The Servicemembers Civil Relief Act (SCRA):
An Explanation

R. Chuck Mason
Legislative Attorney
August 27, 2014
Congressional Research Service
7-5700
www.crs.gov
RL34575


The Servicemembers Civil Relief Act (SCRA): An Explanation

Summary
Recognizing the special burdens that members of the military may encounter trying to meet their
financial obligations while serving their country, in 1940 Congress passed the Soldiers’ and
Sailors’ Civil Relief Act (SSCRA). The law was amended from time to time, ordinarily in
response to military operations that required the activation of the Reserves. P.L. 108-189, the
Servicemembers Civil Relief Act (SCRA), was enacted on December 19, 2003, as a
modernization and restatement of the protections contained in the SSCRA. Much like with the
SSCRA, the SCRA has been amended since its initial passage and proposed changes continue to
be introduced in Congress. This report summarizes the rights granted to persons serving on active
duty in the U.S. Armed Forces, and in some instances, to their dependents, under the SCRA.
The SCRA provides protections for servicemembers in the event that their military service
impedes their ability to meet financial obligations incurred before entry into active military
service. Forgiving of all debts or the extinguishment of contractual obligations on behalf of
servicemembers who have been called up for active duty is not required, nor is absolute immunity
from civil lawsuits provided. Instead, the act suspends civil claims against servicemembers and
protects them from default judgments. The SCRA includes provisions that prohibit the eviction of
military members and their dependents from rental or mortgaged property; create a cap on interest
at 6% on debts incurred prior to an individual entering active duty military service; protect
against the cancellation of life insurance or the non-reinstatement of health insurance policies;
allow some professionals to suspend malpractice or liability insurance while on active duty; and
proscribe taxation in multiple jurisdictions and forced property sales in order to pay overdue
taxes. The U.S. Attorney General is authorized to commence a civil action to enforce provisions
of the SCRA. Additionally, servicemembers and their dependents have the right to commence a
civil action, that is, a private cause of action, to enforce protections afforded them under the
SCRA.

Congressional Research Service

The Servicemembers Civil Relief Act (SCRA): An Explanation

Contents
Introduction ...................................................................................................................................... 1
Title I: General Provisions ............................................................................................................... 2
Definitions—Sec. 101 (50 U.S.C. app. §511). .......................................................................... 2
Jurisdiction and applicability of act—Sec. 102 (50 U.S.C. app. §512). .................................... 4
Protection of persons secondarily liable—Sec. 103 (50 U.S.C. app. §513). ............................. 4
Extension of protections to citizens serving with allied forces—Sec. 104 (50 U.S.C.
app. §514). .............................................................................................................................. 5
Notification of benefits—Sec. 105 (50 U.S.C. app. §515). ....................................................... 6
Information for members of the Armed Forces and their dependents on rights and
protections of the Servicemembers Civil Relief Act – Sec. 105a (50 U.S.C. app.
§515a). .................................................................................................................................... 6
Extension of rights and protections to Reserves ordered to report for military service
and to persons ordered to report for induction—Sec. 106 (50 U.S.C. app. §516). ................. 6
Waiver of rights pursuant to written agreement. Sec. 107 (50 U.S.C. app. §517). .................... 6
Exercise of rights under act not to affect certain future financial transactions—
Sec. 108 (50 U.S.C. app. §518). ............................................................................................. 7
Legal representatives—Sec. 109 (50 U.S.C. App. §519). ......................................................... 7
Title II: General Relief ..................................................................................................................... 7
Protection of servicemembers against default judgments—Sec. 201 (50 U.S.C. app.
§521). ...................................................................................................................................... 8
Stay of proceedings when servicemember has notice—Sec. 202 (50 U.S.C. app.
§522). ...................................................................................................................................... 9
Fines and penalties under contracts—Sec. 203 (50 U.S.C. app. §523). .................................. 10
Stay or vacation of execution of judgments, attachments, and garnishments—Sec.
204 (50 U.S.C. app. §524). ................................................................................................... 10
Duration and term of stays; co-defendants not in service—Sec. 205 (50 U.S.C. app.
§525). .................................................................................................................................... 10
Statute of limitations—Sec. 206 (50 U.S.C. app. §526). ......................................................... 10
Maximum rate of interest on debts incurred before military service—Sec. 207 (50
U.S.C. app. §527). ................................................................................................................ 11
Title III: Rent, Installment Contracts, Mortgages, Liens, Assignments, Leases, Telephone
Service Contracts ........................................................................................................................ 12
Evictions and distress—Sec. 301 (50 U.S.C. app. §531). ....................................................... 12
Protection under installment contracts for purchase or lease—Sec. 302 (50 U.S.C.
app. §532). ............................................................................................................................ 13
Mortgages and trust deeds—Sec. 303 (50 U.S.C. app. §533). ................................................ 13
Settlement of stayed cases relating to personal property—Sec. 304 (50 U.S.C. app.
§534). .................................................................................................................................... 13
Termination of residential or motor vehicle leases—Sec. 305 (50 U.S.C. app. §535). ........... 14
Termination of telephone service contracts—Sec. 305a (50 U.S.C. app. §535a). ................... 15
Protection of life insurance policy—Sec. 306 (50 U.S.C. app. §536). .................................... 15
Enforcement of storage liens—Sec. 307 (50 U.S.C. app. §537). ............................................ 15
Extension of protections to dependents—Sec. 308 (50 U.S.C. app. §538). ............................ 16
Title IV: Life Insurance .................................................................................................................. 16
Definitions—Sec. 401 (50 U.S.C. app. §541). ........................................................................ 16
Insurance rights and protections—Sec. 402 (50 U.S.C. app. §542). ....................................... 17
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The Servicemembers Civil Relief Act (SCRA): An Explanation

