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108th Congress                                                 Report
 1st Session          HOUSE OF REPRESENTATIVES                 108-81
======================================================================
 
                    SERVICEMEMBERS CIVIL RELIEF ACT

                                _______
                                

 April 30, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Smith of New Jersey, from the Committee on Veterans' Affairs, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 100]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Veterans' Affairs, to whom was referred the 
bill (H.R. 100) to restate, clarify, and revise the Soldiers' 
and Sailors' Civil Relief Act of 1940, having considered the 
same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

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

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

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

                       ``TITLE IV--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. 2. PURPOSE.

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

                     ``TITLE I--GENERAL PROVISIONS

``SEC. 101. DEFINITIONS.

  ``For the purposes of this Act:
          ``(1) Servicemember.--The term `servicemember' means a member 
        of the uniformed services, as that term is defined in section 
        101(a)(5) of title 10, United States Code.
          ``(2) Military service.--The term `military service' means--
                  ``(A) in the case of a servicemember who is a member 
                of the Army, Navy, Air Force, Marine Corps, or Coast 
                Guard--
                          ``(i) active duty, as defined in section 
                        101(d)(1) of title 10, United States Code, and
                          ``(ii) in the case of a member of the 
                        National Guard, includes service under a call 
                        to active service authorized by the President 
                        or the Secretary of Defense for a period of 
                        more than 30 consecutive days under section 
                        502(f) of title 32, United States Code, for 
                        purposes of responding to a national emergency 
                        declared by the President and supported by 
                        Federal funds; and
                  ``(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.
          ``(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.

``SEC. 102. JURISDICTION AND APPLICABILITY OF ACT.

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

``SEC. 103. PROTECTION OF PERSONS SECONDARILY LIABLE.

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

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

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

``SEC. 105. NOTIFICATION OF BENEFITS.

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

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

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

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

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

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

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

``SEC. 109. LEGAL REPRESENTATIVES.

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

                       ``TITLE II--GENERAL RELIEF

``SEC. 201. PROTECTION OF SERVICEMEMBERS AGAINST DEFAULT JUDGMENTS.

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

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

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

``SEC. 203. FINES AND PENALTIES UNDER CONTRACTS.

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

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

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

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

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

``SEC. 206. STATUTE OF LIMITATIONS.

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

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

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

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

``SEC. 301. EVICTIONS AND DISTRESS.

  ``(a) Court-Ordered Eviction.--
          ``(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 $1,700, 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 under subsection 
        (a)(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.''.
  ``(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; or
                  ``(B) the lease or bailment of such property,
        may not be rescinded or terminated for a breach of terms of the 
        contract occurring before or during that person's military 
        service, nor may the property be repossessed for such breach 
        without a court order.
          ``(2) Applicability.--This section applies only to a contract 
        for which a deposit or installment has been paid by the 
        servicemember before the servicemember enters military service.
  ``(b) Penalties.--
          ``(1) Misdemeanor.--A person who knowingly resumes possession 
        of property in violation of subsection (a), or in violation of 
        section 107 of this Act, or who knowingly attempts to do so, 
        shall be fined as provided in title 18, United States Code, or 
        imprisoned for not more than one year, or both.
          ``(2) Preservation of other remedies and rights.--The 
        remedies and rights provided under this section are in addition 
        to and do not preclude any remedy for wrongful conversion 
        otherwise available under law to the person claiming relief 
        under this section, including any award for consequential and 
        punitive damages.
  ``(c) Authority of Court.--In a hearing based on this section, the 
court--
          ``(1) may order repayment to the servicemember of all or part 
        of the prior installments or deposits as a condition of 
        terminating the contract and resuming possession of the 
        property;
          ``(2) may, on its own motion, and shall on application by a 
        servicemember when the servicemember's ability to comply with 
        the contract is materially affected by military service, stay 
        the proceedings for a period of time as, in the opinion of the 
        court, justice and equity require; or
          ``(3) may make other disposition as is equitable to preserve 
        the interests of all parties.

``SEC. 303. MORTGAGES AND TRUST DEEDS.

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

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

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

``SEC. 305. TERMINATION OF LEASES BY LESSEES.

  ``(a) Covered Leases.--This section applies to the lease of premises 
occupied, or intended to be occupied, by a servicemember or a 
servicemember's dependents for a residential, professional, business, 
agricultural, or similar purpose if--
          ``(1) the lease is executed by or on behalf of a person who 
        thereafter and during the term of the lease enters military 
        service; or
          ``(2) the servicemember, while in military service, executes 
        a lease and thereafter receives military orders for a permanent 
        change of station or to deploy with a military unit for a 
        period of not less than 90 days.
  ``(b) Notice to Lessor.--
          ``(1) Delivery of notice.--A lease described in subsection 
        (a) is terminated when written notice is delivered by the 
        lessee to the lessor (or the lessor's grantee) or to the 
        lessor's agent (or the agent's grantee).
          ``(2) Time for notice.--The written notice may be delivered 
        at any time after the lessee's entry into military service or 
        the date of the military orders for a permanent change of 
        station or to deploy for a period of not less than 90 days.
          ``(3) Nature of notice.--Delivery may be accomplished--
                  ``(A) by hand delivery;
                  ``(B) by private business carrier; or
                  ``(C) by placing the written notice in an envelope 
                with sufficient postage and addressed to the lessor (or 
                the lessor's grantee) or to the lessor's agent (or the 
                agent's grantee) and depositing the written notice in 
                the United States mails.
  ``(c) Effective Date of Termination.--
          ``(1) Lease with monthly rent.--Termination of a lease 
        providing for monthly payment of rent shall be effective 30 
        days after the first date on which the next rental payment is 
        due and payable after the date on which the notice is 
        delivered.
          ``(2) Other lease.--All other leases terminate on the last 
        day of the month following the month in which the notice is 
        delivered.
  ``(d) Arrearages in Rent.--Rents unpaid for the period preceding 
termination shall be paid on a prorated basis.
  ``(e) Rent Paid in Advance.--Rents paid in advance for a period 
succeeding termination shall be refunded to the lessee by the lessor 
(or the lessor's assignee or the assignee's agent).
  ``(f) 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.
  ``(g) 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)(1);
          ``(2) when the premiums on the policy are due and unpaid; or
          ``(3) upon the death of the insured.
  ``(c) Order Refused Because of Material Affect.--A court which 
receives an application for an order required under subsection (a) may 
refuse to grant such order if the court determines the ability of the 
servicemember to comply with the terms of the obligation is materially 
affected by military service.
  ``(d) Treatment of Guaranteed Premiums.--For purposes of this 
subsection, premiums guaranteed under the provisions of title IV of 
this Act shall not be considered due and unpaid.
  ``(e) Penalties.--
          ``(1) Misdemeanor.--A person who knowingly takes an action 
        contrary to this section, or attempts to do so, shall be fined 
        as provided in title 18, United States Code, or imprisoned for 
        not more than one year, or both.
          ``(2) Preservation of other remedies.--The remedy and rights 
        provided under this section are in addition to and do not 
        preclude any remedy for wrongful conversion otherwise available 
        under law to the person claiming relief under this section, 
        including any consequential or punitive damages.

``SEC. 307. ENFORCEMENT OF STORAGE LIENS.

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

``SEC. 308. EXTENSION OF PROTECTIONS TO DEPENDENTS.

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

                       ``TITLE IV--LIFE INSURANCE

``SEC. 401. DEFINITIONS.

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

``SEC. 402. INSURANCE RIGHTS AND PROTECTIONS.

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

``SEC. 403. APPLICATION FOR INSURANCE PROTECTION.

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

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

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

``SEC. 405. POLICY RESTRICTIONS.

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

``SEC. 406. DEDUCTION OF UNPAID PREMIUMS.

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

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

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

``SEC. 408. REGULATIONS.

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

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

  ``The findings of fact and conclusions of law made by the Secretary 
of Veterans Affairs in administering this title may be reviewed by the 
Board of Veterans' Appeals and the United States Court of Appeals for 
Veterans Claims.

                   ``TITLE V--TAXES AND PUBLIC LANDS

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

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

``SEC. 502. RIGHTS IN PUBLIC LANDS.

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

``SEC. 503. DESERT-LAND ENTRIES.

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

``SEC. 504. MINING CLAIMS.

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

``SEC. 505. MINERAL PERMITS AND LEASES.

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

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

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

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

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

``SEC. 508. LAND RIGHTS OF SERVICEMEMBERS.

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

``SEC. 509. REGULATIONS.

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

``SEC. 510. INCOME TAXES.

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

``SEC. 511. RESIDENCE FOR TAX PURPOSES.

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

                  ``TITLE VI--ADMINISTRATIVE REMEDIES

``SEC. 601. INAPPROPRIATE USE OF ACT.

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

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

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

``SEC. 603. INTERLOCUTORY ORDERS.

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

                      ``TITLE VII--FURTHER RELIEF

``SEC. 701. ANTICIPATORY RELIEF.

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

``SEC. 702. POWER OF ATTORNEY.

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

``SEC. 703. PROFESSIONAL LIABILITY PROTECTION.

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

``SEC. 704. HEALTH INSURANCE REINSTATEMENT.

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

``SEC. 705. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

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

SEC. 2. CONFORMING AMENDMENTS.

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

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.

                              Introduction

    The reported bill reflects the Committee's consideration of 
H.R. 100, as amended.
    On January 7, 2003, the Chairman and Ranking Member of the 
Veterans' Affairs Committee, the Honorable Christopher H. Smith 
and the Honorable Lane Evans, introduced H.R. 100 to restate, 
clarify, and revise the Soldiers' and Sailors' Civil Relief Act 
of 1940.
    On July 24 and July 25, 2002, the Subcommittee on Benefits 
held hearings on H.R. 5111, the Servicemembers' Civil Relief 
Act, and H.R. 4017, the Soldiers' and Sailors' Civil Relief 
Equity Act. H.R. 5111, introduced on July 7, 2002, was a 
restatement and clarification of the Soldiers' and Sailors' 
Civil Relief Act of 1940, and is nearly identical to H.R. 100. 
H.R. 4017, introduced on March 20, 2002, added coverage under 
the Soldiers' and Sailors' Civil Relief Act of 1940 for those 
National Guard members called up under title 32, United States 
Code, for 30 days or more.
    On July 24, the witnesses were Mr. Craig W. Duehring, 
Acting Assistant Secretary of Defense (Reserve Affairs); Ms. 
Judy Wilson, Deputy Director, Government Relations, The 
Enlisted Association of the National Guard; Mr. Bob Manhan, 
Assistant Director, National Legislative Service, Veterans of 
Foreign Wars; Mr. Richard Jones, National Legislative Director, 
AMVETS; and Ms. Joyce Wessel Raezer, Director, Government 
Relations, the National Military Family Association, Inc.
    On July 25, the witnesses were Robert Hirshon, Esq., 
President, American Bar Association; Eugene R. Fidell, Esq., 
Feldeman, Tucker, Leifer, Fidell & Bank, LLP; Mr. James Murphy, 
Chairman, Mortgage Bankers Association of America; Henry R. 
Desmarais, MD, M.P.A., Senior Vice President, Health Insurance 
Association of America; Ms. Kimberlee D. Vockel, Director of 
Legislative Affairs, Non Commissioned Officers Association; Mr. 
William B. Loper, Director of Government Affairs, Association 
of the United States Army; and Mr. James P. Tierney, Deputy 
Director of Legislative Programs, National Guard Association of 
the United States.
    The Administration supported both bills in concept while 
opposing some specific provisions. Other witnesses also 
generally supported the bills in concept with suggestions for 
substantive or technical improvements.
    On April 3, 2003, the full Committee met and ordered H.R. 
100, with an amendment in the nature of a substitute, reported 
favorably to the House by unanimous voice vote.

                      Summary of the Reported Bill

    H.R. 100, as amended, would:

     1. LRename the Soldiers' and Sailors' Civil Relief Act of 
1940 as the Servicemembers Civil Relief Act (the Act).

     2. LRestate the purposes of the Act and include among the 
purposes the temporary suspension of administrative 
proceedings.

                      TITLE I--GENERAL PROVISIONS

     1. LDefine the following terms: (1) ``servicemember'' as 
meaning a member of the uniformed services as defined in 
section 101(a)(5) of title 10, United States Code; (2) 
``military service'' for members of the Army, Navy, Marine 
Corps, Air Force or Coast Guard as meaning active duty as 
defined in section 101(d)(1) of title 10, United States Code, 
for members of the National Guard certain service for purposes 
of responding to a national emergency declared by the President 
and as meaning active service of commissioned officers of the 
Public Health Service (PHS) and the National Oceanic and 
Atmospheric Administration (NOAA); (3) ``period of military 
service'' as meaning the period beginning on the date a 
servicemember enters military service and ending on the date a 
servicemember is released from military service or dies in 
military service; (4) ``dependent'' as meaning a 
servicemember's spouse or child as defined in section 101(4) of 
title 38, United States Code, or an individual for whom the 
servicemember provided more than one-half of support for 180 
days before an application for relief under the Act; (5) 
``court'' as meaning any court or 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'' as meaning a 
commonwealth, territory, or possession of the United States, 
and the District of Columbia; and (7) ``Secretary concerned'' 
as meaning for a member of the armed forces a Secretary as 
defined in section 101(a)(9) of title 10, United States Code, 
for a commissioned officer of the PHS, the Secretary of Health 
and Human Services, and for a commissioned officer of NOAA, the 
Secretary of Commerce.

     2. LProvide that the Act applies to the United States, 
each of the States, including their political subdivisions, and 
all territories under U.S. jurisdiction.

     3. LProvide that the Act applies to any judicial or 
administrative proceeding commenced in any court or agency in 
any jurisdiction, but would not apply to criminal proceedings.

     4. LProvide that when any application under the Act is 
required to be made to a court in which no proceeding has 
already been commenced, the application may be made to any 
court which would have jurisdiction over the matter.

     5. LProtect persons secondarily liable, such as sureties, 
guarantors, endorsers, accommodation makers, and comakers, by: 
(1) extending to them the protections of the Act, (2) allowing 
courts, when a judgment or decree is vacated or set aside under 
the Act, to take similar action for persons secondarily liable, 
(3) providing that a court may not enforce a bail bond during 
the period of military service of the principal when military 
service prevents the surety from obtaining the attendance of 
the principal, and by allowing the court to discharge the 
surety and exonerate the bail. The Act would allow individuals 
otherwise covered under these provisions to waive their 
protection, but only by a waiver executed separately from the 
obligation or liability. The Act would invalidate waivers by an 
individual or a dependent after which the individual enters 
military service, unless the waiver was executed during the 
period beginning on the date the member or inductee received 
the order to report and ending on the reporting date or the 
date of revocation of the order to report.

     6. LProvide the relief and protections of the Act to 
citizens of the United States who serve in the armed forces of 
allies of the United States, terminating on the date of 
discharge or release from service.

     7. LRequire the Secretary concerned to provide written 
notice to persons in military service or persons entering 
military service of their rights under the Act.

     8. LProvide that a member of a reserve component who is 
ordered to report for military service is entitled to rights 
and protections under the Act during the period beginning on 
the date the member receives the order and ending on the date 
the member reports for military service (or if the order is 
revoked before the member reports, or on the date the order is 
revoked). This provision would also extend rights and 
protections under the Act to those individuals who have been 
drafted during the period of time between the date they receive 
their induction orders and the date they report 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 the 
order is revoked).

     9. LAuthorize a servicemember to waive any rights and 
protections afforded under the Act; requires waivers that would 
permit the modification, termination, cancellation, 
repossession, sale, foreclosure, or forfeiture of property that 
was the subject of a legal instrument be made pursuant to a 
written agreement in order to be effective.

    10. LProvide that an application by a servicemember in 
military service for protections under the Act could not be: 
(1) the basis for denial or revocation of, or a change in, 
credit by creditors, (2) a presumption that such individual 
cannot pay his or her obligation or liability, (3) an adverse 
credit report, (4) or a refusal of an insurer to insure such 
individual. This provision would also treat a preexisting 
business debt or obligation of a servicemember ordered to 
active duty as an obligation of the servicemember for purposes 
of the Act.

    11. LDefine that a legal representative of a servicemember 
for purposes of the Act is an attorney acting for a 
servicemember or an individual with a power of attorney, and 
that the term ``servicemember'' as used in the Act includes a 
servicemember's legal representative.

                        TITLE II--GENERAL RELIEF

      1. LRequire a court in an action in which the defendant 
is in military service to grant a minimum 90-day stay of 
proceedings upon application of counsel or upon court motion if 
the court determines that: (1) there may be a defense to the 
action and a defense cannot be presented without the defendant, 
or (2) after due diligence, counsel has been unable to contact 
the defendant or otherwise determine if a meritorious defense 
exists. This provision would also protect bona fide purchasers 
for value if a default judgment is set aside on behalf of a 
servicemember.

      2. LProvide for a minimum 90-day stay of proceedings at 
any stage before final judgment in a civil action for a 
servicemember who is serving on active duty or is within 90 
days after termination of such duty and who has received notice 
of such proceedings, upon appropriate application by the 
servicemember or his or her commanding officer. This provision 
would also allow application for an additional stay based on 
continuing material affect of military duty on the 
servicemember's ability to appear; require the court to appoint 
counsel for the servicemember when such application for 
additional stay is refused; and specify that an application for 
stay under this provision does not constitute an appearance for 
jurisdictional purposes and is not a waiver of any substantive 
or procedural defense.

      3. LProhibit a penalty from accruing against a person 
failing to carry out the terms of a contract during the period 
of a court issued stay in an action for compliance with the 
terms of the contract. This provision would also allow the 
court to reduce or waive a fine or penalty for failing to carry 
out the terms of a contract if the servicemember is in military 
service at the time the fine or penalty was incurred, and the 
servicemember's ability to perform the obligation is materially 
affected by the military service.

      4.LAuthorize a court to stay a judgment or order against 
a servicemember or vacate or stay an attachment when a 
servicemember's compliance is materially affected by military 
service; and authorize a court to grant such stays before or 
during the servicemember's military service or within 90 days 
after such service terminates.

      5. LAllow a stay of an action, proceeding, attachment, or 
execution granted by a court under the provisions of this Act 
to remain in effect for the period of military service, and up 
to 90 days thereafter. This provision would also allow a 
plaintiff to proceed with an action against other defendants 
who are not in military service, when a servicemember is a 
codefendant, with the approval of the court, even though the 
action is stayed with respect to the servicemember.

      6. LProvide that in deciding when the period of time 
specified in a statute of limitations expires for any action or 
proceeding, the period of a servicemember's military service is 
not counted, and also provide that the period of a 
servicemember's military service may not be included in the 
period for redemption of real property that has been sold or 
forfeited to enforce a tax, obligation, or assessment.

      7. LLimit interest rates to 6 percent per year on 
obligations or liabilities incurred by the servicemember, or 
jointly by the servicemember and the servicemember's spouse, 
before the servicemember enters military service. This 
provision would forgive the payment of interest in excess of 6 
percent a year on such obligations or liabilities, and require 
a servicemember, in order to be covered by the 6 percent cap, 
to provide creditors with written notice and a copy of his or 
her service orders, as well as any orders for service 
extension, within 180 days after termination or release from 
such service. This provision would also allow the court to 
grant a creditor relief from the 6 percent limit if the ability 
of the servicemember to pay interest in excess of the cap is 
not materially affected by reason of military service.

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

    1. LProtect against the eviction of a servicemember or his 
or her dependents during a period of military service from 
premises occupied primarily as a residence for which rent does 
not exceed $1,700, except by court order and provide for 
increases in the rental amount based upon an annual housing 
price inflation adjustment. It would also allow a court to stay 
execution of an application for eviction or distress for 90 
days or adjust the obligation under the lease if a 
servicemember's ability to pay rent is materially affected by 
military service; grant relief to the landlord; provide that 
knowing violation of this provision is a criminal misdemeanor; 
and authorize the Secretary concerned to make an allotment from 
the servicemember's pay to the extent required by a court 
order.

    2. LRequire a court order for rescission or termination for 
breach of contract during a period of military service for the 
purchase or lease of real or personal property entered into 
prior to such service, and for which a deposit or installment 
has been paid. It would also provide that a knowing violation 
of this provision is a criminal misdemeanor, provide that 
certain other remedies are not precluded for persons claiming 
relief under this provision, provide that a court may order 
repayment to servicemembers of installments or deposits before 
a contract may be terminated and the property repossessed, and 
provide that a court may stay the proceedings for a period of 
time as justice and equity require or make other equitable 
disposition.

    3. LAuthorize a court to stay proceedings or adjust the 
obligation in the case of claims filed to enforce mortgage or 
trust deed payments for up to 90 days after a servicemember's 
period of military service when the servicemember's ability to 
comply with the obligation has been materially affected by 
military service. This provision would only apply to 
obligations on real or personal property owned by a 
servicemember that originated before the period of the 
servicemember's military service and for which the 
servicemember is still obligated when the property is secured 
by a mortgage, trust, deed, or other security in the nature of 
a mortgage. It would make knowing violation of this provision a 
criminal misdemeanor and preserve other remedies available to a 
person claiming relief under this provision.

    4. LAuthorize a court to appoint three disinterested 
parties to appraise a property if a stay has been granted 
pursuant to this Act in a proceeding to foreclose on a 
mortgage, repossess personal property, or to rescind or 
terminate a contract for the purchase of personal property. 
This provision also would allow, based on the appraisal and if 
undue hardship to the servicemember's dependents would not 
result, the court to order the amount of the servicemember's 
equity in the property to 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.

    5. LAllow termination of leases 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 the lease is executed by a 
person who thereafter and during the term of the lease enters 
military service, or the servicemember while in military 
service executes a lease and thereafter receives orders for a 
permanent change of station or to deploy for not less than 90 
days. It would establish the requirements for the lessee to 
provide written notice to the lessor or to the lessor's agent 
and provide the effective date of termination for leases with 
monthly rent and for all other leases. It would require that 
arrearages in rent be paid on a prorated basis and require that 
rents paid in advance be refunded to the lessee. It also would 
authorize a court to grant certain relief to lessors as justice 
and equity require. It would provide that knowing violation of 
this provision is a criminal misdemeanor and provide that 
remedies otherwise available under law are not precluded.

    6. LProvide that where any life insurance policy on the 
life of a person who enters active military service has been 
assigned by that person before entering active duty to secure 
payment of a debt, the assignee of the policy (except the 
insurance company in connection with a policy loan) may not 
exercise during the period of military service or within one 
year thereafter any right or option obtained under the 
assignment without a court order. This prohibition would not 
apply: (1) if the assignee has the written consent of the 
insured, (2) when any premiums on the policy are due and 
unpaid, and (3) upon the death of the insured. It would provide 
that a court may refuse to grant an order under this provision 
if the ability of the servicemember to comply with the terms of 
the obligation is materially affected by military service. It 
would provide that premiums guaranteed under title IV of the 
Act would not be considered due and unpaid. It also would 
provide that knowing violation of this provision is a criminal 
misdemeanor and provide that remedies otherwise available under 
law are not precluded.

    7. LProhibit the enforcement of any storage lien of any 
person on active duty in military service while the person is 
on active duty and for 90 days thereafter without a court 
order. It would authorize a court to stay proceedings to 
enforce a lien or to adjust the obligation if a servicemember's 
ability to comply with the obligation is materially affected by 
military service. It also would provide that knowing violation 
of this provision is a criminal misdemeanor and provide that 
remedies otherwise available under law are not precluded.

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

                        TITLE IV--LIFE INSURANCE

    1. LDefine the term ``policy'' for the purposes of this 
title on life insurance, and define the terms ``premium,'' 
``insured,'' and ``insurer.''

    2. LAllow the insured, the insured's designee, or the 
insured's beneficiary to apply in writing for the protection 
from a lapse of a life insurance policy by providing for a 
guarantee of payment of premiums and interest on premiums by 
the United States, unless the Secretary of Veterans Affairs 
determines the insured's policy is not entitled to protection. 
It would require the Secretary of Veterans Affairs to notify 
the Secretary concerned of the procedures to be used to apply 
for the protections provided under this title. It would require 
the applicant to send the original application to the insurer 
and a copy to the Secretary of Veterans Affairs. It also would 
increase the total amount of life insurance coverage protection 
under this title to $250,000, or an amount equal to the 
Servicemembers' Group Life Insurance maximum amount, whichever 
is greater.

    3. LRequire that an application for protection under this 
title be: (1) in writing and signed by the insured, the 
insured's designee, or the insured's beneficiary, (2) identify 
the policy and the insurer, and (3) include an acknowledgment 
that the insured's rights under the policy are subject to and 
modified by the provisions of the title. It would allow the 
Secretary of Veterans Affairs to require additional information 
from the applicant, the insured and the insurer to determine if 
the policy is entitled to protection; and provide that upon 
receipt of the application of the insured, the insurer must 
furnish a report concerning the policy to the Secretary of 
Veterans Affairs as required by regulations prescribed by the 
Secretary. It also would provide that an application for 
protection under this title constitutes agreement to any policy 
modification necessary to give this title full force and 
effect.

    4. LRequire the Secretary of Veterans Affairs to determine 
whether a policy is entitled to protection under this title and 
to notify the insured and insurer of that determination. It 
would provide that a policy the Secretary determines to be 
entitled to protection would not, after the date of application 
for protection, lapse or otherwise terminate or be forfeited 
for nonpayment of a premium, or interest or indebtedness on a 
premium, and provide that the protection under this title 
applies during the insured's period of military service and for 
two years thereafter.

    5. LProhibit a dividend or other monetary benefit under a 
policy to be paid to an insured or used to purchase dividend 
additions while the policy is protected under this title, 
without the approval of the Secretary of Veterans Affairs. It 
would also prohibit cash value, loan value, withdrawal of 
dividend accumulation, unearned premiums, or other value of 
similar character to be available while the policy is protected 
under the provisions of the title without the approval of the 
Secretary. It would provide that provisions under this title do 
not affect the right of the insured to change a beneficiary 
designation or select an optional settlement for a beneficiary.

    6. LRequire the insurer to deduct from the insurance 
proceeds the amount of the unpaid premiums guaranteed, together 
with the interest due at the rate fixed in the policy for 
policy loans if a policy matures as a result of a 
servicemember's death or otherwise during the period of 
protection. It would require the interest rate to be the same 
for policy loans in other policies issued by the insurer at the 
time the policy was issued and require that the amount 
deducted, if any, be reported by the insurer to the Secretary 
of Veterans Affairs.

    7. LProvide that the payment of premiums, and interest on 
premiums at a rate specified by this title, is guaranteed by 
the United States. It would provide that the insurer treat the 
amount guaranteed as a policy loan on the policy, if it is not 
paid to the insurer before the period of insurance protection 
expires. It would require the termination of the policy, if at 
the time of the expiration of insurance protection under this 
title, the cash surrender value of the policy is less than the 
amount due to pay premiums and interest on premiums on the 
policy and require that upon termination, the United States pay 
the insurer the difference between the amount due and the cash 
surrender value. It would provide that the amount paid by the 
United States to the insurer is a debt payable to the United 
States by the policy holder, and provide that this amount may 
be collected by the United States, either as an offset from any 
amount due to the policy holder by the United States, or as 
otherwise authorized by law. It also would provide that such a 
debt payable to the United States is not dischargeable in 
bankruptcy proceedings and require any amounts received by the 
United States as repayment of debts incurred by an insured be 
credited to the appropriation for the payment of claims under 
this provision.

    8. LAuthorize the Secretary to prescribe regulations for 
implementation of this title.

    9. LAllow the findings of fact and conclusions of law made 
by the Secretary of Veterans Affairs in administering this 
title to be reviewed by the Board of Veterans' Appeals and the 
United States Court of Appeals for Veterans Claims.

                    TITLE V--TAXES AND PUBLIC LANDS

     1. LApply to any cases of tax assessments (except taxes on 
personal income) falling due and remaining unpaid before or 
during military service for personal property, or real property 
before entry into military service and during the time the tax 
or assessment remains unpaid. It would prohibit sale of such 
property to enforce a tax assessment without a court order 
determining that military service does not materially affect 
the servicemember's ability to pay the unpaid tax or 
assessment. It would provide for a stay of court proceedings to 
enforce the collection of such a tax or assessment for not more 
than 180 days after termination of military service, and 
provide for a servicemember's right of redemption of such 
property during military service or within 180 days after 
termination of military service. It would provide for a 6 
percent interest cap on such tax or assessments due and unpaid. 
It would apply these provisions to property jointly owned by a 
servicemember and a dependent or dependents.

     2. LProvide that the rights of a servicemember to public 
lands are not forfeited or prejudiced as a result of being 
absent from the land during the period of military service. It 
would provide that certain permittees or licensees who have 
entered military service may suspend the permits and licenses 
held before entering military service, during military service, 
and for 180 days after termination of military service. It 
would authorize the Secretary of the Interior to prescribe 
regulations regarding this provision.

     3. LExempt the servicemember and former servicemembers 
from certain desert-land entry requirements during military 
service and for 180 days after termination of military service, 
and during any period of rehabilitation from injury or illness 
incurred during military service. It would provide that an 
honorably discharged entryman or claimant who is disabled in 
the line of duty may make proof without further reclamation or 
payments. The servicemember must notify the land office where 
the claim is located within 180 days after entering military 
service that he or she has entered military service.

     4. LProvide that certain requirements of law to keep a 
mining claim in effect are suspended when the claim is held by 
a servicemember while on active duty and for 180 days after 
termination of military service, or during a period of 
hospitalization because of wounds or disability incurred in the 
line of duty. It also would provide a 180-day period of 
protection from forfeiture for a mining claim owned by a 
servicemember and establish certain filing requirements for 
claimants who desire to hold a mining claim under this 
provision.

     5. LProvide that a person holding a permit or a lease 
under the Federal mineral laws who enters military service may 
suspend all operations, and prohibit the period the 
servicemember is on active duty and 180 days thereafter from 
being counted as part of the term of the servicemember's permit 
or license. It would prohibit the charge of rental fees or 
royalties during the period of suspension and require the 
permittee or lessee to notify the Secretary of the Interior 
within 180 days after entry into military service in order to 
obtain the protections of this provision. It also would provide 
that this provision does not supersede the terms of any 
contract for operation of a permit or lease.

     6.LProvide that this title does not affect the right of a 
servicemember to perfect or defend rights initiated or acquired 
prior to entry into military service. It also would provide for 
affidavits and proofs required by the Department of the 
Interior, and provide that such affidavits are binding in law 
and subject to certain penalties.

     7. LAuthorize the Secretary concerned to issue to 
servicemembers information explaining the provisions of this 
title and to provide application forms to servicemembers 
requesting relief under this title. It would authorize the 
Secretary of Interior to furnish the Secretary concerned 
information explaining the provisions of this title and related 
application forms.

     8. LEntitle any servicemember under the age of 21 to the 
same rights of laws relating to lands owned or controlled by 
the United States, including mining and mineral leasing laws, 
as those servicemembers over the age of 21.

     9. LAuthorize the Secretary of the Interior to issue 
regulations necessary to carry out this title.

    10. LProvide that, upon notice to the Internal Revenue 
Service or other tax authority, collection of taxes on the 
income of a servicemember falling due before or during military 
service is deferred while the person in military service and 
for not more than 180 days after termination of military 
service if the person's ability to pay the taxes is materially 
affected by military service. It would provide that no interest 
or other penalty may accrue for the period of deferment for 
nonpayment and provide that the statute of limitations against 
collection of a deferred tax under this provision is suspended 
during the servicemember's military service and for 270 days 
thereafter. It also would provide that this provision does not 
apply to the tax imposed on employees by section 3101 of the 
Internal Revenue Code of 1986.

    11. LProvide that a servicemember neither loses nor 
acquires a residence or domicile for tax purposes with respect 
to the person, personal property, or income by reason of being 
absent or present in any U.S. tax jurisdiction solely in 
compliance with military orders. It would provide that military 
service compensation is not deemed to be income for services 
performed or from sources within a U.S. tax jurisdiction if the 
servicemember is not a resident or domiciliary of that 
jurisdiction. It would provide that personal property may be 
taxed only in the tax jurisdiction of the servicemember's 
domicile or residence. It would prohibit a tax jurisdiction 
from using the military compensation of a non-resident 
servicemember to increase the tax liability imposed on other 
income earned by such servicemember or spouse. It also would 
provide that an Indian servicemember whose legal residence or 
domicile is a Federal Indian reservation is taxed under the 
laws applicable to such reservation and not to the State where 
the reservation is located.

