[Senate Report 108-197]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 393
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-197
======================================================================

 
                    SERVICEMEMBERS CIVIL RELIEF ACT

                                _______
                                

               November 17, 2003.--Ordered to be printed

                                _______
                                

  Mr. Specter, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1136]

    The Committee on Veterans' Affairs, to which was referred 
the bill (S. 1136) to restate, clarify, and revise the 
Soldiers' and Sailors' Civil Relief Act of 1940, having 
considered the same, reports favorably thereon with an 
amendment in the nature of a substitute and recommends that the 
bill, as amended, do pass.

                              Introduction

    On May 22, 2003, Committee Chairman Arlen Specter 
introduced S. 1136, the proposed ``Servicemembers Civil Relief 
Act'' (hereinafter, ``SSCRA''). Committee Member Jim Bunning is 
an original cosponsor of S. 1136. Committee Member Lindsey 
Graham was later added as a cosponsor of S. 1136.
    On April 7, 2003, Committee Member Zell Miller introduced 
S. 792, a bill to restate, clarify, and revise the ``Soldiers' 
and Sailors' Civil Relief Act of 1940.'' Committee Member Saxby 
Chambliss is an original cosponsor of S. 792. Committee Member 
Patty Murray was later added as a cosponsor of S. 792.
    On April 7, 2003, Committee Member E. Benjamin Nelson 
introduced S. 806, a bill to, among other things, improve the 
benefits and protections provided for regular and reserve 
members of the Armed Forces deployed or mobilized in the 
interest of the national security of the United States. 
Senators Barbara Mikulski, Thomas Daschle, Carl Levin, Patrick 
Leahy, Hillary Rodham Clinton, Jeff Bingaman, and Tim Johnson 
are original cosponsors of S. 806.

                           Committee Hearings

    On July 10, 2003, the Committee held a hearing on, among 
other bills, S. 792, S. 806, and S. 1136. Testimony was 
received by the Committee from: The Honorable Daniel L. Cooper, 
Under Secretary for Benefits, Department of Veterans Affairs 
(hereinafter, ``VA''); Mr. Craig W. Duehring, Principal Deputy 
Assistant Secretary of Defense for Reserve Affairs, Department 
of Defense (hereinafter, ``DOD''); Mr. Philip R. Wilkerson, 
Deputy Manager of Operations and Training, Veterans Affairs and 
Rehabilitation Division, The American Legion; Mr. Dennis 
Cullinan, Director, National Legislative Service, Veterans of 
Foreign Wars of the United States; Mr. Rick Surratt, Deputy 
National Legislative Director, Disabled American Veterans; Mr. 
Carl Blake, Associate Legislative Director, Paralyzed Veterans 
of America; and Mr. Richard Jones, National Legislative 
Director, AMVETS.
    Testimony was submitted for the record by Mr. Robert D. 
Evans, Director of Governmental Affairs, American Bar 
Association.

                           Committee Meeting

    After carefully reviewing the testimony from the foregoing 
hearing the Committee met in open session on September 30, 
2003, and voted by unanimous voice vote to report favorably S. 
1136, as amended.

               Summary of the Committee Bill as Reported

    S. 1136, as reported, (hereinafter ``the Committee bill'') 
contains various amendments to the Soldiers' and Sailors' Civil 
Relief Act of 1940 that would:
          1. Rename the Soldiers' and Sailors' Civil Relief Act 
        of 1940 as the Servicemembers Civil Relief Act; and
          2. Restate, clarify, and revise the Soldiers' and 
        Sailors' Civil Relief Act of 1940.

                      TITLE I--GENERAL PROVISIONS

    Title I of the Committee bill would:
    1. Define certain terms (section 101).
    2. Provide that the Act would apply to any judicial or 
administrative proceeding commenced in any court or agency in 
any jurisdiction in the United States, but would not apply to 
criminal proceedings (section 102).
    3. Protect persons who are secondarily liable for a 
servicemember's obligations (such as sureties, guarantors, 
endorsers, or comakers) by, among other things, extending to 
them the protections of the Act, and allowing courts, when a 
judgment or decree is vacated or set aside under the Act, to 
take similar action with respect to secondarily liable persons 
(section 103).
    4. Provide relief and protections of the Act to citizens of 
the United States in service in the armed forces of allies of 
the United States (section 104).
    5. Require the armed services to provide written notice to 
their members, and to persons entering service, of their rights 
under the Act (section 105).
    6. Extend protections under the Act to members of reserve 
components ordered to service and to individuals who have been 
drafted into service (section 106).
    7. Authorize servicemembers to waive rights and protections 
afforded by the Act and specify that certain waivers be in 
writing (section 107).
    8. Provide that a request by a servicemember for protection 
under the Act not be the basis for, among other things, denials 
of credit or insurance, or adverse credit reports (section 
108).
    9. Define who might be a servicemember's legal 
representative for purposes of enforcing rights under the Act 
(section 109).

                        TITLE II--GENERAL RELIEF

    Title II of the Committee bill would:
    1. Require that courts, in actions in which the defendant 
is in service and does not make an appearance, grant a minimum 
90-day stay of proceedings upon application of counsel or upon 
court motion if the court determines that there may be a 
defense to the action that cannot be presented without the 
presence of the defendant or in cases where, after due 
diligence, counsel has been unable to contact the defendant or 
otherwise determine if a meritorious defense exists (section 
201).
    2. Provide, when a servicemember has notice, for a minimum 
90-day stay of proceedings before final judgments in civil 
actions and allow for additional stays based on the continuing 
material effect of military duty on the servicemember's ability 
to appear; require the appointment of counsel for the 
servicemember when an application for an additional stay is 
refused; and specify that an application for a stay would not 
constitute an appearance for jurisdictional purposes and would 
not be deemed to be a waiver of any substantive or procedural 
defense (section 202).
    3. Prohibit penalties for a servicemember's failure to 
carry out the terms of a contract during the period of a stay, 
and authorize a court to reduce or waive fines or penalties for 
failure to carry out the terms of a contract if a 
servicemember's ability to perform was materially affected by 
service (section 203).
    4. Authorize courts to stay judgments or orders against 
servicemembers, or vacate or stay attachments or garnishments, 
when a servicemember's compliance is materially affected by 
service (section 204).
    5. Authorize stays of actions, proceedings, attachments, or 
executions to remain in effect for the period of service, and 
up to 90 days thereafter, while still allowing plaintiffs to 
proceed against non-servicemember defendants (section 205).
    6. Provide that a servicemember's time in service would not 
be included in any period of limitation for bringing actions by 
or against a servicemember, and would exclude the period of a 
servicemember's service from computing the period for 
redemption of real property that has been sold or forfeited to 
enforce a tax obligation or assessment (section 206).
    7. Limit annual interest rates on obligations incurred by a 
servicemember, or jointly by a servicemember and his or her 
spouse, before the servicemember's entry into service to 6 
percent, while also allowing courts to grant relief to 
creditors if the ability of the servicemember to pay interest 
in excess of the cap is not materially affected by service 
(section 207).

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

    Title III of the Committee bill would:
    1. Protect a servicemember and his or her dependents during 
a period of service from eviction from their homes (in cases 
where the rent in question does not exceed $2,400, adjusted 
annually), except by court order (section 301).
    2. Require a court order for rescission or termination for 
breach of contract by a servicemember during a period of 
service for the purchase or lease of real or personal property 
entered into prior to such service, and for which a deposit or 
installment has been paid (section 302).
    3. Authorize a court to stay proceedings or adjust the 
obligation in the case of claims filed to enforce a mortgage 
(or trust deed) when the servicemember's ability to comply with 
the obligation has been materially affected by service (section 
303).
    4. Authorize a court to appoint three disinterested parties 
to appraise a property when a stay has been granted in a 
proceeding to foreclose on a mortgage and, based on the 
appraisal and if undue hardship to the servicemember's 
dependents would not result, authorize the court to order the 
amount of the servicemember's equity in the property be paid to 
the servicemember or his or her dependents as a condition of 
foreclosing on a mortgage (section 304).
    5. Allow termination of leased premises occupied or 
intended to be occupied by a servicemember or a servicemember's 
dependents for a residential, professional, business, 
agricultural or similar purpose. It would also allow 
servicemembers to terminate leases of motor vehicles when: (a) 
The lease is entered into before service and the servicemember 
receives orders activating him or her for not less than 180 
days; or (b) the lease is entered into during service and the 
servicemember receives orders that either activate him or her 
for not less than 180 days or that designate a permanent change 
of station outside the continental United States (section 305).
    6. Provide that where any life insurance policy on the life 
of a person who enters active military service has been 
assigned before entry into service to secure payment of a debt, 
the assignee of the policy (except the insurance company in 
connection with a policy loan) could not, during the period of 
service or within one year thereafter, exercise any right or 
option obtained under the assignment without a court order 
except as specified (section 306).
    7. Prohibit the enforcement of a storage lien against a 
servicemember during a period of military service and for 90 
days thereafter without a court order (section 307).
    8. Entitle a dependent of a servicemember, upon application 
to a court, 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 (section 308).

                        TITLE IV--LIFE INSURANCE

    Title IV of the Committee bill would:
    1. Define certain terms (section 401).
    2. Allow an insured servicemember, or the insured's legal 
representative or beneficiary, to apply for protection from a 
lapse of a life insurance policy (up to a policy amount of 
$250,000, or an amount equal to the maximum amount of 
Servicemembers' Group Life Insurance) by providing for a 
guarantee of payment of premiums, and interest on premiums, by 
the United States (section 402).
    3. Require, among other things, that an application for 
protection under this title be in writing (section 403).
    4. Require VA to determine whether a policy is entitled to 
protection under this title and, if so, provide that the policy 
would not lapse or otherwise terminate for nonpayment of 
premiums, or interest on premiums, during the insured's period 
of service and for two years thereafter (section 404).
    5. Prohibit a dividend or other monetary benefit under a 
policy to be paid to an insured while the policy is protected 
under this title, and prohibit the availability of cash value, 
loan value, withdrawal of dividend accumulation, unearned 
premiums, or other value of similar character while the policy 
is protected under the provisions of the title (section 405).
    6. Authorize insurers to deduct from insurance proceeds the 
amount of unpaid premiums guaranteed, together with the 
interest due at the rate fixed in the policy for policy loans, 
if a policy matures as a result of a servicemember's death 
during the period of protection (section 406).
    7. Provide that the payment of premiums, and interest on 
premiums, be guaranteed by the United States; that at the time 
of the expiration of insurance protection under this title the 
United States pay the insurer the difference between the amount 
due and the cash surrender value of the policy; and that the 
amount so paid be deemed to be a debt payable to the United 
States by the policy holder (section 407).
    8. Authorize VA to prescribe regulations for implementation 
of this title (section 208).
    9. Allow findings of fact and conclusions of law made by VA 
in administering this title to be reviewable by the Board of 
Veterans' Appeals and the United States Court of Appeals for 
Veterans Claims (section 409).

                    TITLE V--TAXES AND PUBLIC LANDS

    Title V of the Committee bill would:
    1. Prohibit the sale of a servicemember's personal or real 
property to enforce a tax assessment without a court order, and 
impose a 6 percent interest rate cap on unpaid tax assessments 
(section 501).
    2. Provide that the rights of servicemembers to public 
lands not be forfeited or prejudiced as a result of being 
absent from the land during the period of military service 
(section 502).
    3. Exempt servicemembers from certain desert-land entry 
requirements during military service and for 180 days after 
termination of military service, and during any period of 
rehabilitation from injury or illness incurred during military 
service (section 503).
    4. Provide that certain requirements of law to keep a 
mining claim in effect would be suspended, under certain 
circumstances, when the claim is held by a servicemember, and 
protect a servicemember from forfeiture of a mining claim 
(section 504).
    5. Provide that a person holding a Federal mineral lease 
who enters military service could suspend all operations and 
prohibit the period the servicemember is on active duty (and 
180 days thereafter) from being counted as part of the term of 
the servicemember's permit or license, and prohibit the 
charging of rental fees or royalties during the period of 
suspension (section 505).
    6. Provide that this title would not affect the right of a 
servicemember to perfect or defend rights initiated or acquired 
prior to entry into military service (section 506).
    7. Require that information explaining the provisions of 
this title be provided to servicemembers (section 507).
    8. Entitle servicemembers under the age of 21 to the same 
rights relating to Federal lands and mining and mineral leasing 
laws as servicemembers over the age of 21 are entitled to 
(section 508).
    9. Authorize the Secretary of the Interior to issue 
regulations necessary to carry out this title (section 509).
    10. Provide that the collection of taxes on the income of a 
servicemember due before or during military service be deferred 
during service (and for 180 days thereafter) if the 
servicemember's ability to pay is materially affected by 
service, and prohibit interest or other penalties from accruing 
for the period of deferment for nonpayment (section 510).
    11. Provide that servicemembers shall neither lose nor 
acquire a residence or domicile for tax purposes by reason of 
being absent from, or present in, any U.S. tax jurisdiction to 
comply with military orders; that military service compensation 
not be deemed to be income for services performed or from 
sources within a U.S. tax jurisdiction if the servicemember is 
not a resident or domiciliary of that jurisdiction; that 
military compensation may not be used to increase the tax 
liability of a non-resident servicemember or spouse subject to 
tax by the jurisdiction; and that personal property be taxed 
only in the tax jurisdiction of the servicemember's domicile or 
residence (section 511).

                   TITLE VI--ADMINISTRATIVE REMEDIES

    Title VI of the Committee bill would:
    1. Provide that a court may prevent inappropriate use of 
the Act by entering judgments or orders against transfers or 
acquisitions made to delay just enforcement of a right (section 
601).
    2. Provide that certificates of service be issued by the 
Service Secretaries upon application; that such a certificate 
be deemed to be prima facie evidence of military service; and 
that it be presumed that a servicemember who is declared 
missing be deemed to remain in service until he or she is 
accounted for (section 602).
    3. Authorize an order issued by a court under the Act to be 
revoked, modified, or extended by that court upon its own 
motion or otherwise, upon notification to affected parties as 
required by the court (section 603).

                       TITLE VII--FURTHER RELIEF

    Title VII of the Committee bill would:
    1. Allow a servicemember to apply for anticipatory relief 
from any obligation or liability incurred before the 
servicemember's military service, or from a tax or assessment 
falling due before or during the servicemember's military 
service, and authorize courts to grant stays of enforcement of 
certain real estate or other contracts (section 701).
    2. Extend automatically a servicemember's power of attorney 
when the servicemember is in a missing status (section 702).
    3. Provide for suspension of certain professional liability 
insurance policies during certain types active duty (section 
703).
    4. Provide that a servicemember, under certain 
circumstances, shall be entitled, upon termination of service, 
to reinstatement of health insurance policies in effect before 
service commenced without exclusion or waiting period (section 
704).
    5. Provide a guarantee of residency for military personnel 
for purposes of voting for any Federal, State, or local office 
if that person is absent from a State for service (section 
705).
    6. Provide that a servicemember's assets, not held in 
connection with a trade or business, may not be available to 
satisfy a business-related obligation or liability for which 
the servicemember is personally liable unless, upon application 
by an obligor, a court grants relief as justice and equity may 
require (section 706).

                               Discussion


                              INTRODUCTION

    The Committee bill restates, revises, and clarifies the 
Soldiers' and Sailors' Civil Relief Act of 1940 so that the 
rights and property of today's servicemembers be sufficiently 
protected during service. As is stated in section 2 of the 
Committee bill, the Committee bill's purposes are as follows:

        to provide for, strengthen, and expedite the national 
        defense through protections 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 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.

These purposes are the same as those which the Congress 
contemplated when it enacted SSCRA in anticipation of potential 
war in 1940.
    The Committee recognizes, however, that while the Congress' 
purposes remain as they were in 1940, there now exist business 
and social circumstances that did not exist when SSCRA was 
enacted. These changed circumstances need to be addressed to 
better reflect the requirements of today's servicemembers. The 
Committee bill would address these needs by restating and 
clarifying the language of SSCRA. But it would also modernize 
SSCRA by providing protections that address situations--e.g., 
the leasing of automobiles--not anticipated when SSCRA was 
enacted.
    Much of the Committee bill is identical to--or at least 
similar in substance to--provisions contained in H.R. 100, 
legislation which was approved by the House of Representatives 
by a vote of 425-0 on May 7, 2003. When that bill was reported 
by the House Committee on Veterans' Affairs on April 30, 2003, 
it was accompanied by an extensive and thorough report (H. 
Rept. No. 108-81) which sets forth, in great detail, background 
information relating to SSCRA. That report also explained at 
considerable length the restatements, updates, and reforms 
contained in H.R. 100, and in the Committee bill. To limit 
redundancy, the Committee does not restate material set forth 
in that report. Rather, the discussion below focuses on 
provisions of the Committee bill that differ from those 
specified in H.R. 100 or are unique to the Committee bill.

