[Congressional Record Volume 149, Number 77 (Thursday, May 22, 2003)]
[Senate]
[Pages S7041-S7051]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SPECTER (for himself and Mr. Bunning):
  S. 1136. A bill to restate, clarify, and revise the Soldiers' and 
Sailors' Civil Relief Act of 1940; to the Committee on Veterans' 
Affairs.
  Mr. SPECTER. Mr. President, as Chairman of the Committee on Veterans' 
Affairs, I have sought recognition today to introduce legislation that 
would restate, revise and update the Soldiers' and Sailors' Civil 
Relief Act of 1940, SSCRA.
  The SSCRA, in summary, suspends some of the legal obligations 
incurred by military personnel prior to entry into the service so that 
they might give their full attention to military duty. As was stated by 
the Supreme Court in LeMaistre v. Leffers, 333 U.S. 1, 6, 1948, SSCRA 
is to be read ``with an eye friendly to those who dropped their

[[Page S7042]]

affairs to answer their country's call.'' With operations in Iraq now 
wrapping up, it is an appropriate time for a review of this World War 
II-vintage legislation to see how it might be modified to better 
address the needs of 21st Century servicemen and women.
  I should mention at this point that I am aware that a bill to revise 
the SSCRA, H.R. 100, is currently pending in the House, and that my 
colleague from Georgia, Senator Zell Miller, has introduced companion 
legislation in the Senate as S. 792. My legislation is similar to H.R. 
100 and S. 792, but it contains modifications and additions to those 
bills as suggested by reservists and their families, the Department of 
Defense, and by other groups. It is my intention to work with Senator 
Miller to craft legislation that incorporates the best features of the 
two bills.
  This legislation would rename SSCRA the ``Servicemembers' Civil 
Relief Act'' to reflect that the Armed Forces are made up now of more 
than just soldiers and sailors, and keep in place the core protections 
that have been features of SSCRA for decades: stays of civil 
proceedings during a person's period of military service; an interest 
rate cap of 6 percent on debts incurred before active duty; protection 
from eviction and termination of pre-service residential leases; and 
legal residency protection. But it would also add several new 
provisions to this core.
  Currently, the Higher Education Act of 1965 prohibits the SSCRA's 6 
percent interest cap from applying to Federally-insured student loans. 
This bill would remove that prohibition. It would also require 
institutions of higher education to permit students who are called to 
active duty to return and complete classes at no additional cost.
  In addition, SSCRA now precludes evictions from premises occupied by 
servicemembers having a monthly rent $1200 or less. This $1200 ceiling 
was set in 1991; it has not been adjusted since. This legislation would 
raise the rent ceiling to $1950 or the amount of a servicemember's 
basic allowance for housing, whichever is higher. It would thereby take 
post-1991 inflation into account, and avoid the need for frequent 
amendments to the law since housing allowances are adjusted annually 
based on housing costs in the area where the servicemember is assigned.
  When the SSCRA was originally enacted in 1940, automobiles were not 
commonly leased. That, of course, has changed; many people now choose 
leasing as a way to finance their personal transportation needs. This 
legislation would protect servicemembers who have leased cars--just as 
it does those who had chosen the more traditional form of auto 
financing--in two ways. First, it would prohibit lessors, like purchase 
financers, from repossessing personal property for nonpayment or breach 
without court action. Second, it would allow servicemembers called to 
active duty to terminate automobile leases just as they can real 
property leases.
  This bill also takes steps to offer some protection to professionals 
and small business owners who are called to active duty. It would 
include the practice of law among the ``professional services'' for 
which professional liability insurance obligations could be suspended 
subject to mandatory reinstatement. It would also authorize the 
Secretary of Defense to designate other professional callings that 
would be subject to these protections. And it would protect the assets 
of small business owners during military service if the servicemember 
is personally liable for trade or business debts.
  Since 1940, the Soldiers' and Sailors' Civil Relief Act has provided 
important protections to the men and women who wear the uniform. But 
60-plus years later, it is time for Congress to take a critical look at 
this law and revise it to reflect changes in our society since it was 
originally enacted. With the assistance of the Department of Defense, 
the National Guard Bureau, the Enlisted Association of the National 
Guard, and the Small Business Administration, the staff of the 
Committee on Veterans' Affairs, most notably Mr. David Goetz, the 
Committee's Associate Counsel, has undertaken the painstaking review 
that has yielded this rather extensive bill. It is my intention to seek 
further comment and then guide this important reform legislation to 
enactment.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1136

       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. Purposes.

