50 USC 3954 - Settlement of stayed cases relating to personal property

Collapse to view only § 3954. Settlement of stayed cases relating to personal property

§ 3951. Evictions and distress
§ 3952. Protection under installment contracts for purchase or lease
§ 3953. Mortgages and trust deeds
§ 3954. Settlement of stayed cases relating to personal property
§ 3955. Termination of residential or motor vehicle leases
§ 3956. Termination of certain consumer contracts
§ 3957. Protection of life insurance policy
§ 3958. Enforcement of storage liens
§ 3959. Extension of protections to dependents

§ 3951. Evictions and distress

(a) Court-ordered eviction

(1) In generalExcept by court order, a landlord (or another person with paramount title) may not—

(A) evict a servicemember, or the dependents of a servicemember, during a period of military service of the servicemember, from premises—

(i) that are occupied or intended to be occupied primarily as a residence; and

(ii) for which the monthly rent does not exceed $2,400, as adjusted under paragraph (2) for years after 2003; or

(B) subject such premises to a distress during the period of military service.

(2) Housing price inflation adjustment

(A) For calendar years beginning with 2004, the amount in effect under paragraph (1)(A)(ii) shall be increased by the housing price inflation adjustment for the calendar year involved.

(B) For purposes of this paragraph—

(i) The housing price inflation adjustment for any calendar year is the percentage change (if any) by which—(I) the CPI housing component for November of the preceding calendar year, exceeds(II) the CPI housing component for November of 1984.

(ii) The term “CPI housing component” means the index published by the Bureau of Labor Statistics of the Department of Labor known as the Consumer Price Index, All Urban Consumers, Rent of Primary Residence, U.S. City Average.

(3) Publication of housing price inflation adjustment

(b) Stay of execution

(1) Court authorityUpon 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

(d) Rent allotment from pay of servicemember

(e) Limitation of applicability

(Oct. 17, 1940, ch. 888, title III, § 301, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2845; amended Pub. L. 111–275, title III, § 303(b)(2), Oct. 13, 2010, 124 Stat. 2877.)

§ 3952. Protection under installment contracts for purchase or lease

(a) Protection upon breach of contract

(1) Protection after entering military service

After a servicemember enters military service, a contract by the servicemember for—

(A) the purchase of real or personal property (including a motor vehicle); or

(B) the lease or bailment of such property,

may not be rescinded or terminated for a breach of terms of the contract occurring before or during that person’s military service, nor may the property be repossessed for such breach without a court order.

(2) Applicability

(b) Misdemeanor

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.

(Oct. 17, 1940, ch. 888, title III, § 302, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2846; amended Pub. L. 111–275, title III, § 303(b)(3), Oct. 13, 2010, 124 Stat. 2878.)

§ 3953. 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—

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 one year 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.

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 one year 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 3918 of this title.

(d) Misdemeanor

(Oct. 17, 1940, ch. 888, title III, § 303, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2847; amended Pub. L. 110–289, div. B, title II, § 2203(a), July 30, 2008, 122 Stat. 2849; Pub. L. 111–275, title III, § 303(b)(4), Oct. 13, 2010, 124 Stat. 2878; Pub. L. 112–154, title VII, § 710(a), (b), (d)(3), Aug. 6, 2012, 126 Stat. 1208; Pub. L. 115–174, title III, § 313, May 24, 2018, 132 Stat. 1356.)

§ 3954. Settlement of stayed cases relating to personal property

(a) Appraisal of property

(b) Equity payment

(Oct. 17, 1940, ch. 888, title III, § 304, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2848.)

§ 3955. Termination of residential or motor vehicle leases

(a) Termination

(1) Termination by lesseeThe lessee on a lease described in subsection (b) may, at the lessee’s option, terminate the lease at any time after—

(A) the lessee’s entry into military service;

(B) the date of the lessee’s military orders described in paragraph (1)(B) or (2)(B) of subsection (b), as the case may be; or

(C) the date of the lessee’s stop movement order described in paragraph (1)(C) or (2)(C) of subsection (b), as the case may be.

(2) Joint leases

(3) Death of lessee

(4) Catastrophic injury or illness of lessee

(A) TerminationIf the lessee on a lease described in subsection (b) incurs a catastrophic injury or illness during a period of military service or while performing covered service, during the one-year period beginning on the date on which the lessee incurs such injury or illness—

(i) the lessee may terminate the lease; or

(ii) in the case of a lessee who lacks the mental capacity to contract or to manage his or her own affairs (including disbursement of funds without limitation) due to such injury or illness, the spouse or dependent of the lessee may terminate the lease.

(B) DefinitionsIn this paragraph:

(i) The term “catastrophic injury or illness” has the meaning given that term in section 439(g) of title 37.

(ii) The term “covered service” means full-time National Guard duty, active Guard and Reserve duty, or inactive-duty training (as such terms are defined in section 101(d) of title 10).

