserting ``Servicemembers Civil Relief
Act''.</DELETED>
<DELETED>    (e) Public Law 91-621.--Section 3(a)(3) of Public Law 91-
621 (33 U.S.C. 857-3(a)(3)) is amended by striking ``Soldiers' and
Sailors' Civil Relief Act of 1940, as amended'' and inserting
``Servicemembers Civil Relief Act''.</DELETED>
<DELETED>    (f) Public Health Service Act.--Section 212(e) of the
Public Health Service Act (42 U.S.C. 213(e)) is amended by striking
``Soldiers' and Sailors' Civil Relief Act of 1940'' and inserting
``Servicemembers Civil Relief Act''.</DELETED>
<DELETED>    (g) Elementary and Secondary Education Act of 1965.--
Section 8001 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7701) is amended by striking ``section 514 of the Soldiers' and
Sailors' Civil Relief Act of 1940 (50 U.S.C. App. 574)'' in the matter
preceding paragraph (1) and inserting ``section 511 of the
Servicemembers Civil Relief Act''.</DELETED>

<DELETED>SEC. 3. EFFECTIVE DATE.</DELETED>

<DELETED>    The amendment made by section 1 shall apply to any case
decided after the date of the enactment of this Act.</DELETED>

SECTION 1. RESTATEMENT OF ACT.

The Soldiers' and Sailors' Civil Relief Act of 1940 (50 U.S.C. App.
501 et seq.) is amended to read as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

``(a) Short Title.--This Act may be cited as the `Servicemembers
Civil Relief Act'.
``(b) Table of Contents.--The table of contents of this Act is as
follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Purpose.

``TITLE I--GENERAL PROVISIONS

``Sec. 101. Definitions.
``Sec. 102. Jurisdiction and applicability of Act.
``Sec. 103. Protection of persons secondarily liable.
``Sec. 104. Extension of protections to citizens serving with allied
forces.
``Sec. 105. Notification of benefits.
``Sec. 106. Extension of rights and protections to Reserves ordered to
report for military service and to persons
ordered to report for induction.
``Sec. 107. Waiver of rights pursuant to written agreement.
``Sec. 108. Exercise of rights under Act not to affect certain future
financial transactions.
``Sec. 109. Legal representatives.

``TITLE II--GENERAL RELIEF

``Sec. 201. Protection of servicemembers against default judgments.
``Sec. 202. Stay of proceedings when servicemember has notice.
``Sec. 203. Fines and penalties under contracts.
``Sec. 204. Stay or vacation of execution of judgments, attachments,
and garnishments.
``Sec. 205. Duration and term of stays; codefendants not in service.
``Sec. 206. Statute of limitations.
``Sec. 207. Maximum rate of interest on debts incurred before military
service.

``TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES

``Sec. 301. Evictions and distress.
``Sec. 302. Protection under installment contracts for purchase or
lease.
``Sec. 303. Mortgages and trust deeds.
``Sec. 304. Settlement of stayed cases relating to personal property.
``Sec. 305. Termination of residential or motor vehicle leases.
``Sec. 306. Protection of life insurance policy.
``Sec. 307. Enforcement of storage liens.
``Sec. 308. Extension of protections to dependents.

``TITLE IV--LIFE INSURANCE

``Sec. 401. Definitions.
``Sec. 402. Insurance rights and protections.
``Sec. 403. Application for insurance protection.
``Sec. 404. Policies entitled to protection and lapse of policies.
``Sec. 405. Policy restrictions.
``Sec. 406. Deduction of unpaid premiums.
``Sec. 407. Premiums and interest guaranteed by United States.
``Sec. 408. Regulations.
``Sec. 409. Review of findings of fact and conclusions of law.

``TITLE V--TAXES AND PUBLIC LANDS

``Sec. 501. Taxes respecting personal property, money, credits, and
real property.
``Sec. 502. Rights in public lands.
``Sec. 503. Desert-land entries.
``Sec. 504. Mining claims.
``Sec. 505. Mineral permits and leases.
``Sec. 506. Perfection or defense of rights.
``Sec. 507. Distribution of information concerning benefits of title.
``Sec. 508. Land rights of servicemembers.
``Sec. 509. Regulations.
``Sec. 510. Income taxes.
``Sec. 511. Residence for tax purposes.

``TITLE VI--ADMINISTRATIVE REMEDIES

``Sec. 601. Inappropriate use of Act.
``Sec. 602. Certificates of service; persons reported missing.
``Sec. 603. Interlocutory orders.

``TITLE VII--FURTHER RELIEF

``Sec. 701. Anticipatory relief.
``Sec. 702. Power of attorney.
``Sec. 703. Professional liability protection.
``Sec. 704. Health insurance reinstatement.
``Sec. 705. Guarantee of residency for military personnel.
``Sec. 706. Business or trade obligations.

``SEC. 2. PURPOSE.

``The purposes of this Act are--
``(1) to provide for, strengthen, and expedite the national
defense through protection extended by this Act to
servicemembers of the United States to enable such persons to
devote their entire energy to the defense needs of the Nation;
and
``(2) to provide for the temporary suspension of judicial
and administrative proceedings and transactions that may
adversely affect the civil rights of servicemembers during
their military service.

``TITLE I--GENERAL PROVISIONS

``SEC. 101. DEFINITIONS.

``For the purposes of this Act:
``(1) Servicemember.--The term `servicemember' means a
member of the uniformed services, as that term is defined in
section 101(a)(5) of title 10, United States Code.
``(2) Military service.--The term `military service'
means--
``(A) in the case of a servicemember who is a
member of the Army, Navy, Air Force, Marine Corps, or
Coast Guard--
``(i) active duty, as defined in section
101(d)(1) of title 10, United States Code, and
``(ii) in the case of a member of the
National Guard, includes service under a call
to active service authorized by the President
or the Secretary of Defense for a period of
more than 30 consecutive days under section
502(f) of title 32, United States Code, for
purposes of responding to a national emergency
declared by the President and supported by
Federal funds;
``(B) in the case of a servicemember who is a
commissioned officer of the Public Health Service or
the National Oceanic and Atmospheric Administration,
active service; and
``(C) any period during which a servicemember is
absent from duty on account of sickness, wounds, leave,
or other lawful cause.
``(3) Period of military service.--The term `period of
military service' means the period beginning on the date on
which a servicemember enters military service and ending on the
date on which the servicemember is released from military
service or dies while in military service.
``(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.
``(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.

``SEC. 102. JURISDICTION AND APPLICABILITY OF ACT.

``(a) Jurisdiction.--This Act applies to--
``(1) the United States;
``(2) each of the States, including the political
subdivisions thereof; and
``(3) all territory subject to the jurisdiction of the
United States.
``(b) Applicability to Proceedings.--This Act applies to any
judicial or administrative proceeding commenced in any court or agency
in any jurisdiction subject to this Act. This Act does not apply to
criminal proceedings.
``(c) Court in Which Application May Be Made.--When under this Act
any application is required to be made to a court in which no
proceeding has already been commenced with respect to the matter, such
application may be made to any court which would otherwise have
jurisdiction over the matter.

``SEC. 103. PROTECTION OF PERSONS SECONDARILY LIABLE.