                     ``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 defendant 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 leases by lessees.
``Sec. 306. Protection of life insurance policy.
``Sec. 307. Enforcement of storage liens.
``Sec. 308. Extension of protections to dependents.

                         ``TITLE IV--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. 707. Return to classes at no extra cost.

     ``SEC. 2. PURPOSES.

       ``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.

[[Page S7043]]

                     ``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.--
       ``(A) With respect to a member of the Army, Navy, Air 
     Force, Marine Corps, or Coast Guard, the term `military 
     service' means active duty, as that term is defined in 
     section 101(d)(1) of title 10, United States Code.
       ``(B) Active service of commissioned officers of the Public 
     Health Service or National Oceanic and Atmospheric 
     Administration shall be deemed to be `military service' for 
     the purposes of this Act.
       ``(C) Service of a member of the National Guard under a 
     call to active service authorized by the President or the 
     Secretary of Defense for a period of more than 30 consecutive 
     days under section 502(f) of title 32, United States Code, 
     for purposes of responding to a national emergency declared 
     by the President and supported by Federal funds shall be 
     deemed to be `military service' for the purposes of this Act.
       ``(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 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.

[[Page S7044]]

       ``(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, 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 DEFENDANT 
                   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) Automatic Stay.--
       ``(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 by a servicemember or a servicemember's 
     representative under this section does not constitute an 
     appearance for jurisdictional purposes and does not 
     constitute a waiver of any substantive or procedural defense 
     (including a defense relating to lack of personal 
     jurisdiction).
       ``(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

[[Page S7045]]

     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 such 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 such 
     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 60 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) 6-percent limit.--An obligation or liability bearing 
     interest at a rate in excess of 6 percent per year that is 
     incurred by a servicemember, or the servicemember and the 
     servicemember's spouse jointly, before the servicemember 
     enters military service shall not bear interest at a rate in 
     excess of 6 percent per year during the period of military 
     service.
       ``(2) Applicability to student loans.--Notwithstanding 
     section 428(d) of the Higher Education Act of 1965 (20 U.S.C. 
     1078(d)), paragraph (1) applies with respect to an obligation 
     or liability of a servicemember, or the servicemember and the 
     servicemember's spouse jointly, entered into under the Higher 
     Education Act of 1965 (20 U.S.C. 1001 et seq.)
       ``(3) Forgiveness of interest in excess of 6 percent.--
     Interest at a rate in excess of 6 percent per year that would 
     otherwise be incurred but for the prohibition in paragraph 
     (1) is forgiven.
       ``(4) Prevention of acceleration of principal.--The amount 
     of any periodic payment due from a servicemember under the 
     terms of the instrument that created an obligation or 
     liability covered by this section shall be reduced by the 
     amount of the interest forgiven under paragraph (3) that is 
     allocable to the period for which such payment is made.
       ``(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 Defined.--As used in this section, the term 
     `interest' means simple interest plus service charges, 
     renewal charges, fees, or any other charges (except bona fide 
     insurance) with respect to an obligation or liability.

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

     ``SEC. 301. EVICTIONS AND DISTRESS.

       ``(a) Court-Ordered Eviction.--Except by court order, a 
     landlord (or another person with paramount title) may not--
       ``(1) evict a servicemember, or the dependents of a 
     servicemember, during a period of military service of the 
     servicemember, from premises--
       ``(A) that are occupied or intended to be occupied 
     primarily as a residence; and
       ``(B) for which the monthly rent does not exceed the 
     greater of--
       ``(i) $1,950; or
       ``(ii) the monthly basic allowance for housing to which the 
     servicemember is entitled under section 403 of title 37, 
     United States Code; or
       ``(2) subject such premises to a distress during the period 
     of military service.
       ``(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, 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 108, or who knowingly attempts to do so, 
     shall be fined as provided in title 18, United States Code, 
     imprisoned for not more than one year, or both.
       ``(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--

[[Page S7046]]

       ``(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 108.
       ``(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, 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 LEASES BY LESSEES.