Application for insurance protection—Sec. 403 (50 U.S.C. app. §543). ................................ 17
Policies entitled to protection and lapse of protections—Sec. 404 (50 U.S.C. app.
§544). .................................................................................................................................... 17
Policy restrictions—Sec. 405 (50 U.S.C. app. §545). ............................................................. 18
Deduction of unpaid premiums—Sec. 406 (50 U.S.C. app. §546).......................................... 18
Premiums and interest guaranteed—Sec. 407 (50 U.S.C. app. §547). .................................... 18
Regulations—Sec. 408 (50 U.S.C. app. §548). ....................................................................... 18
Review of findings of fact and conclusions of law—Sec. 409 (50 U.S.C. app §549). ............ 18
Title V: Taxes and Public Lands .................................................................................................... 19
Taxes respecting personal property, money, credits, and real property—Sec. 501
(50 U.S.C. app. §561). .......................................................................................................... 19
Rights in public lands—Sec. 502 (50 U.S.C. app. §562). ....................................................... 19
Desert-land entries—Sec. 503 (50 U.S.C. app. §563). ............................................................ 19
Mining claims—Sec. 504 (50 U.S.C. app. §564). ................................................................... 19
Mineral permits and leases—Sec. 505 (50 U.S.C. app. §565). ............................................... 20
Perfection or defense of rights—Sec. 506 (50 U.S.C. app. §566). .......................................... 20
Distribution of information concerning benefits of title—Sec. 507 (50 U.S.C. app.
§567). .................................................................................................................................... 20
Land rights of servicemembers—Sec. 508 (50 U.S.C. app. §568). ......................................... 20
Regulations—Sec. 509 (50 U.S.C. app. §569). ....................................................................... 20
Income taxes—Sec. 510 (50 U.S.C. app. §570). ..................................................................... 20
Residence for tax purposes—Sec. 511 (50 U.S.C. app. §571). ............................................... 21
Title VI: Administrative Remedies ................................................................................................ 22
Inappropriate use of act—Sec. 601 (50 U.S.C. app. §581). .................................................... 22
Certificates of service; persons reported missing—Sec. 602 (50 U.S.C. app. §582). ............. 22
Interlocutory orders—Sec. 603 (50 U.S.C. app. §583). .......................................................... 22
Title VII: Further Relief ................................................................................................................. 22
Anticipatory relief—Sec. 701 (50 U.S.C. app. §591). ............................................................. 22
Power of attorney—Sec. 702 (50 U.S.C. app. §592). .............................................................. 23
Professional liability protection—Sec. 703 (50 U.S.C. app. §593). ........................................ 23
Health insurance reinstatement—Sec. 704 (50 U.S.C. app. §594). ......................................... 25
Guarantee of residency for military personnel and spouses of military personnel—
Sec. 705 (50 U.S.C. app. §595). ........................................................................................... 25
Business or trade obligations—Sec. 706 (50 U.S.C. app. §596). ............................................ 25
Title VIII: Civil Liability ............................................................................................................... 26
Enforcement by the Attorney General—Sec. 801 (50 U.S.C. app §597). ............................... 26
Private right of action—Sec. 802 (50 U.S.C. app. §597a). ...................................................... 26
Preservation of remedies—Sec. 803 (50 U.S.C. app. §597b). ................................................. 26