                   TITLE VI--ADMINISTRATIVE REMEDIES

     1. LProvide that a court may prevent inappropriate use of 
the Act by entering judgments or orders.
     2. LProvide that a certificate of service signed by the 
Secretary concerned is prima-facie evidence of military service 
and require the Secretary concerned to furnish certain 
certificates upon receipt of an application. It would establish 
a presumption that a servicemember who is declared missing is 
in military service until accounted for.

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

                       TITLE VII--FURTHER RELIEF

     1. LAllow a servicemember to apply for anticipatory relief 
from any obligation or liability incurred before the 
servicemember's military service, or from a tax or assessment 
falling due before or during the servicemember's military 
service or within 180 days of termination from military 
service. It would provide that in a case covered by this 
provision, if the ability of the servicemember to comply with 
the terms of an obligation or liability or pay a tax or 
assessment has been materially affected by military service, 
after appropriate notice and hearing, a court may grant: (1) a 
stay of enforcement of certain real estate contracts, and (2) a 
stay of enforcement of certain other contracts. It also would 
provide that, if a court grants a stay under this provision, no 
fine or penalty may accrue during the period of compliance with 
the terms and conditions of the stay.

     2. LExtend automatically a servicemember's power of 
attorney when the servicemember is in a missing status.

     3. LProvide for suspension of a professional liability 
insurance policy for the period of active duty military service 
in the case of a person providing professional health care or 
legal services (or other services determined by the Secretary 
of Defense to be professional services) under a professional 
liability insurance contract and who entered into certain 
active duty under title 10, United States Code. It would 
establish requirements for suspension of coverage and 
reinstatement of coverage, and prohibit the insurance carrier 
from requiring payments to be made during the period of such 
suspended coverage. It would define for the purposes of this 
provision the terms ``active duty,'' ``profession,'' and 
``professional.''

     4. LProvide that a servicemember entitled to the rights 
and protections of the Act is also entitled upon termination of 
military service to reinstatement of any health insurance that: 
(1) was in effect on the day before service commenced, and (2) 
was terminated effective on a date during the period of 
service. It would prohibit any exclusions or waiting periods 
from being imposed upon a returning servicemember for health 
insurance coverage if: (1) the condition arouse before or 
during the servicemember's military service, (2) such exclusion 
or waiting period would not have been imposed for the condition 
during the period of coverage, and (3) such condition is not 
determined by the Secretary of Veterans Affairs to be a 
disability incurred or aggravated in the line of duty. It would 
require that an application for reinstatement be filed not 
later than 120 days after termination of military service.

     5. LProvide a guarantee of residency for military 
personnel for purposes of voting for any Federal office or a 
State or local office, if that person is absent from a State in 
compliance with military or naval orders.

                       Background and Discussion

    Congress has long recognized that the men and women of our 
military services should have civil legal protections so they 
can ``devote their entire energy to the defense needs of the 
Nation.'' With hundreds of thousands of servicemembers fighting 
in the war on terrorism and the war in Iraq, many of them 
mobilized from the reserve components, the Committee believes 
the Soldiers' and Sailors' Civil Relief Act (SSCRA) should be 
restated and strengthened to ensure that its protections meet 
their needs in the 21st century.
    The earliest recognition of the need to provide civil 
protections for servicemembers in the United States dates back 
to the ``stay laws'' promulgated by Louisiana during the War of 
1812. Louisiana suspended all proceedings in civil cases for 
four months as the British were advancing on New Orleans. 
Experience of persons serving in the military during the Civil 
War led the Federal government and some states to enact stay 
laws which had the effect of suspending legal actions to which 
the soldier or sailor was a party. Soldiers' and Sailors' Civil 
Relief Bill: Hearing on S. 2859 and H.R. 6361 Before the Senate 
Subcommittee on the Judiciary, 65th Cong., 38 (1917). Following 
the decision of the United States to enter the war in Europe in 
1917, the first modern version of the Soldiers' and Sailors' 
Civil Relief Act was drafted in six weeks by Major John 
Wigmore, the eminent Dean of Northwestern University's Law 
School and author of the authoritative treatise, Wigmore on 
Evidence. He had been called to active duty and attached to the 
Army Judge Advocate General Corps (JAGC). Id. at 83-84.
    The original SSCRA provisions covered default judgments, 
stays of proceedings, evictions, mortgage foreclosure, 
insurance, and installment contracts. In a letter transmitting 
the draft bill to Congress, Newton Baker, Secretary of War, and 
Josephus Daniels, Secretary of the Navy, summed up the purpose 
of the legislation, ``On the whole, the method of the act 
consists mainly in suspending proceedings and transactions 
during the soldier's or sailor's absence, so that he may have 
an opportunity, when he returns, to be heard and to take 
measures to protect his interests.'' Id. at 5.
    The Senate hearings considered the authority of Congress to 
enact this type of legislation under the authority of the 
Constitution's war powers, as well as provisions on protection 
of insurance premiums. The Senate Subcommittee on the Judiciary 
in the end determined in a resolution ``that the Congress has 
the power to enact a reasonable stay law, which may control the 
processes and proceedings of State courts.'' Id. This 
conclusion relied on Stewart v. Kahn, 78 U.S. 493, 11 Wallace 
493 (1870), a decision in which the U.S. Supreme Court 
expressly held that the Federal statutes of the Civil War (13 
Stat. L., 123, June 11, 1864) were controlling upon the state 
as well as the Federal courts. Id. at 89. The SSCRA of 1918 
terminated under its own provisions six months after World War 
I ended.
    In 1940, with the looming involvement of the United States 
in World War II, Congress re-enacted the SSCRA almost verbatim. 
Civil Liabilities of Military Personnel: Hearing on S. 4270 
Before the Senate Committee on Military Affairs, 76th Cong. 
Vol. 8, 7 (1940). The 1940 version added the method for 
administering insurance protection and protections with respect 
to public lands, and raised the rent eviction ceiling from $50 
to $80. Civil Liabilities of Military Personnel: Hearing on S. 
4270 Before the Senate Committee on Military Affairs, 76th 
Cong., Vol. 8, 18 (1940).
    Within two years it became apparent that new social and 
business realities made a major update necessary. While the 
amendments were being considered, Congressman Overton Brooks 
(D-LA), observed on the floor of the House:

          This bill springs from the desire of the people of 
        the United States to make sure as far as possible that 
        men in service are not placed at a civil disadvantage 
        during their absence. It springs from the inability of 
        men who are in service to properly manage their normal 
        business affairs while away. It likewise arises from 
        the differences in pay which a soldier receives and 
        what the same man normally earns in civil life. (Cong. 
        Rec. H. 5553, June 11, 1942).

The U.S. Supreme Court later supported this interpretation when 
it declared that the Act must be read with ``an eye friendly to 
those who dropped their affairs to answer their country's 
call.'' Le Maistre v. Leffers, 333 U.S. 1, 6 (1948).

    A team headed by Major William Partlow, U.S. Army, JAGC, 
drafted major revisions to the SSCRA. During the 1942 hearings, 
Major Partlow reaffirmed that the purpose of the Act was 
``toward the withholding of remedies, rather than the 
extinguishments of rights.'' Soldiers' and Sailors' Civil 
Relief Act: Hearings on H.R. 7029 Before the House Committee on 
Military Affairs, 77th Cong., 11 (1942). The 1942 amendments 
modified existing provisions and expanded protections of the 
Act. The most notable of these was the creation of the 6 
percent interest rate cap on indebtedness and the prohibition 
on multiple state taxation of the property and income of a 
servicemember.
    Not until 1953 was the constitutionality of the Act 
challenged. The U.S. Supreme Court in Dameron v. Brodhead, 345 
U.S. 322 (1953), settled the issue by holding that Congress 
could pass legislation such as the Act by virtue of its power 
``to declare war'' (U.S. Const. Art. I, sec. 8, cl. 11) and 
``to raise and support armies'' (U.S. Const. Art. I, sec. 8, 
cl. 12).
    Including the major 1942 revisions, Congress has amended 
the SSCRA 13 times. Lt. Colonel Gregory M. Huckabee, Operations 
Desert Shield and Desert Storm: Resurrection of the Soldiers' 
and Sailors' Civil Relief Act, 132 Mil. L. Rev. 141 154-157 
(1991). The SSCRA tolling provision was amended again in 1942 
to exclude the Internal Revenue Service, thus allowing the 
collection of taxes from all citizens for the war effort 
regardless of status. (56 Stat. 964, ch. 619 (1942)). In 1944, 
Congress provided that servicemembers did not lose their 
domicile by being absent due to military orders. (58 Stat. 722, 
ch. 397, sec. 1 (1944)). In 1948, Congress changed the way life 
insurance premium refunds were credited in an attempt to make 
the funds self-sustaining. (62 Stat. 160, ch. 170, Sec. 6 
(1948)).
    Four years later, Congress added a criminal penalty for 
anyone who sold, foreclosed or seized property under a mortgage 
or trust deed involving a servicemember without a court order. 
(66 Stat. 151, ch. 450 (1952)). In 1958, Congress made a minor 
change removing the requirement by the Administrator of the 
Veterans Administration to make annual reports to Congress on 
the guaranteed life insurance program. (72 Stat. 1272, ch. 857, 
Sec. 14(76) (1958)).
    In 1960, Congress permitted a declaration under penalty of 
perjury instead of an affidavit in default proceedings. This 
amendment conformed federal law to state law for the purposes 
of default proceedings. (74 Stat. 820 (1960)). A new protection 
was added in 1962 excluding from taxation by nondomiciliary 
states personal property belonging to a servicemember who 
resided outside of their domicile due to military orders. (76 
Stat. 768, ch. 771 (1962)). In 1966, Congress raised the 
eviction rent ceiling from $80 to $150. (80 Stat. 28, ch. 358, 
sec. 10 (1966)).
    In 1972, Congress indefinitely extended the effective life 
of powers of attorney executed during the Vietnam era (1963-
1972). This was in response to the prisoner of war issues from 
the Vietnam War. (86 Stat. 1098, ch. 540, tit. V, sec. 504 
(1972)). As a consequence of the Persian Gulf War in 1990, 
Congress amended several sections of the SSCRA. Amy J. 
McDonough, et al., Crisis of the Soldiers' and Sailors' Civil 
Relief Act: A Call for the Ghost of Major (Professor) John 
Wigmore, 43 Mercer L. Rev. 667, 671-76 (Winter 1992). The 1991 
amendments raised the eviction rent ceiling again from $150 to 
$1,200, created a new section suspending professional liability 
insurance for medical professionals, and enacted another new 
section to prohibit retaliatory action by creditors and 
insurers if the servicemember requested relief under the Act. 
(105 Stat. 34).
    In 2001, in response to a legal challenge to absentee 
military votes cast in the November 1996 election, Congress 
again amended the Act with a new section to guarantee residency 
for servicemembers for voting purposes. (115 Stat. 1023, tit. 
XVI, sec. 1603). The most recent amendment in 2002 came about 
after the terrorist attacks of September 11, 2001, and extended 
the protections of the Act to certain members of the National 
Guard called to active duty under section 502(f) of title 32, 
United States Code, in response to national emergencies. (116 
Stat. 2821, tit. III, sec. 305).
    The Soldiers' and Sailors' Civil Relief Act of 1940 was to 
remain in force until May 15, 1945, or six months after the 
President proclaimed a treaty of peace. In 1948, after the 
SSCRA had expired, Congress added a provision to the Military 
Selective Service Act, requiring that the Soldiers' and 
Sailors' Civil Relief Act continue in force until it was 
``repealed or otherwise terminated by a subsequent Act of 
Congress. . . .'' (50 U.S.C. App. 464 (1948)). Congress has not 
repealed or terminated the Act, and it continues in effect.

                         Restatement of the Act

    The Committee intends H.R. 100, as amended, to be a 
comprehensive restatement of the Act. The bill would clarify 
and strengthen many of its protections. Section 1 of the bill 
would give the Act a more inclusive short title, the 
``Servicemembers Civil Relief Act,'' because soldiers, sailors, 
marines and airmen are collectively referred to as 
``servicemembers'' in other statutes. The bill updates and 
restates the current provisions of the Act in plain English for 
improved comprehension. It is drafted in modern legislative 
form with ``titles'' rather than ``articles,'' and divides many 
of the sections into subsections and paragraphs for improved 
readability. Descriptive headings are added throughout the 
bill. The same general order of subject matter is preserved.
    Section 2 of the bill restates the purposes of the Act for 
greater clarity, removes redundant language, and expands the 
statement of purposes to provide for the temporary suspension 
of administrative proceedings.

                      TITLE I--GENERAL PROVISIONS

    Section 101 would modernize the definitions for ``military 
service,'' ``period of military service,'' and ``court''. The 
section would add to the definition for ``military service'' 
the provision from section 305 of Public Law 107-330 (116 Stat. 
2821, tit. III, sec. 305) that extends coverage under the Act 
to members of the National Guard called to active service by 
the President or Secretary of Defense for more than 30 
consecutive days under section 502(f) of title 32, United 
States Code, for the purpose of responding to national 
emergencies. The section would also expand the term ``court'' 
to expressly include administrative agencies. Civil matters 
handled in 1940 as judicial proceedings are often dealt with as 
administrative proceedings today. American courts have been 
divided on whether Congress intended the Act to apply to 
administrative proceedings. These proceedings, including family 
law cases, would now clearly be subject to the Act.
    Section 101 would also add definitions for the terms 
``servicemember,'' ``state,'' ``Secretary concerned,'' and 
``dependent.'' The Committee observes with approval that the 
courts have liberally construed the term ``dependent'' over the 
years to include persons whose financial support is tied to the 
servicemember. See Balconi v. Dvascas, 507 N.Y.S. 2d 788 
(1986). The definition does not require a family relationship 
or that the individual reside in the same house. It is meant to 
include parents and parents-in-law who are supported by a 
servicemember, as well as disabled adult children. The 
Committee believes that the critical connection for a 
relationship of dependency is the financial support from the 
servicemember.
    The Act employs a test that a servicemember must be 
``materially affected'' by military service for a number of its 
protections to be available. The courts have interpreted the 
term ``materially affected'' many times over the years in the 
context of the effect of military service on a servicemember. 
During the 1917 Congressional hearings, Major Wigmore explained 
the intent behind the term:

          In the original draft that read, 'unless in the 
        opinion of the court the defendant is not embarrassed 
        by reason of his military service.' The House insisted 
        on making that more explicit. In other words, he might 
        be embarrassed, but that embarrassment might not be at 
        all due to his having gone into the service and lost 
        some money thereby; so that they insisted that it 
        should read, unless the court shall say that the 
        soldier's ability 'to comply with the judgment is not 
        materially affected by reason of his being a soldier.' 
        In other words, you and I may go into the service and 
        may be already insolvent. The going into the service 
        has not made us insolvent, and there is no reason there 
        why legal proceedings should not go on just the same. 
        We have tried to hitch up those provisions so that no 
        relief shall be given to any person in the military 
        service, unless he needs the relief, just because he is 
        in military service. Soldiers' and Sailors' Civil 
        Relief Bill: Hearing on S. 2859 and H.R. 6361 Before 
        the Senate Subcommittee on the Judiciary, 65th Cong., 
        217 (1917).

    The Committee received suggestions that the term 
``materially affected'' be included with the definitions of 
section 101. However, the Committee has not done so because it 
finds that courts, in considering the facts and circumstances 
of specific cases, have generally interpreted the term in ways 
that are consistent with the intent of the Act as Major Wigmore 
explained it.
    Section 102 would make a specific statement that the Act 
``does not apply to criminal proceedings.'' This would codify 
prior court decisions and clarify congressional intent. See 
Dotseth v. Justice Court, Tucson, Precinct No. One, Pima 
County, 427 P.2d 558 (1967).
    Section 103 in addition to restating the section, would add 
the term ``comaker'' to clarify the legislative intent and case 
law regarding persons who qualify for extension of the Act's 
protections as persons secondarily liable. Soldiers' and 
Sailors' Civil Relief Act: Hearings on H.R. 7029 Before the 
House Committee on Military Affairs, 77th Cong., 11 (1942); 
Modern Industrial Bank v. Zaentz, 29 N.Y.S. 2d 969 (1941).
    Section 104 would create a single section pertaining to 
citizens serving with allied forces by combining the limited 
protections of current section 512 [50 U.S.C. App. 572] with 
current section 104 [50 U.S.C. App. 514]. The 1942 amendments 
added section 104, which extended protection of the entire Act 
to citizens serving with allied forces. The 1942 legislative 
history indicates the intent of the section was to protect U.S. 
citizens serving with the Canadian Royal Air Force, the British 
Royal Air Force and the Flying Tigers in China. Soldiers' and 
Sailors' Civil Relief Act: Hearings on H.R. 7029 Before the 
House Committee on Military Affairs, 77th Cong., 12 (1942). 
Further, the Act's current section 104 is inapplicable if it 
appears that the person does not intend to resume citizenship, 
in effect presuming that the citizen gave up or relinquished 
citizenship by serving with an allied force. In Afroyim v. 
Rusk, 387 U.S. 253 (1967), the U.S. Supreme Court held that 
Congress does not have the power to take away citizenship 
without the citizen's assent. The deletion of this language in 
the new section would be consistent with this U.S. Supreme 
Court ruling.
    Section 108 was added in the 1991 amendments. The bill 
would add subsections (5) and (6) to prohibit discriminatory 
practices that have been identified since those amendments.
    Section 109 would be added to incorporate legal 
representatives of servicemembers into the term servicemembers 
throughout the Act, to clarify that such legal representatives 
can act for the servicemember in all matters covered by the 
Act.