Section 301: Eviction and distress

            Background
    Section 300 of SSCRA specifies that a servicemember and his 
or her dependants may not, except by court order, be evicted 
from their residence during a period of military service if the 
servicemember's monthly rent is less than $1,200. Section 301 
of H.R 100 clarifies section 300 of SSCRA by including 
residences that the servicemember intends to occupy. In 
addition, section 301 of H.R. 100 would increase the maximum 
amount of monthly rent giving rise to SSCRA protections to 
$1,700. Finally, section 301 of H.R. 100 would add a provision 
to annually adjust the maximum lease monthly payment that would 
qualify for eviction protection.
            Committee bill
    The Committee bill would increase the maximum monthly lease 
amount that qualifies for rent eviction protection to $2,400 
and provide for annual inflation adjustment. The purpose of 
this increase is twofold. First, because of inflation, $1,200 
provides for less protection today than in 1991, the last year 
an adjustment to the rent eviction protection amount was made. 
Second, the Committee believes that the maximum monthly lease 
amount that qualifies for rent eviction protection should be 
increased to extend protection to servicemembers living in 
higher cost-of-living areas. The Committee, in consultation 
with DOD, has determined that $2,400 would provide a level of 
protection sufficient to cover most servicemembers.
    In addition to increasing the maximum monthly lease amount 
that qualifies for rent eviction protection, the Committee 
seeks to ensure that the value of the protection specified in 
the Committee bill will not be eroded by inflation. To that 
end, the Committee bill would provide for an annual adjustment 
to the rent eviction protection amount based on the annual 
increase in the Consumer Price Index housing component as 
determined by the Department of Labor's Bureau of Labor 
Statistics.

Section 305: Termination of residential or motor vehicle leases

            Background
    Section 304 of SSCRA allows a servicemember to terminate 
certain real property leases entered into by, or on behalf of, 
a servicemember prior to entry into service. Section 305 of 
H.R. 100 would clarify SSCRA protections relating to leases 
entered into prior to service to state specifically that those 
protections would extend to leases for properties not yet 
occupied at entry into service. Further, it would expand SSCRA 
protections to cover leases entered into during service.
            Committee bill
    The Committee bill, like H.R. 100, would extend SSCRA lease 
termination rights to leases executed by a servicemember while 
in military service and to leases for which the premises are 
yet to be occupied. In addition, the Committee bill would 
expand lease termination protections to a type of lease not 
generally available to servicemembers when SSCRA was enacted: 
motor vehicle leases.
    Section 305 of the Committee bill would authorize 
servicemembers to terminate motor vehicle leases entered into 
prior to service if the lessee is called to military service 
for a period of no less than 180 days. It would also permit a 
servicemember who, while on active duty, enters into a lease 
for a motor vehicle to terminate the lease if, after execution 
of the lease, the servicemember receives orders for either a 
permanent change of duty station outside the continental United 
States, or deployment with a military unit for no less than 180 
days. In today's society, a motor vehicle, like housing, is a 
necessity. Servicemembers, like their civilian counterparts, 
often find that it is easier or financially advantageous to 
finance their transportation needs by leasing, rather than 
purchasing, a motor vehicle. The Committee believes that, 
similar to the leases of real property, rapid and unexpected 
deployments may leave servicemembers financially liable for a 
leased motor vehicles that they are unable to use. The 
Committee concludes that extending SSCRA's lease termination 
provision to motor vehicle leases is consistent with the intent 
of the SSCRA in that it would allow a servicemember to mitigate 
financial damage by returning the vehicle to the lessor who 
could, in turn, return the car to market. Committee staff 
consulted extensively with the automobile leasing industry in 
the fashioning of the auto lease provisions of section 305.

Section 706: Business or trade obligations

            Background
    There is no provision in SSCRA, or in H.R. 100, that would 
protect a servicemember's personal assets from being attached, 
during his or her military service, to satisfy debts for which 
the servicemember is personally liable in connection with a 
business obligation.
            Committee bill
    Section 706 of the Committee bill would prohibit an obligor 
from satisfying an obligation or debt, owed by a servicemember 
in connection with his or her trade or business, from the 
personal assets of the servicemember which are not held in 
connection with the business or trade. This section would also 
allow an obligor to seek relief, through a court, from the 
prohibition on satisfying such obligations or debts.
    Today's military relies heavily on reserve forces. Indeed, 
since September 2001, about 300,000 reservists have been called 
to active duty to support various operations. This year, the 
General Accounting Office reported that a 2002 DOD survey had 
found that self-employed reservists reported an average income 
loss of $6,500 when mobilized or deployed. According to DOD, 
self-employed physicians and registered nurses were 
particularly hurt; they reported an average loss of income of 
$25,600. See Military Personnel: DOD Needs More Data to Address 
Financial and Health Care Issues Affecting Reservists, 
September 2003 (GAO-03-1004). And while it is true that GAO 
cautioned against full reliance on DOD's data collection 
methodology, the reported results are consistent with concerns 
voiced by reservists and their families. They state 
consistently that extended calls to active-duty service can 
have significant adverse financial impact on the reservist and 
his or her family.
    The Committee is committed to mitigating the financial 
burdens that servicemembers and their families face as a result 
of military service. In the same way the SSCRA was designed to 
delay actions, such as foreclosure and repossession, that have 
an adverse impact on the servicemember arising from personal 
obligations, section 706 of the Committee bill is intended to 
delay actions that would have an adverse impact on the 
servicemember that arise from business obligations for which he 
or she might be personally liable. The intent of this section 
is not to relieve the servicemember from their debts and 
obligations; rather, it is intended to delay enforcement by the 
obligor until the servicemember is in a position where he or 
she can better deal with the obligor's enforcement of their 
rights to secure repayment of an obligation.

                             Cost Estimate

    In compliance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate, the Committee, based on 
information supplied by the Congressional Budget Office 
(hereinafter ``CBO''), estimates that enactment of the 
Committee bill would not affect direct spending or receipts. 
The Committee bill would affect the budgets of State and local 
government but the impact would be below the threshold 
established by the Unfunded Mandates Reform Act (hereinafter 
``UMRA''). The Committee bill could, however, exceed the 
private-sector threshold established in UMRA but CBO has 
insufficient information to estimate the bill's cost.
    The cost estimate by CBO, setting forth a detailed 
breakdown of costs, follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 16, 2003.
Hon. Arlen Specter,
Chairman, Committee on Veterans' Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office (CBO) 
has prepared the enclosed cost estimate for S. 1136, the 
Servicemembers Civil Relief Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Michelle S. 
Patterson.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 1136--Servicemembers Civil Relief Act

    Summary: S. 1136 would restate, clarify, and revise the 
Soldiers' and Sailors' Civil Relief Act of 1940, which provides 
for financial protection and temporary suspension of certain 
judicial proceedings for servicemembers on active duty. The 
bill contains provisions that would increase the rent level 
under which a servicemember or family members are protected 
from eviction, limit a state's ability to increase the tax 
liability of a servicemember's spouse, and increase the value 
of life insurance coverage that is protected by the government 
if premiums are not paid. CBO estimates that implementing S. 
1136 would cost $3 million in 2004 and $12 million over the 
2004-2008 period, assuming appropriation of the necessary 
amounts. Enacting this legislation would not affect direct 
spending or receipts.
    S. 1136 contains an intergovernmental mandate as defined in 
the Unfunded Mandates Reform Act (UMRA), but CBO estimates that 
the cost would not exceed the threshold established by UMRA 
($59 million in 2003, adjusted annually for inflation).
    The bill also contains several private-sector mandates as 
defined in UMRA. CBO estimates that the cost of a mandate that 
would increase the rent level under which a servicemember or 
family members are protected from eviction would not exceed the 
threshold established by UMRA for private-sector mandates ($117 
million in 2003, adjusted annually for inflation). CBO does not 
have sufficient information to estimate the costs of two other 
private-sector mandates in the bill.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1136 is shown in the following table. 
For this estimate, CBO assumes the legislation will be enacted 
this fall and that the necessary amounts will be appropriated 
for each year. The costs of this bill fall within budget 
function 700 (veterans benefits and services).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                          ------------------------------------------------------
                                                              2004       2005       2006       2007       2008
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level............................          3          3          2          2          2
Estimated Outlays........................................          3          3          2          2          2
----------------------------------------------------------------------------------------------------------------

    Under current law, a servicemember may apply to the 
Department of Veterans Affairs (VA) for protection to prevent a 
life insurance policy from being terminated for nonpayment of 
the premiums. If VA determines the servicemember is entitled to 
protection, then it will guarantee the payment of the premiums 
and attempt to collect any amounts paid by VA from the 
servicemember. Section 402 of the bill would increase the 
maximum value of a life insurance policy that is eligible for 
protection from cancellation for nonpayment of premiums from 
$10,000 to an amount equal to the Servicemembers' Group Life 
Insurance limit, which is currently $250,000.
    CBO estimates that implementing this legislation would cost 
$3 million in 2004 and $12 million over the 2004-2008 period, 
assuming appropriation of the necessary amounts. Almost all of 
that amount would result from payments made by VA to guarantee 
life insurance protection. According to VA, the costs of 
providing this additional protection would be $186,000 a year 
for every 10,000 reservists called to active duty. According to 
the Department of Defense, as of October 1, 2003, there were 
about 170,000 reservists mobilized to fight the war with Iraq 
and support the global war on terrorism. For this estimate, CBO 
assumes that the number of reservists on active duty will be 
about 180,000 in 2004 and decline to about 100,000 by 2008 as 
tensions around the globe subside. If the number of reservists 
called to active duty were to remain at current levels over the 
2004-2008 period, then the estimated costs would be 
correspondingly higher. CBO also estimates that VA's cost to 
administer this guarantee would increase somewhat-but by less 
than $100,000 a year.
    Estimated impact on state, local, and tribal governments: 
S. 1136 contains an intergovernmental mandate as defined in 
UMRA because it would prohibit jurisdictions from imposing 
income taxes in certain instances. Under the current Soldiers' 
and Sailors' Relief Act (section 574), servicemembers may only 
be taxed on their military income by the tax jurisdiction of 
which they are a resident. Servicemembers may not be taxed on 
their military pay by the state in which they are stationed if 
it is not their state of legal residence. However, if a 
servicemember or a servicemember's spouse earns additional pay 
off-base, the nonresident state may tax that off-base income.
    In certain states with graduated income tax rates, the 
income tax rate which is applied to the off-base pay may be 
based on the servicemember's total income, including military 
pay, and not the off-base pay only. Including military pay in 
the calculation can push the off-base pay into a higher tax 
bracket. That method of calculating state income tax is 
sometimes called the ``California Method'' (although as many as 
18 or more other states also use it). If the servicemember's 
state of legal residence also charges income tax, the resident 
state will offer an income tax credit for the income tax on the 
off-base pay that the individual paid to the nonresident state.
    Section 511 would prohibit a tax jurisdiction from using 
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. Thus, a state where a servicemember is stationed 
could not use the ``California method'' to determine the income 
tax rate for the off-base pay, which may result in a lower 
income tax rate on that off-base pay. This provision would 
preempt state law under UMRA and would impose costs (in the 
form of lost revenues) in certain cases. For states with a 
graduated tax structure that use the California method to 
calculate nonresident income taxes, enacting section 511 could 
result in a lower income tax rate on off-base earnings. But the 
net effect on the servicemember's overall income tax payments 
to states would depend on the income tax structure of the 
servicemember's resident state. In no case would section 511 
increase the overall income tax payments to states by the 
servicemember and their spouse. In some cases the provision 
would have no net effect on income tax payments to states by 
servicemembers and their spouses, and in some cases the 
provision would reduce income tax payments to states. Thus, 
states as a group would lose some income tax revenue. CBO 
estimates that the cost of enacting section 511 would total 
about $20 million annually, and thus would be well below the 
threshold established by UMRA ($59 million in 2003, adjusted 
annually for inflation).
    Other provisions in S. 1136 would have no impact on state, 
local, or tribal governments.
    Estimated impact on the private sector: S. 1136 contains 
private-sector mandates as defined in UMRA. Section 301 of the 
bill would require a landlord who wishes to evict an active-
duty tenant or his or her dependents for nonpayment of rent to 
obtain a court order authorizing the eviction. If the court 
finds that the member's military service materially affects the 
ability to pay rent, it can stay eviction for up to three 
months. Under current law, the stay of eviction proceedings 
covers premises for which the rent does not exceed $1,200 per 
month. Section 301 would increase the mandate by raising the 
monthly lease amount that is protected under S. 1136 to $2,400 
and requiring that this amount be adjusted annually by a 
housing price index. CBO estimates that the cost of complying 
with this mandate would not exceed the threshold as specified 
in UMRA for private-sector mandates ($117 million in 2003, 
adjusted annually for inflation).
    Section 305 would provide that a servicemember, who enters 
military service for not less than 180 days, or who is 
transferred outside the Continental United States for not less 
than 180 days can terminate an existing lease for a motor 
vehicle upon written notice to the lessor. Section 706 would 
preclude the use of a servicemember's personal assets to 
satisfy the member's trade or business liability while he or 
she is in military service. While sections 305 and 706 would 
constitute private-sector mandates under UMRA, CBO does not 
have sufficient information to estimate their costs. Given the 
possibility of large trade or business liabilities, the cost of 
section 706's mandate could potentially exceed the private-
sector threshold specified in UMRA.
    Estimate prepared by: Federal Costs: Michelle S. Patterson; 
Impact on State, Local, and Tribal Governments: Melissa 
Merrell; and Impact on the Private Sector: Adebayo Adedeji.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee on Veterans' 
Affairs has made an evaluation of the regulatory impact that 
would be incurred in carrying out the Committee bill. The 
Committee finds that the Committee bill would entail regulation 
of individuals or businesses that could potentially exceed the 
private-sector threshold amount specified in UMRA. The 
Committee finds that the Committee bill would not entail or 
result in any impact on the personal privacy of any 
individuals.

                 Tabulation of Votes Cast in Committee

    In compliance with paragraph 7 of rule XXVI of the Standing 
Rules of the Senate, the following is a tabulation of votes 
cast in person or by proxy by members of the Committee on 
Veterans' Affairs at its September 30, 2003, meeting. On that 
date, the Committee, by unanimous voice vote, ordered S. 1136, 
a bill to restate, clarify, and revise the Soldiers' and 
Sailors' Civil Relief Act of 1940, as amended, reported 
favorably to the Senate.

                             Agency Report

    On July 10, 2003, Under Secretary for Benefits, Department 
of Veterans Affairs, The Honorable Daniel L. Cooper, and 
Principal Deputy Assistant Secretary of Defense for Reserve 
Affairs, Department of Defense, Craig W. Duehring, appeared 
before the Committee on Veterans' Affairs and submitted 
testimony on, among other things, certain provisions of S. 
1136, S. 792, and S. 806. Excerpts from these statements are 
reprinted below:

Statement of Daniel L. Cooper, Under Secretary for Benefits, Department 
                          of Veterans Affairs

    Mr. Chairman and Members of the Committee, thank you for 
the opportunity to testify today on several bills of great 
interest to veterans.