``(a) Extension of Protection When Actions Stayed, Postponed, or
Suspended.--Whenever pursuant to this Act a court stays, postpones, or
suspends (1) the enforcement of an obligation or liability, (2) the
prosecution of a suit or proceeding, (3) the entry or enforcement of an
order, writ, judgment, or decree, or (4) the performance of any other
act, the court may likewise grant such a stay, postponement, or
suspension to a surety, guarantor, endorser, accommodation maker,
comaker, or other person who is or may be primarily or secondarily
subject to the obligation or liability the performance or enforcement
of which is stayed, postponed, or suspended.
``(b) Vacation or Set-Aside of Judgments.--When a judgment or
decree is vacated or set aside, in whole or in part, pursuant to this
Act, the court may also set aside or vacate, as the case may be, the
judgment or decree as to a surety, guarantor, endorser, accommodation
maker, comaker, or other person who is or may be primarily or
secondarily liable on the contract or liability for the enforcement of
the judgment or decree.
``(c) Bail Bond Not To Be Enforced During Period of Military
Service.--A court may not enforce a bail bond during the period of
military service of the principal on the bond when military service
prevents the surety from obtaining the attendance of the principal. The
court may discharge the surety and exonerate the bail, in accordance
with principles of equity and justice, during or after the period of
military service of the principal.
``(d) Waiver of Rights.--
``(1) Waivers not precluded.--This Act does not prevent a
waiver in writing by a surety, guarantor, endorser,
accommodation maker, comaker, or other person (whether
primarily or secondarily liable on an obligation or liability)
of the protections provided under subsections (a) and (b). Any
such waiver is effective only if it is executed as an
instrument separate from the obligation or liability with
respect to which it applies.
``(2) Waiver invalidated upon entrance to military
service.--If a waiver under paragraph (1) is executed by an
individual who after the execution of the waiver enters
military service, or by a dependent of an individual who after
the execution of the waiver enters military service, the waiver
is not valid after the beginning of the period of such military
service unless the waiver was executed by such individual or
dependent during the period specified in section 106.

``SEC. 104. EXTENSION OF PROTECTIONS TO CITIZENS SERVING WITH ALLIED
FORCES.

``A citizen of the United States who is serving with the forces of
a nation with which the United States is allied in the prosecution of a
war or military action is entitled to the relief and protections
provided under this Act if that service with the allied force is
similar to military service as defined in this Act. The relief and
protections provided to such citizen shall terminate on the date of
discharge or release from such service.

``SEC. 105. NOTIFICATION OF BENEFITS.

``The Secretary concerned shall ensure that notice of the benefits
accorded by this Act is provided in writing to persons in military
service and to persons entering military service.

``SEC. 106. EXTENSION OF RIGHTS AND PROTECTIONS TO RESERVES ORDERED TO
REPORT FOR MILITARY SERVICE AND TO PERSONS ORDERED TO
REPORT FOR INDUCTION.

``(a) Reserves Ordered To Report for Military Service.--A member of
a reserve component who is ordered to report for military service is
entitled to the rights and protections of this title and titles II and
III during the period beginning on the date of the member's receipt of
the order and ending on the date on which the member reports for
military service (or, if the order is revoked before the member so
reports, or the date on which the order is revoked).
``(b) Persons Ordered To Report for Induction.--A person who has
been ordered to report for induction under the Military Selective
Service Act (50 U.S.C. App. 451 et seq.) is entitled to the rights and
protections provided a servicemember under this title and titles II and
III during the period beginning on the date of receipt of the order for
induction and ending on the date on which the person reports for
induction (or, if the order to report for induction is revoked before
the date on which the person reports for induction, on the date on
which the order is revoked).

``SEC. 107. WAIVER OF RIGHTS PURSUANT TO WRITTEN AGREEMENT.

``(a) In General.--A servicemember may waive any of the rights and
protections provided by this Act. In the case of a waiver that permits
an action described in subsection (b), the waiver is effective only if
made pursuant to a written agreement of the parties that is executed
during or after the servicemember's period of military service. The
written agreement shall specify the legal instrument to which the
waiver applies and, if the servicemember is not a party to that
instrument, the servicemember concerned.
``(b) Actions Requiring Waivers in Writing.--The requirement in
subsection (a) for a written waiver applies to the following:
``(1) The modification, termination, or cancellation of--
``(A) a contract, lease, or bailment; or
``(B) an obligation secured by a mortgage, trust,
deed, lien, or other security in the nature of a
mortgage.
``(2) The repossession, retention, foreclosure, sale,
forfeiture, or taking possession of property that--
``(A) is security for any obligation; or
``(B) was purchased or received under a contract,
lease, or bailment.
``(c) Coverage of Periods After Orders Received.--For the purposes
of this section--
``(1) a person to whom section 106 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 shall
be considered to be a period of military service.

``SEC. 108. EXERCISE OF RIGHTS UNDER ACT NOT TO AFFECT CERTAIN FUTURE
FINANCIAL TRANSACTIONS.

``Application by a servicemember for, or receipt by a servicemember
of, a stay, postponement, or suspension pursuant to this Act in the
payment of a tax, fine, penalty, insurance premium, or other civil
obligation or liability of that servicemember shall not itself (without
regard to other considerations) provide the basis for any of the
following:
``(1) A determination by a lender or other person that the
servicemember is unable to pay the civil obligation or
liability in accordance with its terms.
``(2) With respect to a credit transaction between a
creditor and the servicemember--
``(A) a denial or revocation of credit by the
creditor;
``(B) a change by the creditor in the terms of an
existing credit arrangement; or
``(C) a refusal by the creditor to grant credit to
the servicemember in substantially the amount or on
substantially the terms requested.
``(3) An adverse report relating to the creditworthiness of
the servicemember by or to a person engaged in the practice of
assembling or evaluating consumer credit information.
``(4) A refusal by an insurer to insure the servicemember.
``(5) An annotation in a servicemember's record by a
creditor or a person engaged in the practice of assembling or
evaluating consumer credit information, identifying the
servicemember as a member of the National Guard or a reserve
component.
``(6) A change in the terms offered or conditions required
for the issuance of insurance.

``SEC. 109. LEGAL REPRESENTATIVES.

``(a) Representative.--A legal representative of a servicemember
for purposes of this Act is either of the following:
``(1) An attorney acting on the behalf of a servicemember.
``(2) An individual possessing a power of attorney.
``(b) Application.--Whenever the term `servicemember' is used in
this Act, such term shall be treated as including a reference to a
legal representative of the servicemember.

``TITLE II--GENERAL RELIEF

``SEC. 201. PROTECTION OF SERVICEMEMBERS AGAINST DEFAULT JUDGMENTS.

``(a) Applicability of Section.--This section applies to any civil
action or proceeding in which the defendant does not make an
appearance.
``(b) Affidavit Requirement.--
``(1) Plaintiff to file affidavit.--In any action or
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 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.
``(f) Section 202 Protection.--If a servicemember who is a
defendant in an action covered by this section receives actual notice
of the action, the servicemember may request a stay of proceeding under
section 202.
``(g) Vacation or Setting Aside of Default Judgments.--
``(1) Authority for court to vacate or set aside
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.

``SEC. 202. STAY OF PROCEEDINGS WHEN SERVICEMEMBER HAS NOTICE.