                        TITLE II--GENERAL RELIEF

    Section 201 on protections against default judgments would 
clarify that the protections under this section are intended to 
apply when a servicemember does not receive notice of an action 
or proceeding. The section would state plainly what should be 
done when appointed counsel is unable to locate the 
servicemember or determine whether a meritorious defense might 
exist. See Soldiers' and Sailors' Civil Relief Bill: Hearings 
on S. 2859 and H.R. 6361 Before the Senate Subcommittee on 
Judiciary, 65th Cong. (1918).
    In light of the realities of current legal process and 
military service, the Committee recognizes the shortcomings of 
section 202 as originally drafted in 1918. The 1940 Act 
incorporated the 1918 Act's section on stays of proceedings 
verbatim. See Civil Liabilities of Military Personnel: Hearings 
on S. 4270 Before the Senate Committee on Military Affairs, 
76th Cong., Vol. 1, 15 (1940) (statement of Senator Gurney). 
This expanded section would require a 90-day stay upon 
application of the servicemember if certain conditions are met. 
With delayed mail delivery and diminished opportunities to 
consult with legal counsel so common to military service, a 
period of time is needed to allow an adequate opportunity for 
servicemembers to consult with military or civilian counsel, 
and to respond to the courts.
    Since there is confusion among courts as to whether a stay 
request may constitute a waiver of legal defenses, clarifying 
language is included in the section reflecting the Committee's 
intent that the protection provided by this section should not 
serve to deprive servicemembers of other rights, such as the 
right to assert lack of personal jurisdiction. See Kramer v. 
Kramer, 668 S.W. 2d 457 (Tex. Ct. App. 1984) (defendant's 
letter invoking the SSCRA and requesting a stay did not provide 
personal jurisdiction that otherwise was lacking; contra Skates 
v. Stockton, 140 Ariz. 505, 683 P. 2d 304 (Ariz. Ct. App. 1980) 
(letter sent by military legal assistance attorney requesting 
stay constituted a general appearance)). An application for a 
stay under this section would be treated as a special 
appearance.
    Stays should be automatic if they meet several important 
criteria which adequately place the court on notice when a case 
may proceed. First, section 202 would place an obligation on 
the servicemember to demonstrate material affect by providing a 
factual basis for supporting the stay request. See Boone v. 
Lightner, 319 U.S. 561 (1943) (trial courts must use discretion 
in determining material affect based on facts presented); 
Plesniak v. Wiegand, 31 Ill. 3d 923, 335 N.E. 2d 131 (Ill. App. 
Ct. 1st District 1975) (party must establish that military 
status is proximate cause of inability to appear); Lackey v. 
Lackey, 222 Va. 49, 278 S.E. 2d 811 (Va. 1981) (affidavit from 
the commander revealing sailor was serving sea duty and unable 
to attend sufficient to establish right to a stay); Hibbard v. 
Hibbard, 230 Neb. 364, 431 N.W. 2d 637 (Neb. 1988) 
(determination of a stay depends upon the facts and 
circumstances of each case). An important component of this 
requirement would be the servicemember's responsibility to 
provide a date on which the he or she would be available to 
appear. See Tabor v. Miller, 389 F. 2d 645, cert. denied, 
Stearns v. Tabor, 391 U.S. 915 (3d Cir. 1968) (servicemember 
did not provide evidence it was impossible for him to appear); 
Zitomer v. Holdsworth, 449 F.2d 724 (3d Cir. 1971) 
(servicemember failed to avail himself of SSCRA provisions).
    Second, section 202 would require a letter from the 
servicemember's unit commander affirming that the 
servicemember's military duty prevents an appearance. Equipped 
with this information, the court would be able to make a more 
informed judgment as to when the litigation may proceed. See 
Hackman v. Postel, 675 F. Supp. 1132 (N.D. Ill. 1988). In the 
interim 90 day period, the servicemember would have not only an 
opportunity to retain and consult with counsel, but also a 
reasonable period of time to assist in the preparation of a 
defense. The issue of availability of military leave is an 
important consideration affecting the determination of a 
servicemember's ability to appear. See Underhill v. Barnes, 288 
S.E. 2d 905 (Ga. App. 1982) (court found absence of facts about 
obtaining leave helped determine the servicemember had not 
exercised due diligence or acted in good faith to make himself 
available for trial). The requirement that a commander 
specifically address this issue would officially inform the 
court that military leave is not authorized for the 
servicemember. Palo v. Palo, 299 N.W. 2d 577 (S.Ct. S.D. 1980) 
(appellant failed to show leave was unavailable or any attempt 
to obtain leave, therefore, no protection was provided under 
the SSCRA).
    Recognizing the current nature of military deployments, 
many of which extend beyond 90 days, section 202 would permit 
requests for additional stays containing the same relevant 
information. This would enable a court to make a factual 
determination regarding the continuing material affect of 
military duty on a servicemember's ability to appear. Unlike 
the initial application, approval of this further stay would be 
within the court's discretion. The court would be expected to 
consider the equities of all parties involved in granting an 
additional stay, but military service should not place a 
servicemember at a geographic or legal disadvantage. See Keefe 
v. Spangenberg, 533 F. Supp. 49 (W.D. Ok. 1981). A requirement 
would also be included in section 202 that counsel be appointed 
to protect the servicemember's rights if an additional stay 
request is denied.
    Section 206 would replace the term ``government'' with ``a 
State (or political subdivision if a State) or the United 
States'' to clarify the intent that this section on the tolling 
of statutes of limitations would apply to all levels of 
government: local, state and federal. See Parker v. State, 57 
N.Y.S. 2d 242 (Ct. Cl. 1945); Calderon v. City of New York, 55 
N.Y.S. 2d 674 (Sup. Ct. 1945); Shell Oil Co. v. Industrial 
Comm'n, 94 N.E. 2d 888 (1950). This section would add a 
specific provision on redemption of real property. To 
consolidate similar sections, subsection (c) would incorporate 
section 207 of the current Act on the tolling of internal 
revenue laws.
    To resolve lingering questions about congressional intent, 
section 207 (dealing with the maximum rate of interest on debts 
incurred before military service) would clearly provide that 
interest above the 6 percent rate is to be forgiven, and that 
the amount of the monthly payment is to be reduced. Not to 
forgive interest above the 6 percent maximum rate would place 
the servicemember in precisely the same financial dilemma 
Congress sought to ameliorate with the 1942 amendments. See H. 
Rept. 2198, 4 (1942). In addition, section 207 would clarify 
that joint debts between a servicemember and his or her spouse 
are entitled to the 6 percent interest relief protection.
    The original section provided no guidance on how the 
servicemember should initiate an interest rate reduction. The 
Committee believes the burden should be on the servicemember to 
inform the creditor of the order for military service within a 
specific time. Section 207 would codify the practices 
established during the Persian Gulf War. The servicemember 
would be required to submit to the creditor written notice and 
a copy of military orders. These orders indicate the period of 
time for which the servicemember is called to duty. If there is 
an extension of the military duty obligation, the servicemember 
receives amended orders and would be required to provide the 
amended orders to the creditor in order to extend further the 6 
percent protection. The Committee notes that, while the section 
would allow for notice to the creditor of up to 180 days after 
the servicemember's termination or release from military 
service, it would obviously be of advantage to servicemembers 
to provide notice to creditors more quickly so that their 
monthly payments are reduced during the period of military 
service when their income may be reduced.
    The Committee expects that the written notice by the 
Secretary concerned to the servicemembers and persons about to 
enter military service, as required by section 105 regarding 
the protections of the Act, would include specific information 
concerning the reduction in the interest rate and the 
responsibility of the servicemember to provide notice of 
military service to the creditor.

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

    Section 301, which addresses evictions and distress, would 
include the parenthetical, ``(or another person with paramount 
title),'' to eliminate the conflict between courts regarding 
the relationship required to invoke the eviction protections of 
this section. See Clinton Cotton Mills v. United States, 164 
F.2d 173 (4th Cir. 1947) (holding that if a person merely has 
superior title and attempts to evict a servicemember, the Act's 
protections apply); but see Arkless v. Kilstein et al., 61 F. 
Supp. 886 (E.D. Pa. 1944) (holding that there must be an actual 
landlord-tenant relationship). The words ``intended to be 
occupied'' would be added to eliminate any question about the 
section's coverage when a servicemember has signed a contract 
or deposited money for premises, but is unable to initiate or 
complete occupancy due to military service. Also, the maximum 
rental amount for which eviction protection is available would 
be increased from $1200 to $1,700, and automatic increases in 
coverage would be tied to the Consumer Price Index for 
residential rent maintained by the Bureau of Labor Statistics. 
This would cure the recurring problem of the section's coverage 
lagging behind inflation. The Committee observes that the 
rental amount has been raised only three times in more than 
sixty years.
    Section 302, which addresses protection under installment 
contracts for purchase or lease, would remove the language 
``with a view to purchase'' from the current provision to 
expand the section's protections to non-purchase leases, 
including leases for automobiles, business or professional 
equipment, farm equipment and other similar property.
    Section 303(c) on mortgages and trust deeds removes the 
words ``unless upon an order previously granted by the court'' 
and inserts the words ``upon a court order granted before such 
sale, foreclosure, or seizure.'' Two courts construing the 
original language have disagreed as to when the order must have 
been previously granted. One court held that the order must 
have been granted prior to the servicemember's entry onto 
active duty. Stability Building and Loan Ass'n v. Liebowitz, 
132 N.J. Eq. 477, 28 A. 2d 653 (1942). Another court held that 
the order must issue prior to foreclosure on the property 
rather than entry onto active duty. Syracuse Savings Bank v. 
Brown, 181 Misc. 999, 42 N.Y.S. 2d 156 (N.Y. Sup. Ct. 1943). 
The Committee believes the latter interpretation is the correct 
view, being more consistent with the provision's language, ``In 
any proceedings commenced in any court during the period of 
military service. . . .''
    Section 305 would create a new protection for a 
servicemember who, while in military service, executes a lease 
and thereafter receives military orders for a permanent change 
of station (PCS) or deployment with a military unit for at 
least 90 days. The need for this protection is demonstrated by 
the situation of unmarried servicemembers who are forced to pay 
rent for an entire term on premises that can go unoccupied for 
many months due to rapid and unexpected deployments around the 
world. Leases that include a military clause do not generally 
protect a servicemember ordered to deploy (not a PCS) with a 
unit. In addition, this section would add the words ``security 
deposit'' to the penalty section to deter landlords from 
wrongfully keeping security deposits when servicemembers are 
required to break a lease due to military requirements. See 
Patrikes et al. v. J.C.H. Service Stations Inc., 180 Misc. 917, 
41 N.Y.S. 2d 158 (N.Y. City Ct.), aff'd, 180 Misc. 927, 46 
N.Y.S. 2d 233 (N.Y. Sup. Ct.1943) (court held ``the lessor 
should not be permitted to retain a security for the faithful 
performance of that which has become impossible through the 
command of the sovereign.'')
    Section 306, protection of life insurance policy, and 
section 307 of the bill, enforcement of storage liens, would be 
technical revisions that divide the subject matter of current 
section 305 into two new sections.
    Section 308, which concerns extension of the Act's 
protections to dependents, replaces the term ``materially 
impaired,'' a holdover from the 1918 version of the SSCRA, with 
the term ``materially affected'' to maintain consistent usage 
throughout the restated Act.

                        TITLE IV--LIFE INSURANCE

    Coverage under this title applies to commercial life 
insurance policies in order to protect a servicemember's 
dependents from sudden destitution in the event of the 
servicemember's death. The period during which a servicemember 
may purchase an insurance policy eligible for the Act's 
protection was retained at not less than 180 days prior to 
entry in military service.
    Section 402 addresses life insurance rights and 
protections. It would increase the amount of life insurance 
coverage protected from $10,000 to $250,000, or an amount equal 
to the Servicemembers' Group Life Insurance (SGLI) maximum 
limit, whichever is greater. The amount of life insurance 
covered by this provision has not been increased since the 1940 
Act and obviously lags far behind today's life insurance needs. 
Indexing the amount to the maximum coverage authorized under 
the SGLI program would permit prospective increases in coverage 
commensurate with increases in SGLI, which has had adequate 
increases in maximum coverage.
    Section 408, concerning regulations, and section 409, 
concerning review of findings of fact and conclusions of law, 
are technical revisions that divide the subject matter of 
current section 407 of the Act into two new sections. Section 
409 would strike the current language of section 407 that 
states findings of facts and conclusions of law made by the 
Secretary of Veterans Affairs are final and would replace it 
with language permitting review of the Secretary's 
determination regarding finding of facts and conclusions of law 
by the Board of Veterans' Appeals and the United States Court 
of Appeals for Veterans Claims. This revision would conform the 
Act to the Veterans' Judicial Review Act, Public Law 100-687 
(1988).

                    TITLE V--TAXES AND PUBLIC LANDS

    Section 501 on taxes respecting personal property, money, 
credits and real property would add an additional subsection 
clearly stating that this section applies to joint ownership of 
all forms of personal and real property by a servicemember and 
his or her dependents. This would relieve servicemembers from 
having to title property solely in their own name to ensure the 
protections of this section in a state where they live pursuant 
to military orders but are not state residents. Titling 
property solely in the servicemember's name for tax purposes 
also may create probate difficulties for servicemembers or 
their heirs if property is not jointly titled upon death. 
However, the most common difficulty is in the area of 
automobile titling. Separate titling of automobiles by 
servicemembers to avail themselves of the protections of the 
current provision, when they would prefer joint titling, 
undercuts the overall SSCRA policy objective of protecting the 
civil legal rights of servicemembers and their dependents.
    The restatement would omit the provisions of sections 502, 
503, and 510 of the current Act on homestead protections for 
servicemembers because the Federal Land Management and Policy 
Act of 1976 (43 U.S.C. 1701 et seq.) repealed all homestead 
laws applying to public lands in title 43, United States Code. 
The restatement would also omit the provisions of section 508 
of the current Act on suspension of residency requirements 
concerning irrigation rights of servicemembers because the 
section is no longer needed. Under section 390kk of title 43, 
United States Code, the Reclamation Reform Act of 1982, 
residency is no longer required for delivery of irrigation 
water.
    Section 508 on land rights of servicemembers would restate 
the language that entitles servicemembers under the age of 21 
to the same rights as servicemembers who are 21 years of age 
under the laws relating to lands owned or controlled by the 
United States. This section creates an exception to 43 CFR 
2521.1, which designates categories regarding land entry and 
sets an age requirement of 21.
    Section 511 on residence for tax purposes would add clear 
guidance in subsection (d) that a nonresident servicemember's 
military compensation cannot be used to increase the tax 
liability for other income of the servicemember or spouse. See 
United States v. Kansas, 810 F.2d 935 (10th Cir. 1987). Some 
state taxation schemes calculate the tax bracket of a 
nonmilitary spouse who earns income in the state by including 
the servicemember's military income if the couple files a joint 
federal return. The result is an increase in the 
servicemember's family tax burden, which the Committee believes 
is contrary to the purposes of the Act. This new provision 
would prohibit this type of taxation.
    Section 511 also codifies in subsection (e) existing case 
law concerning personal income of Indians. McClanahan v. 
Arizona State Tax Commission, 411 U.S. 164 (1973) (Indians who 
reside on a Federal Indian Reservation are not subject to state 
income taxation on income earned exclusively on the 
reservation.) Because servicemembers are considered to be 
liable to taxation only by their jurisdiction of residence or 
domicile, the same principle should hold true for Indians 
possessing a Federal Indian Reservation residence or domicile.