           *         *         *         *         *

    S. 792 and S. 1136 are very similar bills that recodify and 
revise the Soldiers' and Sailors' Civil Relief Act of 1940 
(SSCRA), while renaming it the ``Servicemembers Civil Relief 
Act'' (SCRA). Most of the protections provided under the SCRA 
would be afforded to current members of the uniformed services 
and to their dependents. DoD, not VA, is the Federal agency 
with the primary interest in these bills, and we defer to DoD 
on all such matters that fall within DoD's jurisdiction.
    There is, however, one provision of the SSCRA, Article IV-
Insurance, that VA is charged with administering. I would like 
to summarize for the Committee at this time our views on the 
insurance-protection provisions of S. 792 and S. 1136.
    Under section 402(c) of the SCRA, the maximum amount of 
life insurance coverage protection provided would be increased 
from $10,000 to $250,000. The original intent of the SSCRA with 
regard to life insurance protection was to provide individuals 
summoned to active duty with a guarantee that their commercial 
life insurance coverage would not lapse for nonpayment of 
premiums during service. While the provision of the current 
statute that provides protection for up to $10,000 of coverage 
under certain types of policies was of greater significance 
during the 1940s and 1950s, it has become less of a benefit for 
those serving in the Armed Forces today and has been little 
used by service personnel. This is probably because the amounts 
of insurance and types of coverage, including the availability 
of coverage up to $250,000 under the Servicemembers' Group Life 
Insurance program, have expanded over the years, while the 
protection provided by the SSCRA has not changed.
    We generally support the proposed revision of the life 
insurance protections of the SSCRA contemplated by S. 792 and 
S. 1136, which would greatly enhance the insurance protection 
available to active duty personnel. We believe that many 
servicemembers could benefit from the insurance protection 
provisions of the bills, particularly the proposed increase in 
the amount of life insurance that may be guaranteed and the 
expansion of the types of life insurance policies that are 
eligible for protection. We also applaud the effort to draft 
the bills in plain language. We do, however, have several 
concerns of a technical nature with regard to these bills.
    In particular, section 401(1) of the SCRA would define 
``policy'' as an insurance policy under which the insurer may 
not increase the premium if the insured is in military service. 
It is VA's understanding that normal term insurance premium 
increases based upon age are not prohibited, and the only 
prohibition is that of increasing premiums simply because the 
insured is called to military service. Some clarification 
concerning whether normally scheduled premium increases are 
acceptable under this definition may be necessary. We also note 
that VA regulations implementing the SSCRA currently exclude 
group life insurance from protection under that statute. 
Congress may wish to clarify whether it intends to include 
group insurance within the coverage of the insurance protection 
provisions.
    Under section 402(a), the life insurance protection of the 
SCRA could be requested by the insured, the insured's designee, 
or the insured's beneficiary. Most other SCRA provisions would 
require the servicemember to personally request protection. 
While the SSCRA currently permits life insurance protection to 
be requested by the servicemember's designee or by the 
servicemember's beneficiary when the insured is deployed 
outside the continental United States, S. 792 and S. 1136 would 
also permit an application by a beneficiary when the insured is 
deployed in the United States. We question whether it is 
desirable to require VA to provide premium protection based on 
a beneficiary's request about which the servicemember may be 
unaware. The servicemember may become obligated to repay any 
money VA expends to keep the policy in place. We believe the 
better course is to require that the protections afforded under 
Title IV of the SCRA be requested by the servicemember or the 
insured's designee.
    Section 407(a)(2) would require the United States, upon 
expiration of insurance protection under the SCRA, to reimburse 
the insurer for unpaid premiums in the amount of the difference 
between the amount of premiums due and the cash surrender value 
of the policy. The protections of the SCRA would be provided 
during a period beginning upon a servicemember's entry into 
military service and ending on the date of release from 
military service. As a result, VA is obligated to provide 
protection for the full military career of every active duty 
servicemember who is insured under a life-insurance policy that 
is in force for at least 180 days before entry into military 
service and at the time of application for SCRA protection. 
Given the period of protection provided by the SCRA and the 
increased coverage proposed in section 402(c), the Government's 
liability would likely increase exponentially. Congress should 
recognize that these provisions would result in a substantial 
increase in the Government's obligation to its service 
personnel.
    Under section 409, VA's decisions regarding life insurance 
protection would be subject to review by the Board of Veterans' 
Appeals (Board) and the Court of Appeals for Veterans Claims 
(Veterans Court). If the contemplated review of life insurance 
protections is adopted, conforming changes should be made to 
title 38 to clarify the scope of the Board's jurisdiction. 
Also, the current language of section 409 does not appear to 
provide exclusive jurisdiction in the Board and the Veterans 
Court over such matters. We recommend that Congress make its 
intentions clear in this regard, and we would be glad to work 
with Committee staff to draft these clarifications.
    The budgetary impact of the expansion of insurance 
protection contemplated by these bills will depend on the 
number of servicemembers who are called to active duty in the 
future, the number who choose to take advantage of the 
insurance protection provisions, and whether the expanded 
protection will apply to group life insurance policies. VA 
estimates that the benefit cost of enactment of S. 792 or S. 
1136 would be $186,000 annually for every 10,000 personnel 
called to active duty. VA estimates that administrative costs 
of the insurance protection provisions would total $67,000 in 
FY 2004, $359,000 over the five-year period FY 2004-2008, and 
$788,000 over the ten-year period FY 2004-2013.
    The only other notable impact of S. 792 and S. 1136 on VA 
would be in VA housing loan programs. The provisions of the 
existing SSCRA concerning interest rates, default judgments, 
termination of mortgages, and similar issues have a marginal 
impact on VA with respect to VA-guaranteed loan holders and 
loans held in our portfolio. We are not aware that any loan 
holders in the VA housing-loan programs have encountered 
significant problems as a result of these important protections 
granted to persons in military service. We do not anticipate 
that the amendments contemplated by S. 792 and S. 1136 would 
have any significant additional impact on the VA housing loan 
programs.
    S. 806, the ``Deployed Service Members Financial Security 
and Education Act of 2003,'' would amend title 37 of the United 
States Code to authorize payment of a monthly allowance to 
servicemembers involved in lengthy or repeated deployments. 
This bill would also amend the interest-rate-relief provisions 
of the SSCRA to include certain student loans and would 
preserve educational status and protect tuition payments of 
deployed servicemembers. As S. 806 pertains to allowances and 
protections for active members of the Armed Forces, we defer to 
DoD as to its merits.

           *         *         *         *         *


 Statement of Craig Duehring, Principal Deputy Assistant Secretary of 
           Defense for Reserve Affairs, Department of Defense

    Mr. Chairman and members of the Committee, thank you for 
giving me the opportunity to come before you this morning to 
discuss S. 792 and S. 1136, two versions of the Servicemembers 
Civil Relief Act, and section 3 of S. 806, the Deployed Service 
Members Financial Security and Education Act of 2003.
    The Department of Defense supports the reenactment of the 
Soldiers' and Sailors' Civil Relief Act of 1940 (SSCRA) as the 
Servicemembers Civil Relief Act. The need to modernize the 
language of the Act, incorporate over 60 years of case law, and 
add generally accepted practices is evident. The Department 
believes both S. 792 and S. 1136 accomplish this goal and would 
like to thank the Committee and its staff for their work on 
this important effort.
    The SSCRA has been an essential ingredient in the total 
quality of life package for our military men and women, and 
their families, since its passage. In passing this Act and its 
Civil War and World War I era predecessors, Congress recognized 
that active military service may cause severe, often 
insurmountable, problems in handling personal affairs back 
home: frequent involuntary moves, extended deployments 
overseas, and long separations from families, sometimes with 
little advance notice. Congress also recognized the need to 
have military men and women focused on their operational 
mission free from worry about the welfare of their families or 
their personal affairs.
    Congress addressed these problems adequately and equitably 
through the Act's skillfully crafted balance among the needs of 
our nation for a strong national defense, the needs of 
servicemembers--and their families--for security in their 
personal affairs, and the needs of those who have dealt with 
and depend upon servicemembers for fulfillment of their 
obligations.
    S. 792 and S. 1136 in large part maintain this important 
balance while addressing three areas where our experience with 
the Act indicates that change is needed: Clarifying and 
simplifying the language; incorporating generally accepted 
procedures; and updating the Act to reflect 60 years of change 
in America. With the ongoing Global War on Terrorism and 
reserve mobilization, now is a good time to update and clarify 
the Act so it can remain vital and continue to serve the needs 
of military members and those with whom they do business.
    The questions most frequently asked by servicemembers, 
their families, and those who deal with them reveal that parts 
of the Act are difficult to read and understand, and therefore 
difficult to follow. It is apparent from these questions that 
the entire Act needs to be rewritten in plain English and in 
modern legislative drafting form. S. 792 and S. 1136 redraft 
each section, updating the language and removing much 
ambiguity.
    Additionally, the Act does not provide necessary procedural 
guidance in many areas. For example, although the Act protects 
servicemembers with its stay of proceedings provision, it does 
not explain how to go about obtaining the needed relief. S. 792 
and S. 1136 provide this missing procedural guidance.
    Finally, the world of 1940 could not have foreseen all the 
changes in American life that more than 60 years of 
technological advances and business practices would bring. The 
extensive use of leases for automobiles and business equipment 
could not possibly have been imagined over 60 years ago. S. 792 
and S. 1136 reflect over 60 years of progress in America.
    The Department of Defense has only a few comments regarding 
specific provisions of S. 792, S. 1136, and section 3 of S. 
806.
    First, the Department prefers S. 1136's requirement 
regarding notifying members of the benefits of the Act in 
section 105 over the notification requirement in section 105 of 
S. 792. We appreciate S. 1136's recognition that the 
Department's current approach of notifying our members of the 
provisions of the SSCRA through recurring mobilization and 
deployment briefings and other command information media has 
been effective and that an additional requirement for written 
notification is unnecessary.
    Second, the Department prefers section 301 of S. 1136 over 
section 301 of S. 792 because it includes an automatic 
inflation adjustment to the maximum monthly rental amount for 
leases covered by that section's eviction protections. Tying 
the maximum rental amount to the Basic Allowance for Housing 
will result in extending this protection to more members who 
are stationed in high cost areas because that allowance is 
based on rental costs in the area where he or she is stationed.
    Third, we believe that section 305(b) of S. 1136 can be 
improved by amending it to allow termination of automobile 
leases only when the period of active duty military service 
exceeds a certain threshold, perhaps 180 days. As written, that 
section would allow lease termination for short periods of 
active duty when the member does not lose the use of a vehicle 
or loses it for only a short time. Applying the termination 
provision only to longer periods of active duty, when members 
are more likely to lose the use of their vehicles, is more 
consistent with the SSCRA's historical balance between 
servicemembers and those they do business with, a balance that 
has resulted in widespread support for the SSCRA within the 
business community. Unlike the real property pre-service lease 
termination provision, for which there is not a minimum period 
of active duty, the automobile lease termination provision 
applies to movable, depreciable property, justifying a minimum 
period of active duty to ensure that the provision applies to 
those members who really need it and to reduce its cost to the 
lease financing community.
    Fourth, the Department defers to the Department of 
Education on section 207(a)(2) of S. 1136 and section 3(a) of 
S. 806, which would extend the six percent interest rate cap to 
federally-insured student loans. We note that while the 
interest rate cap does not currently apply to such loans, the 
Department of Education (DOE) has a policy of, during periods 
of mobilization, requiring complete forbearance of interest and 
principal repayment on federally-insured student loans for a 
period of active service, up to one year, with extensions 
possible. Unlike the interest rate cap, this DOE policy helps 
servicemembers even when interest rates are below six percent.
    Finally, the Department also defers to the Department of 
Education on section 707 of S. 1136, which would require 
institutions of higher education to reenroll students who left 
school to perform active duty service and to allow completion 
of unfinished courses at no additional cost, and on section 
3(b) of S. 806, which addresses the same concern with a more 
detailed set of requirements, including leaves of absence, 
restoration of educational status, and refunds for uncompleted 
course work. We note, though, that the Department has worked 
closely with the educational community, state governors, and 
the Service Members Opportunity Colleges (SOC), a DoD-funded 
consortium of colleges and universities established in 1972, on 
a voluntary program for taking care of reserve component 
members who must leave school upon mobilization. Under this 
very effective program, which covers the same elements as 
section 707 of S. 1136 and section 3(b) of S. 806, SOC is the 
focal point for handling individual cases when student-
reservists have a problem with an institution. Section 207 of 
the National Science Foundation Authorization Act of 1998 
(Public Law 105-207) directed the NSF to convene a forum of 
government officials, representatives of the higher education 
community, and members of the Armed Forces reserve components 
to discuss and seek consensus on an appropriate resolution to 
problems related to the academic standing and financial 
obligations of reservists called to active duty. The forum 
concluded it was best to seek solutions through enhanced 
communications between DoD and the postsecondary education 
community and did not recommend legislation.
    I would again like to thank the Committee and its staff for 
all of the effort that has gone into these important bills. We 
appreciate this opportunity to discuss them with you.

    Changes in Existing Law Made by the Committee Bill, as Reported

    In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, the changes in existing law made 
by the Committee bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new material is printed in italic, existing law in 
which no changes are proposed is shown in roman):

            [SOLDIERS' AND SAILORS' CIVIL RELIEF ACT OF 1940


  AN ACT To promote and strengthen the national defense by suspending 
enforcement of certain civil liabilities of certain persons serving in 
   the Military and Naval Establishments, including the Coast Guard]

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the Soldiers' and Sailors' Civil Relief Act 
of 1940.

                     [ARTICLE I--GENERAL PROVISIONS

    [Sec. 100. In order to provide for, strengthen, and 
expedite the national defense under the emergent conditions 
which are threatening the peace and security of the United 
States and to enable the United States the more successfully to 
fulfill the requirements of the national defense, provision is 
hereby made to suspend enforcement of civil liabilities, in 
certain cases, of persons in the military service of the United 
States in order to enable such persons to devote their entire 
energy to the defense needs of the Nation, and to this end the 
following provisions are made for the temporary suspension of 
legal proceedings and transactions which may prejudice the 
civil rights of persons in such service during the period 
herein specified over which this Act remains in force.
    [Sec. 101. (1) The term ``person in the military service'', 
the term ``persons in military service'', and the term 
``persons in the military service of the United States'' as 
used in this Act, shall include the following persons and no 
others: All members of the Army of the United States, the 
United States Navy, the Marine Corps, the Air Force, the Coast 
Guard, all officers of the Public Health Service detailed by 
proper authority for duty either with the Army or the Navy, and 
all members of the National Guard on service described in the 
following sentence. The term ``military service'', as used in 
this Act, shall signify Federal service on active duty with any 
branch of service heretofore referred to or mentioned as well 
as training or education under the supervision of the United 
States preliminary to induction into the military service, and, 
in the case of a member of the National Guard, shall include 
service under a call to active service authorized by the 
President or the Secretary of Defense for a period of more than 
30 consecutive days under section 502(f) of title 32, United 
States Code, for purposes of responding to a national emergency 
declared by the President and supported by Federal funds. The 
terms ``active service'' or ``active duty'' shall include the 
period during which a person in military service is absent from 
duty on account of sickness, wounds, leave, or other lawful 
cause.
    [(2) The term ``period of military service'', as used in 
this Act, means, in the case of any person, the period 
beginning on the date on which the person enters active service 
and ending on the date of the person's release from active 
service or death while in active service, but in no case later 
than the date when this Act ceases to be in force.
    [(3) The term ``person'', when used in this Act with 
reference to the holder of any right alleged to exist against a 
person in military service or against a person secondarily 
liable under such right, shall include individuals, 
partnerships, corporations, and any other forms of business 
association.
    [(4) The term ``court'', as used in this Act, shall include 
any court of competent jurisdiction of the United States or of 
any State, whether or not a court of record.
    [Sec. 102. (1) The provisions of this Act shall apply to 
the United States, the several States and Territories, the 
District of Columbia, and all territory subject to the 
jurisdiction of the United States, and to proceedings commenced 
in any court therein, and shall be enforced through the usual 
forms of procedure obtaining in such courts or under such 
regulations as may be by them prescribed.
    [(2) 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.
    [Sec. 103. (1) Whenever pursuant to any of the provisions 
of this Act the enforcement of any obligation or liability, the 
prosecution of any suit or proceeding, the entry or enforcement 
of any order, writ, judgment, or decree, or the performance of 
any other act, may be stayed, postponed, or suspended, such 
stay, postponement, or suspension may, in the discretion of the 
court, likewise be granted to sureties, guarantors, endorsers, 
accommodation makers, and others, whether primarily or 
secondarily subject to the obligation or liability, the 
performance or enforcement of which is stayed, postponed, or 
suspended.
    [(2) When a judgment or decree is vacated or set aside in 
whole or in part, as provided in this Act, the same may, in the 
discretion of the court, likewise be set aside and vacated as 
to any surety, guarantor, endorser, accommodation maker, or 
other person whether primarily or secondarily liable upon the 
contract or liability of the enforcement of which the judgment 
or decree was entered.
    [(3) Whenever, by reason of the military service of a 
principal upon a criminal bail bond the sureties upon such bond 
are prevented from enforcing the attendance of their principal 
and performing their obligation the court shall not enforce the 
provisions of such bond during the military service of the 
principal thereon and may in accordance with principles of 
equity and justice either during or after such service 
discharge such sureties and exonerate the bail.
    [(4) Nothing contained in this Act shall prevent a waiver 
in writing of the benefits afforded by subsections (1) and (2) 
of this section by any surety, guarantor, endorser, 
accommodation maker, or other person whether primarily or 
secondarily liable upon the obligation or liability, except 
that no such waiver shall be valid unless it is executed as an 
instrument separate from the obligation or liability in respect 
of which it applies, and no such waiver shall be valid after 
the beginning of the period of military service if executed by 
an individual who subsequent to the execution of such waiver 
becomes a person in military service, or if executed by a 
dependent of such individual, unless executed by such 
individual or dependent during the period specified in section 
106.
    [Sec. 104. Persons who serve with the forces of any nation 
with which the United States may be allied in the prosecution 
of any war in which the United States engages while this Act 
remains in force and who immediately prior to such service 
where citizens of the United States shall, except in those 
cases provided for in section 512, be entitled to the relief 
and benefits afforded by this Act if such service is similar to 
military service as defined in this Act, unless they are 
dishonorably discharged therefrom, or it appears that they do 
not intend to resume United State citizenship.
    [Sec. 105. The Secretary of Defense and the Secretary of 
Transportation, with respect to the Coast Guard when it is not 
operating as a service in the Navy, shall ensure the giving of 
notice of the benefits accorded by this Act to persons in and 
to persons entering military service. The Director of Selective 
Service shall cooperate with the Secretary of Defense and the 
Secretary of Transportation in carrying out the provisions of 
this section.
    [Sec. 106. Any person who has been ordered to report for 
induction under the Military Selective Service Act (50 U.S.C. 
App. 451 et seq.) shall be entitled to the relief and benefits 
accorded persons in military service under articles I, II, and 
III of this Act during the period beginning on the date of 
receipt of such order and ending on the date upon which such 
person reports for induction; and any member of a reserve 
component of the Armed Forces who is ordered to report for 
military service shall be entitled to such relief and benefits 
during the period beginning on the date of receipt of such 
order and ending on the date upon which such member reports for 
military service or the date on which the order is revoked, 
whichever is earlier.
    [Sec. 107. Nothing contained in this Act shall prevent--
          [(a) the modification, termination, or cancellation 
        of any contract, lease, or bailment or any obligation 
        secured by mortgage, trust, deed, lien, or other 
        security in the nature of a mortgage, or
          [(b) the repossession, retention, foreclosure, sale, 
        forfeiture, or taking possession of property which is 
        security for any obligation or which has been purchased 
        or received under a contract, lease, or bailment, 
        pursuant to a written agreement of the parties thereto 
        (including the person in military service concerned, or 
        the person to whom section 106 is applicable, whether 
        or not such person is a party to the obligation), or 
        their assignees executed during or after the period of 
        military service of the person concerned or during the 
        period specified in section 106.
    [Sec. 108. Application by a person in military service for, 
or receipt by a person in military service of, a stay, 
postponement, or suspension pursuant to the provisions of this 
Act in the payment of any tax, fine, penalty, insurance 
premium, or other civil obligation or liability of that person 
shall not itself (without regard to other considerations) 
provide the basis for any of the following:
          [(1) A determination by any lender or other person 
        that such person in military service is unable to pay 
        such civil obligation or liability in accordance with 
        its terms.
          [(2) With respect to a credit transaction between a 
        creditor and such person in military service--
                  [(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 such person in substantially the 
                amount or on substantially the terms requested.
          [(3) An adverse report relating to the 
        creditworthiness of such person in military service by 
        or to any person or entity engaged in the practice of 
        assembling or evaluating consumer credit information.
          [(4) A refusal by an insurer to insure such person.