(b) Covered leasesThis section applies to the following leases:

(1) Leases of premisesA lease of premises occupied, or intended to be occupied, by a servicemember or a servicemember’s dependents for a residential, professional, business, agricultural, or similar purpose if—

(A) the lease is executed by or on behalf of a person who thereafter and during the term of the lease enters military service;

(B) the servicemember, while in military service, executes the lease and thereafter receives military orders for a permanent change of station or to deploy with a military unit, or as an individual in support of a military operation, for a period of not less than 90 days; or

(i) executes a lease upon receipt of military orders for a permanent change of station or to deploy with a military unit, or as an individual in support of a military operation, for a period of not less than 90 days; and

(ii) thereafter receives a stop movement order issued by the Secretary concerned in response to a local, national, or global emergency, effective for an indefinite period or for a period of not less than 30 days, which prevents the servicemember or servicemember’s dependents from occupying the lease for a residential, professional, business, agricultural, or similar purpose.

(2) Leases of motor vehiclesA lease of a motor vehicle used, or intended to be used, by a servicemember or a servicemember’s dependents for personal or business transportation if—

(A) the lease is executed by or on behalf of a person who thereafter and during the term of the lease enters military service under a call or order specifying a period of not less than 180 days (or who enters military service under a call or order specifying a period of 180 days or less and who, without a break in service, receives orders extending the period of military service to a period of not less than 180 days);

(B) the servicemember, while in military service, executes the lease and thereafter receives military orders—

(i) for a change of permanent station—(I) from a location in the continental United States to a location outside the continental United States; or(II) from a location in a State outside the continental United States to any location outside that State; or

(ii) to deploy with a military unit, or as an individual in support of a military operation, for a period of not less than 180 days; or

(i) executes a lease upon receipt of military orders described in subparagraph (B); and

(ii) thereafter receives a stop movement order issued by the Secretary concerned in response to a local, national, or global emergency, effective for an indefinite period or for a period of not less than 30 days, which prevents the servicemember, or the servicemember’s dependents, from using the vehicle for personal or business transportation.

(1) In generalTermination of a lease under subsection (a) is made—

(A) by delivery by the lessee of written notice of such termination, and a copy of the servicemember’s military orders, to the lessor (or the lessor’s grantee), or to the lessor’s agent (or the agent’s grantee); and

(B) in the case of a lease of a motor vehicle, by return of the motor vehicle by the lessee to the lessor (or the lessor’s grantee), or to the lessor’s agent (or the agent’s grantee), not later than 15 days after the date of the delivery of written notice under subparagraph (A).

(2) Delivery of noticeDelivery of notice under paragraph (1)(A) may be accomplished—

(A) by hand delivery;

(B) by private business carrier;

(C) by placing the written notice in an envelope with sufficient postage and with return receipt requested, and addressed as designated by the lessor (or the lessor’s grantee) or to the lessor’s agent (or the agent’s grantee), and depositing the written notice in the United States mails; or

(D) by electronic means, including—

(i) the direct delivery of material to an electronic address designated by the lessor (or the lessor’s grantee) or the lessor’s agent (or the agent’s grantee);

(ii) the posting of material to a website or other internet or electronic-based information repository to which access has been granted to the lessee, the lessor (or the lessor’s grantee), or the lessor’s agent (or the agent’s grantee); and

(iii) other electronic means reasonably calculated to ensure actual receipt of the material by the lessor (or the lessor’s grantee) or the lessor’s agent (or the agent’s grantee).

(d) Effective date of lease termination

(1)

(A) Entrance to military service, permanent change of station, or deployment

(B) Stop movement orders

(2) Lease of motor vehicles

(e) Arrearages and other obligations and liabilities

(1) Leases of premises

(2) Leases of motor vehicles

(f) Rent paid in advance

(g) Relief to lessor

(h) Misdemeanor

(i) DefinitionsIn this section:

(1) Military orders

(2) ConUS

(3) Permanent change of station

(Oct. 17, 1940, ch. 888, title III, § 305, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2848; amended Pub. L. 108–454, title VII, § 704, Dec. 10, 2004, 118 Stat. 3624; Pub. L. 111–275, title III, §§ 301, 303(b)(5), Oct. 13, 2010, 124 Stat. 2875, 2878; Pub. L. 115–407, title III, § 301, Dec. 31, 2018, 132 Stat. 5373; Pub. L. 116–92, div. A, title V, §§ 545, 546, Dec. 20, 2019, 133 Stat. 1377; Pub. L. 116–158, § 1(a)–(d), Aug. 14, 2020, 134 Stat. 706, 707; Pub. L. 116–283, div. A, title V, § 549, Jan. 1, 2021, 134 Stat. 3620; Pub. L. 116–315, title VII, §§ 7201(a), 7202(a), Jan. 5, 2021, 134 Stat. 5063.)