                   TITLE VI--ADMINISTRATIVE REMEDIES

    The restatement would omit the provision of section 603 of 
the current Act on severability because the U.S. Supreme Court 
has clearly indicated that invalid portions of statutes are to 
be severed ``unless it is evident that the Legislature would 
not have enacted those provisions which are within its powers, 
independently of that which is not''. INS v. Chadha, 462 U.S. 
919, 931 (1983). Therefore, a severability clause is 
unnecessary.
    The restatement would also omit section 604 of the current 
Act on termination of the Act because the Military Selective 
Service Act, (50 U.S.C App. 464), made the SSCRA applicable to 
all servicemembers until it is either repealed or terminated by 
a subsequent act. Therefore, a section stating a specific 
termination date is unnecessary.

                       TITLE VII--FURTHER RELIEF

    Section 703 on professional liability protection would add 
legal services to the express coverage of the provision. 
Attorneys take out professional liability insurance in a 
similar manner and for similar reasons as medical 
professionals. The Committee notes that the Secretary of 
Defense would continue under this section to have discretion to 
make a determination on coverage for other types of 
professional services. However, the Committee finds that 
sufficient numbers of attorneys serve in the reserve components 
to warrant their specific statutory inclusion.
    Section 704 on health insurance reinstatement would add a 
new provision specifying that a servicemember must file an 
application for reinstatement not later than 120 days after 
termination or release from military service. The current 
section 703 of the Act provides no guidance on how long a 
servicemember has to file for reinstatement.

                      Section-By-Section Analysis

    Parallel statutory references are first to the Soldiers' 
and Sailors' Civil Relief Act of 1940 (the Act), Public Law 
861, 76th Congress; and then to title 50, United States Code 
Appendix, e.g., ``section 100 of the Act [50 U.S.C. App. 
510].''

    Section 1 of the bill would amend the Soldiers' and 
Sailors' Civil Relief Act of 1940 as follows:
    Section 1(a) would provide that the short title of the Act 
may be cited as the ``Servicemembers Civil Relief Act.''; 
section 1(b) is the table of contents consisting of titles I 
through VII.

    Section 2 would amend section 100 of the Act [50 U.S.C. 
App. 510] by restating the purposes of the Act and would 
further amend section 510 by adding the temporary suspension of 
administrative proceedings to the proceedings explicitly 
covered by the Act.

                      Title I--General Provisions

    Section 101(1) would amend section 101 of the Act [50 
U.S.C. 511] by defining the term ``servicemember'' as meaning a 
``member of the uniformed services'' as defined in section 
101(a)(5) of title 10, United States Code.
    Section 101(2) would amend section 101 of the Act [50 
U.S.C. 511(1)] by defining the term ``military service'' as 
meaning for a member of the Army, Navy, Air Force, Marine 
Corps, or Coast Guard, active duty as defined in section 
101(d)(1) of title 10, United States Code, and for a member of 
the National Guard, active service authorized by the President 
or Secretary of Defense for more than 30 consecutive days under 
section 502(f) of title 32, United States Code, for purposes of 
responding to a national emergency declared by the President 
and supported by Federal funds. The term ``military service'' 
replaces the current definition for the terms ``person in the 
military service,'' ``persons in the military service,'' and 
``persons in the military service of the United States.''
    Section 101(3) would amend section 101(2) of the Act [50 
U.S.C. App. 511(2)] by restating the definition of ``period of 
military service'' in modern legislative language.
    Section 101(4) would amend section 101 of the Act [50 
U.S.C. App. 511] by defining the term ``dependent'' as meaning 
the servicemember's spouse, child (as defined in section 101(4) 
of title 38, United States Code), or an individual for whom the 
servicemember provides more than one half of the support in the 
180 days immediately before requesting relief under the Act.
    Section 101(5) would amend section 101(4) of the Act [50 
U.S.C. App. 511(4)] by expanding the definition of the term 
``court'' to include an administrative agency of the United 
States or any State, including any political subdivision of a 
State.
    Section 101(6) would amend section 101 of the Act [50 
U.S.C. App. 511] by defining the term ``State'' to include a 
commonwealth, territory or possession of the United States and 
the District of Columbia.
    Section 101(7) would amend section 101 of the Act [50 
U.S.C. App. 511] by defining the term ``Secretary concerned'' 
with respect to a member of the armed forces, having the 
meaning given in section 101(a)(9) of title 10 United State 
Code; with respect to a commissioned officer of the Public 
Health Service, the Secretary of Health and Human Services; and 
with respect to a commissioned officer of the National Oceanic 
and Atmospheric Administration, the Secretary of Commerce.
    Section 101 would also amend section 101 of the Act [50 
U.S.C. App. 511(3)] by omitting the definition for the term 
``person'' because the definition for this term found in 
section 1 of title 1, United States Code, applies to all Acts 
of Congress.
    Section 102 would amend section 102 of the Act [50 U.S.C. 
App. 512] by restating it and dividing it into three 
subsections for clarity, and adding a sentence stating that the 
Act does not apply to criminal proceedings.
    Section 103 would amend section 103 of the Act [50 U.S.C. 
App. 513] by restating it for clarity and adding ``comakers'' 
to those categories of persons covered by this section.
    Section 104 would amend section 104 of the Act [50 U.S.C. 
App. 514] by restating it for clarity and by combining section 
512 of the Act [50 U.S.C. App. 572] with it so that all 
references to citizens serving with allied forces would be 
contained in the same section.
    Section 105 would amend section 105 of the Act [50 U.S.C. 
App. 515] by restating it to require the Secretary concerned to 
give written notice to persons in military service and persons 
entering military service of their benefits under the Act, and 
by deleting reference to the Director of the Selective Service.
    Section 106 would amend section 106 of the Act [50 U.S.C. 
App. 516] by restating it and dividing it into two subsections 
for clarity.
    Section 107 would amend section 107 of the Act [50 U.S.C. 
App. 517] by restating it and dividing it into three 
subsections for clarity.
    Section 108 would amend section 108 of the Act [50 U.S.C. 
App. 518] by restating it for clarity and by adding subsections 
to specifically prohibit a creditor or person engaged in 
assembling or evaluating consumer credit information from 
annotating a servicemember's record to identify the 
servicemember as a member of the National Guard or a reserve 
component, and to prohibit a change in the terms offered or 
conditions required for the issuance of insurance.
    Section 109 would amend the Act by adding a new section 
that would define a legal representative as an attorney acting 
on behalf of a Servicemember or as an individual who possesses 
a power of attorney; the section would also state that the term 
``servicemember'' as used in the Act shall be treated as 
including a reference to a servicemember's legal 
representative.

                        Title II--General Relief

    Section 201 would amend section 200 of the Act [50 U.S.C. 
App. 520] by restating the provisions regarding protections of 
servicemembers against default judgments for clarity. It adds 
language requiring a stay of proceedings for defendants in 
military service for a minimum of 90 days if the court finds 
that there may be a defense that cannot be presented without 
the defendant's presence or that, after due diligence, counsel 
has not been able to contact the defendant or to determine if a 
meritorious defense exists. It also adds language that clearly 
distinguishes between a court granted stay of proceeding prior 
to default judgment and a stay of proceeding made at the 
request of the servicemember under section 202 of this Act when 
the servicemember has notice of a hearing. It allows a 
servicemember to apply to a court to vacate or set aside 
default judgments entered within 60 days, rather than within 30 
days, after the servicemember's termination or release from 
military service.
    Section 202 would amend section 201 of the Act [50 U.S.C. 
App. 521] by restating the provisions regarding stay of 
proceedings when the servicemember defendant has notice for 
clarity. It expands protections by permitting a servicemember 
to request a stay of proceedings within 90 days, rather than 
within 60 days, after termination or release from military 
service. It adds a requirement for an automatic stay of 90 days 
if requested by the servicemember, if the servicemember 
communicates to the court the facts stating how current 
military duty materially affects the ability to appear and 
states a date when the servicemember will be available to 
appear and if the servicemember's commanding officer 
communicates to the court that military leave is not authorized 
for the servicemember. It clarifies that an application for a 
stay does not constitute an appearance for jurisdictional 
purposes nor does it waive any substantive or procedural 
defense. It adds a procedure to request an additional stay; it 
clarifies that a servicemember who is unsuccessful in obtaining 
a stay under this section may not seek the protections of 
section 201 and it provides that a stay of proceedings under 
this section does not apply to section 301.
    Section 203 would amend section 202 of the Act [50 U.S.C. 
App. 522] by restating it for clarity.
    Section 204 would amend section 203 of the Act [50 U.S.C. 
App.523] by restating it and reorganizing its subsections; and 
by expanding its protection to a court action or proceeding 
against a servicemember begun before or during the 
servicemember's military service or within 90 days, rather than 
within 60 days, after such service terminates.
    Section 205 would amend section 204 of the Act [50 U.S.C. 
App. 524] by restating it by dividing it into three subsections 
for clarity and by specifying that this section does not apply 
to section 202 and section 701.
    Section 206 would amend section 205 of the Act [50 U.S.C. 
App. 525] by restating it, dividing it into three subsections 
and including all provisions concerning statutes of limitations 
and tolling of time periods for redemption of real property in 
one section of the Act. It clarifies that it applies to both 
States (including political subdivisions) and the United 
States. The current section 207 of the Act regarding the 
exclusion of limitations prescribed by the internal revenue 
laws is placed in this section.
    Section 207 would amend section 206 of the Act [50 U.S.C. 
App. 526] by restating it and dividing it into four subsections 
for clarity. It adds coverage of an obligation or liability 
held jointly by the servicemember and the servicemember's 
spouse. It clarifies that interest incurred in excess of 6 
percent per year is forgiven and adds a provision that requires 
reduction of the periodic payment by the amount of the interest 
forgiven. It adds provisions that establish the written notice 
procedure a servicemember must follow to receive the interest 
rate limitation from the creditor. It specifies that the 
creditor apply the interest rate limitation as of the date the 
servicemember was called to military service. It clarifies that 
the term ``interest'' as used in this section means simple 
interest.

 Title III--Rent, Installment Contracts, Mortgages, Liens, Assignment, 
                                 Leases

    Section 301 would amend section 300 of the Act [50 U.S.C. 
App. 530] by restating and reorganizing it. It clarifies that 
this section applies to a landlord or another person with 
paramount title and adds the words ``intended to be occupied'' 
to expand the section's protection to include premises that a 
servicemember or a servicemember's dependents have not yet 
occupied. It increases the maximum monthly lease amount that 
qualifies for protection under this section from $1,200 to 
$1,700 and adds a provision to require an annual housing price 
inflation adjustment for the maximum monthly lease amount that 
qualifies for the protection under this section. It adopts the 
language used in title 18, United States Code, concerning 
penalties. It specifies that section 202 is not applicable to 
this section.
    Section 302 would amend section 301 of the Act [50 U.S.C. 
App. 531] by restating it for clarity. It also deletes the 
language ``with a view to purchase'' regarding the types of 
property the section covers in order to expand this section's 
breach of contract protections to non-purchase property leases 
or bailments. It adopts the language used in title 18, United 
States Code, concerning penalties.
    Section 303 would amend section 302 of the Act [50 U.S.C. 
App. 532] by restating it for clarity and by including an 
action to enforce an obligation filed within 90 days after the 
servicemember's period of service as an action in which a court 
may stay the proceeding or adjust a servicemember's obligation. 
It adopts the language used in title 18, United States Code, 
concerning penalties. It specifies that any other remedies 
under law for wrongful conversion, including consequential and 
punitive damages are preserved for a person claiming relief 
under this section.
    Section 304 would amend section 303 of the Act [50 U.S.C. 
App. 533] by restating it and by dividing it into two 
subsections for clarity.
    Section 305 would amend section 304 of the Act [50 U.S.C. 
App. 534] by restating it and dividing it into seven 
subsections for clarity. It adds the words ``intended to be 
occupied'' to expand the section's protection to include when a 
servicemember or a servicemember's dependent has not yet 
occupied the premises. It adds a new subsection that allows a 
servicemember to terminate a lease of premises executed during 
military service if the servicemember receives military orders 
for a permanent change of station, or deployment with a 
military unit for not less than 90 days. It specifically adds 
``security deposit'' to personal effects or other property 
covered by the penalties provision. It specifically adopts the 
language used in title 18, United States Code, concerning 
penalties.
    Section 306 would amend section 305 of the Act [50 U.S.C. 
App. 535] by restating it as a separate section on protection 
of life insurance policies and by dividing it into five 
subsections for clarity. It adopts the language used in title 
18, United States Code, concerning penalties.
    Section 307 would amend section 305 of the Act [50 U.S.C. 
App. 535] by restating this provision as a separate section on 
enforcement of storage liens and by dividing it into three 
subsections for clarity. It adopts the language used in title 
18, United States Code, concerning penalties.
    Section 308 would amend section 306 of the Act [50 U.S.C. 
App. 536] by restating it to improve clarity and by replacing 
the term ``materially impaired'' with the term ``materially 
affected'' for consistent usage throughout the Act.

                        Title IV--Life Insurance

    Section 401 would amend section 400 of the Act [50 U.S.C. 
App. 540] by restating it for clarity and by updating the 
definitions of the terms ``policy,'' ``premium,'' ``insured,'' 
and ``insurer.''
    Section 402 would amend section 401 of the Act [50 U.S.C. 
App. 541] by restating it and dividing it into three 
subsections for clarity. The language regarding insureds 
outside the continental United States is deleted, allowing the 
insured's beneficiary to apply for protection under this title 
whether within the continental United States or not. It 
increases the total amount of life insurance coverage 
protection under this title from $10,000 to $250,000 or an 
amount equal to the Servicemembers' Group Life Insurance 
maximum limit, whichever is greater.
    Section 403 would amend section 402 of the Act [50 U.S.C. 
App. 542] by restating it and dividing it into four subsections 
for clarity.
    Section 404 would amend section 403 of the Act [50 U.S.C. 
App. 543] by restating and dividing it into three subsections 
for clarity.
    Section 405 would amend section 404 of the Act [50 U.S.C. 
App. 544] by restating it and dividing it into two subsections 
for clarity.
    Section 406 would amend section 405 of the Act [50 U.S.C. 
App. 545] by restating it and dividing it into three 
subsections for clarity.
    Section 407 would amend section 406 of the Act [50 U.S.C. 
App. 546] by restating it and dividing it into three 
subsections for clarity. It expressly states that the amount 
paid by the United States to an insurer under this title 
becomes a debt payable to the United States by the insured that 
is not dischargeable in bankruptcy proceedings.
    Section 408 would amend section 407 of the Act [50 U.S.C. 
App. 547] by restating it as a separate section regarding 
regulations to be prescribed by the Secretary of Veterans 
Affairs to implement this title.
    Section 409 would amend section 407 of the Act [50 U.S.C. 
App. 547] by replacing the outdated provision of section 407 on 
the finality of findings of fact and conclusions of law made by 
the Secretary of Veterans Affairs with language that provides 
for review by the Board of Veterans' Appeals and the U.S. Court 
of Appeals for Veterans Claims of findings of fact and 
conclusions of law made by the Secretary of Veterans Affairs.

