proceedings, a return of all payments as a condition of repossession, or other just relief. Other relief presumably could include sale of the property to pay the vendor,
FROM: ACCOUNT:
(DATE) _
reduction in payment amount, or even a moratorium on
payments. The Act protects service members from foreclosure on mortgages. The property must have been owned and the obligation incurred prior to entry on active duty. Again, ability to pay must be materially affected by military service. 50 U.s.CApp. 532. In a foreclosure proceeding the member may request relief under the sSCRA. Application may be made by someone acting on the member's behalf. BraaklYII Trllsl Ca. v. Papa, 33 N.Y.5.2d 57 (1941). Dependents who reside in the home are entitled to relief under this provision. See 50 U.s.CApp. 536; assail Sav. & Loall Ass. v. Drll/alld, 39 .Y.s.2d 92 (1942). The court may stay the proceedings or fashion other equitable relief to conserve the interests of all parties. This could presumably include extending the maturity date of the obligation with reduced payments, setting aside a foreclosure, or, if a sale is ordered under valid circumstances, increasing the statutory redemption period. A servicernember is entitled to cancel a pre-service
lease. 50 U.s.CApp. 534. The premises (I) must have been leased for dwelling, professional, agricultural, or similar purpose; (2) been leased prior to entry into military service; (3) used by the servicemember for the purpose leased; however, professional partners or co-lessees who are not dependents of the servicemember may not be released. See Po trikes v. f.C.H. Service Slalialls, IIIC, 41 N.Y.s.2d 158, affd 46 N.Y.s.2d 233 (1943). The lease is canceled by written notice to the lessor after entry on active duty. Termination of leases providing monthly rent is effective 30 days after the next payment is due and rent is payable to that date. In other leases cancellation is effective following the last day of the month following the month in which notice is given and any prepaid rent must be returned. Holding the property of any person who has canceled a lease under this provision is a criminal offense.
TAXES. There are miscellaneous tax provisions providing for protection of domicile, 50 U.s.CApp. 574, protection against sale of property for back taxes if the material effect standard is met, 50 U.s.CApp. 560, and some relief for income tax liability. 50 U.s.CApp. 573. ANTICIPATORY RELIEF. The Act provides that a person may apply to a court for any of the relief permitted by the Act for obligations incurred prior to service. 50 U.s.CApp. 590. If the court finds that military service has materially affected the servicemember's ability to meet the obligations, certain relief may be granted in the area of mortgages and other obligations and liabilities. The Soldiers and Sailors Civil Relief Act is always to be liberally construed to protect those who have been obliged to drop their own affairs and take up the call of the nalion to military service. Boolle v. Lightller, 319 U.s. 561, 63 5.0. 1223,87 L.Ed. 1587 (1943). These have been brief highlights of some sections of the ssCRA and how they operate to effect the purposes of the Act. In counseling with clients, bear in mind that Congress may change some provisions as part of the legislative response to the Persian Gulf build-up.
4 4
ARKA'SAS
LAWYER
Reduction of Rate of Interest on Financial Obligation Under the Soldiers' and Sailors' CiVil Relief Act TO: I entered active duty in the United States Armed Forces on and have remained in an active duty status to date. Please find attached a copy of my military orders placing me on active duty. Prior to this period of military service, I incurred a debt with you upon which I am charged interest at the rate of _ _ %. Because of the reduction in my income as a result of entering military service and its material effect on my ability to pay on this obligation, I assert my entitlement to relief under the pertinent provisions of the Soldiers' and Sailors' Civil Relief Act, 50 V.S.C App. Section 526. Under this provision, the rate of interest on my debt or obligation must be reduced to six (6) percent per annum as of the date I entered active military service. As used in the Act, the term interest includes service charges, carrying charges, renewal charges, fees, and any other charges (except bona fide insurance) in respect of such obligation or liability. My dependents can also enjoy protections under the Act (50 V s.C App. Section 536), which apply if they are a co-signer on my obligation. Please take immediate action to adjust my financial obligation to reflect the statutory six percent rate of interest and advise me of the amount of my revised payments. Be advised that you may not repossess or foreclose for non-payment of an obligation without first complying with the provisions contained in 50 V.S.C App. Section 531 or 532, as appropriate. I estimate that my current period of active military service will end on approximately _ and I will notify you, in writing, upon actual termination of such terms of service. Sincerely,
(Signature) 1 Atch Order, dated
(Address)
APRIL
199 I
_