§ 3956. Termination of certain consumer contracts

(a) Termination by servicemember or dependent of a servicemember

(1) TerminationA servicemember may terminate a contract described in subsection (b) at any time after—

(A) the date the servicemember receives military orders to relocate for a period of not less than 90 days to a location that does not support the contract; or

(B) the date the servicemember, while in military service, receives military orders for a permanent change of station, thereafter enters into the contract, and then receives a stop movement order issued by the Secretary of Defense or the Secretary of Homeland Security in response to a local, national, or global emergency, effective for an indefinite period or for a period of not less than 30 days, that prevents the servicemember from using the services provided under the contract.

(2) Notice

(3) Manner of termination

(4) Additional individuals coveredFor purposes of this section, the following individuals shall be treated as a servicemember covered by paragraph (1):

(A) A spouse or dependent of a servicemember who dies while in military service or a spouse or dependent of a member of the reserve components who dies while performing duty described in subparagraph (C).

(B) A spouse or dependent of a servicemember who incurs a catastrophic injury or illness (as that term is defined in section 439(g) of title 37), if the servicemember incurs the catastrophic injury or illness while in military service or performing duty described in subparagraph (C).

(C) A member of the reserve components performing military service or performing full-time National Guard duty, active Guard and Reserve duty, or inactive-duty training (as such terms are defined in section 101(d) of title 10).

(D) The spouse or dependent of a servicemember, described in paragraph (1)(B), who accompanies such servicemember during the period of relocation.

(b) Covered contractsA contract described in this subsection is a contract—

(1) for—

(A) commercial mobile service;

(B) telephone exchange service;

(D) multichannel video programming service;

(E) a gym membership or fitness program; or

(F) home security services; and

(2) entered into by a servicemember before receiving the military orders referred to in subsection (a)(1).

(d) Family plansIn the case of a contract for commercial mobile service entered into by any individual in which a servicemember is a designated beneficiary of the contract, the individual who entered into the contract may terminate the contract—

(1) with respect to the servicemember if the servicemember is eligible to terminate contracts pursuant to subsection (a); and

(2) with respect to all of the designated beneficiaries of such contract if all such beneficiaries accompany the servicemember during the servicemember’s period of relocation.

(e) Other obligations and liabilities

(1) In general

(2) Reinstatement of service

(3) Return of provider-owned equipment

(f) Return of advance payments

(g) DefinitionsFor purposes of this section:

(1) The term “commercial mobile service” has the meaning given that term in section 332(d) of title 47.

(2) The terms “military orders” and “permanent change of station” have the meanings given such terms in section 3955 of this title.

(3) The term “multichannel video programming service” means a subscription video service offered by a multichannel video programming distributor, as that term is defined in section 522 of title 47, over a system the distributor owns or controls.

(4) The term “provider-owned consumer premises equipment” means any equipment that a provider of internet access service or multichannel video programming service rents or loans to a customer during the provision of that service, including gateways, routers, cable modems, voice-capable modems, CableCARDs, converters, digital adapters, remote controls, and any other equipment provided.

(5) The term “telephone exchange service” has the meaning given that term under section 153 of title 47.

(Oct. 17, 1940, ch. 888, title III, § 305A, as added Pub. L. 110–389, title VIII, § 805(a), Oct. 10, 2008, 122 Stat. 4188; amended Pub. L. 111–275, title III, § 302(a), Oct. 13, 2010, 124 Stat. 2875; Pub. L. 115–407, title III, § 304(a), Dec. 31, 2018, 132 Stat. 5374; Pub. L. 116–285, § 2, Jan. 5, 2021, 134 Stat. 4878; Pub. L. 117–333, § 17(a), Jan. 5, 2023, 136 Stat. 6136.)

§ 3957. Protection of life insurance policy

(a) Assignment of policy protected

(b) Exception

The prohibition in subsection (a) shall not apply—

(1) if the assignee has the written consent of the insured made during the period described in subsection (a);

(2) when the premiums on the policy are due and unpaid; or

(3) upon the death of the insured.

(d) Treatment of guaranteed premiums

(e) Misdemeanor

(Oct. 17, 1940, ch. 888, title III, § 306, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2850; amended Pub. L. 111–275, title III, § 303(b)(6), Oct. 13, 2010, 124 Stat. 2878.)

§ 3958. Enforcement of storage liens

(a) Liens

(1) Limitation on foreclosure or enforcement

(2) Lien defined

(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 3953 of this title.

(Oct. 17, 1940, ch. 888, title III, § 307, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2851; amended Pub. L. 111–275, title III, § 303(b)(7), Oct. 13, 2010, 124 Stat. 2878.)

§ 3959. Extension of protections to dependents

Upon application to a court, a dependent of a servicemember is entitled to the protections of this subchapter 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.

(Oct. 17, 1940, ch. 888, title III, § 308, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2851.)