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Title VIII — Enhancement of rights under Service­members Civil Relief Act

S. 2413 · 113th Congress · Jun 2, 2014 · Lineage

VIII Enhancement of rights under Service­members Civil Relief Act

Sec. 801 Modification of period determining which actions are covered under stay of proceedings and adjustment of obligation protections concerning mortgages and trust deeds of members of uniformed services

(a)
In general— Section 303(b) of the Servicemembers Civil Relief Act (50 U.S.C. App. 533(b)) is amended by striking “filed” and inserting “pending”.
(b)
Conforming amendments— Section 710(d) of the Honoring America's Veterans and Caring for Camp Lejeune Families Act of 2012 (Public Law 112–154; 126 Stat. 1208) is amended—
(1)
by striking paragraph (1) and inserting the following new paragraph (1):

“(1) Sunset and revival

“(A) In general—Subsections (b) and (c) of section 303 of the Servicemembers Civil Relief Act (50 U.S.C. App. 533), as amended by subsections (a) and (b) of this section, are amended by striking “within one year” each place it appears and inserting “within 90 days”.

“(B) Effective date—The amendments made by subparagraph (A) shall take effect on January 1, 2015.”

(2)
by striking paragraph (3).

Sec. 802 Protections for members of uniformed services regarding professional licenses

(a)
In general— Title VII of the Servicemembers Civil Relief Act (50 U.S.C. App. 701 et seq.) is amended by adding at the end the following new section:

“707. Professional licenses

“(a) Expiration during period in which servicemembers are eligible for hostile fire or imminent danger special pay—If a license issued by a State or local licensing authority to a servicemember would otherwise expire during a period in which such servicemember is eligible for hostile fire or imminent danger special pay under section 310 of title 37, United States Code, such State or local licensing authority shall delay the expiration of such license until not earlier than the date that is 180 days after the date on which such period of eligibility ends.

“(b) Continuing education requirements during period in which servicemembers are eligible for hostile fire or imminent danger special pay—If a State or local licensing authority otherwise requires a servicemember to meet any continuing education requirements to maintain a license for a trade or profession during a period in which such servicemember is eligible for hostile fire or imminent danger special pay under section 310 of title 37, United States Code, such State or local licensing authority shall delay such continuing education requirement until not earlier than the date that is 180 days after the date on which such period of eligibility ends.”

(b)
Clerical amendment— The table of contents in section 1(b) of such Act (50 U.S.C. App. 501(b)) is amended by inserting after the item relating to section 706 the following new item:

Sec. 803 Prohibition on denial of credit because of eligibility for protection

Section 108 of the Servicemembers Civil Relief Act (50 U.S.C. App. 518) is amended—
(1)
by striking “Application by” and inserting the following:

“(a) Application or receipt—Application by”

(2)
by adding at the end the following new subsection:

“(b) Eligibility

“(1) In general—In addition to the protections under subsection (a), an individual who is entitled to any right or protection provided under this Act may not be denied or refused credit or be subject to any other action described under paragraphs (1) through (6) of subsection (a) solely by reason of such entitlement.

“(2) Construction—Nothing in this subsection shall be construed to prohibit a lender from considering all relevant factors, other than the entitlement of an individual to a right or protection provided under this Act, in making a determination as to whether it is appropriate to extend credit.”

Sec. 804 Interest rate limitation on debt entered into during military service to consolidate or refinance student loans incurred before military service

(a)
In general— Subsection (a) of section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 527) is amended—
(1)
in paragraph (1), by inserting “on debt incurred before service” after “Limitation to 6 percent”;
(2)
by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively;
(3)
by inserting after paragraph (1) the following new paragraph (2):

“(2) Limitation to 6 percent on debt incurred during service to consolidate or refinance student loans incurred before service—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, during military service to consolidate or refinance one or more student loans incurred by the servicemember before such military service shall not bear an interest at a rate in excess of 6 percent during the period of military service.”

