    [United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    117 STAT. 2835

    Public Law 108-189
    108th Congress

    An Act

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

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

    SECTION 1. RESTATEMENT OF ACT.

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

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

    ``(a) Short Title.--This <> Act may be cited
    as the `Servicemembers Civil Relief Act'.

    ``(b) Table of Contents.--The table of contents of this Act is as
    follows:

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

    ``TITLE I--GENERAL PROVISIONS

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

    ``TITLE II--GENERAL RELIEF

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

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

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

    [[Page 2836]]
    117 STAT. 2836

    ``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

    [[Page 2837]]
    117 STAT. 2837

    ``(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

    [[Page 2838]]
    117 STAT. 2838

    ``(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.

    [[Page 2839]]
    117 STAT. 2839

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

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

    ``SEC. 105. <> NOTIFICATION OF BENEFITS.

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

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

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

    ``SEC. 107. <> WAIVER OF RIGHTS PURSUANT TO
    WRITTEN AGREEMENT.

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

    ``(c) Coverage of Periods After Orders Received.--For the purposes
    of this section--

    [[Page 2840]]
    117 STAT. 2840

    ``(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--

    [[Page 2841]]
    117 STAT. 2841

    ``(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.

    [[Page 2842]]
    117 STAT. 2842

    ``(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

    [[Page 2843]]
    117 STAT. 2843

    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.

    [[Page 2844]]
    117 STAT. 2844

    ``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

    [[Page 2845]]
    117 STAT. 2845

    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.

    [[Page 2846]]
    117 STAT. 2846

    ``(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.

    [[Page 2847]]
    117 STAT. 2847

    ``(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

    [[Page 2848]]
    117 STAT. 2848

    ``(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

    [[Page 2849]]
    117 STAT. 2849

    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.

    [[Page 2850]]
    117 STAT. 2850

    ``(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.

    [[Page 2851]]
    117 STAT. 2851

    ``(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--

    [[Page 2852]]
    117 STAT. 2852

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

    ``SEC. 402. <> INSURANCE RIGHTS AND PROTECTIONS.

    ``(a) Rights and Protections.--The rights and protections under this
    title apply to the insured when--
    ``(1) the insured,
    ``(2) the insured's legal representative, or
    ``(3) the insured's beneficiary in the case of an insured
    who is outside a State,

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

    ``SEC. 403. <> APPLICATION FOR INSURANCE
    PROTECTION.

    ``(a) Application Procedure.--An application for protection under
    this title shall--
    ``(1) be in writing and signed by the insured, the insured's
    legal representative, or the insured's beneficiary, as the case
    may be;
    ``(2) identify the policy and the insurer; and
    ``(3) include an acknowledgement that the insured's rights
    under the policy are subject to and modified by the provisions
    of this title.

    ``(b) Additional Requirements.--The Secretary of Veterans Affairs
    may require additional information from the applicant, the insured and
    the insurer to determine if the policy is entitled to protection under
    this title.
    ``(c) Notice <> to the Secretary by the
    Insurer.--Upon receipt of the application of the insured, the insurer
    shall furnish a report

    [[Page 2853]]
    117 STAT. 2853

    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.--

    [[Page 2854]]
    117 STAT. 2854

    ``(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--

    [[Page 2855]]
    117 STAT. 2855

    ``(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.

    [[Page 2856]]
    117 STAT. 2856

    ``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

    [[Page 2857]]
    117 STAT. 2857

    is recorded a notice communicating the fact of military service and the
    desire to hold the mining claim under this section.

    ``SEC. 505. <> MINERAL PERMITS AND LEASES.

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

    ``(c) Contract Modification.--This section shall not be construed to
    supersede the terms of any contract for operation of a permit or lease.

    ``SEC. 506. <> PERFECTION OR DEFENSE OF RIGHTS.

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

    ``SEC. 507. <> DISTRIBUTION OF INFORMATION
    CONCERNING BENEFITS OF TITLE.

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

    ``SEC. 508. <> LAND RIGHTS OF SERVICEMEMBERS.

    ``(a) No Age Limitations.--Any servicemember under the age of 21 in
    military service shall be entitled to the same rights under the laws
    relating to lands owned or controlled by the United States,

    [[Page 2858]]
    117 STAT. 2858

    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.

    [[Page 2859]]
    117 STAT. 2859

    ``(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.

    [[Page 2860]]
    117 STAT. 2860

    ``(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

    [[Page 2861]]
    117 STAT. 2861

    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.

    [[Page 2862]]
    117 STAT. 2862

    ``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

    [[Page 2863]]
    117 STAT. 2863

    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.

    [[Page 2864]]
    117 STAT. 2864

    ``(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

    [[Page 2865]]
    117 STAT. 2865

    ``(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

    [[Page 2866]]
    117 STAT. 2866

    (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.

    Approved December 19, 2003.

    LEGISLATIVE HISTORY--H.R. 100 (S. 1136):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: No. 108-81 (Comm. on Veterans' Affairs).
    SENATE REPORTS: No. 108-197 accompanying S. 1136 (Comm. on Veterans'
    Affairs).
    CONGRESSIONAL RECORD, Vol. 149 (2003):
    May 7, considered and passed House.
    Nov. 21, considered and passed Senate, amended, in lieu of
    S. 1136.
    Dec. 8, House concurred in Senate amendment.