                      [ARTICLE II--GENERAL RELIEF

    [Sec. 200. (1) In any action or proceeding commenced in any 
court, if there shall be a default of any appearance by the 
defendant, the plaintiff, before entering judgment shall file 
in the court an affidavit setting forth facts showing that the 
defendant is not in military service. If unable to file such 
affidavit plaintiff shall in lieu thereof file an affidavit 
setting forth either that the defendant is in the military 
service or that plaintiff is not able to determine whether or 
not defendant is in such service. If an affidavit is not filed 
showing that the defendant is not in the military service, no 
judgment shall be entered without first securing an order of 
court directing such entry, and no such order shall be made if 
the defendant is in such service until after the court shall 
have appointed an attorney to represent defendant and protect 
his interest, and the court shall on application make such 
appointment. Unless it appears that the defendant is not in 
such service the court may require, as a condition before 
judgment is entered, that the plaintiff file a bond approved by 
the court conditioned to indemnify the defendant, if in 
military service, against any loss or damage that he may suffer 
by reason of any judgment should the judgment be thereafter set 
aside in whole or in part. And the court may make such other 
and further order or enter such judgment as in its opinion may 
be necessary to protect the rights of the defendant under this 
Act. Whenever, under the laws applicable with respect to any 
court, facts may be evidenced, established, or proved by an 
unsworn statement, declaration, verification, or certificate, 
in writing, subscribed and certified or declared to be true 
under penalty of perjury, the filing of such an unsworn 
statement, declaration, verification, or certificate shall 
satisfy the requirement of this subdivision that facts be 
established by affidavit.
    [(2) Any person who shall make or use an affidavit required 
under this section, or a statement, declaration, verification, 
or certificate certified or declared to be true under penalty 
of perjury permitted under subdivision (1), knowing it to be 
false, shall be guilty of a misdemeanor and shall be punishable 
by imprisonment not to exceed one year or by fine not to exceed 
$1,000, or both.
    [(3) In any action or proceeding in which a person in 
military service is a party if such party does not personally 
appear therein or is not represented by an authorized attorney, 
the court may appoint an attorney to represent him; and in such 
case a like bond may be required and an order made to protect 
the rights of such person. But no attorney appointed under this 
Act to protect a person in military service shall have power to 
waive any right of the person for whom he is appointed or bind 
him by his acts.
    [(4) If any judgment shall be rendered in any action or 
proceeding governed by this section against any person in 
military service during the period of such service or within 
thirty days thereafter, and it appears that such person was 
prejudiced by reason of his military service in making his 
defense thereto, such judgment may, upon application, made by 
such person or his legal representative, not later than ninety 
days after the termination of such service, be opened by the 
court rendering the same and such defendant or his legal 
representative let in to defend; provided it is made to appear 
that the defendant has a meritorious or legal defense to the 
action or some part thereof. Vacating, setting aside, or 
reversing any judgment because of any of the provisions of this 
Act shall not impair any right or title acquired by any bona 
fide purchaser for value under such judgment.
    [Sec. 201. At any stage thereof any action or proceeding in 
any court in which a person in military service is involved, 
either as plaintiff or defendant, during the period of such 
service or within sixty days thereafter may, in the discretion 
of the court in which it is pending, on its own motion, and 
shall, on application to it by such person or some person on 
his behalf, be stayed as provided in this Act unless, in the 
opinion of the court, the ability of plaintiff to prosecute the 
action or the defendant to conduct his defense is not 
materially affected by reason of his military service.
    [Sec. 202. When an action for compliance with the terms of 
any contract is stayed pursuant to this Act no fine or penalty 
shall accrue by reason of failure to comply with the terms of 
such contract during the period of such stay, and in any case 
where a person fails to perform any obligation and a fine or 
penalty for such nonperformance is incurred a court may, on 
such terms as may be just, relieve against the enforcement of 
such fine or penalty if it shall appear that the person who 
would suffer by such fine or penalty was in the military 
service when the penalty was incurred and that by reason of 
such service the ability of such person to pay or perform was 
thereby materially impaired.
    [Sec. 203. In any action or proceeding commenced in any 
court against a person in military service, before or during 
the period of such service, or within sixty days thereafter, 
the court may, in its discretion, on its own motion, or on 
application to it by such person or some person on his behalf 
shall, unless in the opinion of the court the ability of the 
defendant to comply with the judgment or order entered or 
sought is not materially affected by reason of his military 
service--
          [(a) Stay the execution of any judgment or order 
        entered against such person, as provided in this Act; 
        and
          [(b) Vacate or stay any attachment or garnishment of 
        property, money, or debts in the hands of another, 
        whether before or after judgment as provided in this 
        Act.
    [Sec. 204. Any stay of any action, proceeding, attachment, 
or execution, ordered by any court under the provisions of this 
Act may, except as otherwise provided, be ordered for the 
period of military service and three months thereafter or any 
part of such period, and subject to such terms as may be just, 
whether as to payment in installments of such amounts and at 
such times as the court may fix or otherwise. Where the person 
in military service is a codefendant with others the plaintiff 
may nevertheless by leave of court proceed against the others.
    [Sec. 205. The period of military service shall not be 
included in computing any period now or hereafter to be limited 
by any law, regulation, or order for the bringing of any action 
or proceeding in any court, board, bureau, commission, 
department, or other agency of government by or against any 
person in military service or by or against his heirs, 
executors, administrators, or assigns, whether such cause of 
action or the right or privilege to institute such action or 
proceeding shall have accrued prior to or during the period of 
such service, nor shall any part of such period which occurs 
after October 6, 1942, be included in computing any period now 
or hereafter provided by any law for the redemption of real 
property sold or forfeited to enforce any obligation, tax, or 
assessment.
    [Sec. 206. No obligation or liability bearing interest at a 
rate in excess of 6 percent per year incurred by a person in 
military service before that person's entry into that service 
shall, during any part of the period of military service, bear 
interest at a rate in excess of 6 percent per year unless, in 
the opinion of the court, upon application thereto by the 
obligee, the ability of such person in military service to pay 
interest upon such obligation or liability at a rate in excess 
of 6 percent per year is not materially affected by reason of 
such service, in which case the court may make such order as in 
its opinion may be just. As used in this section the term 
`interest' includes service charges, renewal charges, fees, or 
any other charges (except bona fide insurance) in respect of 
such obligation or liability.
    [Sec. 207. Section 205 of this Act shall not apply with 
respect to any period of limitation prescribed by or under the 
internal revenue laws of the United States.

     [ARTICLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, 
                          ASSIGNMENTS, LEASES

    [Sec. 300. (a) No eviction or distress shall be made during 
the period of military service in respect of any premises for 
which the agreed rent does not exceed $1,200 per month, 
occupied chiefly for dwelling purposes by the wife, children, 
or other dependents of a person in military service, except 
upon leave of court granted upon application therefor or 
granted in an action or proceeding affecting the right of 
possession.
    [(b) On any such application or in any such action the 
court may, in its discretion, on its own motion, and shall, on 
application, unless in the opinion of the court the ability of 
the tenant to pay the agreed rent is not materially affected by 
reason of such military service, stay the proceedings for not 
longer than three months, as provided in this Act, or it may 
make such other order as may be just. Where such stay is 
granted or other order is made by the court, the owner of the 
premises shall be entitled, upon application therefor, to 
relief in respect of such premises similar to that granted 
persons in military service in sections 301, 302, and 500 of 
this Act to such extent and for such period as may appear to 
the court to be just.
    [(c) Any person who shall knowingly take part in any 
eviction or distress otherwise than as provided in subsection 
(a), or attempts so to do, shall be fined as provided in title 
18, United States Code, or imprisoned for not to exceed one 
year, or both.
    [(d) Secretary of Defense or Secretary of Transportation, 
with respect to the Coast Guard when it is not operating as a 
service in the Navy, is hereby empowered, subject to such 
regulations as he may prescribe, to order an allotment of the 
pay of a person in military service in reasonable proportion to 
discharge the rent of premises occupied for dwelling purposes 
by the wife, children, or other dependents of such person.
    [Sec. 301. (1) No person who has received, or whose 
assignor has received, under a contract for the purchase of 
real or personal property, or of lease or bailment with a view 
to purchase of such property, a deposit or installment of the 
purchase price, or a deposit or installment under the contract, 
lease, or bailment, from a person or from the assignor of a 
person who, after the date of payment of such deposit or 
installment, has entered military service, shall exercise any 
right or option under such contract to rescind or terminate the 
contract or resume possession of the property for nonpayment of 
any installment thereunder due or for any other breach of the 
terms thereof occurring prior to or during the period of such 
military service, except by action in a court of competent 
jurisdiction.
    [(2) Any person who shall knowingly resume possession of 
property which is the subject of this section otherwise than as 
provided in subsection (1) of this section or in section 107, 
or attempts so to do, shall be fined as provided in title 18, 
United States Code, or imprisoned for not to exceed one year, 
or both.
    [(3) Upon the hearing of such action the court may order 
the repayment of prior installments or deposits or any part 
thereof, as a condition of terminating the contract and 
resuming possession of the property, or may, in its discretion, 
on its own motion, and shall, on application to it by such 
person in military service or some person on his behalf, order 
a stay of proceedings as provided in this Act unless, in the 
opinion of the court, the ability of the defendant to comply 
with the terms of the contract is not materially affected by 
reason of such service; or it may make such other disposition 
of the case as may be equitable to conserve the interests of 
all parties.
    [Sec. 302. (1) The provisions of this section shall apply 
only to obligations secured by mortgage, trust deed, or other 
security in the nature of a mortgage upon real or personal 
property owned by a person in military service at the 
commencement of the period of the military service and still so 
owned by him which obligations originated prior to such 
person's period of military service.
    [(2) In any proceedings commenced in any court during the 
period of military service to enforce such obligation arising 
out of nonpayment of any sum thereunder due or out of any other 
breach of the terms thereof occurring prior to or during the 
period of such service the court may, after hearing, in its 
discretion, on its own motion, and shall, on application to it 
by such person in military service or some person on his 
behalf, unless in the opinion of the court the ability of the 
defendant to comply with the terms of the obligation is not 
materially affected by reason of his military service--
          [(a) stay the proceedings as provided in this Act; or
          [(b) make such other disposition of the case as may 
        be equitable to conserve the interests of all parties.
    [(3) No sale, foreclosure, or seizure of property for 
nonpayment of any sum due under any such obligation, or for any 
other breach of the terms thereof, whether under a power of 
sale, under a judgment entered upon warrant of attorney to 
confess judgment contained therein, or otherwise, shall be 
valid if made October 6, 1942, during the period of military 
service or within three months thereafter, except pursuant to 
an agreement as provided in section 107, unless upon an order 
previously granted by the court and a return thereto made and 
approved by the court.
    [(4) Any person who shall knowingly make or cause to be 
made any sale, foreclosure, or seizure of property, defined as 
invalid by subsection (3) hereof, or attempts so to do, shall 
be fined as provided in title 18, United States Code, or 
imprisoned for not to exceed one year, or both.
    [Sec. 303. Where a proceeding to foreclose a mortgage upon 
or to resume possession of personal property, or to rescind or 
terminate a contract for the purchase thereof, has been stayed 
as provided in this Act, the court may, unless in its opinion 
an undue hardship would result to the dependents of the person 
in military service, appoint three disinterested parties to 
appraise the property and, based upon the report of the 
appraisers, order such sum, if any, as may be just, paid to the 
person in military service or his dependent, as the case may 
be, as a condition of foreclosing the mortgage, resuming 
possession of the property, or rescinding or terminating the 
contract.
    [Sec. 304. (1) The provisions of this section shall apply 
to any lease covering premises occupied for dwelling, 
professional, business, agricultural, or similar purposes in 
any case in which (a) such lease was executed by or on the 
behalf of a person who, after the execution of such lease, 
entered military service, and (b) the premises so leased have 
been occupied for such purposes, or for a combination of such 
purposes, by such person or by him and his dependents.
    [(2) Any such lease may be terminated by notice in writing 
delivered to the lessor (or his grantee) or to the lessor's (or 
his grantee's) agent by the lessee at any time following the 
date of the beginning of his period of military service. 
Delivery of such notice may be accomplished by placing it in an 
envelope properly stamped and duly addressed to the lessor (or 
his grantee) or to the lessor's (or his grantee's) agent and 
depositing the notice in the United States mails. Termination 
of any such lease providing for monthly payment of rent shall 
not be effective until thirty days after the first date on 
which the next rental payment is due and payable subsequent to 
the date when such notice is delivered or mailed. In the case 
of all other leases, termination shall be effected on the last 
day of the month following the month in which such notice is 
delivered or mailed and in such case any unpaid rental for a 
period preceding termination shall be proratably computed and 
any rental paid in advance for a period succeeding termination 
shall be refunded by the lessor (or his assignee). Upon 
application by the lessor to the appropriate court prior to the 
termination period provided for in the notice, any relief 
granted in this subsection shall be subject to such 
modifications or restrictions as in the opinion of the court 
justice and equity may in the circumstances require.
    [(3) Any person who shall knowingly seize, hold, or detain 
the personal effects, clothing, furniture, or other property, 
of any person who has lawfully terminated a lease covered by 
this section, or in any manner interfere with the removal of 
such property from the premises covered by such lease, for the 
purpose of subjecting or attempting to subject any of such 
property to a claim for rent accruing subsequent to the date of 
termination of such lease, or attempts so to do, shall be fined 
as provided in title 18, United States Code, or imprisoned for 
not to exceed one year, or both.
    [Sec. 305. (1) Where any life insurance policy on the life 
of a person in military service has been assigned prior to such 
person's period of military service to secure the payment of 
any obligation of such person, no assignee of such policy 
(except the insurer in connection with a policy loan) shall, 
during the period of military service of the insured or within 
one year thereafter, except upon the consent in writing of the 
insured made during such period or when the premiums thereon 
are due and unpaid or upon the death of the insured, exercise 
any right or option by virtue of such assignment unless upon 
leave of court granted upon an application made therefor by 
such assignee. The court may thereupon refuse to grant such 
leave unless in the opinion of the court the ability of the 
obligor to comply with the terms of the obligation is not 
materially affected by reason of his military service. For the 
purpose of this subsection premiums which are guaranteed under 
the provisions of article IV of this Act shall not be deemed to 
be due and unpaid.
    [(2) No person shall exercise any right to foreclose or 
enforce any lien for storage of household goods, furniture, or 
personal effects of a person in military service during such 
person's period of military service and for three months 
thereafter except upon an order previously granted by a court 
upon application therefor and a return thereto made and 
approved by the court. In such proceeding the court may, after 
hearing, in its discretion, on its own motion, and shall, on 
application to it by such person in military service or some 
person on his behalf, unless in the opinion of the court the 
ability of the defendant to pay the storage charge due is not 
materially affected by reason of his military service--
          [(a) stay the proceedings as provided in this Act; or
          [(b) make such other disposition of the case as may 
        be equitable to conserve the interest of all parties.
[The enactment of the provisions of this subsection shall not 
be construed in any way as affecting or as limiting the scope 
of section 302 of this Act.
    [(3) Any person who shall knowingly take any action 
contrary to the provisions of this section, or attempts so to 
do, shall be fined as provided in title 18, United States Code, 
or imprisoned for not to exceed one year, or both.
    [Sec. 306. Dependents of a person in military service shall 
be entitled to the benefits accorded to persons in military 
service under the provisions of this article upon application 
to a court therefor, unless in the opinion of the court the 
ability of such dependents to comply with the terms of the 
obligation, contract, lease, or bailment has not been 
materially impaired by reason of the military service of the 
person upon whom the applicants are dependent.

                         [ARTICLE IV--INSURANCE

    [Sec. 400. As used in this article--
          [(a) The term ``policy'' shall include any contract 
        of life insurance or policy on a life, endowment, or 
        term plan, including any benefit in the nature of life 
        insurance arising out of membership in any fraternal or 
        beneficial association, which does not provide for the 
        payment of any sum less than the face value thereof or 
        for the payment of an additional amount as premiums if 
        the insured engages in the military service of the 
        United States as defined in section 101 of article I of 
        this Act or which does not contain any limitation or 
        restriction upon coverage relating to engagement in or 
        pursuit of certain types of activities which a person 
        might be required to engage in by virtue of his being 
        in such military service, and (1) which is in force on 
        a premium-paying basis at the time of application for 
        benefits hereunder, and (2) which was made and a 
        premium paid thereon October 6, 1942, not less than 180 
        days before the date the insured entered into the 
        military service. The provisions of this Act shall not 
        be applicable to policies or contracts of life 
        insurance issued under the War Risk Insurance Act, as 
        amended, the World War Veterans Act, as amended, or the 
        National Service Life Insurance Act of 1940, as 
        amended.
          [(b) The term ``premium'' shall include the amount 
        specified in the policy as the stipend to be paid by 
        the insured at regular intervals during the period 
        therein stated.
          [(c) The term ``insured'' shall include any person in 
        the military service of the United States as defined in 
        section 101, article I, of this Act, whose life is 
        insured under and who is the owner and holder of and 
        has an interest in a policy as above defined.
          [(d) The term ``insurer'' shall include any firm, 
        corporation, partnership, or association chartered or 
        authorized to engage in the insurance business and to 
        issue a policy as above defined by the laws of a State 
        of the United States or the United States.
    [Sec. 401. The benefits and privileges of this article 
shall apply to any insured, when such insured, or a person 
designated by him, or, in case the insured is outside the 
continental United States (excluding Alaska and the Panama 
Canal Zone), a beneficiary, shall make written application for 
protection under this article, unless the Secretary of Veterans 
Affairs in passing upon such application as provided in this 
article shall find that the policy is not entitled to 
protection hereunder. The Secretary shall give notice to the 
military and naval authorities of the provisions of this 
article, and shall include in such notice an explanation of 
such provisions for the information of those desiring to make 
application for the benefits thereof. The original of such 
application shall be sent by the insured to the insurer, and a 
copy thereof to the Secretary. The total amount of insurance on 
the life of one insured under policies protected by the 
provisions of this article shall not exceed $10,000. If an 
insured makes application for protection of policies on his 
life totaling insurance in excess of $10,000, the Secretary is 
authorized to have the amount of insurance divided into two or 
more policies so that the protection of this article may be 
extended to include policies for a total amount of insurance 
not to exceed $10,000, and a policy which affords the best 
security to the Government shall be given preference.
    [Sec. 402. Any writing signed by the insured and 
identifying the policy and the insurer, and agreeing that his 
rights under the policy are subject to and modified by the 
provisions of this article, shall be sufficient as an 
application for the benefits of this article, but the Secretary 
of Veterans Affairs may require the insured and insurer to 
execute such other forms as may be deemed advisable. Upon 
receipt of the application of the insured the insurer shall 
furnish such report to the Secretary concerning the policy as 
shall be prescribed by regulations. The insured who has made 
application for protection under this article and the insurer 
shall be deemed to have agreed to such modification of the 
policy as may be required to give this article full force and 
effect with respect to such policy.
    [Sec. 403. The Secretary of Veterans Affairs shall find 
whether the policy is entitled to protection under this article 
and shall notify the insured and the insurer of such finding. 
Any policy found by the Secretary to be entitled to protection 
under this article shall not, subsequent to date of 
application, and during the period of military service of the 
insured or during two years after the expiration of such 
service, lapse or otherwise terminate or be forfeited for the 
nonpayment of a premium becoming due and payable, or the 
nonpayment of any indebtedness or interest.
    [Sec. 404. No dividend or other monetary benefit under a 
policy shall be paid to an insured or used to purchase dividend 
additions while a policy is protected by the provisions of this 
article except with the consent and approval of the Secretary 
of Veterans Affairs. If such consent is not procured, such 
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. No cash value, loan value, or withdrawal of dividend 
accumulation, or unearned premium, or other value of similar 
character shall be available to the insured while the policy is 
protected under this article except upon approval by the 
Secretary of Veterans Affairs. The insured's right to change a 
beneficiary designation or select an optional settlement for a 
beneficiary shall not be affected by the provisions of this 
article.
    [Sec. 405. In the event of maturity of a policy as a death 
claim or otherwise before the expiration of the period of 
protection under the provisions of this article, the insurer in 
making settlement will deduct from the amount of insurance the 
premiums guaranteed under this article, together with interest 
thereon at the rate fixed in the policy for policy loans. If no 
rate of interest is specifically fixed in the policy, the rate 
shall be the rate fixed for policy loans in other policies 
issued by the insurer at the time the policy brought under the 
Act was issued. The amount deducted by reason of the protection 
afforded by this article shall be reported by the insurer to 
the Secretary of Veterans Affairs.
    [Sec. 406. Payment of premiums and interest thereon at the 
rate specified in section 405 hereof becoming due on a policy 
while protected under the provisions of this article is 
guaranteed by the United States, and if the amount so 
guaranteed is not paid to the insurer prior to the expiration 
of the period of insurance protection under this article, the 
amount then due shall be treated by the insurer as a policy 
loan on such policy, but if at the expiration of said period 
the cash surrender value is less than the amount then due, the 
policy shall then cease and terminate and the United States 
shall pay the insurer the difference between such amount and 
the cash surrender value. The amount paid by the United States 
to an insurer on account of applications approved under the 
provisions of this article as amended, shall become a debt due 
to the United States by the insured on whose account payment 
was made and, notwithstanding any other Act, such amount may be 
collected either by deduction from any amount due said insured 
by the United States or as otherwise authorized by law. Any 
moneys received as repayment of debts incurred under this 
article, as originally enacted and as amended, shall be 
credited to the appropriation for the payment of claims under 
this article.
    [Sec. 407. The Secretary of Veterans Affairs shall provide 
by regulations for such rules of procedures and forms as he may 
deem advisable in carrying out the provisions of this article. 
The findings of fact and conclusions of law made by the 
Secretary in administering the provisions of this article shall 
be final, and shall not be subject to review by any other 
official or agency of the Government.

                   [ARTICLE V--TAXES AND PUBLIC LANDS

    [Sec. 500. (1) The provisions of this section shall apply 
when any taxes or assessments, whether general or special 
(other than taxes on income), whether falling due prior to or 
during the period of military service, in respect of personal 
property, money, or credits, or real property owned and 
occupied for dwelling, professional, business, or agricultural 
purposes by a person in military service or his dependents at 
the commencement of his period of military service and still so 
occupied by his dependents or employees are not paid.
    [(2) No sale of such property shall be made to enforce the 
collection of such tax or assessment, or any proceeding or 
action for such purpose commenced, except upon leave of court 
granted upon application made therefor by the collector of 
taxes or other officer whose duty it is to enforce the 
collection of taxes or assessments. The court thereupon, unless 
in its opinion the ability of the person in military service to 
pay such taxes or assessments is not materially affected by 
reason of such service, may stay such proceedings or such sale, 
as provided in this Act, for a period extending not more than 
six months after the termination of the period of military 
service of such person.
    [(3) When by law such property may be sold or forfeited to 
enforce the collection of such tax or assessment, such person 
in military service shall have the right to redeem or commence 
an action to redeem such property, at any time not later than 
six months after the termination of such service, but in no 
case later than six months after the date when this Act ceases 
to be in force; but this shall not be taken to shorten any 
period, now or hereafter provided by the laws of any State or 
Territory for such redemption.
    [(4) Whenever any tax or assessment shall not be paid when 
due, such tax or assessment due and unpaid shall bear interest 
until paid at the rate of 6 per centum per annum, and no other 
penalty or interest shall be incurred by reason of such 
nonpayment. Any lien for such unpaid taxes or assessment shall 
also include such interest thereon.
    [Sec. 501. (1) No right to any lands owned or controlled by 
the United States initiated or acquired under any laws of the 
United States, including the mining and mineral leasing laws, 
by any person prior to entering military service shall during 
the period of such service be forfeited or prejudiced by reason 
of his absence from the land or his failure to perform any work 
or make any improvements thereon or his failure to do any other 
act required by or under such laws.
    [(2) If a permittee or licensee under the Act of June 28, 
1934 (48 Stat. 1269), enters military service he may elect to 
suspend his permit or license for the period of his military 
service and six months thereafter, and the Secretary of the 
Interior by regulations shall provide for such suspension of 
permits and licenses and for the remission, reduction, or 
refund or grazing fees during such suspension.
    [(3) This section shall not be construed to control 
specific requirements contained in this article.
    [Sec. 502. If any person whose application for a homestead 
entry has been allowed or who has made application for 
homestead entry which may thereafter be allowed, after such 
entry or application enters military service, or if any person 
who has a valid settlement claim enters military service, the 
Department of the Interior shall construe his military service 
to be equivalent to residence and cultivation upon the tract 
entered or settled upon for the period of such service. From 
the effective date of this Act no contest shall be initiated on 
the ground of abandonment and no allegation of abandonment 
shall be sustained against any such person, unless it shall be 
alleged in the preliminary affidavit or affidavits of contest 
and proved at the hearing in cases initiated subsequent to the 
effective date of this Act that the alleged absence from the 
land was not due to such military service. If such person is 
discharged on account of wounds received or disability incurred 
in the line of duty, the term of his enlistment and any period 
of hospitalization due to such wounds or disability shall be 
deducted from the required length of residence, without 
reference to the time of actual service. No patent shall issue 
to any such person who has not resided upon, improved, and 
cultivated his homestead for a period of at least one year.
    [Sec. 503. (1) If any person whose application for a 
homestead entry has been allowed or who has made application 
for homestead entry which may thereafter be allowed or who has 
a valid settlement claim dies while in military service or as a 
result of such service, his widow, if unmarried, or in the case 
of her death or marriage, his minor children, or his or their 
legal representatives, may proceed forthwith to make final 
proof upon such entry or upon an application which is allowed 
after the applicant's death, or upon a homestead application 
thereafter allowed based on a valid settlement claim, and shall 
be entitled to receive a patent for such land. The death of 
such person while in military service or as a result of such 
service shall be construed to be equivalent to a performance of 
all requirements as to residue and cultivation upon such 
homestead or claim, notwithstanding the provisions of section 
502 of this Act.
    [(2) If such person is honorably discharged and because of 
physical incapacities due to such service is unable to return 
to the land, he may make final proof without further residence, 
improvement, or cultivation, at such time and place as the 
Secretary of the Interior may authorize, and receive a patent 
to the land entered.
    [(3) The Act of July 28, 1917 (40 Stat. 248), is repealed.
    [Sec. 504. (1) No desert-land entry made or held under the 
desert-land laws prior to the entrance of the entryman or his 
successor in interest into military service shall be subject to 
contest or cancellation for failure to make or expend the sum 
of $1 per acre per year in improvements upon the claim or to 
effect the reclamation of the claim during the period the 
entryman or his successor in interest is engaged in military 
service or during a period of six months thereafter or during 
any period of hospitalization because of wounds or disability 
incurred in the line of duty. The time within which such 
entryman or claimant is required to make such expenditures and 
effect reclamation of the land shall be exclusive of his period 
of service and the six-months' period and any such period of 
hospitalization.
    [(2) If such entryman or claimant is honorably discharged 
and because of physical incapacities due to such service is 
unable to accomplish reclamation of, and payment for, the land, 
he may make proof without further reclamation or payments under 
such rules as the Secretary of the Interior may prescribe and 
receive patent for the land entered or claimed.
    [(3) In order to obtain the benefits of this section, such 
entryman or claimant shall, within six months after his 
entrance into military service, file or cause to be filed in 
the land office of the district in which his claim is situated 
a notice that he has entered military service and that he 
desires to hold the desert claim under this section.
    [Sec. 505. (1) The provisions of section 2324 of the 
Revised Statutes of the United States (30 U.S.C. 28), which 
require that on each mining claim located after May 10, 1872, 
and until patent has been issued therefor not less than $100 
worth of labor shall be performed or improvements made during 
each year, shall not apply during the period of his service, or 
until six months after the termination of such service, or 
during any period of hospitalization because of wounds or 
disability incurred in line of duty, to claims or interests in 
claims which are owned by a person in military service and 
which have been regularly located and recorded. No mining claim 
or any interest in a claim which is owned by such a person and 
which has been regularly located and recorded shall be subject 
to forfeiture by nonperformance of the annual assessments 
during the period of such military service, or until six months 
after the termination of such service or of such 
hospitalization.
    [(2) In order to obtain the benefits of this section, the 
claimant of any mining location shall, before the expiration of 
the assessment year during which he enters military service, 
file or cause to be filed in the office where the location 
notice or certificate is recorded a notice that he has entered 
such service and that he desires to hold his mining claim under 
this section.
    [Sec. 506. (1) Any person holding a permit or lease on the 
public domain under the Federal mineral leasing laws who enters 
military service may, at his election, suspend all operations 
under his permit or lease for a period of time equivalent to 
the period of his military service and six months thereafter. 
The term of the permit or lease shall not run during such 
period of suspension nor shall any rentals or royalties be 
charged against the permit or lease during the period of 
suspension.
    [(2) In order to obtain the benefit of this section, such 
permittee or lessee shall, within six months after his entrance 
into military service, notify the Bureau of Land Managment by 
registered mail of his entrance into such service and of his 
desire to avail himself of the benefits of this section.
    [(3) This section shall not be construed to supersede the 
terms of any contract for operation of a permit or lease.
    [Sec. 507. Nothing in this article shall be construed to 
limit or affect the right of a person in military service to 
take any action during his period of service which may be 
authorized by law or the regulations of the Department of the 
Interior for the perfection, defense, or further assertion of 
rights initiated or acquired prior to the date of entering 
military service. It shall be lawful for any person while in 
such service to make any affidavit or submit any proof which 
may be required by law or the practice or regulations of the 
Bureau of Land Management in connection with the entry, 
perfection, defense, or further assertion of any rights 
initiated or acquired prior to entering such service, before 
the officer in immediate command and holding a commission in 
the branch of the service in which the person is engaged. Such 
affidavits shall be as binding in law and with like penalties 
as if taken before an officer designated by the Secretary of 
the Interior. The Secretary of the Interior may issue rules and 
regulations to effectuate the purposes of sections 501 to 512.
    [Sec. 508. The Secretary of the Interior is hereby 
authorized in his discretion, to suspend as to persons in 
military service during the period while this Act remains in 
force and for a period of six months thereafter or during any 
period of hospitalization because of wounds or disability 
incurred in line of duty that provision of the act known as the 
``Reclamation Act'' requiring residence upon lands in private 
ownership or within the neighborhood for securing water for the 
irrigation of the same, and he is authorized to permit the use 
of available water thereon upon such terms and conditions as he 
may deem proper.
    [Sec. 509. The Secretary of the Interior shall issue 
through appropriate military and naval channels a notice for 
distribution by appropriate military and naval authorities to 
persons in the military service explaining the provisions of 
this article except as to sections 500, 513, and 514 hereof and 
shall furnish forms to be distributed in like manner to those 
desiring to make application for its benefits, except as to 
said sections.
    [Sec. 510. (1) During the pendency of any war in which the 
United States may be engaged while this Act remains in force 
any homestead entryman shall be entitled to a leave of absence 
from his entry for the purpose of performing farm labor. The 
time actually spent in farm labor shall be counted as 
constructive residence, if within fifteen days after leaving 
his entry to engage in such labor the entryman files a notice 
of absence in the land office of the district in which his 
entry is situated, and if at the expiration of the calendar 
year the entryman files in that office a written statement 
under oath and corroborated by two witnesses giving the date or 
dates when he left his entry, the date or dates of his return, 
and the place where and person for whom he was engaged in farm 
labor during such period or periods of absence.
    [(2) Nothing in this section shall excuse any homestead 
entryman from making improvements or performing the cultivation 
upon his entry required by law. The provisions of this section 
shall apply only to persons whose applications have been 
allowed or filed before October 17, 1940.
    [Sec. 511. Any person under the age of twenty-one who 
serves in the military service while this Act remains in force 
shall be entitled to the same rights under the laws relating to 
lands owned or controlled by the United States, including the 
mining and mineral leasing laws, as those over twenty-one now 
possess under such laws. Any requirements as to establishment 
of residence within a limited time shall be suspended as to 
entry by such person until six months after his discharge from 
military service. Applications for entry may be verified before 
any officer in the United States or any foreign country 
authorized to administer oaths by the laws of the State or 
Territory in which the land may be situated.
    [Sec. 512. Citizens of the United States who serve with the 
forces of any nation with which the United States may be allied 
in the prosecution of any war in which the United States 
engages while this Act remains in force shall be entitled to 
the relief and benefits afforded by sections 501 to 511, 
inclusive, if such service is similar to military service as 
defined in this Act, and if they are honorably discharged and 
resume United States citizenship or die in the service of the 
allied forces or as a result of such service.
    [Sec. 513. The collection from any person in the military 
service of any tax on the income of such person, whether 
falling due prior to or during his period of military service, 
shall be deferred for a period extending not more than six 
months after the termination of his period of military service 
if such person's ability to pay such tax is materially impaired 
by reason of such service. No interest on any amount of tax, 
collection of which is deferred for any period under this 
section, and no penalty for nonpayment of such amount during 
such period, shall accrue for such period of deferment by 
reason of such nonpayment. The running of any statute of 
limitations against the collection of such tax by distraint or 
otherwise shall be suspended for the period of military service 
of any individual the collection of whose tax is deferred under 
this section, and for an additional period of nine months 
beginning with the day following the period of military 
service. The provisions of this section shall not apply to the 
income tax on employees imposed by section 1400 of the Federal 
Insurance Contributions Act.
    [Sec. 514. For the purposes of taxation in respect of any 
person, or of his personal property, income, or gross income, 
by any State, Territory, possession, or political subdivision 
of any of the foregoing, or by the District of Columbia, such 
person shall not be deemed to have lost a residence or domicile 
in any State, Territory, possession, or political subdivision 
of any of the foregoing, or in the District of Columbia, solely 
by reason of being absent therefrom in compliance with military 
or naval orders, or to have acquired a residence or domicile 
in, or to have become resident in or a resident of, any other 
State, Territory, possession, or political subdivision of any 
of the foregoing, or the District of Columbia, while, and 
solely by reason of being, so absent. For the purposes of 
taxation in respect of the personal property, income, or gross 
income of any such person by any State, Territory, possession, 
or political subdivision of any of the foregoing, or the 
District of Columbia, of which such person is not a resident or 
in which he is not domiciled, compensation for military or 
naval service shall not be deemed income for services performed 
within, or from sources within, such State, Territory, 
possession, political subdivision, or District, and personal 
property shall not be deemed to be located or present in or to 
have a situs for taxation in such State, Territory, possession, 
or political subdivision, or District. Where the owner of 
personal property is absent from his residence or domicile 
solely by reason of compliance with military or naval orders, 
this section applies with respect to personal property, or the 
use thereof, within any tax jurisdiction other than such place 
of residence or domicile, regardless of where the owner may be 
serving in compliance with such orders. Nothing contained in 
this section shall prevent taxation by any State, Territory, 
possession, or political subdivision of any of the foregoing, 
or the District of Columbia in respect of personal property 
used in or arising from a trade or business, if it otherwise 
has jurisdiction. This section shall be effective as of 
September 8, 1939, except that it shall not require the 
crediting or refunding of any tax paid prior to October 6, 
1942.
    [(2) When used in this section, (a) the term ``personal 
property'' shall include tangible and intangible property 
(including motor vehicles), and (b) the term ``taxation'' shall 
include but not be limited to licenses, fees, or excises 
imposed in respect to motor vehicles or the use thereof, but 
only if a license, fee, or excise required by the State or 
territory, possession, or District of Columbia of which the 
person is a resident or in which the person is domiciled has 
been paid.