Contacts
Author Contact Information........................................................................................................... 26

Congressional Research Service

The Servicemembers Civil Relief Act (SCRA): An Explanation

Introduction
The Soldiers’ and Sailors’ Civil Relief Act of 1940 (SSCRA) provided civil protections and rights
to individuals based on their service in the U.S. armed forces. On December 19, 2003, Congress
enacted P.L. 108-189, the Servicemembers Civil Relief Act (SCRA), in response to the increased
utilization of Reserve and National Guard military units in the Global War on Terrorism, and as a
modernization and restatement of the protections and rights previously available to
servicemembers under the SSCRA.1 Much like with the SSCRA, the SCRA has been amended
since its initial passage and proposed changes continue to be introduced in Congress.
Congress has long recognized the need for protective legislation for servicemembers whose
service to the nation compromises their ability to meet obligations and protect their legal
interests. During the Civil War, Congress enacted an absolute moratorium on civil actions brought
against soldiers and sailors. During World War I, Congress passed the Soldiers’ and Sailors’ Civil
Relief Act of 1918,2 which did not create a moratorium on legal actions against servicemembers,
but instead directed trial courts to apply principles of equity to determine the appropriate action to
take whenever a servicemember’s rights were involved in a controversy. During World War II,
Congress essentially reenacted the expired 1918 statute as the Soldiers’ and Sailors’ Civil Relief
Act of 1940, and then amended it substantially in 1942 to take into account the new economic and
legal landscape that had developed between the wars.3 Congress enacted amendments on several
occasions during subsequent conflicts, including 2002 when the benefits of the SSCRA were
extended to certain members of the National Guard.4 In 2003, Congress enacted the SCRA as a
modernization and restatement of the SSCRA and its protections.
The SCRA5 is an exercise of Congress’s power to raise and support armies (U.S. Const. Art. I,
Section 8, cl. 12) and to declare war (Art. I, Section 8, cl. 11).6 The purpose of the act is to
provide for, strengthen, and expedite the national defense by protecting servicemembers, enabling
them to “devote their entire energy to the defense needs of the Nation.”7 The SCRA protects

1 See H.Rept. 108-81, at 32 (April 30, 2003). See also, S.Rept. 108-197, at 9 (November 17, 2003) (stating that the
military had activated approximately 300,000 Reserves since September 2001, and that a DOD survey indicated that
the self-employed Reservists reported an average $6,500 in lost income when mobilized or deployed).
2 40 Stat. 440 (1918).
3 H.Rept. 108-81, at 33 (April 30, 2003) (quoting statement by Congressman Overton Brooks (D-LA) on the floor of
the House during consideration of amendments to SSCRA: “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)).
4 P.L. 107-330, 116 Stat. 2820 (December 6, 2002) (Extending benefits of SSCRA to members of the National Guard
called up by their respective state governors to support federal efforts during national emergencies (including the war
against terrorism)).
5 One of the amendments effected by P.L. 108-189 is the change in the name of the act from Soldiers’ and Sailors’
Civil Relief Act (SSCRA) to Servicemembers Civil Relief Act (SCRA). The name of the act was changed to the more
inclusive SCRA “because soldiers, sailors, marines and airmen are collectively referred to as “servicemembers” in
other statutes” (H.Rept. 108-81, at 35 (April 30, 2003)). Therefore, all of the historical and legal background of this act
makes reference to SSCRA instead of SCRA. This report will use the current name of the act, SCRA, when making
reference to any historical or legal background information.
6 Dameron v. Brodhead, 345 U.S. 322 (1953).
7 50 U.S.C. app. §502.
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The Servicemembers Civil Relief Act (SCRA): An Explanation