``(a) Applicability of Section.--This section applies to any civil
action or proceeding in which the defendant at the time of filing an
application under this section--
``(1) is in military service or is within 90 days after
termination of or release from military service; and
``(2) has received notice of the action or proceeding.
``(b) Stay of Proceedings.--
``(1) Authority for stay.--At any stage before final
judgment in a civil action or proceeding in which a
servicemember described in subsection (a) is a party, the court
may on its own motion and shall, upon application by the
servicemember, stay the action for a period of not less than 90
days, if the conditions in paragraph (2) are met.
``(2) Conditions for stay.--An application for a stay under
paragraph (1) shall include the following:
``(A) A letter or other communication setting forth
facts stating the manner in which current military duty
requirements materially affect the servicemember's
ability to appear and stating a date when the
servicemember will be available to appear.
``(B) A letter or other communication from the
servicemember's commanding officer stating that the
servicemember's current military duty prevents
appearance and that military leave is not authorized
for the servicemember at the time of the letter.
``(c) Application Not a Waiver of Defenses.--An application for a
stay under this section does not constitute an appearance for
jurisdictional purposes and does not constitute a waiver of any
substantive or procedural defense (including a defense relating to lack
of personal jurisdiction).
``(d) Additional Stay.--
``(1) Application.--A servicemember who is granted a stay
of a civil action or proceeding under subsection (b) may apply
for an additional stay based on continuing material affect of
military duty on the servicemember's ability to appear. Such an
application may be made by the servicemember at the time of the
initial application under subsection (b) or when it appears
that the servicemember is unavailable to prosecute or defend
the action. The same information required under subsection
(b)(2) shall be included in an application under this
subsection.
``(2) Appointment of counsel when additional stay
refused.--If the court refuses to grant an additional stay of
proceedings under paragraph (1), the court shall appoint
counsel to represent the servicemember in the action or
proceeding.
``(e) Coordination With Section 201.--A servicemember who applies
for a stay under this section and is unsuccessful may not seek the
protections afforded by section 201.
``(f) Inapplicability to Section 301.--The protections of this
section do not apply to section 301.

``SEC. 203. FINES AND PENALTIES UNDER CONTRACTS.

``(a) Prohibition of Penalties.--When an action for 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.

``SEC. 204. STAY OR VACATION OF EXECUTION OF JUDGMENTS, ATTACHMENTS,
AND GARNISHMENTS.

``(a) Court Action Upon Material Affect Determination.--If a
servicemember, in the opinion of the court, is materially affected by
reason of military service in complying with a court judgment or order,
the court may on its own motion and shall on application by the
servicemember--
``(1) stay the execution of any judgment or order entered
against the servicemember; and
``(2) vacate or stay an attachment or garnishment of
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.

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

``(a) Period of Stay.--A stay of an action, proceeding, attachment,
or execution made pursuant to the provisions of this Act by a court may
be ordered for the period of military service and 90 days thereafter,
or for any part of that period. The court may set the terms and amounts
for such installment payments as is considered reasonable by the court.
``(b) Codefendants.--If the servicemember is a codefendant with
others who are not in military service and who are not entitled to the
relief and protections provided under this Act, the plaintiff may
proceed against those other defendants with the approval of the court.
``(c) Inapplicability of Section.--This section does not apply to
sections 202 and 701.

``SEC. 206. STATUTE OF LIMITATIONS.

``(a) Tolling of Statutes of Limitation During Military Service.--
The period of a servicemember's military service may not be included in
computing any period limited by law, regulation, or order for the
bringing of any action or proceeding in a court, or in any board,
bureau, commission, department, or other agency of a State (or
political subdivision of a State) or the United States by or against
the servicemember or the servicemember's heirs, executors,
administrators, or assigns.
``(b) Redemption of Real Property.--A period of military service
may not be included in computing any period provided by law for the
redemption of real property sold or forfeited to enforce an obligation,
tax, or assessment.
``(c) Inapplicability to Internal Revenue Laws.--This section does
not apply to any period of limitation prescribed by or under the
internal revenue laws of the United States.

``SEC. 207. MAXIMUM RATE OF INTEREST ON DEBTS INCURRED BEFORE MILITARY
SERVICE.

``(a) Interest Rate Limitation.--
``(1) Limitation to 6 percent.--An obligation or liability
bearing interest at a rate in excess of 6 percent per year that
is incurred by a servicemember, or the servicemember and the
servicemember's spouse jointly, before the servicemember enters
military service shall not bear interest at a rate in excess of
6 percent per year during the period of military service.
``(2) Forgiveness of interest in excess of 6 percent.--
Interest at a rate in excess of 6 percent per year that would
otherwise be incurred but for the prohibition in paragraph (1)
is forgiven.
``(3) Prevention of acceleration of principal.--The amount
of any periodic payment due from a servicemember under the
terms of the instrument that created an obligation or liability
covered by this section shall be reduced by the amount of the
interest forgiven under paragraph (2) that is allocable to the
period for which such payment is made.
``(b) Implementation of Limitation.--
``(1) Written notice to creditor.--In order for an
obligation or liability of a servicemember to be subject to the
interest rate limitation in subsection (a), the servicemember
shall provide to the creditor written notice and a copy of the
military orders calling the servicemember to military service
and any orders further extending military service, not later
than 180 days after the date of the servicemember's termination
or release from military service.
``(2) Limitation effective as of date of order to active
duty.--Upon receipt of written notice and a copy of orders
calling a servicemember to military service, the creditor shall
treat the debt in accordance with subsection (a), effective as
of the date on which the servicemember is called to military
service.
``(c) Creditor Protection.--A court may grant a creditor relief
from the limitations of this section if, in the opinion of the court,
the ability of the servicemember to pay interest upon the obligation or
liability at a rate in excess of 6 percent per year is not materially
affected by reason of the servicemember's military service.
``(d) Interest.--As used in this section, the term `interest'
includes service charges, renewal charges, fees, or any other charges
(except bona fide insurance) with respect to an obligation or
liability.

``TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES

``SEC. 301. EVICTIONS AND DISTRESS.

``(a) Court-Ordered Eviction.--
``(1) In general.--Except by court order, a landlord (or
another person with paramount title) may not--
``(A) evict a servicemember, or the dependents of a
servicemember, during a period of military service of
the servicemember, from premises--
``(i) that are occupied or intended to be
occupied primarily as a residence; and
``(ii) for which the monthly rent does not
exceed $2,400, as adjusted under paragraph (2)
for years after 2003; or
``(B) subject such premises to a distress during
the period of military service.
``(2) Housing price inflation adjustment.--(A) For calendar
years beginning with 2004, the amount in effect under paragraph
(1)(A)(ii) shall be increased by the housing price inflation
adjustment for the calendar year involved.
``(B) For purposes of this paragraph--
``(i) The housing price inflation adjustment for
any calendar year is the percentage change (if any) by
which--
``(I) the CPI housing component for
November of the preceding calendar year,
exceeds
``(II) the CPI housing component for
November of 1984.
``(ii) The term `CPI housing component' means the
index published by the Bureau of Labor Statistics of
the Department of Labor known as the Consumer Price
Index, All Urban Consumers, Rent of Primary Residence,
U.S. City Average.
``(3) Publication of housing price inflation adjustment.--
The Secretary of Defense shall cause to be published in the
Federal Register each year the amount in effect under paragraph
(1)(A)(ii) for that year following the housing price inflation
adjustment for that year pursuant to paragraph (2). Such
publication shall be made for a year not later than 60 days
after such adjustment is made for that year.
``(b) Stay of Execution.--
``(1) Court authority.--Upon an application for eviction or
distress with respect to premises covered by this section, the
court may on its own motion and shall, if a request is made by
or on behalf of a servicemember whose ability to pay the agreed
rent is materially affected by military service--
``(A) stay the proceedings for a period of 90 days,
unless in the opinion of the court, justice and equity
require a longer or shorter period of time; or
``(B) adjust the obligation under the lease to
preserve the interests of all parties.
``(2) Relief to landlord.--If a stay is granted under
paragraph (1), the court may grant to the landlord (or other
person with paramount title) such relief as equity may require.
``(c) Penalties.--
``(1) Misdemeanor.--Except as provided in subsection (a), a
person who knowingly takes part in an eviction or distress
described in subsection (a), or who knowingly attempts to do
so, shall be fined as provided in title 18, United States Code,
or imprisoned for not more than one year, or both.
``(2) Preservation of other remedies and rights.--The
remedies and rights provided under this section are in addition
to and do not preclude any remedy for wrongful conversion (or
wrongful eviction) otherwise available under the law to the
person claiming relief under this section, including any award
for consequential and punitive damages.
``(d) Rent Allotment From Pay of Servicemember.--To the extent
required by a court order related to property which is the subject of a
court action under this section, the Secretary concerned shall make an
allotment from the pay of a servicemember to satisfy the terms of such
order, except that any such allotment shall be subject to regulations
prescribed by the Secretary concerned establishing the maximum amount
of pay of servicemembers that may be allotted under this subsection.
``(e) Limitation of Applicability.--Section 202 is not applicable
to this section.

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

``(a) Protection Upon Breach of Contract.--
``(1) Protection after entering military service.--After a
servicemember enters military service, a contract by the
servicemember for--
``(A) the purchase of real or personal property
(including a motor vehicle); or
``(B) the lease or bailment of such property,
may not be rescinded or terminated for a breach of terms of the
contract occurring before or during that person's military
service, nor may the property be repossessed for such breach without a
court order.
``(2) Applicability.--This section applies only to a
contract for which a deposit or installment has been paid by
the servicemember before the servicemember enters military
service.
``(b) Penalties.--
``(1) Misdemeanor.--A person who knowingly resumes
possession of property in violation of subsection (a), or in
violation of section 107 of this Act, or who knowingly attempts
to do so, shall be fined as provided in title 18, United States
Code, or imprisoned for not more than one year, or both.
``(2) Preservation of other remedies and rights.--The
remedies and rights provided under this section are in addition
to and do not preclude any remedy for wrongful conversion
otherwise available under law to the person claiming relief
under this section, including any award for consequential and
punitive damages.
``(c) Authority of Court.--In a hearing based on this section, the
court--
``(1) may order repayment to the servicemember of all or
part of the prior installments or deposits as a condition of
terminating the contract and resuming possession of the
property;
``(2) may, on its own motion, and shall on application by a
servicemember when the servicemember's ability to comply with
the contract is materially affected by military service, stay
the proceedings for a period of time as, in the opinion of the
court, justice and equity require; or
``(3) may make other disposition as is equitable to
preserve the interests of all parties.

``SEC. 303. MORTGAGES AND TRUST DEEDS.

``(a) Mortgage as Security.--This section applies only to an
obligation on real or personal property owned by a servicemember that--
``(1) originated before the period of the servicemember's
military service and for which the servicemember is still
obligated; and
``(2) is secured by a mortgage, trust deed, or other
security in the nature of a mortgage.
``(b) Stay of Proceedings and Adjustment of Obligation.--In an
action filed during, or within 90 days after, a servicemember's period
of military service to enforce an obligation described in subsection
(a), the court may after a hearing and on its own motion and shall upon
application by a servicemember when the servicemember's ability to
comply with the obligation is materially affected by military service--
``(1) stay the proceedings for a period of time as justice
and equity require, or
``(2) adjust the obligation to preserve the interests of
all parties.
``(c) Sale or Foreclosure.--A sale, foreclosure, or seizure of
property for a breach of an obligation described in subsection (a)
shall not be valid if made during, or within 90 days after, the period
of the servicemember's military service except--
``(1) upon a court order granted before such sale,
foreclosure, or seizure with a return made and approved by the
court; or
``(2) if made pursuant to an agreement as provided in
section 107.
``(d) Penalties.--
``(1) Misdemeanor.--A person who knowingly makes or causes
to be made a sale, foreclosure, or seizure of property that is
prohibited by subsection (c), or who knowingly attempts to do
so, shall be fined as provided in title 18, United States Code,
or imprisoned for not more than one year, or both.
``(2) Preservation of other remedies.--The remedies and
rights provided under this section are in addition to and do
not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including consequential and punitive damages.

``SEC. 304. SETTLEMENT OF STAYED CASES RELATING TO PERSONAL PROPERTY.

``(a) Appraisal of Property.--When a stay is granted pursuant to
this Act in a proceeding to foreclose a mortgage on or to repossess
personal property, or to rescind or terminate a contract for the
purchase of personal property, the court may appoint three
disinterested parties to appraise the property.
``(b) Equity Payment.--Based on the appraisal, and if undue
hardship to the 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.

``SEC. 305. TERMINATION OF RESIDENTIAL OR MOTOR VEHICLE LEASES.

``(a) Termination by Lessee.--The lessee on a lease described in
subsection (b) may, at the lessee's option, terminate the lease at any
time after--
``(1) the lessee's entry into military service; or
``(2) the date of the lessee's military orders described in
paragraph (1)(B) or (2)(B) of subsection (b), as the case may
be.
``(b) Covered Leases.--This section applies to the following
leases:
``(1) Leases of premises.--A lease of premises occupied, or
intended to be occupied, by a servicemember or a
servicemember's dependents for a residential, professional,
business, agricultural, or similar purpose if--
``(A) the lease is executed by or on behalf of a
person who thereafter and during the term of the lease
enters military service; or
``(B) the servicemember, while in military service,
executes the lease and thereafter receives military
orders for a permanent change of station or to deploy
with a military unit for a period of not less than 90
days.
``(2) Leases of motor vehicles.--A lease of a motor vehicle
used, or intended to be used, by a servicemember or a
servicemember's dependents for personal or business
transportation if--
``(A) the lease is executed by or on behalf of a
person who thereafter and during the term of the lease
enters military service under a call or order
specifying a period of not less than 180 days (or who
enters military service under a call or order
specifying a period of 180 days or less and who,
without a break in service, receives orders extending
the period of military service to a period of not less
than 180 days); or
``(B) the servicemember, while in military service,
executes the lease and thereafter receives military
orders for a permanent change of station outside of the
continental United States or to deploy with a military
unit for a period of not less than 180 days.
``(c) Manner of Termination.--
``(1) In general.--Termination of a lease under subsection
(a) is made--
``(A) by delivery by the lessee of written notice
of such termination, 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) Lease of premises.--In the case of a lease described
in subsection (b)(1) that provides for monthly payment of rent,
termination of the lease under subsection (a) is effective 30
days after the first date on which the next rental payment is
due and payable after the date on which the notice under
subsection (c) is delivered. In the case of any other lease
described in subsection (b)(1), termination of the lease under
subsection (a) is effective on the last day of the month
following the month in which the notice is delivered.
``(2) Lease of motor vehicles.--In the case of a lease
described in subsection (b)(2), termination of the lease under
subsection (a) is effective on the day on which the
requirements of subsection (c) are met for such termination.
``(e) Arrearages and Other Obligations and Liabilities.--Rents or
lease amounts unpaid for the period preceding the effective date of the
lease termination shall be paid on a prorated basis. In the case of the
lease of a motor vehicle, the lessor may not impose an early
termination charge, but any taxes, summonses, and title and
registration fees and any other obligation and liability of the lessee
in accordance with the terms of the lease, including reasonable charges
to the lessee for excess wear, use and mileage, that are due and unpaid
at the time of termination of the lease shall be paid by the lessee.
``(f) Rent Paid in Advance.--Rents or lease amounts paid in advance
for a period after the effective date of the termination of the lease
shall be refunded to the lessee by the lessor (or the lessor's assignee
or the assignee's agent) within 30 days of the effective date of the
termination of the lease.
``(g) Relief to Lessor.--Upon application by the lessor to a court
before the termination date provided in the written notice, relief
granted by this section to a servicemember may be modified as justice
and equity require.
``(h) Penalties.--
``(1) Misdemeanor.--Any person who knowingly seizes, holds,
or detains the personal effects, security deposit, or other
property of a servicemember or a servicemember's dependent who
lawfully terminates a lease covered by this section, or who
knowingly interferes with the removal of such property from
premises covered by such lease, for the purpose of subjecting
or attempting to subject any of such property to a claim for
rent accruing subsequent to the date of termination of such
lease, or attempts to do so, shall be fined as provided in
title 18, United States Code, or imprisoned for not more than
one year, or both.
``(2) Preservation of other remedies.--The remedy and
rights provided under this section are in addition to and do
not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including any award for consequential or punitive
damages.

``SEC. 306. PROTECTION OF LIFE INSURANCE POLICY.

``(a) Assignment of Policy Protected.--If a life insurance policy
on the life of a servicemember is assigned before military service to
secure the payment of an obligation, the assignee of the policy (except
the insurer in connection with a policy loan) may not exercise, during
a period of military service of the servicemember or within one year
thereafter, any right or option obtained under the assignment without a
court order.
``(b) Exception.--The prohibition in subsection (a) shall not
apply--
``(1) if the assignee has the written consent of the
insured made during the period described in subsection (a);
``(2) when the premiums on the policy are due and unpaid;
or
``(3) upon the death of the insured.
``(c) Order Refused Because of Material Affect.--A court which
receives an application for an order required under subsection (a) may
refuse to grant such order if the court determines the ability of the
servicemember to comply with the terms of the obligation is materially
affected by military service.
``(d) Treatment of Guaranteed Premiums.--For purposes of this
subsection, premiums guaranteed under the provisions of title IV of
this Act shall not be considered due and unpaid.
``(e) Penalties.--
``(1) Misdemeanor.--A person who knowingly takes an action
contrary to this section, or attempts to do so, shall be fined
as provided in title 18, United States Code, or imprisoned for
not more than one year, or both.
``(2) Preservation of other remedies.--The remedy and
rights provided under this section are in addition to and do
not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including any consequential or punitive damages.

``SEC. 307. ENFORCEMENT OF STORAGE LIENS.

``(a) Liens.--
``(1) Limitation on foreclosure or enforcement.--A person
holding a lien on the property or effects of a servicemember
may not, during any period of military service of the
servicemember and for 90 days thereafter, foreclose or enforce
any lien on such property or effects without a court order
granted before foreclosure or enforcement.
``(2) Lien defined.--For the purposes of paragraph (1), the
term `lien' includes a lien for storage, repair, or cleaning of
the property or effects of a servicemember or a lien on such
property or effects for any other reason.
``(b) Stay of Proceedings.--In a proceeding to foreclose or enforce
a lien subject to this section, the court may on its own motion, and
shall if requested by a servicemember whose ability to comply with the
obligation resulting in the proceeding is materially affected by
military service--
``(1) stay the proceeding for a period of time as justice
and equity require; or
``(2) adjust the obligation to preserve the interests of
all parties.
The provisions of this subsection do not affect the scope of section
303.
``(c) Penalties.--
``(1) Misdemeanor.--A person who knowingly takes an action
contrary to this section, or attempts to do so, shall be fined
as provided in title 18, United States Code, or imprisoned for
not more than one year, or both.
``(2) Preservation of other remedies.--The remedy and
rights provided under this section are in addition to and do
not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including any consequential or punitive damages.

``SEC. 308. EXTENSION OF PROTECTIONS TO DEPENDENTS.

``Upon application to a court, a dependent of a servicemember is
entitled to the protections of this title if the dependent's ability to
comply with a lease, contract, bailment, or other obligation is
materially affected by reason of the servicemember's military service.

``TITLE IV--LIFE INSURANCE

``SEC. 401. DEFINITIONS.

``For the purposes of this title:
``(1) Policy.--The term `policy' means any individual
contract for whole, endowment, universal, or term life
insurance (other than group term life insurance coverage),
including any benefit in the nature of such insurance arising
out of membership in any fraternal or beneficial association
which--
``(A) provides that the insurer may not--
``(i) decrease the amount of coverage or
require the payment of an additional amount as
premiums if the insured engages in military
service (except increases in premiums in
individual term insurance based upon age); or
``(ii) limit or restrict coverage for any
activity required by military service; and
``(B) is in force not less than 180 days before the
date of the insured's entry into military service and
at the time of application under this title.
``(2) Premium.--The term `premium' means the amount
specified in an insurance policy to be paid to keep the policy
in force.
``(3) Insured.--The term `insured' means a servicemember
whose life is insured under a policy.
``(4) Insurer.--The term `insurer' includes any firm,
corporation, partnership, association, or business that is
chartered or authorized to provide insurance and issue
contracts or policies by the laws of a State or the United
States.

``SEC. 402. INSURANCE RIGHTS AND PROTECTIONS.

``(a) Rights and Protections.--The rights and protections under
this title apply to the insured when--
``(1) the insured,
``(2) the insured's legal representative, or
``(3) the insured's beneficiary in the case of an insured
who is outside a State,
applies in writing for protection under this title, unless the
Secretary of Veterans Affairs determines that the insured's policy is
not entitled to protection under this title.
``(b) Notification and Application.--The Secretary of Veterans
Affairs shall notify the Secretary concerned of the procedures to be
used to apply for the protections provided under this title. The
applicant shall send the original application to the insurer and a copy
to the Secretary of Veterans Affairs.
``(c) Limitation on Amount.--The total amount of life insurance
coverage protection provided by this title for a servicemember may not
exceed $250,000, or an amount equal to the Servicemember's Group Life
Insurance maximum limit, whichever is greater, regardless of the number
of policies submitted.

``SEC. 403. APPLICATION FOR INSURANCE PROTECTION.