(4)
in paragraph (3), as redesignated by paragraph (2) of this subsection, by inserting “or (2)” after “paragraph (1)”; and
(5)
in paragraph (4), as so redesignated, by striking “paragraph (2)” and inserting “paragraph (3)”.
(b)
Implementation of limitation— Subsection (b) of such section is amended—
(1)
in paragraph (1), by striking “the interest rate limitation in subsection (a)” and inserting “an interest rate limitation in paragraph (1) or (2) of subsection (a)”; and
(2)
in paragraph (2)—
(A)
in the paragraph heading, by striking “as of date of order to active duty”; and
(B)
by inserting before the period at the end the following: “in the case of an obligation or liability covered by subsection (a)(1), or as of the date the servicemember (or servicemember and spouse jointly) incurs the obligation or liability concerned under subsection (a)(2)”.
(c)
Student loan defined— Subsection (d) of such section is amended by adding at the end the following new paragraph:

“(3) Student loan—The term student loan means the following:

“(A) A Federal student loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).

“(B) A private student loan as that term is defined in section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).”

Sec. 805 Termination of residential leases after assignment or relocation to quarters of United States or housing facility under jurisdiction of uniformed service

(a)
Termination of residential leases—
(1)
In general— Section 305 of the Servicemembers Civil Relief Act (50 U.S.C. App. 535) is amended—
(A)
in subsection (a)(1)—
(i)
in subparagraph (A), by striking “or” at the end;
(ii)
in subparagraph (B), by striking the period at the end and inserting “; or”; and
(iii)
by adding at the end the following new subparagraph:

“(C) in the case of a lease described in subsection (b)(1) and subparagraph (C) of such subsection, the date the lessee is assigned to or otherwise relocates to quarters or a housing facility as described in such subparagraph.”

(B)
in subsection (b)(1)—
(i)
in subparagraph (A), by striking “or” at the end;
(ii)
in subparagraph (B), by striking the period at the end and inserting “; or”; and
(iii)
by adding at the end the following new subparagraph:

“(C) the lease is executed by or on behalf of a person who thereafter and during the term of the lease is assigned to or otherwise relocates to quarters of the United States or a housing facility under the jurisdiction of a uniformed service (as defined in section 101 of title 37, United States Code), including housing provided under the Military Housing Privatization Initiative.”

(2)
Manner of termination— Subsection (c)(1) of such section is amended—
(A)
in subparagraph (A)—
(i)
by inserting “in the case of a lease described in subsection (b)(1) and subparagraph (A) or (B) of such subsection,” before “by delivery”; and
(ii)
by striking “and” at the end;
(B)
by redesignating subparagraph (B) as subparagraph (C); and
(C)
by inserting after subparagraph (A) the following new subparagraph (B):

“(B) in the case of a lease described in subsection (b)(1) and subparagraph (C) of such subsection, by delivery by the lessee of written notice of such termination, and a letter from the servicemember's commanding officer indicating that the servicemember has been assigned to or is otherwise relocating to quarters of the United States or a housing facility under the jurisdiction of a uniformed service (as defined in section 101 of title 37, United States Code), to the lessor (or the lessor's grantee), or to the lessor's agent (or the agent's grantee); and”

(b)
Definition of military orders and continental United States for purposes of Act—
(1)
Transfer of definitions— Such Act is further amended by transferring paragraphs (1) and (2) of section 305(i) (50 U.S.C. App. 535(i)) to the end of section 101 (50 U.S.C. App. 511) and redesignating such paragraphs, as so transferred, as paragraphs (10) and (11).
(2)
Conforming amendments— Such Act is further amended—
(A)
in section 305 (50 U.S.C. App. 535), as amended by paragraph (1), by striking subsection (i); and
(B)
in section 705 (50 U.S.C. App. 595), by striking “or naval” both places it appears.

Sec. 806 Protection of surviving spouse with respect to mortgage foreclosure

(a)
In general— Title III of the Servicemembers Civil Relief Act (50 U.S.C. App. 531 et seq.) is amended by inserting after section 303 (50 U.S.C. App. 533) the following new section:

“303A. Protection of surviving spouse with respect to mortgage foreclosure

“(a) In general—Subject to subsection (b), with respect to a servicemember who dies while in military service and who has a surviving spouse who is the servicemember's successor in interest to property covered under section 303(a), section 303 shall apply to the surviving spouse with respect to that property during the one-year period beginning on the date of such death in the same manner as if the servicemember had not died.