                  [ARTICLE VI--ADMINISTRATIVE REMEDIES

    [Sec. 600. Where in any proceeding to enforce a civil right 
in any court it is made to appear to the satisfaction of the 
court that any interest, property, or contract has since 
October 17, 1940, been transferred or acquired with 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, the provisions of 
this Act to the contrary notwithstanding.
    [Sec. 601. (1) In any proceeding under this Act a 
certificate signed by the Adjutant General of the Army as to 
persons in the Army or in any branch of the United States 
service while serving pursuant to law with the Army of the 
United States, signed by the Chief of Navy Personnel as to 
persons in the United States Navy or in any branch of the 
United States service while serving pursuant to law with the 
United States Navy, and signed by the Commandant, United States 
Marine Corps, as to persons in the Marine Corps, or in any 
other branch of the United States service while serving 
pursuant to law with the Marine Corps, or signed by an officer 
designated by any of them, respectively, for the purpose, shall 
when produced by prima facie evidence as to any of the 
following facts stated in such certificate:
    That a person named has not been, or is, or has been in 
military service; the time when and the place where such person 
entered military service, his residence at that time, and the 
rank, branch, and unit of such service that he entered, the 
dates within which he was in military service, the monthly pay 
received by such person at the date of issuing the certificate, 
the time when and the place where such person died in or was 
discharged from such service.
    [(2) It shall be the duty of the foregoing officers to 
furnish such certificate on application, and any such 
certificate when purporting to be signed by any one of such 
officers or by any person purporting upon the face of the 
certificates to have been so authorized shall be prima facie 
evidence of its contents and of the authority of the signer to 
issue the same.
    [(3) Where a person in military service has been reported 
missing he shall be presumed to continue in the service until 
accounted for, and no period herein limited which begins or 
ends with the death of such person shall begin or end until the 
death of such person is in fact reported to or found by the 
Department of Defense, or any court, or board thereof, or until 
such death is found by a court of competent jurisdiction. No 
period herein limited which begins or ends with the death of 
such person shall be extended hereby beyond a period of six 
months after the time when this Act ceases to be in force.
    [Sec. 602. Any interlocutory order made by any court under 
the provisions of this Act may, upon the court's own motion or 
otherwise, be revoked, modified, or extended by it upon such 
notice to the parties affected as it may require.
    [Sec. 603. If any provision of this Act, or the application 
thereof to any person or circumstances, is held invalid, the 
remainder of the Act, and the application of such provision to 
other persons or circumstances, shall not be affected thereby.
    [Sec. 604. This Act shall remain in force until May 15, 
1945, except that should the United States be then engaged in a 
war, this Act shall remain in force until such war is 
terminated by a treaty of peace proclaimed by the President and 
for six months thereafter: Provided further, That wherever 
under any section or provision of this Act a proceeding, 
remedy, privilege, stay, limitation, accounting, or other 
transaction has been authorized or provided with respect to 
military service performed prior to the date herein fixed for 
the termination of this Act, such section or provision shall be 
deemed to continue in full force and effect so long as may be 
necessary to the exercise or enjoyment of such proceeding, 
remedy, privilege, stay, limitation, accounting, or other 
transaction.
    [Sec. 605. The provisions of section 4 of the joint 
resolution approved August 27, 1940 (Public Resolution Numbered 
96, Seventy-sixth Congress), and the provisions of section 13 
of the Selective Training and Service Act of 1940, shall not be 
applicable with respect to any military service performed after 
the date of enactment of this Act.

                      [ARTICLE VII--FURTHER RELIEF

    [Sec. 700. (1) A person may, at any time during his period 
of military service or within six months thereafter, apply to a 
court for relief in respect of any obligation or liability 
incurred by such person prior to his period of military service 
or in respect of any tax or assessment whether falling due 
prior to or during his period of military service. The court, 
after appropriate notice and hearing, unless in its opinion the 
ability of the applicant to comply with the terms of such 
obligation or liability or to pay such tax or assessment has 
not been materially affected by reason of his military service, 
may grant the following relief:
          [(a) In the case of an obligation payable under its 
        terms 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, a stay of the enforcement of such obligation 
        during the applicant's period of military service and, 
        from the date of termination of such period of military 
        service or from the date of application if made after 
        such service, for a period equal to the period of the 
        remaining life of the installment contract or other 
        instrument plus a period of time equal to the period of 
        military service of the applicant, or any part of such 
        combined period, subject to payment of the balance of 
        principal and accumulated interest due and unpaid at 
        the date of termination of the period of military 
        service or from the date of application, as the case 
        may be, in equal installments during such combined 
        period at such rate of interest on the unpaid balance 
        as is prescribed in such contract, or other instrument 
        evidencing the obligation, for installments paid when 
        due, and subject to such other terms as may be just.
          [(b) In the case of any other obligation, liability, 
        tax, or assessment, a stay of the enforcement thereof 
        during the applicant's period of military service and, 
        from the date of termination of such period of military 
        service or from the date of application if made after 
        such service, for a period of time equal to the period 
        of military service of the applicant or any part of 
        such period, subject to payment of the balance of 
        principal and accumulated interest due and unpaid at 
        the date of termination of such period of military 
        service or the date of application, as the case may be, 
        in equal periodic installments during such extended 
        period at such rate of interest as may be prescribed 
        for such obligation, liability, tax, or assessment, if 
        paid when due, and subject to such other terms as may 
        be just.
    [(2) When any court has granted a stay as provided in this 
section no fine or penalty shall accrue during the period the 
terms and conditions of such stay are complied with by reason 
of failure to comply with the terms or conditions of the 
obligations, liability, tax, or assessment in respect of which 
such stay was granted.
    [Sec. 701. (a) Notwithstanding any other provision of law, 
a power of attorney which--
          [(1) was duly executed by a person in the military 
        service who is in a missing status (as defined in 
        section 551(2) of title 37, United States Code);
          [(2) designates that person's spouse, parent, or 
        other named relative as his attorney in fact for 
        certain specified, or all, purposes; and
          [(3) expires by its terms after that person entered a 
        missing status, and before or after the effective date 
        of this section; shall be automatically extended for 
        the period that the person is in a missing status. 
        (Added P.L. 92-540, Sec. 504(2).)
    [(b) No power of attorney executed after the effective date 
of this section by a person in the military service may be 
extended under subsection (a) if the document by its terms 
clearly indicates that the power granted expires on the date 
specified even though that person, after the date of execution 
of the document, enters a missing status. (Added P.L. 92-540, 
Sec. 504(2).)
    [(c) This section applies to the following powers of 
attorney executed by a person in military service or under a 
call or order to report for military service (or who has been 
advised by an official of the Department of Defense that such 
person may receive such a call or order):
          [(1) A power of attorney that is executed during the 
        Vietnam era (as defined in section 101(29) of title 38, 
        United States Code).
          [(2) A power of attorney that expires by its terms 
        after July 31, 1990.
    [Sec. 702. (a) This section applies to a person who--
          [(1) after July 31, 1990, is ordered to active duty 
        (other than for training) pursuant to section 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 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 such person 
                during the period of the person's active duty 
                unless the premiums are paid for such coverage 
                for such period.
    [(b)(1) Coverage of a person referred to in subsection (a) 
by a professional liability insurance policy shall be suspended 
in accordance with this subsection upon receipt of the written 
request of such person by the insurance carrier.
    [(2) A professional liability insurance carrier--
          [(A) may not require that premiums be paid by or on 
        behalf of a person 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 person, apply such amount for the payment of any 
        premium becoming due upon the reinstatement of such 
        coverage.
    [(3) A professional liability insurance carrier shall not 
be liable with respect to any claim that is based on 
professional conduct (including any failure to take any action 
in a professional capacity) of a person that occurs during a 
period of suspension of that person's professional liability 
insurance under this subsection. For the purposes of the 
preceding sentence, a claim based upon the failure of a 
professional to make adequate provision for patients to be 
cared for 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 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)(1) Professional liability insurance coverage suspended 
in the case of any person pursuant to subsection (b) shall be 
reinstated by the insurance carrier on the date on which that 
person transmits to the insurance carrier a written request for 
reinstatement.
    [(2) The request of a person for reinstatement shall be 
effective only if the person transmits the request to the 
insurance carrier within 30 days after the date on which the 
person is released from active duty. The insurance carrier 
shall notify the person of the due date for payment of the 
premium of such insurance. Such premium shall be paid by the 
person within 30 days after the receipt of that notice.
    [(3) The period for which professional liability insurance 
coverage shall be reinstated for a person 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) An insurance carrier may not increase the amount of 
the premium charged for professional liability insurance 
coverage of any person 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, except to the 
extent of any general increase in the premium amounts charged 
by that carrier for the same professional liability coverage 
for persons similarly covered by such insurance during the 
period of the suspension.
    [(e) This section does not--
          [(1) require a suspension of professional liability 
        insurance coverage 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)(1) A civil or administrative action for damages on the 
basis of the alleged professional negligence or other 
professional liability of a person 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 that period;
          [(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 person.
    [(2) Whenever a civil or administrative action for damages 
is stayed under paragraph (1) in the case of any person, the 
action shall be deemed to have been filed on the date on which 
the professional liability insurance coverage of such person is 
reinstated under subsection (c).
    [(g) 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) If a person 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 person under subsection (f)(1) shall terminate on 
        the date of the death of such person; 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 person in the 
        same manner and to the same extent as such carrier 
        would be liable if the person had died while covered by 
        such insurance but before the claim was filed.
    [(i) In this section:
          [(1) The term ``active duty'' has the meaning given 
        that term in section 101 of title 10, United States 
        Code.
          [(2) The term ``profession'' includes occupation.
          [(3) The term ``professional'' includes occupational.
    [Sec. 703. (a) A person who, by reason of military service 
described in section 702(a)(1), is entitled to the rights and 
benefits of this Act shall also be entitled upon release from 
such military service to reinstatement of any health insurance 
which (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) An exclusion or a waiting period may not be imposed in 
connection with reinstatement of health insurance coverage of a 
health or physical condition of a person under subsection (a), 
or a health or physical condition of any other person who is 
covered by the insurance by reason of the coverage of such 
person, if--
          [(1) the condition arose before or during that 
        person's period of training or service in the Armed 
        Forces;
          [(2) an exclusion or waiting period would not have 
        been imposed for the condition during a period of 
        coverage resulting from participation by such person in 
        the insurance; and
          [(3) the condition of such person 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) Subsection (a) does not apply in the case of employer-
offered insurance benefits in which a person referred to in 
such subsection is entitled to participate pursuant to the 
provisions of chapter 43 of title 38, United States Code.
    [Sec. 704. (a) For 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.
    [(b) In this section, the term ``State'' includes a 
territory or possession of the United States, a political 
subdivision of a State, territory, or possession, and the 
District of Columbia.]

           *       *       *       *       *       *       *


SECTION 1. RESTATEMENT OF ACT.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

                       TITLE I--GENERAL PROVISIONS

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

                        TITLE II--GENERAL RELIEF

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

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

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

                        TITLE IV--LIFE INSURANCE

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

                     TITLE V--TAXES AND PUBLIC LANDS

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

                    TITLE VI--ADMINISTRATIVE REMEDIES

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

                        TITLE VII--FURTHER RELIEF

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

SEC. 2. PURPOSE.

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

                      TITLE I--GENERAL PROVISIONS

SEC. 101. DEFINITIONS.

    For the purposes of this Act:
          (1) Servicemember.--The term ``servicemember'' means 
        a member of the uniformed services, as that term is 
        defined in section 101(a)(5) of title 10, United States 
        Code.
          (2) Military service.--The term ``military service'' 
        means--
                  (A) in the case of a servicemember who is a 
                member of the Army, Navy, Air Force, Marine 
                Corps, or Coast Guard--
                          (i) active duty, as defined in 
                        section 101(d)(1) of title 10, United 
                        States Code, and
                          (ii) in the case of a member of the 
                        National Guard, includes service under 
                        a call to active service authorized by 
                        the President or the Secretary of 
                        Defense for a period of more than 30 
                        consecutive days under section 502(f) 
                        of title 32, United States Code, for 
                        purposes of responding to a national 
                        emergency declared by the President and 
                        supported by Federal funds;
                  (B) in the case of a servicemember who is a 
                commissioned officer of the Public Health 
                Service or the National Oceanic and Atmospheric 
                Administration, active service; and
                  (C) any period during which a servicemember 
                is absent from duty on account of sickness, 
                wounds, leave, or other lawful cause.
          (3) Period of military service.--The term ``period of 
        military service'' means the period beginning on the 
        date on which a servicemember enters military service 
        and ending on the date on which the servicemember is 
        released from military service or dies while in 
        military service.
          (4) Dependent.--The term ``dependent'', with respect 
        to a servicemember, means--
                  (A) the servicemember's spouse;
                  (B) the servicemember's child (as defined in 
                section 101(4) of title 38, United States 
                Code); or
                  (C) an individual for whom the servicemember 
                provided more than one-half of the individual's 
                support for 180 days immediately preceding an 
                application for relief under this Act.
          (5) Court.--The term ``court'' means a court or an 
        administrative agency of the United States or of any 
        State (including any political subdivision of a State), 
        whether or not a court or administrative agency of 
        record.
          (6) State.--The term ``State'' includes--
                  (A) a commonwealth, territory, or possession 
                of the United States; and
                  (B) the District of Columbia.
          (7) Secretary concerned.--The term ``Secretary 
        concerned''--
                  (A) with respect to a member of the armed 
                forces, has the meaning given that term in 
                section 101(a)(9) of title 10, United States 
                Code;
                  (B) with respect to a commissioned officer of 
                the Public Health Service, means the Secretary 
                of Health and Human Services; and
                  (C) with respect to a commissioned officer of 
                the National Oceanic and Atmospheric 
                Administration, means the Secretary of 
                Commerce.
          (8) Motor vehicle.--The term ``motor vehicle'' has 
        the meaning given that term in section 30102(a)(6) of 
        title 49, United States Code.

SEC. 102. JURISDICTION AND APPLICABILITY OF ACT.

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

SEC. 103. PROTECTION OF PERSONS SECONDARILY LIABLE.

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

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

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

SEC. 105. NOTIFICATION OF BENEFITS.

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

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

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

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

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

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

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

SEC. 109. LEGAL REPRESENTATIVES.

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

                        TITLE II--GENERAL RELIEF

SEC. 201. PROTECTION OF SERVICEMEMBERS AGAINST DEFAULT JUDGMENTS.

    (a) Applicability of Section.--This section applies to any 
civil action or proceeding in which the defendant does not make 
an appearance.
    (b) Affidavit Requirement.--
          (1) Plaintiff to file affidavit.--In any action or 
        proceeding covered by this section, the court, before 
        entering judgment for the plaintiff, shall require the 
        plaintiff to file with the court an affidavit--
                  (A) stating whether or not the defendant is 
                in military service and showing necessary facts 
                to support the affidavit; or
                  (B) if the plaintiff is unable to determine 
                whether or not the defendant is in military 
                service, stating that the plaintiff is unable 
                to determine whether or not the defendant is in 
                military service.
          (2) Appointment of attorney to represent defendant in 
        military service.--If in an action covered by this 
        section it appears that the defendant is in military 
        service, the court may not enter a judgment until after 
        the court appoints an attorney to represent the 
        defendant. If an attorney appointed under this section 
        to represent a servicemember cannot locate the 
        servicemember, actions by the attorney in the case 
        shall not waive any defense of the servicemember or 
        otherwise bind the servicemember.
          (3) Defendant's military status not ascertained by 
        affidavit.--If based upon the affidavits filed in such 
        an action, the court is unable to determine whether the 
        defendant is in military service, the court, before 
        entering judgment, may require the plaintiff to file a 
        bond in an amount approved by the court. If the 
        defendant is later found to be in military service, the 
        bond shall be available to indemnify the defendant 
        against any loss or damage the defendant may suffer by 
        reason of any judgment for the plaintiff against the 
        defendant, should the judgment be set aside in whole or 
        in part. The bond shall remain in effect until 
        expiration of the time for appeal and setting aside of 
        a judgment under applicable Federal or State law or 
        regulation or under any applicable ordinance of a 
        political subdivision of a State. The court may issue 
        such orders or enter such judgments as the court 
        determines necessary to protect the rights of the 
        defendant under this Act.
          (4) Satisfaction of requirement for affidavit.--The 
        requirement for an affidavit under paragraph (1) may be 
        satisfied by a statement, declaration, verification, or 
        certificate, in writing, subscribed and certified or 
        declared to be true under penalty of perjury.
    (c) Penalty for Making or Using False Affidavit.--A person 
who makes or uses an affidavit permitted under subsection (b) 
(or a statement, declaration, verification, or certificate as 
authorized under subsection (b)(4)) knowing it to be false, 
shall be fined as provided in title 18, United States Code, or 
imprisoned for not more than one year, or both.
    (d) Stay of Proceedings.--In an action covered by this 
section in which the defendant is in military service, the 
court shall grant a stay of proceedings for a minimum period of 
90 days under this subsection upon application of counsel, or 
on the court's own motion, if the court determines that--
          (1) there may be a defense to the action and a 
        defense cannot be presented without the presence of the 
        defendant; or
          (2) after due diligence, counsel has been unable to 
        contact the defendant or otherwise determine if a 
        meritorious defense exists.
    (e) Inapplicability of Section 202 Procedures.--A stay of 
proceedings under subsection (d) shall not be controlled by 
procedures or requirements under section 202.
    (f) Section 202 Protection.--If a servicemember who is a 
defendant in an action covered by this section receives actual 
notice of the action, the servicemember may request a stay of 
proceeding under section 202.
    (g) Vacation or Setting Aside of Default Judgments.--
          (1) Authority for court to vacate or set aside 
        judgment.--If a default judgment is entered in an 
        action covered by this section against a servicemember 
        during the servicemember's period of military service 
        (or within 60 days after termination of or release from 
        such military service), the court entering the judgment 
        shall, upon application by or on behalf of the 
        servicemember, reopen the judgment for the purpose of 
        allowing the servicemember to defend the action if it 
        appears that--
                  (A) the servicemember was materially affected 
                by reason of that military service in making a 
                defense to the action; and
                  (B) the servicemember has a meritorious or 
                legal defense to the action or some part of it.
          (2) Time for filing application.--An application 
        under this subsection must be filed not later than 90 
        days after the date of the termination of or release 
        from military service.
    (h) Protection of Bona Fide Purchaser.--If a court vacates, 
sets aside, or reverses a default judgment against a 
servicemember and the vacating, setting aside, or reversing is 
because of a provision of this Act, that action shall not 
impair a right or title acquired by a bona fide purchaser for 
value under the default judgment.

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

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

SEC. 203. FINES AND PENALTIES UNDER CONTRACTS.

    (a) Prohibition of Penalties.--When an action for 
compliance with the terms of a contract is stayed pursuant to 
this Act, a penalty shall not accrue for failure to comply with 
the terms of the contract during the period of the stay.
    (b) Reduction or Waiver of Fines or Penalties.--If a 
servicemember fails to perform an obligation arising under a 
contract and a penalty is incurred arising from that 
nonperformance, a court may reduce or waive the fine or penalty 
if--
          (1) the servicemember was in military service at the 
        time the fine or penalty was incurred; and
          (2) the ability of the servicemember to perform the 
        obligation was materially affected by such military 
        service.

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

    (a) Court Action Upon Material Affect Determination.--If a 
servicemember, in the opinion of the court, is materially 
affected by reason of military service in complying with a 
court judgment or order, the court may on its own motion and 
shall on application by the servicemember--
          (1) stay the execution of any judgment or order 
        entered against the servicemember; and
          (2) vacate or stay an attachment or garnishment of 
        property, money, or debts in the possession of the 
        servicemember or a third party, whether before or after 
        judgment.
    (b) Applicability.--This section applies to an action or 
proceeding commenced in a court against a servicemember before 
or during the period of the servicemember's military service or 
within 90 days after such service terminates.

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

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

SEC. 206. STATUTE OF LIMITATIONS.

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

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

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

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

SEC. 301. EVICTIONS AND DISTRESS.

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

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

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

SEC. 303. MORTGAGES AND TRUST DEEDS.

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

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

    (a) Appraisal of Property.--When a stay is granted pursuant 
to this Act in a proceeding to foreclose a mortgage on or to 
repossess personal property, or to rescind or terminate a 
contract for the purchase of personal property, the court may 
appoint three disinterested parties to appraise the property.
    (b) Equity Payment.--Based on the appraisal, and if undue 
hardship to the servicemember's dependents will not result, the 
court may order that the amount of the servicemember's equity 
in the property be paid to the servicemember, or the 
servicemember's dependents, as a condition of foreclosing the 
mortgage, repossessing the property, or rescinding or 
terminating the contract.

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

    (a) Termination by Lessee.--The lessee on a lease described 
in subsection (b) may, at the lessee's option, terminate the 
lease at any time after--
          (1) the lessee's entry into military service; or
          (2) the date of the lessee's military orders 
        described in paragraph (1)(B) or (2)(B) of subsection 
        (b), as the case may be.
    (b) Covered Leases.--This section applies to the following 
leases:
          (1) Leases of premises.--A lease of premises 
        occupied, or intended to be occupied, by a 
        servicemember or a servicemember's dependents for a 
        residential, professional, business, agricultural, or 
        similar purpose if--
                  (A) the lease is executed by or on behalf of 
                a person who thereafter and during the term of 
                the lease enters military service; or
                  (B) the servicemember, while in military 
                service, executes the lease and thereafter 
                receives military orders for a permanent change 
                of station or to deploy with a military unit 
                for a period of not less than 90 days.
          (2) Leases of motor vehicles.--A lease of a motor 
        vehicle used, or intended to be used, by a 
        servicemember or a servicemember's dependents for 
        personal or business transportation if--
                  (A) the lease is executed by or on behalf of 
                a person who thereafter and during the term of 
                the lease enters military service under a call 
                or order specifying a period of not less than 
                180 days (or who enters military service under 
                a call or order specifying a period of 180 days 
                or less and who, without a break in service, 
                receives orders extending the period of 
                military service to a period of not less than 
                180 days); or
                  (B) the servicemember, while in military 
                service, executes the lease and thereafter 
                receives military orders for a permanent change 
                of station outside of the continental United 
                States or to deploy with a military unit for a 
                period of not less than 180 days.
    (c) Manner of Termination.--
          (1) In general.--Termination of a lease under 
        subsection (a) is made--
                  (A) by delivery by the lessee of written 
                notice of such termination, and a copy of the 
                servicemember's military orders, to the lessor 
                (or the lessor's grantee), or to the lessor's 
                agent (or the agent's grantee); and
                  (B) in the case of a lease of a motor 
                vehicle, by return of the motor vehicle by the 
                lessee to the lessor (or the lessor's grantee), 
                or to the lessor's agent (or the agent's 
                grantee), not later than 15 days after the date 
                of the delivery of written notice under 
                subparagraph (A).
          (2) Delivery of notice.--Delivery of notice under 
        paragraph (1)(A) may be accomplished--
                  (A) by hand delivery;
                  (B) by private business carrier; or
                  (C) by placing the written notice in an 
                envelope with sufficient postage and with 
                return receipt requested, and addressed as 
                designated by the lessor (or the lessor's 
                grantee) or to the lessor's agent (or the 
                agent's grantee), and depositing the written 
                notice in the United States mails.
    (d) Effective Date of Lease Termination.--
          (1) Lease of premises.--In the case of a lease 
        described in subsection (b)(1) that provides for 
        monthly payment of rent, termination of the lease under 
        subsection (a) is effective 30 days after the first 
        date on which the next rental payment is due and 
        payable after the date on which the notice under 
        subsection (c) is delivered. In the case of any other 
        lease described in subsection (b)(1), termination of 
        the lease under subsection (a) is effective on the last 
        day of the month following the month in which the 
        notice is delivered.
          (2) Lease of motor vehicles.--In the case of a lease 
        described in subsection (b)(2), termination of the 
        lease under subsection (a) is effective on the day on 
        which the requirements of subsection (c) are met for 
        such termination.
    (e) Arrearages and Other Obligations and Liabilities.--
Rents or lease amounts unpaid for the period preceding the 
effective date of the lease termination shall be paid on a 
prorated basis. In the case of the lease of a motor vehicle, 
the lessor may not impose an early termination charge, but any 
taxes, summonses, and title and registration fees and any other 
obligation and liability of the lessee in accordance with the 
terms of the lease, including reasonable charges to the lessee 
for excess wear, use and mileage, that are due and unpaid at 
the time of termination of the lease shall be paid by the 
lessee.
    (f) Rent Paid in Advance.--Rents or lease amounts paid in 
advance for a period after the effective date of the 
termination of the lease shall be refunded to the lessee by the 
lessor (or the lessor's assignee or the assignee's agent) 
within 30 days of the effective date of the termination of the 
lease.
    (g) Relief to Lessor.--Upon application by the lessor to a 
court before the termination date provided in the written 
notice, relief granted by this section to a servicemember may 
be modified as justice and equity require.
    (h) Penalties.--
          (1) Misdemeanor.--Any person who knowingly seizes, 
        holds, or detains the personal effects, security 
        deposit, or other property of a servicemember or a 
        servicemember's dependent who lawfully terminates a 
        lease covered by this section, or who knowingly 
        interferes with the removal of such property from 
        premises covered by such lease, for the purpose of 
        subjecting or attempting to subject any of such 
        property to a claim for rent accruing subsequent to the 
        date of termination of such lease, or attempts to do 
        so, shall be fined as provided in title 18, United 
        States Code, or imprisoned for not more than one year, 
        or both.
          (2) Preservation of other remedies.--The remedy and 
        rights provided under this section are in addition to 
        and do not preclude any remedy for wrongful conversion 
        otherwise available under law to the person claiming 
        relief under this section, including any award for 
        consequential or punitive damages.

SEC. 306. PROTECTION OF LIFE INSURANCE POLICY.

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

SEC. 307. ENFORCEMENT OF STORAGE LIENS.

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

SEC. 308. EXTENSION OF PROTECTIONS TO DEPENDENTS.

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

                        TITLE IV--LIFE INSURANCE

SEC. 401. DEFINITIONS.

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

SEC. 402. INSURANCE RIGHTS AND PROTECTIONS.

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

SEC. 403. APPLICATION FOR INSURANCE PROTECTION.

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

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

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

SEC. 405. POLICY RESTRICTIONS.

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

SEC. 406. DEDUCTION OF UNPAID PREMIUMS.

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

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

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

SEC. 408. REGULATIONS.

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

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

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

                    TITLE V--TAXES AND PUBLIC LANDS

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

    (a) Application.--This section applies in any case in which 
a tax or assessment, whether general or special (other than a 
tax on personal income), falls due and remains unpaid before or 
during a period of military service with respect to a 
servicemember's--
          (1) personal property (including motor vehicles); or
          (2) real property occupied for dwelling, 
        professional, business, or agricultural purposes by a 
        servicemember or the servicemember's dependents or 
        employees--
                  (A) before the servicemember's entry into 
                military service; and
                  (B) during the time the tax or assessment 
                remains unpaid.
      (b) Sale of Property.--
          (1) Limitation on sale of property to enforce tax 
        assessment.--Property described in subsection (a) may 
        not be sold to enforce the collection of such tax or 
        assessment except by court order and upon the 
        determination by the court that military service does 
        not materially affect the servicemember's ability to 
        pay the unpaid tax or assessment.
          (2) Stay of court proceedings.--A court may stay a 
        proceeding to enforce the collection of such tax or 
        assessment, or sale of such property, during a period 
        of military service of the servicemember and for a 
        period not more than 180 days after the termination of, 
        or release of the servicemember from, military service.
    (c) Redemption.--When property described in subsection (a) 
is sold or forfeited to enforce the collection of a tax or 
assessment, a servicemember shall have the right to redeem or 
commence an action to redeem the servicemember's property 
during the period of military service or within 180 days after 
termination of or release from military service. This 
subsection may not be construed to shorten any period provided 
by the law of a State (including any political subdivision of a 
State) for redemption.
    (d) Interest on Tax or Assessment.--Whenever a 
servicemember does not pay a tax or assessment on property 
described in subsection (a) when due, the amount of the tax or 
assessment due and unpaid shall bear interest until paid at the 
rate of 6 percent per year. An additional penalty or interest 
shall not be incurred by reason of nonpayment. A lien for such 
unpaid tax or assessment may include interest under this 
subsection.
    (e) Joint Ownership Application.--This section applies to 
all forms of property described in subsection (a) owned 
individually by a servicemember or jointly by a servicemember 
and a dependent or dependents.

SEC. 502. RIGHTS IN PUBLIC LANDS.

    (a) Rights Not Forfeited.--The rights of a servicemember to 
lands owned or controlled by the United States, and initiated 
or acquired by the servicemember under the laws of the United 
States (including the mining and mineral leasing laws) before 
military service, shall not be forfeited or prejudiced as a 
result of being absent from the land, or by failing to begin or 
complete any work or improvements to the land, during the 
period of military service.
    (b) Temporary Suspension of Permits or Licenses.--If a 
permittee or licensee under the Act of June 28, 1934 (43 U.S.C. 
315 et seq.), enters military service, the permittee or 
licensee may suspend the permit or license for the period of 
military service and for 180 days after termination of or 
release from military service.
    (c) Regulations.--Regulations prescribed by the Secretary 
of the Interior shall provide for such suspension of permits 
and licenses and for the remission, reduction, or refund of 
grazing fees during the period of such suspension.

SEC. 503. DESERT-LAND ENTRIES.

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

SEC. 504. MINING CLAIMS.

    (a) Requirements Suspended.--The provisions of section 2324 
of the Revised Statutes of the United States (30 U.S.C. 28) 
specified in subsection (b) shall not apply to a 
servicemember's claims or interests in claims, regularly 
located and recorded, during a period of military service and 
180 days thereafter, or during any period of hospitalization or 
rehabilitation due to injuries or disabilities incurred in the 
line of duty.
    (b) Requirements.--The provisions in section 2324 of the 
Revised Statutes that shall not apply under subsection (a) are 
those which require that on each mining claim located after May 
10, 1872, and until a patent has been issued for such claim, 
not less than $100 worth of labor shall be performed or 
improvements made during each year.
    (c) Period of Protection From Forfeiture.--A mining claim 
or an interest in a claim owned by a servicemember that has 
been regularly located and recorded shall not be subject to 
forfeiture for nonperformance of annual assessments during the 
period of military service and for 180 days thereafter, or for 
any period of hospitalization or rehabilitation described in 
subsection (a).
    (d) Filing Requirement.--In order to obtain the protections 
of this section, the claimant of a mining location shall, 
before the end of the assessment year in which military service 
is begun or within 60 days after the end of such assessment 
year, cause to be filed in the office where the location notice 
or certificate is recorded a notice communicating the fact of 
military service and the desire to hold the mining claim under 
this section.

SEC. 505. MINERAL PERMITS AND LEASES.

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

SEC. 506. PERFECTION OR DEFENSE OF RIGHTS.

    (a) Right To Take Action Not Affected.--This title shall 
not affect the right of a servicemember to take action during a 
period of military service that is authorized by law or 
regulations of the Department of the Interior, for the 
perfection, defense, or further assertion of rights initiated 
or acquired before entering military service.
    (b) Affidavits and Proofs.--
          (1) In general.--A servicemember during a period of 
        military service may make any affidavit or submit any 
        proof required by law, practice, or regulation of the 
        Department of the Interior in connection with the 
        entry, perfection, defense, or further assertion of 
        rights initiated or acquired before entering military 
        service before an officer authorized to provide notary 
        services under section 1044a of title 10, United States 
        Code, or any superior commissioned officer.
          (2) Legal status of affidavits.--Such affidavits 
        shall be binding in law and subject to the same 
        penalties as prescribed by section 1001 of title 18, 
        United States Code.

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

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

SEC. 508. LAND RIGHTS OF SERVICEMEMBERS.

    (a) No Age Limitations.--Any servicemember under the age of 
21 in military service shall be entitled to the same rights 
under the laws relating to lands owned or controlled by the 
United States, including mining and mineral leasing laws, as 
those servicemembers who are 21 years of age.
    (b) Residency Requirement.--Any requirement related to the 
establishment of a residence within a limited time shall be 
suspended as to entry by a servicemember in military service 
until 180 days after termination of or release from military 
service.
    (c) Entry Applications.--Applications for entry may be 
verified before a person authorized to administer oaths under 
section 1044a of title 10, United States Code, or under the 
laws of the State where the land is situated.

SEC. 509. REGULATIONS.

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

SEC. 510. INCOME TAXES.

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

SEC. 511. RESIDENCE FOR TAX PURPOSES.

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

                   TITLE VI--ADMINISTRATIVE REMEDIES

SEC. 601. INAPPROPRIATE USE OF ACT.

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

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

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

SEC. 603. INTERLOCUTORY ORDERS.

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

                       TITLE VII--FURTHER RELIEF

SEC. 701. ANTICIPATORY RELIEF.