``(a) Application Procedure.--An application for protection under
this title shall--
``(1) be in writing and signed by the insured, the
insured's legal representative, or the insured's beneficiary,
as the case may be;
``(2) identify the policy and the insurer; and
``(3) include an acknowledgement that the insured's rights
under the policy are subject to and modified by the provisions
of this title.
``(b) Additional Requirements.--The Secretary of Veterans Affairs
may require additional information from the applicant, the insured and
the insurer to determine if the policy is entitled to protection under
this title.
``(c) Notice to the Secretary by the Insurer.--Upon receipt of the
application of the insured, the insurer shall furnish a report
concerning the policy to the Secretary of Veterans Affairs as required
by regulations prescribed by the Secretary.
``(d) Policy Modification.--Upon application for protection under
this title, the insured and the insurer shall have constructively
agreed to any policy modification necessary to give this title full
force and effect.

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

``(a) Determination.--The Secretary of Veterans Affairs shall
determine whether a policy is entitled to protection under this title
and shall notify the insured and the insurer of that determination.
``(b) Lapse Protection.--A policy that the Secretary determines is
entitled to protection under this title shall not lapse or otherwise
terminate or be forfeited for the nonpayment of a premium, or interest
or indebtedness on a premium, after the date on which the application
for protection is received by the Secretary.
``(c) Time Application.--The protection provided by this title
applies during the insured's period of military service and for a
period of two years thereafter.

``SEC. 405. POLICY RESTRICTIONS.

``(a) Dividends.--While a policy is protected under this title, a
dividend or other monetary benefit under a policy may not be paid to an
insured or used to purchase dividend additions without the approval of
the Secretary of Veterans Affairs. If such approval is not obtained,
the dividends or benefits shall be added to the value of the policy to
be used as a credit when final settlement is made with the insurer.
``(b) Specific Restrictions.--While a policy is protected under
this title, cash value, loan value, withdrawal of dividend
accumulation, unearned premiums, or other value of similar character
may not be available to the insured without the approval of the
Secretary. The right of the insured to change a beneficiary designation
or select an optional settlement for a beneficiary shall not be
affected by the provisions of this title.

``SEC. 406. DEDUCTION OF UNPAID PREMIUMS.

``(a) Settlement of Proceeds.--If a policy matures as a result of a
servicemember's death or otherwise during the period of protection of
the policy under this title, the insurer in making settlement shall
deduct from the insurance proceeds the amount of the unpaid premiums
guaranteed under this title, together with interest due at the rate
fixed in the policy for policy loans.
``(b) Interest Rate.--If the interest rate is not specifically
fixed in the policy, the rate shall be the same as for policy loans in
other policies issued by the insurer at the time the insured's policy
was issued.
``(c) Reporting Requirement.--The amount deducted under this
section, if any, shall be reported by the insurer to the Secretary of
Veterans Affairs.

``SEC. 407. PREMIUMS AND INTEREST GUARANTEED BY UNITED STATES.

``(a) Guarantee of Premiums and Interest by the United States.--
``(1) Guarantee.--Payment of premiums, and interest on
premiums at the rate specified in section 406, which become due
on a policy under the protection of this title is guaranteed by
the United States. If the amount guaranteed is not paid to the
insurer before the period of insurance protection under this
title expires, the amount due shall be treated by the insurer
as a policy loan on the policy.
``(2) Policy termination.--If, at the expiration of
insurance protection under this title, the cash surrender value
of a policy is less than the amount due to pay premiums and
interest on premiums on the policy, the policy shall terminate.
Upon such termination, the United States shall pay the insurer
the difference between the amount due and the cash surrender
value.
``(b) Recovery From Insured of Amounts Paid by the United States.--
``(1) Debt payable to the united states.--The amount paid
by the United States to an insurer under this title shall be a
debt payable to the United States by the insured on whose
policy payment was made.
``(2) Collection.--Such amount may be collected by the
United States, either as an offset from any amount due the
insured by the United States or as otherwise authorized by law.
``(3) Debt not dischargeable in bankruptcy.--Such debt
payable to the United States is not dischargeable in bankruptcy
proceedings.
``(c) Crediting of Amounts Recovered.--Any amounts received by the
United States as repayment of debts incurred by an insured under this
title shall be credited to the appropriation for the payment of claims
under this title.

``SEC. 408. REGULATIONS.

``The Secretary of Veterans Affairs shall prescribe regulations for
the implementation of this title.

``SEC. 409. REVIEW OF FINDINGS OF FACT AND CONCLUSIONS OF LAW.

``The findings of fact and conclusions of law made by the Secretary
of Veterans Affairs in administering this title are subject to review
on appeal to the Board of Veterans' Appeals pursuant to chapter 71 of
title 38, United States Code, and to judicial review only as provided
in chapter 72 of such title.

``TITLE V--TAXES AND PUBLIC LANDS

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

``(a) Application.--This section applies in any case in which a tax
or assessment, whether general or special (other than a tax on personal
income), falls due and remains unpaid before or during a period of
military service with respect to a 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 commence an action to
redeem the servicemember's property during the period of military
service or within 180 days after termination of or release from
military service. This subsection may not be construed to shorten any
period provided by the law of a State (including any political
subdivision of a State) for redemption.
``(d) Interest on Tax or Assessment.--Whenever a servicemember does
not pay a tax or assessment on property described in subsection (a)
when due, the amount of the tax or assessment due and unpaid shall bear
interest until paid at the rate of 6 percent per year. An additional
penalty or interest shall not be incurred by reason of nonpayment. A
lien for such unpaid tax or assessment may include interest under this
subsection.
``(e) Joint Ownership Application.--This section applies to all
forms of property described in subsection (a) owned individually by a
servicemember or jointly by a servicemember and a dependent or
dependents.

``SEC. 502. RIGHTS IN PUBLIC LANDS.

``(a) Rights Not Forfeited.--The rights of a servicemember to lands
owned or controlled by the United States, and initiated or acquired by
the servicemember under the laws of the United States (including the
mining and mineral leasing laws) before 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.

``SEC. 503. DESERT-LAND ENTRIES.

``(a) Desert-Land Rights Not Forfeited.--A desert-land entry made
or held under the desert-land laws before the entrance of the entryman
or the entryman's successor in interest into military service shall not
be subject to contest or cancellation--
``(1) for failure to expend any required amount per acre
per year in improvements upon the claim;
``(2) for failure to effect the reclamation of the claim
during the period the entryman or the entryman's successor in
interest is in the military service, or for 180 days after
termination of or release from military service; or
``(3) during any period of hospitalization or
rehabilitation due to an injury or disability incurred in the
line of duty.
The time within which the entryman or claimant is required to make such
expenditures and effect reclamation of the land shall be exclusive of
the time periods described in paragraphs (2) and (3).
``(b) Service-Related Disability.--If an entryman or claimant is
honorably discharged and is unable to accomplish reclamation of, and
payment for, desert land due to a disability incurred in the line of
duty, the entryman or claimant may make proof without further
reclamation or payments, under regulations prescribed by the Secretary
of the Interior, and receive a patent for the land entered or claimed.
``(c) Filing Requirement.--In order to obtain the protection of
this section, the entryman or claimant shall, within 180 days after
entry into military service, cause to be filed in the land office of
the district where the claim is situated a notice communicating the
fact of military service and the desire to hold the claim under this
section.

``SEC. 504. MINING CLAIMS.