“(b) Notice required

“(1) In general—To be covered under this section with respect to property, a surviving spouse shall submit written notice that such surviving spouse is so covered to the mortgagee, trustee, or other creditor of the mortgage, trust deed, or other security in the nature of a mortgage with which the property is secured.

“(2) Time—Notice provided under paragraph (1) shall be provided with respect to a surviving spouse anytime during the one-year period beginning on the date of death of the servicemember with respect to whom the surviving spouse is to receive coverage under this section.

“(3) Address—Notice provided under paragraph (1) with respect to property shall be provided via e-mail, facsimile, standard post, or express mail to facsimile numbers and addresses, as the case may be, designated by the servicer of the mortgage, trust deed, or other security in the nature of a mortgage with which the property is secured.

“(4) Manner—Notice provided under paragraph (1) shall be provided in writing by using a form designed under paragraph (5) or submitting a copy of a Department of Defense or Department of Veterans Affairs document evidencing the military service-related death of a spouse while in military service.

“(5) Official forms—The Secretary of Defense shall design and distribute an official Department of Defense form that can be used by an individual to give notice under paragraph (1).”

(b)
Effective date— Section 303A of such Act, as added by subsection (a), shall apply with respect to deaths that occur on or after the date of the enactment of this Act.
(c)
Clerical amendment— The table of contents in section 1(b) of such Act (50 U.S.C. App. 501) is amended by inserting after the item relating to section 303 the following new item:

Sec. 807 Improved protection of members of uniformed services against default judgments

(a)
Modification of plaintiff affidavit filing requirement— Paragraph (1) of section 201(b) of the Servicemembers Civil Relief Act (50 U.S.C. App. 521(b)) is amended—
(1)
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting such clauses two ems to the right;
(2)
in the matter before clause (i), as redesignated by paragraph (1), by striking “In any” and inserting the following:

“(A) In general—In any”

(3)
by adding at the end the following new subparagraph (B):

“(B) Due diligence—Before filing the affidavit, the plaintiff shall conduct a diligent and reasonable investigation to determine whether or not the defendant is in military service, including a search of available records of the Department of Defense and any other information reasonably available to the plaintiff. The affidavit shall set forth all steps taken to determine the defendant’s military status and shall have attached copies of the records on which the plaintiff relied in drafting the affidavit.”

(b)
Appointment of attorney To represent defendant in military service— Paragraph (2) of such section (50 U.S.C. App. 521(b)) is amended—
(1)
by striking “If in an action” and inserting the following:

“(A) In general—If in an action”

(2)
in subparagraph (A), as designated by paragraph (1), by striking “If an attorney” and inserting the following:

“(C) Limitations on appointed attorney—If an attorney”

(3)
by inserting after subparagraph (A), as designated by paragraph (1), the following new subparagraph:

“(B) Due diligence—If the court appoints an attorney to represent the defendant—

“(i) the attorney shall conduct a diligent and reasonable investigation to determine whether or not the defendant is in military service, including a search of available records of the Department of Defense and any other information reasonably available to the attorney; and

“(ii) the plaintiff shall submit to the attorney such information as the plaintiff may have concerning the whereabouts or identity of the defendant.”

(4)
by adding at the end the following new subparagraph:

“(D) Treatment of attorneys fees—The reasonable fees of an attorney appointed to represent a servicemember shall be treated as costs of court for court cost purposes, unless the creditor seeks relief from such charges from the court.”

Sec. 808 Clarification regarding application of enforcement authority of Attorney General and private right of action under Servicemembers Civil Relief Act

Sections 801 and 802 of the Servicemembers Civil Relief Act (50 U.S.C. App. 597 and 597a) shall apply as if such sections were included in the enactment of the Soldiers' and Sailors' Civil Relief Act of 1940 (54 Stat. 1178, chapter 888) and included in the restatement of such Act in Public Law 108–189.

Sec. 809 Clerical amendments

(a)
In general— The heading for section 305 of the Servicemembers Civil Relief Act (50 U.S.C. App. 535) is amended by striking “residential or motor vehicle leases” and inserting “leases of premises occupied and motor vehicles used”.
(b)
Table of contents— The table of contents in section 1(b) of such Act (50 U.S.C. App. 501(b)) is amended by striking the item relating to section 305 and inserting the following new item: