[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 100 Enrolled Bill (ENR)]

        H.R.100

                       One Hundred Eighth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
           the seventh day of January, two thousand and three


                                 An Act


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

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

SECTION 1. RESTATEMENT OF ACT.

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

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

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

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

                      ``TITLE I--GENERAL PROVISIONS

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

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.