``(a) Requirements Suspended.--The provisions of section 2324 of
the Revised Statutes of the United States (30 U.S.C. 28) specified in
subsection (b) shall not apply to a 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.

``SEC. 505. MINERAL PERMITS AND LEASES.

``(a) Suspension During Military Service.--A person holding a
permit or lease on the public domain under the Federal mineral leasing
laws who enters military service may suspend all operations under the
permit or lease for the duration of military service and for 180 days
thereafter. The term of the permit or lease shall not run during the
period of suspension, nor shall any rental or royalties be charged
against the permit or lease during the period of suspension.
``(b) Notification.--In order to obtain the protection of this
section, the permittee or lessee shall, within 180 days after entry
into military service, notify the Secretary of the Interior by
registered mail of the fact that military service has begun and of the
desire to hold the claim under this section.
``(c) Contract Modification.--This section shall not be construed
to supersede the terms of any contract for operation of a permit or
lease.

``SEC. 506. PERFECTION OR DEFENSE OF RIGHTS.

``(a) Right To Take Action Not Affected.--This title shall not
affect the right of a 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 1044a of title 10, United
States Code, or any superior commissioned officer.
``(2) Legal status of affidavits.--Such affidavits shall be
binding in law and subject to the same penalties as prescribed
by section 1001 of title 18, United State Code.

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

``(a) Distribution of Information by Secretary Concerned.--The
Secretary concerned shall issue to servicemembers information
explaining the provisions of this title.
``(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) and related application forms.

``SEC. 508. LAND RIGHTS OF SERVICEMEMBERS.

``(a) No Age Limitations.--Any servicemember under the age of 21 in
military service shall be entitled to the same rights under the laws
relating to lands owned or controlled by the United States, 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 in military service until 180 days after
termination of or release from military service.
``(c) Entry Applications.--Applications for entry may be verified
before a person authorized to administer oaths under section 1044a of
title 10, United States Code, or under the laws of the State where the
land is situated.

``SEC. 509. REGULATIONS.

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

``SEC. 510. INCOME TAXES.

``(a) Deferral of Tax.--Upon notice to the Internal Revenue Service
or the tax authority of a State or a political subdivision of a State,
the collection of income tax on the income of a servicemember falling
due before or during military service shall be deferred for a period
not more than 180 days after termination of or release from military
service, if a servicemember's ability to pay such income tax is
materially affected by military service.
``(b) Accrual of Interest or Penalty.--No interest or penalty shall
accrue for the period of deferment by reason of nonpayment on any
amount of tax deferred under this section.
``(c) Statute of Limitations.--The running of a statute of
limitations against the collection of tax deferred under this section,
by seizure or otherwise, shall be suspended for the period of military
service of the servicemember and for an additional period of 270 days
thereafter.
``(d) Application Limitation.--This section shall not apply to the
tax imposed on employees by section 3101 of the Internal Revenue Code
of 1986.

``SEC. 511. RESIDENCE FOR TAX PURPOSES.

``(a) Residence or Domicile.--A servicemember shall neither lose
nor acquire a residence or domicile for purposes of taxation with
respect to the person, personal property, or income of the
servicemember by reason of being absent or present in any tax
jurisdiction of the United States solely in compliance with military
orders.
``(b) Military Service Compensation.--Compensation of a
servicemember for military service shall not be deemed to be income for
services performed or from sources within a tax jurisdiction of the
United States if the servicemember is not a resident or domiciliary of
the jurisdiction in which the servicemember is serving in compliance
with military orders.
``(c) Personal Property.--
``(1) Relief from personal property taxes.--The personal
property of a servicemember shall not be deemed to be located
or present in, or to have a situs for taxation in, the tax
jurisdiction in which the servicemember is serving in
compliance with military orders.
``(2) Exception for property within member's domicile or
residence.--This subsection applies to personal property or its
use within any tax jurisdiction other than the servicemember's
domicile or residence.
``(3) Exception for property used in trade or business.--
This section does not prevent taxation by a tax jurisdiction
with respect to personal property used in or arising from a
trade or business, if it has jurisdiction.
``(4) Relationship to law of state of domicile.--
Eligibility for relief from personal property taxes under this
subsection is not contingent on whether or not such taxes are
paid to the State of domicile.
``(d) Increase of Tax Liability.--A tax jurisdiction may not use
the military compensation of a nonresident servicemember to increase
the tax liability imposed on other income earned by the nonresident
servicemember or spouse subject to tax by the jurisdiction.
``(e) Federal Indian Reservations.--An Indian servicemember whose
legal residence or domicile is a Federal Indian reservation shall be
taxed by the laws applicable to Federal Indian reservations and not the
State where the reservation is located.
``(f) Definitions.--For purposes of this section:
``(1) Personal property.--The term `personal property'
means intangible and tangible property (including motor
vehicles).
``(2) Taxation.--The term `taxation' includes licenses,
fees, or excises imposed with respect to motor vehicles and
their use, if the license, fee, or excise is paid by the
servicemember in the servicemember's State of domicile or
residence.
``(3) Tax jurisdiction.--The term `tax jurisdiction' means
a State or a political subdivision of a State.

``TITLE VI--ADMINISTRATIVE REMEDIES

``SEC. 601. INAPPROPRIATE USE OF ACT.

``If a court determines, in any proceeding to enforce a civil
right, that any interest, property, or contract has been transferred or
acquired with the intent to delay the just enforcement of such right by
taking advantage of this Act, the court shall enter such judgment or
make such order as might lawfully be entered or made concerning such
transfer or acquisition.

``SEC. 602. CERTIFICATES OF SERVICE; PERSONS REPORTED MISSING.

``(a) Prima Facie Evidence.--In any proceeding under this Act, a
certificate signed by the Secretary concerned is prima facie evidence
as to any of the following facts stated in the certificate:
``(1) That a person named is, is not, has been, or has not
been in military service.
``(2) The time and the place the person entered military
service.
``(3) The person's residence at the time the person entered
military service.
``(4) The rank, branch, and unit of military service of the
person upon entry.
``(5) The inclusive dates of the person's military service.
``(6) The monthly pay received by the person at the date of
the certificate's issuance.
``(7) The time and place of the person's termination of or
release from military service, or the person's death during
military service.
``(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 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.

``SEC. 603. INTERLOCUTORY ORDERS.

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

``TITLE VII--FURTHER RELIEF

``SEC. 701. ANTICIPATORY RELIEF.

``(a) Application for Relief.--A servicemember may, during military
service or within 180 days of termination of or release from military
service, apply to a court for relief--
``(1) from any obligation or liability incurred by the
servicemember before the servicemember's military service; or
``(2) from a tax or assessment falling due before or during
the servicemember's military service.
``(b) Tax Liability or Assessment.--In a case covered by 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
``(ii) from the date of termination of or
release from military service, or from the date
of application if made after termination of or
release from military service.
``(B) Any stay under this paragraph shall be--
``(i) for a period equal to the remaining
life of the installment contract or other
instrument, plus a period of time equal to the
period of military service of the
servicemember, or any part of such combined
period; and
``(ii) subject to payment of the balance of
the 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) Affect of Stay on Fine or Penalty.--When a court grants a
stay under this section, a fine or penalty shall not accrue on the
obligation, liability, tax, or assessment for the period of compliance
with the terms and conditions of the stay.