servicemembers by temporarily suspending certain judicial and administrative proceedings and
transactions that may adversely affect their legal rights during military service. Forgiving of all
debts or the extinguishment of contractual obligations on behalf of servicemembers who have
been called up for active duty is not required, nor is absolute immunity from civil lawsuits
provided. Instead, it provides for the suspension of claims and protection from default judgments.
In this way, it seeks to balance the interests of servicemembers and their creditors, spreading the
burden of national military service to a broader portion of the citizenry.
Many of the SCRA provisions are especially beneficial for Reservists activated to respond to a
national crisis, but many provisions are also useful for career military personnel.8 One of the
measures that affects many who are called to active duty is the cap on interest at an annual rate of
6% on debts incurred prior to a person’s entry into active duty military service (Section 207).
Other measures protect military families from being evicted from rental or mortgaged property
(Sections 301 and 303); from cancellation of life insurance (Sections 402 through 409); from
taxation in multiple jurisdictions (Sections 510 and 511); from foreclosure of property to pay
taxes that are due (Sections 501 and 511); and from losing certain rights to public land (Sections
501 through 508).
This report provides a section-by-section summary of the SCRA, codified in 50 U.S.C. app. §501
et seq.
Title I: General Provisions
Definitions—Sec. 101 (50 U.S.C. app. §511).
For the purposes of the SCRA, the following definitions apply:
‘Servicemember’—Persons covered by the SCRA include members of the “uniformed services”
found in 10 U.S.C. §101(a)(5), which includes the Army, Navy, Air Force, Marine Corps, Coast
Guard, and the commissioned corps of the National Oceanic and Atmospheric Administration and
the Public Health Service.
‘Military Service’—“Military service” includes “active duty” as defined in 10 U.S.C. §101(d)(1);
National Guard service as service under a call to active service authorized by the President or the
Secretary of Defense for a period more than 30 consecutive days under 32 U.S.C. §502(f)9 for
purposes of responding to a national emergency declared by the President and supported by
federal funds; for officers of the Public Health Service or the National Oceanic and Atmospheric
Administration, “active service” (not further defined); and any period during which a
servicemember is absent from duty on account of sickness, wounds, leave, or other lawful case.10

8 See James P. Pottorff, Contemporary Applications of the Soldiers’ and Sailors’ Civil Relief Act, 132 Mil. L. Rev. 115,
118 (1991) (noting that many protections are ordinarily unavailable to career servicemembers because they enter into
most major legal and financial obligations, such as mortgages, while on active duty).
9 32 U.S.C. §502(f) states that under regulations from the Secretary of the Army or the Secretary of the Air Force, a
member of the National Guard may be ordered to perform training or other duty in addition to the mandatory yearly
training.
10 See Donahou v. Presidential Limousine & Auto Sales, Inc., 2007 U.S. Dist. LEXIS 30257 (W.D. Ark. April 24,
2007) (finding that individual who enlisted in the military through a delayed entry program is not in the “military
(continued...)
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The Servicemembers Civil Relief Act (SCRA): An Explanation

“Active duty” for armed services is defined in 10 U.S.C. §101(d)(1) as “full-time duty in the
active military service of the United States ... [including] full-time training duty, annual training
duty, and attendance, while in the active military service, at a school designated as a service
school by law or by the Secretary of the military department concerned.”11 “Active military
service” is not further defined in Section 101 of Title 10, U.S. Code, although “active service” is
given the meaning “service on active duty or full-time National Guard duty,” in §101(d)(3).
Under the prior law the definition of “military service” included language referring to “periods of
training or education under the supervision of the United States preliminary to induction into
military service.” Under the SCRA, persons on active duty and attending a service school are
covered, while persons attending training prior to entering active duty, such as officer candidates,
may not be covered. It is unclear, for example, whether “active military service” under 10 U.S.C.
§101(d) covers training as a member of the Reserve Officer Training Corps12 or attendance at a
military academy.13
‘Period of military service’—A servicemember’s “period of military service” begins when he or
she enters military service and ends on the date of release from military service or upon death
during military service.
‘Dependent’—“Dependent” is defined as a servicemember’s spouse or child (as defined for
purposes of veterans’ benefits, in 38 U.S.C. §10114), or another individual for whom the
servicemember provided more than one half of the support in the 180 days prior to an application

