[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2654 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2654

To amend the Servicemembers Civil Relief Act to provide servicemembers 
               increased protection during a funding gap.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2011

 Mr. Ellison introduced the following bill; which was referred to the 
                     Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Servicemembers Civil Relief Act to provide servicemembers 
               increased protection during a funding gap.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Don't Default on Military Families 
Act''.

SEC. 2. PROTECTION OF SERVICEMEMBERS DURING FUNDING GAP.

    (a) In General.--Title I of the Servicemembers Civil Relief Act (50 
U.S.C. App. 511 et seq.) is amended by adding at the end the following 
new section:

``SEC. 110. PROTECTION OF SERVICEMEMBERS DURING FUNDING GAP.

    ``(a) Application.--Notwithstanding any other section of this Act, 
the provisions of this section shall apply to a servicemember during a 
funding gap affecting the Armed Forces.
    ``(b) Evictions and Distress.--During a funding gap, section 
301(a)(1)(A)(ii) shall not apply to a servicemember.
    ``(c) Protection Under Installment Contracts for Purchase or 
Lease.--During a funding gap, section 302(a)(2) shall not apply to a 
servicemember.
    ``(d) Mortgages and Trust Deeds.--
            ``(1) In general.--During a funding gap, section 303(a)(1) 
        shall apply to a servicemember by substituting `before a 
        funding gap that is the cause of an action described in 
        subsection (b) or a sale, foreclosure, or seizure described in 
        subsection (c)' for `before the period of the servicemember's 
        military service'.
            ``(2) Credit rating.--During a funding gap, the failure or 
        delay of a servicemember to make a payment related to an 
        obligation or liability consisting of a mortgage, trust deed, 
        or other security in the nature of a mortgage, shall not itself 
        (without regard to other considerations) provide the basis for 
        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 if such 
        servicemember notifies in good faith the creditor related to 
        such obligation or liability that the funding gap is the cause 
        of the failed or delayed payment.
    ``(e) Funding Gap Defined.--In this Act, the term `funding gap' 
means--
            ``(1) any period of time after the beginning of a fiscal 
        year for which interim or full-year appropriations for the 
        personnel accounts of the Armed Forces for that fiscal year 
        have not been enacted; and
            ``(2) any period of time in which the debt of the United 
        States Government, as defined in section 3101 of title 31, 
        United States Code, reaches the statutory limit and the 
        Secretary of Defense determines that sufficient amounts are not 
        available in the personnel accounts of the Armed Forces to 
        continue to provide pay and allowances (without interruption) 
        to members of the Armed Forces.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by inserting after the item relating to section 109 
the following new item:

``Sec. 110. Protection of servicemembers during funding gap.''.
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