       ``(a) Covered Leases of Real Property.--This section 
     applies to the lease of premises occupied, or intended to be 
     occupied, by a servicemember or a servicemember's dependents 
     for a residential, professional, business, agricultural, or 
     similar purpose if--
       ``(1) the lease is executed by or on behalf of a person who 
     thereafter and during the term of the lease enters military 
     service; or
       ``(2) the servicemember, while in military service, 
     executes a lease and thereafter receives military orders for 
     a permanent change of station or to deploy with a military 
     unit for a period of not less than 90 days.
       ``(b) Covered Leases of Vehicles.--This section applies to 
     the lease of a motor vehicle used, or intended to be used, by 
     a servicemember or a servicemember's dependents if the lease 
     is executed by or on behalf of a person who thereafter and 
     during the term of the lease enters military service.
       ``(c) Notice to Lessor.--
       ``(1) Delivery of notice.--A lease described in subsection 
     (a) or (b) is terminated when written notice is delivered by 
     the lessee to the lessor (or the lessor's grantee) or to the 
     lessor's agent (or the agent's grantee).
       ``(2) Time for notice.--The written notice may be delivered 
     at any time after the lessee's entry into military service 
     or, in the case of a lease described in subsection (a), the 
     date of the military orders for a permanent change of station 
     or to deploy for a period of not less than 90 days.
       ``(3) Nature of notice.--Delivery 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 addressed to the lessor (or the 
     lessor's grantee) or to the lessor's agent (or the agent's 
     grantee) and depositing the written notice in the United 
     States mails.
       ``(d) Effective Date of Termination.--
       ``(1) Lease with monthly rent.--Termination of a lease 
     providing for monthly payment of rent shall be effective 30 
     days after the first date on which the next rental payment is 
     due and payable after the date on which the notice is 
     delivered.
       ``(2) Other lease.--All other leases terminate on the last 
     day of the month following the month in which the notice is 
     delivered.
       ``(e) Arrearages.--Rents or lease amounts unpaid for the 
     period preceding termination shall be paid on a prorated 
     basis.
       ``(f) Amounts Paid in Advance.--Rents or lease amounts paid 
     in advance for a period succeeding termination shall be 
     refunded to the lessee by the lessor (or the lessor's 
     assignee or the assignee's agent).
       ``(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 or lease payments accruing after the date of 
     termination of such lease, or attempts to do so, shall be 
     fined as provided in title 18, United States Code, imprisoned 
     for not more than one year, or both.
       ``(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 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, 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, 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--INSURANCE

     ``SEC. 401. DEFINITIONS.

       ``For the purposes of this title:

[[Page S7047]]

       ``(1) Policy.--The term `policy' means any contract for 
     whole, endowment, universal, or term life insurance, 
     including any benefit in the nature of such insurance arising 
     out of membership in any fraternal or beneficial association 
     which--
       ``(A) provides that the insurer may not--
       ``(i) decrease the amount of coverage or increase the 
     amount of premiums if the insured is in military service; 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 the insured, the 
     insured's designee, or the insured's beneficiary applies in 
     writing for protection under this title, unless the Secretary 
     of Veterans Affairs determines that the insured's policy is 
     not entitled to protection under this title.
       ``(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 designee, 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 Insured.--Upon receipt 
     of the application of the insured, the insurer shall furnish 
     a report concerning the policy to the Secretary of Veterans 
     Affairs as required by regulations prescribed by the 
     Secretary.
       ``(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 of the application for protection.
       ``(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 may 
     be reviewed by the Board of Veterans' Appeals and the United 
     States Court of Appeals for Veterans Claims.

                   ``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; 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

[[Page S7048]]

     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

[[Page S7049]]

     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 the 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, or the servicemember's legal 
     representative, 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

[[Page S7050]]

     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) The term `active duty' has the meaning given that 
     term in section 101(d)(1) of title 10, United States Code.
       ``(2) The term `profession' includes occupation.
       ``(3) 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. 707. RETURN TO CLASSES AT NO ADDITIONAL COST.

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

     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 and 106, title IV, and 
     title V (other than sections 501 and 510) of such Act''; and

[[Page S7051]]

       (B) in paragraph (2), 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 Law 91-621.--Section 3(a)(3) of Public Law 91-
     621 (33 U.S.C. 857-3(a)(3)) is amended by striking 
     ``Soldiers' and Sailors' Civil Relief Act of 1940, as 
     amended'' and inserting ``Servicemembers Civil Relief Act''.
       (f) Public Health Service Act.--Section 212(e) of the 
     Public Health Service Act (42 U.S.C. 213(e)) is amended by 
     striking ``Soldiers' and Sailors' Civil Relief Act of 1940'' 
     and inserting ``Servicemembers Civil Relief Act''.
       (g) Elementary and Secondary Education Act of 1965.--
     Section 8001 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7701) is amended by striking ``section 514 of 
     the Soldiers' and Sailors' Civil Relief Act of 1940 (50 
     U.S.C. App. 574)'' in the matter preceding paragraph (1) and 
     inserting ``section 511 of the Servicemembers Civil Relief 
     Act''.

     SEC. 3. EFFECTIVE DATE.

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