                    Title V--Taxes and Public Lands

    Section 501 would amend section 500 of the Act [50 U.S.C. 
App. 560] by restating it for clarity and by adding a 
subsection providing that this section applies to all real and 
personal property described by the section that is owned 
individually by a Servicemember or jointly by a Servicemember 
and a dependent or dependents.
    Section 502 would amend section 501 of the Act [50 U.S.C. 
App. 561] by restating it for clarity.
    The bill would omit sections 502 and 503 of the Act [50 
U.S.C. App. 562 and 563] on servicemember homestead protections 
because the Federal Land Management and Policy Act of 1976, 43 
U.S.C. 1701 et seq., repealed all homestead laws in title 43 
applying to public lands.
    Section 503 would amend section 504 of the Act [50 U.S.C. 
App.564] by restating it for clarity and removing outdated 
language.
    Section 504 would amend section 505 of the Act [50 U.S.C. 
App. 565] by restating it and by adding two subsections for 
clarity. Outdated language is removed. The filing requirement 
period is increased to 60 days after the end of the assessment 
year in which military service began.
    Section 505 would amend section 506 of the Act [50 U.S.C. 
App. 566] by restating it for clarity.
    Section 506 would amend section 507 of the Act [50 U.S.C. 
App. 567] by restating it and by dividing it into two 
subsections for clarity. References to the Bureau of Land 
Management are replaced by references to the Department of the 
Interior. It provides that affidavits made pursuant to this 
section are subject to the same the penalties as prescribed by 
section 1001 of title 18, United States Code.
    The bill would omit section 508 of the Act [50 U.S.C. App. 
568] on suspension of the Reclamation Act residence requirement 
for persons in military service securing irrigation water, 
because the Reclamation Reform Act of 1982, 43 U.S.C. 390kk, 
eliminated the residency requirement for securing irrigation 
water.
    Section 507 would amend section 509 of the Act [50 U.S.C. 
App. 569] by restating it and by dividing it into three 
subsections to improve clarity; and by updating language of 
provision to give the Secretaries concerned the responsibility 
for disseminating information concerning the benefits under 
Title V of this Act.
    The bill would omit section 510 of the Act [50 U.S.C. App. 
570] on servicemember homestead entryman protections because 
the Federal Land Management and Policy Act of 1976, 43 U.S.C. 
1701, repealed all homestead laws in title 43, United States 
Code, applying to public lands.
    Section 508 would amend section 511 of the Act [50 U.S.C. 
App. 571] by restating it and by dividing it into three 
subsections for clarity. Current language regarding duration, 
``while this Act remains in force,'' is deleted because the Act 
is now of permanent duration.
    The bill would omit section 512 of the Act [50 U.S.C. App. 
572] and combine its provisions with those of section 104.
    Section 509 would amend the Act by adding a new section 
restating the last sentence from section 507 of the Act [50 
U.S.C. App. 567] and giving the Secretary of the Interior 
authority to issue regulations necessary to carry out title V, 
other than sections 501, 510, and 511.
    Section 510 would amend section 513 of the Act [50 U.S.C. 
App.573] by restating it and dividing it into four subsections 
for clarity regarding the circumstance under which protection 
is provided to servicemembers regarding the payment of income 
taxes. It replaces the current term ``materially impaired'' 
with the term ``materially affected'' for consistent usage 
throughout the Act.
    Section 511 would amend section 514 of the Act [50 U.S.C. 
App. 574] by restating it and dividing it into six subsections 
for clarity. A provision is added to prohibit a tax 
jurisdiction from using a nonresident servicemember's military 
compensation to increase the tax liability imposed on other 
income earned by the nonresident servicemember or spouse 
otherwise subject to tax by the jurisdiction. A new section is 
added to codify existing law that requires an Indian 
servicemember whose legal residence or domicile is a Federal 
Indian reservation to be taxed under the laws of the Federal 
Indian reservation and not the State where the reservation is 
located. A definition for the term ``tax jurisdiction,'' 
meaning a State or a political subdivision of a State is added.

                   Title VI--Administrative Remedies

    Section 601 would amend section 600 of the Act [50 U.S.C. 
App. 580] by restating it for clarity regarding inappropriate 
use of the Act.
    Section 602 would amend section 601 of the Act [50 U.S.C. 
App. 581] by restating it for clarity regarding certificates of 
service and persons reported missing.
    Section 603 would amend section 602 of the Act [50 U.S.C. 
App. 582] by restating it for clarity.
    The bill would omit section 603 of the Act [50 U.S.C. App. 
583] regarding severability of provisions because under current 
law a severability clause is unnecessary.
    The bill would omit section 604 of the Act [50 U.S.C. App. 
584] regarding a termination date for the Act because under the 
Military Selective Service Act, 50 U.S.C. App. 464 (1948), the 
SSCRA is applicable to all servicemembers until repeal or 
termination by a subsequent act.
    The bill would omit section 605 of the Act [50 U.S.C. App. 
585] because it is outdated.

                       Title VII--Further Relief

    Section 701 would amend section 700 of the Act [50 U.S.C. 
App. 590] by restating it and by adding an additional 
subsection for clarity.
    Section 702 would amend section 701 of the Act [50 U.S.C. 
App. 591] by restating it and reorganizing it with one less 
subsection for clarity. This section also removes the 
restrictions in section 701(c) [50 U.S.C. App. 591(c)] that 
limited an automatic extension of powers of attorney to those 
executed during the Vietnam era and those expiring after July 
31, 1990.
    Section 703 would amend section 702 of the Act [50 U.S.C. 
App. 592] by dividing certain subsections into paragraphs for 
clarity and by expanding its coverage to expressly include 
legal services.
    Section 704 would amend section 703 of the Act [50 U.S.C. 
App. 593] by making minor improvements to wording. It adds a 
new subsection that requires the servicemember to apply for 
reinstatement of health insurance within 120 days of 
termination or release from military service.
    Section 705 would not change section 704 of the Act [50 
U.S.C. App. 594] that was added in 2001 by section 1603 Public 
Law 107-107 (115 Stat. 1023, tit. XVI, sec. 1603) regarding the 
guarantee of residency for military personnel for voting 
purposes.
    Section 2 of the bill would make conforming amendments.
    Section 3 of the bill would provide that the bill applies 
to any case that is not final before the date of enactment.

                    Performance Goals and Objectives

    The application and efficacy of H.R. 100, the 
Servicemembers Civil Relief Act, if enacted, would be subject 
to the Committee's regular oversight. The specific requirements 
of the Government Performance and Results Act of 1993 are 
inapplicable.

              Statement of the Views of the Administration

1. LThe Committee held hearings on H.R. 5111, a bill to which 
H.R. 100 is nearly identical. The statement of Mr. Craig W. 
Duehring, Acting Assistant Secretary of Defense, Reserve 
Affairs, Department of Defense, before the Subcommittee on 
Benefits, Committee on Veterans' Affairs, July 24, 2002:

    Mr. Chairman and members of the Subcommittee, thank you for 
giving me the opportunity to come before you this morning to 
discuss H.R. 5111, the Servicemembers' Civil Relief Act and 
H.R. 4017, the Soldiers' and Sailors' Civil Relief Equity Act.
    The Department of Defense supports H.R. 5111's restatement 
of the Soldiers' and Sailors' Civil Relief Act as the 
Servicemembers' Civil Relief Act. The need to modernize the 
language of the Act, incorporate over 60 years of case law, and 
add generally accepted practices is evident. The Department of 
Defense believes H.R. 5111 accomplishes this goal and would 
like to thank the Committee and its staff for their work on 
this important bill.
    The Soldiers' and Sailors' Civil Relief Act of 1940 has 
been an essential ingredient in the total quality of life 
package for our military men and women, and their families, 
since its passage. In passing this Act and its Civil War and 
World War I era predecessors, Congress recognized that active 
military service may cause severe, often insurmountable, 
problems in handling personal affairs back home: frequent 
involuntary moves, extended deployments overseas, long 
separations from families sometimes with little advance notice. 
Congress also recognized the need to have military men and 
women focused on their operational mission free from worry 
about the welfare of their families or their personal affairs.
    Congress addressed these problems adequately and equitably 
through the Act's skillfully crafted balance among the needs of 
our nation for a strong national defense, the needs of 
Servicemembers--and their families--for security in their 
personal affairs, and the needs of those who have dealt with 
and depend upon Servicemembers for fulfillment of their 
obligations.
    H.R. 5111 maintains this important balance while addressing 
three areas where our experience with the Act indicates that 
change is needed: clarifying and simplifying the language; 
incorporating generally accepted procedures; and updating the 
Act to reflect 60 years of change in America. With the on-going 
war and reserve mobilization, now is a good time to update and 
clarify the Act so it can remain vital and continue to serve 
the needs of military members and those with whom they do 
business.
    The questions most frequently asked by Servicemembers, 
their families, and those who deal with them reveal that parts 
of the Act are difficult to read and understand, and therefore 
difficult to follow. It is apparent from these questions that 
the entire Act needs to be rewritten in plain English and in 
modern legislative drafting form. H.R. 5111 redrafts each 
section, updating the language and removing much ambiguity.
    Additionally, the Act fails to provide necessary procedural 
guidance in many areas. For example, although the Act 
specifically provides protections for Servicemembers in the 
form of a request for a stay of proceedings, it does not 
explain how to go about obtaining the needed relief. H.R. 5111 
provides this missing procedural guidance.
    Finally, the world of 1940 could not have foreseen all the 
changes in American life that more than 60 years of 
technological advances and business practices would bring. The 
extensive use of leases for automobiles and business equipment 
could not possibly have been imagined over 60 years ago. H.R. 
5111 reflects over 60 years of progress in America.
    The Department of Defense has only a few concerns with H.R. 
5111. First, the requirement of Section 105 that all persons in 
military service and entering military service be notified in 
writing of the benefits of this Act is unnecessary and would 
impose a significant administrative burden that would 
accomplish little. As under the current law, Congress should 
allow the Military Services to choose the most appropriate 
means for notifying servicemembers of their civil liability 
protections. Our experience indicates that handing everyone a 
list of the many provisions of this lengthy law would not be 
effective. Currently, the most widely used provisions are 
typically explained in briefings by legal assistance attorneys 
and in command newspapers and other command information forums. 
Also, servicemembers having civil legal problems are routinely 
referred to a legal assistance office, where even the 
infrequently used provisions of the Act are explained, if 
applicable to a servicemember's situation.
    Additionally, the Department would like the Committee to 
consider adding language to H.R. 5111 that would define the 
meaning of the important term ``material effect,'' incorporate 
case law holding that the Act's protections apply to business 
debts for which a servicemember is personally liable, and index 
the maximum rental amount covered by section 301 to account for 
inflation.
    Finally, it appears that both sections 302 and 303 may have 
inadvertently been drafted to include a reference to section 
108. We believe that the reference should be to section 107.
    Before moving to H.R. 4017, I would again like to thank the 
Committee and its staff for all of the effort that has gone 
into this important bill.
    The Department of Defense opposes H.R. 4017.
    Members of the National Guard called or ordered to duty by 
a governor under section 502(f) of title 32 of the United 
States Code are under the command and control of state 
authorities and are subject to the laws and protections 
afforded by that state. This is true even though National Guard 
members serving in this status are paid by the United States. A 
Congressional determination of which civil liability 
protections to provide to Guardsmen serving under state control 
is inconsistent with our federal system. The Department 
believes the states should make this determination.
    The Department would support a concurrent resolution in 
which Congress would urge the states, territories, and 
government of the District of Columbia to enact laws and 
implement policies to provide civil liability protections 
similar to those provided under the Soldiers' and Sailors' 
Civil Relief Act (SSCRA) to members of their respective 
National Guard when serving other than on active duty under 
title 10 of the United States Code. We recently canvassed the 
states and territories and found that 21 of them have laws 
providing some type of SSCRA protections, with 12 of those 
states providing protections that are identical or nearly 
identical to those provided under SSCRA; several other states 
currently are considering legislation that would extend such 
protections to its Guardsmen. We appreciate this opportunity to 
discuss these bills with you.

2. LA letter from Mr. Hector V. Barreto, Administrator, U.S. 
Small Business Administration:

                        U.S. Small Business Administration,
                                      Washington, DC, April 2, 2003
Hon. Christopher H. Smith
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC

    Dear Mr. Chairman: This letter expresses the views of the 
U.S. Small Business Administration (SBA) on H.R. 100, intended 
to restate, clarify, and revise the Soldiers' and Sailors' 
Civil Relief Act of 1940.
    SBA does not have any objections to the proposed 
legislation. However, we note that both the current law and the 
bill reduce the interest rate of a debt to six percent only 
when an individual incurs the debt in his or her own personal 
capacity before being called up to active military duty. The 
interest rate is not reduced to six percent, under either the 
current law or H.R. 100, if the debt was incurred by the small 
legal entity, (e.g. a partnership, professional corporation, or 
limited liability company) owned and operated by the individual 
who is called to active military service, and who is an 
essential employee of the business. This issue was of interest 
during the Gulf War.
    SBA is authorized through the Veterans Entrepreneurship and 
Small Business Development Act of 1999, PL 106-50, to provide 
economic injury disaster loan assistance to small businesses 
that employ a military reservist. Small businesses may apply 
for SBA's Military Reservist Economic Injury Disaster Loan 
(MREIDL) for up to $1.5 million if they have been financially 
affected by essential employees that have been called up for 
active duty during a period of military conflict. To date, SBA 
has approved approximately $3 million in loans for this program 
and has on-going outreach activities to inform the Armed Forces 
and business community of these services.
    Thank your for your continued interest in issues affecting 
the small business community.

            Sincerely,
                                         Hector V. Barreto,
                                                      Administrator

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 11, 2003
Hon. Christopher H. Smith
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 100, the 
Servicemembers Civil Relief Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Michelle S. 
Patterson, who can be reached at 226-2840.

            Sincerely,
                                       Douglas Holtz-Eakin,
                                                           Director
    Enclosure.

               Congressional Budget Office Cost Estimate

 H.R. 100, Servicemembers Civil Relief Act, As ordered reported by the 
         House Committee on Veterans' Affairs on April 3, 2003

Summary
    H.R. 100 would restate, clarify, and revise the Soldiers' 
and Sailors' Civil Relief Act of 1940, which provides for 
financial protection and temporary suspension of certain 
judicial proceedings for servicemembers on active duty. The 
bill contains provisions that would increase the rent level 
under which a servicemember or family members are protected 
from eviction, limit a state's ability to increase the tax 
liability of a servicemember's spouse, and increase the value 
of life insurance coverage that is protected by the government 
if premiums are not paid. CBO estimates that implementing H.R. 
100 would cost $2 million in 2004 and $4 million over the 2004-
2008 period, assuming appropriation of the necessary amounts. 
Enacting this legislation would not affect direct spending or 
receipts.
    H.R. 100 contains an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA), but CBO estimates 
that the cost would not exceed the threshold established by 
UMRA ($59 million in 2003, adjusted annually for inflation).
    The bill also contains a private-sector mandate as defined 
by UMRA, but CBO estimates that the cost would not exceed the 
threshold established by UMRA for private-sector mandates ($117 
million in 2003, adjusted annually for inflation).
Estimated cost to the Federal Government
    Under current law, a servicemember may apply to the 
Department of Veterans Affairs (VA) for protection to prevent a 
life insurance policy from being terminated for nonpayment of 
the premiums. If VA determines the servicemember is entitled to 
protection, then it will guarantee the payment of the premiums 
and attempt to collect any amounts paid by VA from the 
servicemember. Section 402 of the bill would increase the 
maximum value of a life insurance policy that is eligible for 
protection from cancellation for nonpayment of premiums from 
$10,000 to an amount equal to the Servicemembers' Group Life 
Insurance limit, which is currently $250,000.
    CBO estimates that implementing this legislation would cost 
$2 million in 2004 and $4 million over the 2004-2008 period, 
assuming appropriation of the necessary amounts. Almost all of 
that amount would result from payments made by VA to guarantee 
life insurance protection. According to VA, the costs of 
providing this additional protection would be $186,000 a year 
for every 10,000 reservists called to active duty. According to 
the Department of Defense, as of April 9, 2003, there were over 
220,000 reservists mobilized to fight the war with Iraq and 
support the global war on terrorism. For this estimate, CBO 
assumes that the number of reservists on active duty will 
decline to about 100,000 in 2004 and about 15,000 by 2008 as 
tensions around the globe subside. If the number of reservists 
called to active duty were to remain at current levels over the 
2004-2008 period, then the estimated costs would be 
correspondingly higher. CBO also estimates that VA's cost to 
administer this guarantee would increase somewhat--but by less 
than $100,000 a year. The costs of this legislation fall within 
budget function 700 (veterans benefits and services).
Estimated impact on state, local, and tribal governments
    H.R. 100 contains an intergovernmental mandate as defined 
in UMRA because it would prohibit jurisdictions from imposing 
income taxes in certain instances. Under the current Soldiers' 
and Sailors' Relief Act (section 574), servicemembers may only 
be taxed on their military income by the tax jurisdiction of 
which they are a resident. Servicemembers may not be taxed on 
their military pay by the state in which they are stationed if 
it is not their state of legal residence. However, if a 
servicemember or a servicemember's spouse earns additional 
payoff-base, the nonresident state may tax that off-base 
income.
    In certain states with graduated income tax rates, the 
income tax rate which is applied to the off-base pay may be 
based on the servicemembers' total income, including military 
pay, and not the off-base pay only. Including military pay in 
the calculation can push the off-base pay into a higher tax 
bracket. That method of calculating state income tax is, 
sometimes called the ``California Method'' (although as many as 
18 or more other states also use it). If the servicemember's 
state of legal residence also charges income tax, the resident 
state will offer an income tax credit for the income tax on the 
off-base pay that the individual paid to the nonresident state.
    Section 511 would prohibit a tax jurisdiction from using 
the military compensation of a nonresident servicemember to 
increase the tax liability imposed on other income earned by 
the nonresident servicemember or spouse subject to tax by the 
jurisdiction. Thus, a state where a servicemember is stationed 
could not use the ``California method'' to determine the income 
tax rate for the off-base pay, which may result in a lower 
income tax rate on that off-base pay. This provision would 
preempt state law under UMRA and would impose costs (in the 
form of lost revenues) in certain cases.
    For states with a graduated tax structure that use the 
``California method'' to calculate nonresident income taxes, 
enacting section 511 could result in a lower income tax rate on 
off-base earnings. But the net effect on the servicemember's 
overall income tax payments to states would depend on the 
income tax structure of the servicemember's resident state. In 
no case would section 511 increase the overall income tax 
payments to states by the servicemember and their spouse. In 
some cases, the provision would have no net effect on income 
tax payments to states by servicemembers and their spouses, and 
in some cases the provision would reduce income tax payments to 
states. Thus, states as a group would lose some income tax 
revenue. CBO estimates that the cost of enacting section 511 
would total about $20 million annually and thus would be below 
the threshold established by UMRA ($59 million in 2003, 
adjusted annually for inflation).
    Other provisions in H.R. 100 would restate provisions in 
the Soldiers' and Sailors' Civil Relief Act of 1940 or would 
otherwise have no impact on state, local, or tribal 
governments.
Estimated impact on the private sector
    H.R. 100 contains a private-sector mandate as defined by 
UMRA. The bill requires a landlord who wishes to evict an 
active-duty tenant or his or her dependents for nonpayment of 
rent to obtain a court order authorizing the eviction. If the 
court finds that the servicemember's military service 
materially affects the ability to pay rent, it can stay 
eviction for up to three months. Under current law, the stay of 
eviction proceedings covers premises for which the rent does 
not exceed $1,200 per month. Section 301 of this bill would 
increase the mandate by raising the monthly lease amount that 
is protected to $1,700 and requiring that this amount be 
adjusted annually by a housing price index. CBO estimates, 
however, that the cost of complying with this mandate would not 
exceed the threshold as specified in UMRA for private-sector 
mandates ($117 million in 2003, adjusted annually for 
inflation).