``SEC. 702. POWER OF ATTORNEY.

``(a) Automatic Extension.--A power of attorney of a servicemember
shall be automatically extended for the period the servicemember is in
a missing status (as defined in section 551(2) of title 37, United
States Code) if the power of attorney--
``(1) was duly executed by the servicemember--
``(A) while in military service; or
``(B) before entry into military service but after
the servicemember--
``(i) received a call or order to report
for military service; or
``(ii) was notified by an official of the
Department of Defense that the person could
receive a call or order to report for military
service;
``(2) designates the servicemember's spouse, parent, or
other named relative as the servicemember's attorney in fact
for certain, specified, or all purposes; and
``(3) expires by its terms after the servicemember entered
a missing status.
``(b) Limitation on Power of Attorney Extension.--A power of
attorney executed by a servicemember may not be extended under
subsection (a) if the document by its terms clearly indicates that the
power granted expires on the date specified even though the
servicemember, after the date of execution of the document, enters a
missing status.

``SEC. 703. PROFESSIONAL LIABILITY PROTECTION.

``(a) Applicability.--This section applies to a servicemember who--
``(1) after July 31, 1990, is ordered to active duty (other
than for training) pursuant to sections 688, 12301(a),
12301(g), 12302, 12304, 12306, or 12307 of title 10, United
States Code, or who is ordered to active duty under section
12301(d) of such title during a period when members are on
active duty pursuant to any of the preceding sections; and
``(2) immediately before receiving the order to active
duty--
``(A) was engaged in the furnishing of health-care
or legal services or other services determined by the
Secretary of Defense to be professional services; and
``(B) had in effect a professional liability
insurance policy that does not continue to cover claims
filed with respect to the servicemember during the
period of the servicemember's active duty unless the
premiums are paid for such coverage for such period.
``(b) Suspension of Coverage.--
``(1) Suspension.--Coverage of a servicemember referred to
in subsection (a) by a professional liability insurance policy
shall be suspended by the insurance carrier in accordance with
this subsection upon receipt of a written request from the
servicemember by the insurance carrier.
``(2) Premiums for suspended contracts.--A professional
liability insurance carrier--
``(A) may not require that premiums be paid by or
on behalf of a servicemember for any professional
liability insurance coverage suspended pursuant to
paragraph (1); and
``(B) shall refund any amount paid for coverage for
the period of such suspension or, upon the election of
such servicemember, apply such amount for the payment
of any premium becoming due upon the reinstatement of
such coverage.
``(3) Nonliability of carrier during suspension.--A
professional liability insurance carrier shall not be liable
with respect to any claim that is based on professional conduct
(including any failure to take any action in a professional
capacity) of a servicemember that occurs during a period of
suspension of that servicemember's professional liability
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 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.
``(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.

``SEC. 704. HEALTH INSURANCE REINSTATEMENT.

``(a) Reinstatement of Health Insurance.--A servicemember who, by
reason of military service as defined in section 703(a)(1), is entitled
to the rights and protections of this Act shall also be entitled upon
termination or release from such service to reinstatement of any health
insurance that--
``(1) was in effect on the day before such service
commenced; and
``(2) was terminated effective on a date during the period
of such service.
``(b) No Exclusion or Waiting Period.--The reinstatement of health
care insurance coverage for the health or physical condition of a
servicemember described in subsection (a), or any other person who is
covered by the insurance by reason of the coverage of the
servicemember, shall not be subject to an exclusion or a waiting
period, if--
``(1) the condition arose before or during the period of
such service;
``(2) an exclusion or a waiting period would not have been
imposed for the condition during the period of coverage; and
``(3) if 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.
``(d) Time for Applying for Reinstatement.--An application under
this section must be filed not later than 120 days after the date of
the termination of or release from military service.

``SEC. 705. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

``For the purposes of voting for any Federal office (as defined in
section 301 of the Federal Election Campaign Act of 1971 (2 U.S.C.
431)) or a State or local office, a person who is absent from a State
in compliance with military or naval orders shall not, solely by reason
of that absence--
``(1) be deemed to have lost a residence or domicile in
that State, without regard to whether or not the person intends
to return to that State;
``(2) be deemed to have acquired a residence or domicile in
any other State; or
``(3) be deemed to have become a resident in or a resident
of any other State.

``SEC. 706. BUSINESS OR TRADE OBLIGATIONS.

``(a) Availability of Non-Business Assets To Satisfy Obligations.--
If the trade or business (without regard to the form in which such
trade or business is carried out) of a 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.''.

SEC. 2. CONFORMING AMENDMENTS.

(a) Military Selective Service Act.--Section 14 of the Military
Selective Service Act (50 U.S.C. App. 464) is repealed.
(b) Title 5, United States Code.--
(1) Section 5520a(k)(2)(A) of title 5, United States Code,
is amended by striking ``Soldiers' and Sailors' Civil Relief
Act of 1940'' and inserting ``Servicemembers Civil Relief
Act''; and
(2) Section 5569(e) of title 5, United States Code, is
amended--
(A) in paragraph (1), by striking ``provided by the
Soldiers' and Sailors' Civil Relief Act of 1940'' and
all that follows through ``of such Act'' and inserting
``provided by the Servicemembers Civil Relief Act,
including the benefits provided by section 702 of such
Act but excluding the benefits provided by sections
104, 105, and 106, title IV, and title V (other than
sections 501 and 510) of such Act''; and
(B) in paragraph (2)(A), by striking ``person in
the military service'' and inserting ``servicemember''.
(c) Title 10, United States Code.--Section 1408(b)(1)(D) of title
10, United States Code, is amended by striking ``Soldiers' and Sailors'
Civil Relief Act of 1940'' and inserting ``Servicemembers Civil Relief
Act''.
(d) Internal Revenue Code.--Section 7654(d)(1) of the Internal
Revenue Code of 1986 is amended by striking ``Soldiers' and Sailors'
Civil Relief Act'' and inserting ``Servicemembers Civil Relief Act''.
(e) Public Health Service Act.--Section 212(e) of the Public Health
Service Act (42 U.S.C. 213(e)) is amended by striking ``Soldiers' and
Sailors' Civil Relief Act of 1940'' and inserting ``Servicemembers
Civil Relief Act''.
(f) Elementary and Secondary Education Act of 1965.--Section 8001
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7701)
is amended by striking ``section 514 of the Soldiers' and Sailors'
Civil Relief Act of 1940 (50 U.S.C. App. 574)'' in the matter preceding
paragraph (1) and inserting ``section 511 of the Servicemembers Civil
Relief Act''.
(g) NOAA Commissioned Officer Corps Act of 2002.--Section 262(a)(2)
of National Oceanic and Atmospheric Administration Commissioned Officer
Corps Act of 2002 (33 U.S.C. 3072(a)(2)) is amended to read as follows:
``(2) The Servicemembers Civil Relief Act.''.

SEC. 3. EFFECTIVE DATE.

The amendment made by section 1 shall apply to any case that is not
final before the date of the enactment of this Act.

Calendar No. 393

108th CONGRESS

1st Session

S. 1136

[Report No. 108-197]

_______________________________________________________________________

A BILL

To restate, clarify, and revise the Soldiers' and Sailors' Civil Relief
Act of 1940.

_______________________________________________________________________

November 17, 2003

Reported with an amendment