    (a) Application for Relief.--A servicemember may, during 
military service or within 180 days of termination of or 
release from military service, apply to a court for relief--
          (1) from any obligation or liability incurred by the 
        servicemember before the servicemember's military 
        service; or
          (2) from a tax or assessment falling due before or 
        during the servicemember's military service.
    (b) Tax Liability or Assessment.--In a case covered by 
subsection (a), the court may, if the ability of the 
servicemember to comply with the terms of such obligation or 
liability or pay such tax or assessment has been materially 
affected by reason of military service, after appropriate 
notice and hearing, grant the following relief:
          (1) Stay of enforcement of real estate contracts.--
                  (A) In the case of an obligation payable in 
                installments under a contract for the purchase 
                of real estate, or secured by a mortgage or 
                other instrument in the nature of a mortgage 
                upon real estate, the court may grant a stay of 
                the enforcement of the obligation--
                          (i) during the servicemember's period 
                        of military service; and
                          (ii) from the date of termination of 
                        or release from military service, or 
                        from the date of application if made 
                        after termination of or release from 
                        military service.
                  (B) Any stay under this paragraph shall be--
                          (i) for a period equal to the 
                        remaining life of the installment 
                        contract or other instrument, plus a 
                        period of time equal to the period of 
                        military service of the servicemember, 
                        or any part of such combined period; 
                        and
                          (ii) subject to payment of the 
                        balance of the principal and 
                        accumulated interest due and unpaid at 
                        the date of termination or release from 
                        the applicant's military service or 
                        from the date of application in equal 
                        installments during the combined period 
                        at the rate of interest on the unpaid 
                        balance prescribed in the contract or 
                        other instrument evidencing the 
                        obligation, and subject to other terms 
                        as may be equitable.
          (2) Stay of enforcement of other contracts.--
                  (A) In the case of any other obligation, 
                liability, tax, or assessment, the court may 
                grant a stay of enforcement--
                          (i) during the servicemember's 
                        military service; and
                          (ii) from the date of termination of 
                        or release from military service, or 
                        from the date of application if made 
                        after termination or release from 
                        military service.
                  (B) Any stay under this paragraph shall be--
                          (i) for a period of time equal to the 
                        period of the servicemember's military 
                        service or any part of such period; and
                          (ii) subject to payment of the 
                        balance of principal and accumulated 
                        interest due and unpaid at the date of 
                        termination or release from military 
                        service, or the date of application, in 
                        equal periodic installments during this 
                        extended period at the rate of interest 
                        as may be prescribed for this 
                        obligation, liability, tax, or 
                        assessment, if paid when due, and 
                        subject to other terms as may be 
                        equitable.
    (c) Affect of Stay on Fine or Penalty.--When a court grants 
a stay under this section, a fine or penalty shall not accrue 
on the obligation, liability, tax, or assessment for the period 
of compliance with the terms and conditions of the stay.

SEC. 702. POWER OF ATTORNEY.

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

SEC. 703. PROFESSIONAL LIABILITY PROTECTION.

    (a) Applicability.--This section applies to a servicemember 
who--
          (1) after July 31, 1990, is ordered to active duty 
        (other than for training) pursuant to sections 688, 
        12301(a), 12301(g), 12302, 12304, 12306, or 12307 of 
        title 10, United States Code, or who is ordered to 
        active duty under section 12301(d) of such title during 
        a period when members are on active duty pursuant to 
        any of the preceding sections; and
          (2) immediately before receiving the order to active 
        duty--
                  (A) was engaged in the furnishing of health-
                care or legal services or other services 
                determined by the Secretary of Defense to be 
                professional services; and
                  (B) had in effect a professional liability 
                insurance policy that does not continue to 
                cover claims filed with respect to the 
                servicemember during the period of the 
                servicemember's active duty unless the premiums 
                are paid for such coverage for such period.
    (b) Suspension of Coverage.--
          (1) Suspension.--Coverage of a servicemember referred 
        to in subsection (a) by a professional liability 
        insurance policy shall be suspended by the insurance 
        carrier in accordance with this subsection upon receipt 
        of a written request from the servicemember by the 
        insurance carrier.
          (2) Premiums for suspended contracts.--A professional 
        liability insurance carrier--
                  (A) may not require that premiums be paid by 
                or on behalf of a servicemember for any 
                professional liability insurance coverage 
                suspended pursuant to paragraph (1); and
                  (B) shall refund any amount paid for coverage 
                for the period of such suspension or, upon the 
                election of such servicemember, apply such 
                amount for the payment of any premium becoming 
                due upon the reinstatement of such coverage.
          (3) Nonliability of carrier during suspension.--A 
        professional liability insurance carrier shall not be 
        liable with respect to any claim that is based on 
        professional conduct (including any failure to take any 
        action in a professional capacity) of a servicemember 
        that occurs during a period of suspension of that 
        servicemember's professional liability insurance under 
        this subsection.
          (4) Certain claims considered to arise before 
        suspension.--For the purposes of paragraph (3), a claim 
        based upon the failure of a professional to make 
        adequate provision for a patient, client, or other 
        person to receive professional services or other 
        assistance during the period of the professional's 
        active duty service shall be considered to be based on 
        an action or failure to take action before the 
        beginning of the period of the suspension of 
        professional liability insurance under this subsection, 
        except in a case in which professional services were 
        provided after the date of the beginning of such 
        period.
    (c) Reinstatement of Coverage.--
          (1) Reinstatement required.--Professional liability 
        insurance coverage suspended in the case of any 
        servicemember pursuant to subsection (b) shall be 
        reinstated by the insurance carrier on the date on 
        which that servicemember transmits to the insurance 
        carrier a written request for reinstatement.
          (2) Time and premium for reinstatement.--The request 
        of a servicemember for reinstatement shall be effective 
        only if the servicemember transmits the request to the 
        insurance carrier within 30 days after the date on 
        which the servicemember is released from active duty. 
        The insurance carrier shall notify the servicemember of 
        the due date for payment of the premium of such 
        insurance. Such premium shall be paid by the 
        servicemember within 30 days after receipt of that 
        notice.
          (3) Period of reinstated coverage.--The period for 
        which professional liability insurance coverage shall 
        be reinstated for a servicemember under this subsection 
        may not be less than the balance of the period for 
        which coverage would have continued under the insurance 
        policy if the coverage had not been suspended.
    (d) Increase in Premium.--
          (1) Limitation on premium increases.--An insurance 
        carrier may not increase the amount of the premium 
        charged for professional liability insurance coverage 
        of any servicemember for the minimum period of the 
        reinstatement of such coverage required under 
        subsection (c)(3) to an amount greater than the amount 
        chargeable for such coverage for such period before the 
        suspension.
          (2) Exception.--Paragraph (1) does not prevent an 
        increase in premium to the extent of any general 
        increase in the premiums charged by that carrier for 
        the same professional liability coverage for persons 
        similarly covered by such insurance during the period 
        of the suspension.
    (e) Continuation of Coverage of Unaffected Persons.--This 
section does not--
          (1) require a suspension of professional liability 
        insurance protection for any person who is not a person 
        referred to in subsection (a) and who is covered by the 
        same professional liability insurance as a person 
        referred to in such subsection; or
          (2) relieve any person of the obligation to pay 
        premiums for the coverage not required to be suspended.
    (f) Stay of Civil or Administrative Actions.--
          (1) Stay of actions.--A civil or administrative 
        action for damages on the basis of the alleged 
        professional negligence or other professional liability 
        of a servicemember whose professional liability 
        insurance coverage has been suspended under subsection 
        (b) shall be stayed until the end of the period of the 
        suspension if--
                  (A) the action was commenced during the 
                period of the suspension;
                  (B) the action is based on an act or omission 
                that occurred before the date on which the 
                suspension became effective; and
                  (C) the suspended professional liability 
                insurance would, except for the suspension, on 
                its face cover the alleged professional 
                negligence or other professional liability 
                negligence or other professional liability of 
                the servicemember.
          (2) Date of commencement of action.--Whenever a civil 
        or administrative action for damages is stayed under 
        paragraph (1) in the case of any servicemember, the 
        action shall have been deemed to have been filed on the 
        date on which the professional liability insurance 
        coverage of the servicemember is reinstated under 
        subsection (c).
    (g) Effect of Suspension Upon Limitations Period.--In the 
case of a civil or administrative action for which a stay could 
have been granted under subsection (f) by reason of the 
suspension of professional liability insurance coverage of the 
defendant under this section, the period of the suspension of 
the coverage shall be excluded from the computation of any 
statutory period of limitation on the commencement of such 
action.
    (h) Death During Period of Suspension.--If a servicemember 
whose professional liability insurance coverage is suspended 
under subsection (b) dies during the period of the suspension--
          (1) the requirement for the grant or continuance of a 
        stay in any civil or administrative action against such 
        servicemember under subsection (f)(1) shall terminate 
        on the date of the death of such servicemember; and
          (2) the carrier of the professional liability 
        insurance so suspended shall be liable for any claim 
        for damages for professional negligence or other 
        professional liability of the deceased servicemember in 
        the same manner and to the same extent as such carrier 
        would be liable if the servicemember had died while 
        covered by such insurance but before the claim was 
        filed.
    (i) Definitions.--For purposes of this section:
          (1) Active duty.--The term ``active duty'' has the 
        meaning given that term in section 101(d)(1) of title 
        10, United States Code.
          (2) Profession.--The term ``profession'' includes 
        occupation.
          (3) Professional.--The term ``professional'' includes 
        occupational.

SEC. 704. HEALTH INSURANCE REINSTATEMENT.

    (a) Reinstatement of Health Insurance.--A servicemember 
who, by reason of military service as defined in section 
703(a)(1), is entitled to the rights and protections of this 
Act shall also be entitled upon termination or release from 
such service to reinstatement of any health insurance that--
          (1) was in effect on the day before such service 
        commenced; and
          (2) was terminated effective on a date during the 
        period of such service.
    (b) No Exclusion or Waiting Period.--The reinstatement of 
health care insurance coverage for the health or physical 
condition of a servicemember described in subsection (a), or 
any other person who is covered by the insurance by reason of 
the coverage of the servicemember, shall not be subject to an 
exclusion or a waiting period, if--
          (1) the condition arose before or during the period 
        of such service;
          (2) an exclusion or a waiting period would not have 
        been imposed for the condition during the period of 
        coverage; and
          (3) if the condition relates to the servicemember, 
        the condition has not been determined by the Secretary 
        of Veterans Affairs to be a disability incurred or 
        aggravated in the line of duty (within the meaning of 
        section 105 of title 38, United States Code).
    (c) Exceptions.--Subsection (a) does not apply to a 
servicemember entitled to participate in employer-offered 
insurance benefits pursuant to the provisions of chapter 43 of 
title 38, United States Code.
    (d) Time for Applying for Reinstatement.--An application 
under this section must be filed not later than 120 days after 
the date of the termination of or release from military 
service.

SEC. 705. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

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

SEC. 706. BUSINESS OR TRADE OBLIGATIONS.

    (a) Availability of Non-Business Assets To Satisfy 
Obligations.--If the trade or business (without regard to the 
form in which such trade or business is carried out) of a 
servicemember has an obligation or liability for which the 
servicemember is personally liable, the assets of the 
servicemember not held in connection with the trade or business 
may not be available for satisfaction of the obligation or 
liability during the servicemember's military service.
    (b) Relief to Obligors.--Upon application to a court by the 
holder of an obligation or liability covered by this section, 
relief granted by this section to a servicemember may be 
modified as justice and equity require.

SEC. 2. CONFORMING AMENDMENTS.

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

SEC. 3. EFFECTIVE DATE.

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

           *       *       *       *       *       *       *

                              ----------                              


           [SECTION 14 OF THE MILITARY SELECTIVE SERVICE ACT


                             [CIVIL RELIEF

    [Sec. 14. Notwithstanding the provisions of section 604 of 
the Act of October 17, 1940 (54 Stat. 1191), and the provisions 
of section 4 of the Act of July 25, 1947 (Public Law 239, 
Eightieth Congress), all of the provisions of the Soldiers' and 
Sailors' Civil Relief Act of 1940, as amended, including 
specifically article IV thereof, shall be applicable to all 
persons in the Armed Forces of the United States, including all 
persons inducted into the Armed Forces pursuant to this title 
or the Public Health Service, until such time as the Soldiers' 
and Sailors' Civil Relief Act of 1940, as amended, is repealed 
or otherwise terminated by subsequent Act of the Congress: 
Provided, That, with respect to persons inducted into the armed 
forces while this title is in effect, wherever under any 
section or provision of the Soldiers' and Sailors' Civil Relief 
Act of 1940, as amended, a proceeding, remedy, privilege, stay, 
limitation, accounting, or other transaction has been 
authorized or provided with respect to military service 
performed while such Act is in force, such section or provision 
shall be deemed to continue in full force and effect so long as 
may be necessary to the exercise or enjoyment of such 
proceeding, remedy, privilege, stay, limitation, accounting, or 
other transaction.]
                              ----------                              


               [CHAPTER 55 OF TITLE 5, UNITED STATES CODE


[CHAPTER 55--PAY ADMINISTRATION

           *       *       *       *       *       *       *



[Subchapter II--Withholding Pay

           *       *       *       *       *       *       *



SEC. 5520A. GARNISHMENT OF PAY.

    (a) * * *

           *       *       *       *       *       *       *

    (k)(1) * * *
    (2) Such regulations shall include provisions for--
          (A) the involuntary allotment of the pay of a member 
        of the uniformed services for indebtedness owed a third 
        party as determined by the final judgment of a court of 
        competent jurisdiction, and as further determined by 
        competent military or executive authority, as 
        appropriate, to be in compliance with the procedural 
        requirements of the [Soldiers' and Sailors' Civil 
        Relief Act of 1940] Servicemembers Civil Relief Act (50 
        App. U.S.C. 501 et seq.); and

           *       *       *       *       *       *       *


[Subchapter VII--Payments to Missing Employees

           *       *       *       *       *       *       *



SEC. 5569. BENEFITS FOR CAPTIVES.

    (a) * * *

           *       *       *       *       *       *       *

    (e)(1) Under regulations prescribed by the President, the 
benefits [provided by the Soldiers' and Sailors' Civil Relief 
Act of 1940, including the benefits provided by section 701 of 
such Act but excluding the benefits provided by sections 104, 
105, 106, 400 through 408, 501 through 512, and 514 of such 
Act] provided by the Servicemembers Civil Relief Act, including 
the benefits provided by section 702 of such Act but excluding 
the benefits provided by sections 104, 105, and 106, title IV, 
and title V (other than sections 501 and 510) of such Act, 
shall be provided in the case of any individual who is a 
captive.
    (2) In applying such Act under this subsection--
          (A) the term ``[person in the military service] 
        servicemember'' is deemed to include any such captive;

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 1408 OF TITLE 10, UNITED STATES CODE


SEC. 1408. PAYMENT OF RETIRED OR RETAINER PAY IN COMPLIANCE WITH COURT 
                    ORDERS.

    (a) * * *
    (b) Effective Service of Process.--For the purposes of this 
section--
          (1) service of a court order is effective if--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) the court order or other documents served 
                with the court order certify that the rights of 
                the member under the [Soldiers' and Sailors' 
                Civil Relief Act of 1940] Servicemembers Civil 
                Relief Act (50 U.S.C. App. 501 et seq.) were 
                observed; and

           *       *       *       *       *       *       *

                              ----------                              


           SECTION 7654 OF THE INTERNAL REVENUE CODE OF 1986


SEC. 7654. COORDINATION OF UNITED STATES AND CERTAIN POSSESSION 
                    INDIVIDUAL INCOME TAXES.

    (a) * * *

           *       *       *       *       *       *       *

    (d) Federal Personnel.--In addition to the amount 
determined under subsection (a), the United States shall pay to 
each specified possession at such times and in such manner as 
determined by the Secretary--
          (1) the amount of the taxes deducted and withheld by 
        the United States under chapter 24 with respect to 
        compensation paid to members of the Armed Forces who 
        are stationed in such possession but who have no income 
        tax liability to such possession with respect to such 
        compensation by reason of the [Soldiers' and Sailors' 
        Civil Relief Act] Servicemembers Civil Relief Act (50 
        App. U.S.C. 501 et seq.), and

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 212 OF THE PUBLIC HEALTH SERVICE ACT


                           MILITARY BENEFITS

    Sec. 212. (a) * * *

           *       *       *       *       *       *       *

    (e) Active service of commissioned officers of the Service 
shall be deemed to be active military service in the Armed 
Forces of the United States for the purposes of all rights, 
privileges, immunities, and benefits now or hereafter provided 
under the [Soldiers' and Sailors' Civil Relief Act of 1940] 
Servicemembers Civil Relief Act (50 App. U.S.C. 501 et seq.).

           *       *       *       *       *       *       *

                              ----------                              


   SECTION 8001 OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965


SEC. 8001. PURPOSE.

    In order to fulfill the Federal responsibility to assist 
with the provision of educational services to federally 
connected children in a manner that promotes control by local 
educational agencies with little or no Federal or State 
involvement, because certain activities of the Federal 
Government, such as activities to fulfill the responsibilities 
of the Federal Government with respect to Indian tribes and 
activities under [section 514 of the Soldiers' and Sailors' 
Civil Relief Act of 1940 (50 U.S.C. App. 574)] section 511 of 
the Servicemembers Civil Relief Act, place a financial burden 
on the local educational agencies serving areas where such 
activities are carried out, and to help such children meet 
challenging State standards, it is the purpose of this title to 
provide financial assistance to local educational agencies 
that--
          (1) * * *

           *       *       *       *       *       *       *

                              ----------                              


       Section 262(a)(2) of the National Oceanic and Atmospheric 
 Administration Commissioned Officer Corps Act of 2002 (33 U.S.C. 3072)


SEC. 3072. ELIGIBILITY FOR VETERANS BENEFITS AND OTHER RIGHTS, 
                    PRIVILEGES, IMMUNITIES AND BENEFITS UNDER CERTAIN 
                    PROVISIONS OF LAW

    (a) In General.--Active service officers of the 
Administration shall be deemed to be active military service 
for the purposes of all rights, privileges, immunities, and 
benefits under the following:

           *       *       *       *       *       *       *

          (2) [The Soldiers' and Sailors' Civil Relief Act of 
        1940 (50 U.S.C. 501 et seq.),] The Servicemembers Civil 
        Relief Act.

           *       *       *       *       *       *       *


                                
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