Estimate prepared by:
    Federal Costs: Michelle S. Patterson
    Impact on State, Local, and Tribal Government: Victoria 
Heid Hall
    Impact on the Private Sector: Adebayo Adedeji

Estimate approved by:
    Peter H. Fontaine, Deputy Assistant Director for Budget 
Analysis

                     Statement of Federal Mandates

    The foregoing Congressional Budget Office estimate states 
that the costs of the intergovernmental and private sector 
mandates of the reported bill would not exceed the thresholds 
of the Unfunded Mandates Reform Act.

                 Statement of Constitutional Authority

    The constitutional authority for the reported bill is the 
power of Congress ``to . . . provide for the common defense'' 
(U.S. Const. Art. I, sec. 8, cl. 1), ``to declare war'' (U.S. 
Const. Art. I, sec. 8, cl. 11) and ``to raise and support 
armies'' (U.S. Const. Art. I, sec. 8, cl. 12).

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

            SOLDIERS' AND SAILORS' CIVIL RELIEF ACT OF 1940

  An Act to promote and strengthen the national defense by suspending 
enforcement of certain civil liabilities of certain persons serving in 
   the Military and Naval Establishments, including the Coast Guard.

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

                    [article i.--general provisions

    [Sec. 100. In order to provide for, strengthen, and 
expedite the national defense under the emergent conditions 
which are threatening the peace and security of the United 
States and to enable the United States the more successfully to 
fulfill the requirements of the national defense, provision is 
hereby made to suspend enforcement of civil liabilities, in 
certain cases, of persons in the military service of the United 
States in order to enable such persons to devote their entire 
energy to the defense needs of the Nation, and to this end the 
following provisions are made for the temporary suspension of 
legal proceedings and transactions which may prejudice the 
civil rights of persons in such service during the period 
herein specified over which this Act remains in force.
    [Sec. 101. (1) The term ``person in the military service'', 
the term ``persons in military service'', and the term 
``persons in the military service of the United States'' as 
used in this Act, shall include the following persons and no 
others: All members of the Army of the United States, the 
United States Navy, the Marine Corps, the Air Force, the Coast 
Guard, all officers of the Public Health Service detailed by 
proper authority for duty either with the Army or the Navy, and 
all members of the National Guard on service described in the 
following sentence. The term ``military service'', as used in 
this Act, shall signify Federal service on active duty with any 
branch of service heretofore referred to or mentioned as well 
as training or education under the supervision of the United 
States preliminary to induction into the military service, and, 
in the case of a member of the National Guard, shall include 
service under a call to active service authorized by the 
President or the Secretary of Defense for a period of more than 
30 consecutive days under section 502(f) of title 32, United 
States Code, for purposes of responding to a national emergency 
declared by the President and supported by Federal funds. The 
terms ``active service'' or ``active duty'' shall include the 
period during which a person in military service is absent from 
duty on account of sickness, wounds, leave, or other lawful 
cause.
    [(2) The term ``period of military service'', as used in 
this Act, means, in the case of any person, the period 
beginning on the date on which the person enters active service 
and ending on the date of the person's release from active 
service or death while in active service, but in no case later 
than the date when this Act ceases to be in force.
    [(3) The term ``person'', when used in this Act with 
reference to the holder of any right alleged to exist against a 
person in military service or against a person secondarily 
liable under such right, shall include individuals, 
partnerships, corporations, and any other forms of business 
association.
    [(4) The term ``court'', as used in this Act, shall include 
any court of competent jurisdiction of the United States or of 
any State, whether or not a court of record.
    [Sec. 102. (1) The provisions of this Act shall apply to 
the United States, the several States and Territories, the 
District of Columbia, and all territory subject to the 
jurisdiction of the United States, and to proceedings commenced 
in any court therein, and shall be enforced through the usual 
forms of procedure obtaining in such courts or under such 
regulations as may be by them prescribed.
    [(2) When under this Act any application is required to be 
made to a court in which no proceeding has already been 
commenced with respect to the matter, such application may be 
made to any court.
    [Sec. 103. (1) Whenever pursuant to any of the provisions 
of this Act the enforcement of any obligation or liability, the 
prosecution of any suit or proceeding, the entry or enforcement 
of any order, writ, judgment, or decree, or the performance of 
any other act, may be stayed, postponed, or suspended, such 
stay, postponement, or suspension may, in the discretion of the 
court, likewise be granted to sureties, guarantors, endorsers, 
accommodation makers, and others, whether primarily or 
secondarily subject to the obligation or liability, the 
performance or enforcement of which is stayed, postponed, or 
suspended.
    [(2) When a judgment or decree is vacated or set aside in 
whole or in part, as provided in this Act, the same may, in the 
discretion of the court, likewise be set aside and vacated as 
to any surety, guarantor, endorser, accommodation maker, or 
other person whether primarily or secondarily liable upon the 
contract or liability of the enforcement of which the judgment 
or decree was entered.
    [(3) Whenever, by reason of the military service of a 
principal upon a criminal bail bond the sureties upon such bond 
are prevented from enforcing the attendance of their principal 
and performing their obligation the court shall not enforce the 
provisions of such bond during the military service of the 
principal thereon and may in accordance with principles of 
equity and justice either during or after such service 
discharge such sureties and exonerate the bail.
    [(4) Nothing contained in this Act shall prevent a waiver 
in writing of the benefits afforded by subsections (1) and (2) 
of this section by any surety, guarantor, endorser, 
accommodation maker, or other person whether primarily or 
secondarily liable upon the obligation or liability, except 
that no such waiver shall be valid unless it is executed as an 
instrument separate from the obligation or liability in respect 
of which it applies, and no such waiver shall be valid after 
the beginning of the period of military service if executed by 
an individual who subsequent to the execution of such waiver 
becomes a person in military service, or if executed by a 
dependent of such individual, unless executed by such 
individual or dependent during the period specified in section 
106.
    [Sec. 104. Persons who serve with the forces of any nation 
with which the United States may be allied in the prosecution 
of any war in which the United States engages while this Act 
remains in force and who immediately prior to such service 
where citizens of the United States shall, except in those 
cases provided for in section 512, be entitled to the relief 
and benefits afforded by this Act if such service is similar to 
military service as defined in this Act, unless they are 
dishonorably discharged therefrom, or it appears that they do 
not intend to resume United State citizenship.
    [Sec. 105. The Secretary of Defense and the Secretary of 
Transportation, with respect to the Coast Guard when it is not 
operating as a service in the Navy, shall ensure the giving of 
notice of the benefits accorded by this Act to persons in and 
to persons entering military service. The Director of Selective 
Service shall cooperate with the Secretary of Defense and the 
Secretary of Transportation in carrying out the provisions of 
this section.
    [Sec. 106. Any person who has been ordered to report for 
induction under the Military Selective Service Act (50 U.S.C. 
App. 451 et seq.) shall be entitled to the relief and benefits 
accorded persons in military service under articles I, II, and 
III of this Act during the period beginning on the date of 
receipt of such order and ending on the date upon which such 
person reports for induction; and any member of a reserve 
component of the Armed Forces who is ordered to report for 
military service shall be entitled to such relief and benefits 
during the period beginning on the date of receipt of such 
order and ending on the date upon which such member reports for 
military service or the date on which the order is revoked, 
whichever is earlier.
    [Sec. 107. Nothing contained in this Act shall prevent--
          [(a) the modification, termination, or cancellation 
        of any contract, lease, or bailment or any obligation 
        secured by mortgage, trust, deed, lien, or other 
        security in the nature of a mortgage, or
          [(b) the repossession, retention, foreclosure, sale, 
        forfeiture, or taking possession of property which is 
        security for any obligation or which has been purchased 
        or received under a contract, lease, or bailment,

pursuant to a written agreement of the parties thereto 
(including the person in military service concerned, or the 
person to whom section 106 is applicable, whether or not such 
person is a party to the obligation), or their assignees 
executed during or after the period of military service of the 
person concerned or during the period specified in section 106.
    [Sec. 108. Application by a person in military service for, 
or receipt by a person in military service of, a stay, 
postponement, or suspension pursuant to the provisions of this 
Act in the payment of any tax, fine, penalty, insurance 
premium, or other civil obligation or liability of that person 
shall not itself (without regard to other considerations) 
provide the basis for any of the following:
          [(1) A determination by any lender or other person 
        that such person in military service is unable to pay 
        such civil obligation or liability in accordance with 
        its terms.
          [(2) With respect to a credit transaction between a 
        creditor and such person in military service--
                  [(A) a denial or revocation of credit by the 
                creditor;
                  [(B) a change by the creditor in the terms of 
                an existing credit arrangement; or
                  [(C) a refusal by the creditor to grant 
                credit to such person in substantially the 
                amount or on substantially the terms requested.
          [(3) An adverse report relating to the 
        creditworthiness of such person in military service by 
        or to any person or entity engaged in the practice of 
        assembling or evaluating consumer credit information.
          [(4) A refusal by an insurer to insure such person.

                      [article ii.--general relief

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

     [article iii.--rent, installment contracts, mortgages, liens, 
                          assignments, leases

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

The enactment of the provisions of this subsection shall not be 
construed in any way as affecting or as limiting the scope of 
section 302 of this Act.
    [(3) Any person who shall knowingly take any action 
contrary to the provisions of this section, or attempts so to 
do, shall be fined as provided in title 18, United States Code, 
or imprisoned for not to exceed one year, or both.
    [Sec. 306. Dependents of a person in military service shall 
be entitled to the benefits accorded to persons in military 
service under the provisions of this article upon application 
to a court therefor, unless in the opinion of the court the 
ability of such dependents to comply with the terms of the 
obligation, contract, lease, or bailment has not been 
materially impaired by reason of the military service of the 
person upon whom the applicants are dependent.

                        [article iv.--insurance

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

                  [article v.--taxes and public lands

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

                 [article vi.--administrative remedies

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

                     [article vii.--further relief

    [Sec. 700. (1) A person may, at any time during his period 
of military service or within six months thereafter, apply to a 
court for relief in respect of any obligation or liability 
incurred by such person prior to his period of military service 
or in respect of any tax or assessment whether falling due 
prior to or during his period of military service. The court, 
after appropriate notice and hearing, unless in its opinion the 
ability of the applicant to comply with the terms of such 
obligation or liability or to pay such tax or assessment has 
not been materially affected by reason of his military service, 
may grant the following relief:
    [(a) In the case of an obligation payable under its terms 
in installments under a contract for the purchase of real 
estate, or secured by a mortgage or other instrument in the 
nature of a mortgage upon real estate, a stay of the 
enforcement of such obligation during the applicant's period of 
military service and, from the date of termination of such 
period of military service or from the date of application if 
made after such service, for a period equal to the period of 
the remaining life of the installment contract or other 
instrument plus a period of time equal to the period of 
military service of the applicant, or any part of such combined 
period, subject to payment of the balance of principal and 
accumulated interest due and unpaid at the date of termination 
of the period of military service or from the date of 
application, as the case may be, in equal installments during 
such combined period at such rate of interest on the unpaid 
balance as is prescribed in such contract, or other instrument 
evidencing the obligation, for installments paid when due, and 
subject to such other terms as may be just.
    [(b) In the case of any other obligation, liability, tax, 
or assessment, a stay of the enforcement thereof during the 
applicant's period of military service and, from the date of 
termination of such period of military service or from the date 
of application if made after such service, for a period of time 
equal to the period of military service of the applicant or any 
part of such period, subject to payment of the balance of 
principal and accumulated interest due and unpaid at the date 
of termination of such period of military service or the date 
of application, as the case may be, in equal periodic 
installments during such extended period at such rate of 
interest as may be prescribed for such obligation, liability, 
tax, or assessment, if paid when due, and subject to such other 
terms as may be just.
    [(2) When any court has granted a stay as provided in this 
section no fine or penalty shall accrue during the period the 
terms and conditions of such stay are complied with by reason 
of failure to comply with the terms or conditions of the 
obligations, liability, tax, or assessment in respect of which 
such stay was granted.
    [Sec. 701. (a) Notwithstanding any other provision of law, 
a power of attorney which--
          [(1) was duly executed by a person in the military 
        service who is in a missing status (as defined in 
        section 551(2) of title 37, United States Code);
          [(2) designates that person's spouse, parent, or 
        other named relative as his attorney in fact for 
        certain specified, or all, purposes; and
          [(3) expires by its terms after that person entered a 
        missing status, and before or after the effective date 
        of this section;

