I 112th CONGRESS 1st Session H. R. 2654 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.

1.

Short title

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

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:

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. .