shall be automatically extended for the period that the person 
is in a missing status. (Added P.L. 92-540, Sec. 504(2).)
    [(b) No power of attorney executed after the effective date 
of this section by a person in the military service may be 
extended under subsection (a) if the document by its terms 
clearly indicates that the power granted expires on the date 
specified even though that person, after the date of execution 
of the document, enters a missing status. (Added P.L. 92-540, 
Sec. 504(2).)
  [(c) This section applies to the following powers of attorney 
executed by a person in military service or under a call or 
order to report for military service (or who has been advised 
by an official of the Department of Defense that such person 
may receive such a call or order):
          [(1) A power of attorney that is executed during the 
        Vietnam era (as defined in section 101(29) of title 38, 
        United States Code).
          [(2) A power of attorney that expires by its terms 
        after July 31, 1990.
    [Sec. 702. (a) This section applies to a person who--
          [(1) after July 31, 1990, is ordered to active duty 
        (other than for training) pursuant to section 688, 
        12301(a), 12301(g), 12302, 12304, 12306, or 12307 of 
        title 10, United States Code, or who is ordered to 
        active duty under section 12301(d) of such title during 
        a period when members are on active duty pursuant to 
        any of the preceding sections; and
          [(2) immediately before receiving the order to active 
        duty--
                  [(A) was engaged in the furnishing of health-
                care services or other services determined by 
                the Secretary of Defense to be professional 
                services; and
                  [(B) had in effect a professional liability 
                insurance policy that does not continue to 
                cover claims filed with respect to such person 
                during the period of the person's active duty 
                unless the premiums are paid for such coverage 
                for such period.
  [(b)(1) Coverage of a person referred to in subsection (a) by 
a professional liability insurance policy shall be suspended in 
accordance with this subsection upon receipt of the written 
request of such person by the insurance carrier.
  [(2) A professional liability insurance carrier--
          [(A) may not require that premiums be paid by or on 
        behalf of a person for any professional liability 
        insurance coverage suspended pursuant to paragraph (1); 
        and
          [(B) shall refund any amount paid for coverage for 
        the period of such suspension or, upon the election of 
        such person, apply such amount for the payment of any 
        premium becoming due upon the reinstatement of such 
        coverage.
  [(3) A professional liability insurance carrier shall not be 
liable with respect to any claim that is based on professional 
conduct (including any failure to take any action in a 
professional capacity) of a person that occurs during a period 
of suspension of that person's professional liability insurance 
under this subsection. For the purposes of the preceding 
sentence, a claim based upon the failure of a professional to 
make adequate provision for patients to be cared for during the 
period of the professional's active duty service shall be 
considered to be based on an action or failure to take action 
before the beginning of the period of suspension of 
professional liability insurance under this subsection, except 
in a case in which professional services were provided after 
the date of the beginning of such period.
  [(c)(1) Professional liability insurance coverage suspended 
in the case of any person pursuant to subsection (b) shall be 
reinstated by the insurance carrier on the date on which that 
person transmits to the insurance carrier a written request for 
reinstatement.
  [(2) The request of a person for reinstatement shall be 
effective only if the person transmits the request to the 
insurance carrier within 30 days after the date on which the 
person is released from active duty. The insurance carrier 
shall notify the person of the due date for payment of the 
premium of such insurance. Such premium shall be paid by the 
person within 30 days after the receipt of that notice.
  [(3) The period for which professional liability insurance 
coverage shall be reinstated for a person under this subsection 
may not be less than the balance of the period for which 
coverage would have continued under the insurance policy if the 
coverage had not been suspended.
  [(d) An insurance carrier may not increase the amount of the 
premium charged for professional liability insurance coverage 
of any person for the minimum period of the reinstatement of 
such coverage required under subsection (c)(3) to an amount 
greater than the amount chargeable for such coverage for such 
period before the suspension, except to the extent of any 
general increase in the premium amounts charged by that carrier 
for the same professional liability coverage for persons 
similarly covered by such insurance during the period of the 
suspension.
  [(e) This section does not--
          [(1) require a suspension of professional liability 
        insurance coverage for any person who is not a person 
        referred to in subsection (a) and who is covered by the 
        same professional liability insurance as a person 
        referred to in such subsection; or
          [(2) relieve any person of the obligation to pay 
        premiums for the coverage not required to be suspended.
  [(f)(1) A civil or administrative action for damages on the 
basis of the alleged professional negligence or other 
professional liability of a person whose professional liability 
insurance coverage has been suspended under subsection (b) 
shall be stayed until the end of the period of the suspension 
if--
          [(A) the action was commenced during that period;
          [(B) the action is based on an act or omission that 
        occurred before the date on which the suspension became 
        effective; and
          [(C) the suspended professional liability insurance 
        would, except for the suspension, on its face cover the 
        alleged professional negligence or other professional 
        liability negligence or other professional liability of 
        the person.
  [(2) Whenever a civil or administrative action for damages is 
stayed under paragraph (1) in the case of any person, the 
action shall be deemed to have been filed on the date on which 
the professional liability insurance coverage of such person is 
reinstated under subsection (c).
  [(g) In the case of a civil or administrative action for 
which a stay could have been granted under subsection (f) by 
reason of the suspension of professional liability insurance 
coverage of the defendant under this section, the period of the 
suspension of the coverage shall be excluded from the 
computation of any statutory period of limitation on the 
commencement of such action.
  [(h) If a person whose professional liability insurance 
coverage is suspended under subsection (b) dies during the 
period of the suspension--
          [(1) the requirement for the grant or continuance of 
        a stay in any civil or administrative action against 
        such person under subsection (f)(1) shall terminate on 
        the date of the death of such person; and
          [(2) the carrier of the professional liability 
        insurance so suspended shall be liable for any claim 
        for damages for professional negligence or other 
        professional liability of the deceased person in the 
        same manner and to the same extent as such carrier 
        would be liable if the person had died while covered by 
        such insurance but before the claim was filed.
  [(i) In this section:
          [(1) The term ``active duty'' has the meaning given 
        that term in section 101 of title 10, United States 
        Code.
          [(2) The term ``profession'' includes occupation.
          [(3) The term ``professional'' includes occupational.
    [Sec. 703. (a) A person who, by reason of military service 
described in section 702(a)(1), is entitled to the rights and 
benefits of this Act shall also be entitled upon release from 
such military service to reinstatement of any health insurance 
which (1) was in effect on the day before such service 
commenced, and (2) was terminated effective on a date during 
the period of such service.
  [(b) An exclusion or a waiting period may not be imposed in 
connection with reinstatement of health insurance coverage of a 
health or physical condition of a person under subsection (a), 
or a health or physical condition of any other person who is 
covered by the insurance by reason of the coverage of such 
person, if--
          [(1) the condition arose before or during that 
        person's period of training or service in the Armed 
        Forces;
          [(2) an exclusion or waiting period would not have 
        been imposed for the condition during a period of 
        coverage resulting from participation by such person in 
        the insurance; and
          [(3) the condition of such person has not been 
        determined by the Secretary of Veterans Affairs to be a 
        disability incurred or aggravated in the line of duty 
        (within the meaning of section 105 of title 38, United 
        States Code).
  [(c) Subsection (a) does not apply in the case of employer-
offered insurance benefits in which a person referred to in 
such subsection is entitled to participate pursuant to the 
provisions of chapter 43 of title 38, United States Code.
  [Sec. 704. (a) For purposes of voting for any Federal office 
(as defined in section 301 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 431)) or a State or local office, a person 
who is absent from a State in compliance with military or naval 
orders shall not, solely by reason of that absence--
          [(1) be deemed to have lost a residence or domicile 
        in that State, without regard to whether or not the 
        person intends to return to that State;
          [(2) be deemed to have acquired a residence or 
        domicile in any other State; or
          [(3) be deemed to have become a resident in or a 
        resident of any other State.
  [(b) In this section, the term ``State'' includes a territory 
or possession of the United States, a political subdivision of 
a State, territory, or possession, and the District of 
Columbia.]

SECTION 1. 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 defendant has notice.
Sec. 203. Fines and penalties under contracts.
Sec. 204. Stay or vacation of execution of judgments, attachments, and 
          garnishments.
Sec. 205. Duration and term of stays; codefendants not in service.
Sec. 206. Statute of limitations.
Sec. 207. Maximum rate of interest on debts incurred before military 
          service.

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

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

                        TITLE IV--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. 2. PURPOSE.

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

                      TITLE I--GENERAL PROVISIONS

SEC. 101. DEFINITIONS.

  For the purposes of this Act:
          (1) Servicemember.--The term ``servicemember'' means 
        a member of the uniformed services, as that term is 
        defined in section 101(a)(5) of title 10, United States 
        Code.
          (2) Military service.--The term ``military service'' 
        means--
                  (A) in the case of a servicemember who is a 
                member of the Army, Navy, Air Force, Marine 
                Corps, or Coast Guard--
                          (i) active duty, as defined in 
                        section 101(d)(1) of title 10, United 
                        States Code, and
                          (ii) in the case of a member of the 
                        National Guard, includes service under 
                        a call to active service authorized by 
                        the President or the Secretary of 
                        Defense for a period of more than 30 
                        consecutive days under section 502(f) 
                        of title 32, United States Code, for 
                        purposes of responding to a national 
                        emergency declared by the President and 
                        supported by Federal funds; and
                  (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.
          (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.

SEC. 102. JURISDICTION AND APPLICABILITY OF ACT.

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

SEC. 103. PROTECTION OF PERSONS SECONDARILY LIABLE.

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

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

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

SEC. 105. NOTIFICATION OF BENEFITS.

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

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

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

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

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

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

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

SEC. 109. LEGAL REPRESENTATIVES.

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

                        TITLE II--GENERAL RELIEF

SEC. 201. PROTECTION OF SERVICEMEMBERS AGAINST DEFAULT JUDGMENTS.

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

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

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

SEC. 203. FINES AND PENALTIES UNDER CONTRACTS.

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

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

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

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

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

SEC. 206. STATUTE OF LIMITATIONS.

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

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

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

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

SEC. 301. EVICTIONS AND DISTRESS.

  (a) Court-Ordered Eviction.--
          (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 $1,700, 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 under 
        subsection (a)(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.
  (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; or
                  (B) the lease or bailment of such property,
        may not be rescinded or terminated for a breach of 
        terms of the contract occurring before or during that 
        person's military service, nor may the property be 
        repossessed for such breach without a court order.
          (2) Applicability.--This section applies only to a 
        contract for which a deposit or installment has been 
        paid by the servicemember before the servicemember 
        enters military service.
  (b) Penalties.--
          (1) Misdemeanor.--A person who knowingly resumes 
        possession of property in violation of subsection (a), 
        or in violation of section 107 of this Act, or who 
        knowingly attempts to do so, shall be fined as provided 
        in title 18, United States Code, or imprisoned for not 
        more than one year, or both.
          (2) Preservation of other remedies and rights.--The 
        remedies and rights provided under this section are in 
        addition to and do not preclude any remedy for wrongful 
        conversion otherwise available under law to the person 
        claiming relief under this section, including any award 
        for consequential and punitive damages.
  (c) Authority of Court.--In a hearing based on this section, 
the court--
          (1) may order repayment to the servicemember of all 
        or part of the prior installments or deposits as a 
        condition of terminating the contract and resuming 
        possession of the property;
          (2) may, on its own motion, and shall on application 
        by a servicemember when the servicemember's ability to 
        comply with the contract is materially affected by 
        military service, stay the proceedings for a period of 
        time as, in the opinion of the court, justice and 
        equity require; or
          (3) may make other disposition as is equitable to 
        preserve the interests of all parties.

SEC. 303. MORTGAGES AND TRUST DEEDS.

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

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

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

SEC. 305. TERMINATION OF LEASES BY LESSEES.

  (a) Covered Leases.--This section applies to the lease of 
premises occupied, or intended to be occupied, by a 
servicemember or a servicemember's dependents for a 
residential, professional, business, agricultural, or similar 
purpose if--
          (1) the lease is executed by or on behalf of a person 
        who thereafter and during the term of the lease enters 
        military service; or
          (2) the servicemember, while in military service, 
        executes a lease and thereafter receives military 
        orders for a permanent change of station or to deploy 
        with a military unit for a period of not less than 90 
        days.
  (b) Notice to Lessor.--
          (1) Delivery of notice.--A lease described in 
        subsection (a) is terminated when written notice is 
        delivered by the lessee to the lessor (or the lessor's 
        grantee) or to the lessor's agent (or the agent's 
        grantee).
          (2) Time for notice.--The written notice may be 
        delivered at any time after the lessee's entry into 
        military service or the date of the military orders for 
        a permanent change of station or to deploy for a period 
        of not less than 90 days.
          (3) Nature of notice.--Delivery may be accomplished--
                  (A) by hand delivery;
                  (B) by private business carrier; or
                  (C) by placing the written notice in an 
                envelope with sufficient postage and addressed 
                to the lessor (or the lessor's grantee) or to 
                the lessor's agent (or the agent's grantee) and 
                depositing the written notice in the United 
                States mails.
  (c) Effective Date of Termination.--
          (1) Lease with monthly rent.--Termination of a lease 
        providing for monthly payment of rent shall be 
        effective 30 days after the first date on which the 
        next rental payment is due and payable after the date 
        on which the notice is delivered.
          (2) Other lease.--All other leases terminate on the 
        last day of the month following the month in which the 
        notice is delivered.
  (d) Arrearages in Rent.--Rents unpaid for the period 
preceding termination shall be paid on a prorated basis.
  (e) Rent Paid in Advance.--Rents paid in advance for a period 
succeeding termination shall be refunded to the lessee by the 
lessor (or the lessor's assignee or the assignee's agent).
  (f) 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.
  (g) 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)(1);
          (2) when the premiums on the policy are due and 
        unpaid; or
          (3) upon the death of the insured.
  (c) Order Refused Because of Material Affect.--A court which 
receives an application for an order required under subsection 
(a) may refuse to grant such order if the court determines the 
ability of the servicemember to comply with the terms of the 
obligation is materially affected by military service.
  (d) Treatment of Guaranteed Premiums.--For purposes of this 
subsection, premiums guaranteed under the provisions of title 
IV of this Act shall not be considered due and unpaid.
  (e) Penalties.--
          (1) Misdemeanor.--A person who knowingly takes an 
        action contrary to this section, or attempts to do so, 
        shall be fined as provided in title 18, United States 
        Code, or imprisoned for not more than one year, or 
        both.
          (2) Preservation of other remedies.--The remedy and 
        rights provided under this section are in addition to 
        and do not preclude any remedy for wrongful conversion 
        otherwise available under law to the person claiming 
        relief under this section, including any consequential 
        or punitive damages.

SEC. 307. ENFORCEMENT OF STORAGE LIENS.

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

SEC. 308. EXTENSION OF PROTECTIONS TO DEPENDENTS.

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

                        TITLE IV--LIFE INSURANCE

SEC. 401. DEFINITIONS.

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

SEC. 402. INSURANCE RIGHTS AND PROTECTIONS.

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

SEC. 403. APPLICATION FOR INSURANCE PROTECTION.

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

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

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

SEC. 405. POLICY RESTRICTIONS.

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

SEC. 406. DEDUCTION OF UNPAID PREMIUMS.

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

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

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

SEC. 408. REGULATIONS.

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

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

  The findings of fact and conclusions of law made by the 
Secretary of Veterans Affairs in administering this title may 
be reviewed by the Board of Veterans' Appeals and the United 
States Court of Appeals for Veterans Claims.

                    TITLE V--TAXES AND PUBLIC LANDS

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

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

SEC. 502. RIGHTS IN PUBLIC LANDS.

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

SEC. 503. DESERT-LAND ENTRIES.

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

SEC. 504. MINING CLAIMS.

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

SEC. 505. MINERAL PERMITS AND LEASES.

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

SEC. 506. PERFECTION OR DEFENSE OF RIGHTS.

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

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

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

SEC. 508. LAND RIGHTS OF SERVICEMEMBERS.

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

SEC. 509. REGULATIONS.

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

SEC. 510. INCOME TAXES.

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

SEC. 511. RESIDENCE FOR TAX PURPOSES.

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

                   TITLE VI--ADMINISTRATIVE REMEDIES

SEC. 601. INAPPROPRIATE USE OF ACT.

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

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

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

SEC. 603. INTERLOCUTORY ORDERS.

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

                       TITLE VII--FURTHER RELIEF

SEC. 701. ANTICIPATORY RELIEF.

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

SEC. 702. POWER OF ATTORNEY.

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

SEC. 703. PROFESSIONAL LIABILITY PROTECTION.

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

SEC. 704. HEALTH INSURANCE REINSTATEMENT.

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

SEC. 705. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

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


            SECTION 14 OF THE MILITARY SELECTIVE SERVICE ACT

                             [civil relief

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


               CHAPTER 55 OF TITLE 5, UNITED STATES CODE

CHAPTER 55--PAY ADMINISTRATION

           *       *       *       *       *       *       *


SUBCHAPTER II--WITHHOLDING PAY

           *       *       *       *       *       *       *


Sec. 5520a. Garnishment of pay

  (a) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *


SUBCHAPTER VII--PAYMENTS TO MISSING EMPLOYEES

           *       *       *       *       *       *       *


Sec. 5569. Benefits for captives

  (a) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 1408 OF TITLE 10, UNITED STATES CODE

Sec. 1408. Payment of retired or retainer pay in compliance with court 
                    orders

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

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

                              ----------                              


           SECTION 7654 OF THE INTERNAL REVENUE CODE OF 1986

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

  (a) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 212 OF THE PUBLIC HEALTH SERVICE ACT

                           military benefits

  Sec. 212. (a) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

                              ----------                              


   SECTION 8001 OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965

SEC. 8001. PURPOSE.

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

           *       *       *       *       *       *       *