(...continued)
service” while participating in the delayed entry program. Therefore a contract concluded while in the program is not
covered because it is treated under the SCRA as a pre-service contract.).
11 10 U.S.C. §2151 defines service school to include the following: The Army War College, The College of Naval
Warfare, The Air War College, The Marine Corps War College, The United States Army Command and General Staff
College, The College of Naval Command and Staff, The Air Command and Staff College, and The Marine Corps
Command and Staff College.
12 See Brown v. United States, 151 F.3d 800 (8th Cir. 1998) (finding that senior ROTC training activities are “active
military service” under the Veterans Benefits Act).
13 The question does not appear to have been tested in court, possibly due to the unlikelihood that a person attending a
service academy would be materially affected by such status. The law, 37 U.S.C. §203, provides that cadets of the
military academies receive compensation at a rate of 35% of the O-1 paygrade. Upon graduation and acceptance of
their commission in the active military service, their pay increases to full O-1 paygrade. Therefore, it would be unlikely
that a cadet would be able to claim that entering active duty had a material affect on his or her ability to pay preexisting
debts. In contexts other than the SCRA, military cadets have been considered to be in active military service for some
purposes. See Collins v. United States, 642 F.2d 217, 220-21 (7th Cir.), cert. denied 452 U.S. 964 (1981) (finding a
cadet at the Air Force Academy to be on active duty for purposes of applying the Feres doctrine to prohibit his bringing
suit against the government); Porath v. McVey, 884 S.W.2d 692 (Mo.App.S.D.1994) (West Point cadet was considered
to be on active duty for the purpose of determining whether he was “emancipated” under state law, for child support
purposes); Minnich v. World War II Service Compensation Bd., 57 N.W.2d 803 (Iowa 1953) (plaintiff awarded military
bonus for time during World War II as military cadet based on definition of “active duty” that included “active service”
at an “armed forces school”).
14 38 U.S.C. §101(4) defines child as a person who is unmarried and under the age of eighteen; who before attaining the
age of eighteen became permanently incapable of self-support; or who after attaining the age of eighteen and until
completion of education or training (but not after attaining the age of twenty-three) is pursuing a course of instruction
at an approved educational institution; and who is a legitimate child, a legally adopted child, a stepchild who is a
member of a veteran’s household or was a member at the time of the veteran’s death, or an illegitimate child but, as to
the alleged father, only if acknowledged in writing signed by him, or if he has been judicially ordered to contribute to
the child’s support or has been, before his death, judicially decreed the father of such child, or if he is otherwise shown
by evidence to be the father of the said child.
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The Servicemembers Civil Relief Act (SCRA): An Explanation

for relief under the act. This language appears to codify courts’ treatment of the term “dependent”
as relating to financial dependency rather than strict familial relationships.15
‘Court’—The term “court” includes federal and state courts and administrative agencies, whether
or not a court or agency of record.
‘State’—“State” includes commonwealth, territory, or possession of the United States and the
District of Columbia.
‘Secretary Concerned’—With respect to a member of the armed forces, “secretary concerned”
refers to the meaning in 10 U.S.C. §101(a)(9)16; with respect to commissioned officers of the
Public Health Service, the Secretary of Health and Human Services; and with respect to
commissioned officers of the National Oceanic and Atmospheric Administration, the Secretary of
Commerce.
‘Motor Vehicle’—“Motor vehicle” is a vehicle driven or drawn by mechanical power and
manufactured primarily for use on public streets, roads and highways, but does not include a
vehicle operated only on a rail line (as defined in 49 U.S.C. §30102(a)(6)).
‘Judgment’—“Judgment” includes any judgment, decree, order, or ruling, final or temporary.17
Jurisdiction and applicability of act—Sec. 102 (50 U.S.C. app. §512).
The SCRA applies everywhere in the United States, including the District of Columbia, and in
any territory “subject to the jurisdiction of” the United States. It applies to any civil judicial or
administrative proceeding in any court or agency in any jurisdiction subject to the act. However,
it does not apply to criminal proceedings.
Protection of persons secondarily liable—Sec. 103 (50 U.S.C. app.
§513).

Protection is extended to persons who share a debt with one or more covered servicemembers or
have secondary liability as a “surety, guarantor, endorser, accommodation maker, co-maker, or
other person who is or may be primarily or secondarily subject to the obligation or liability” at
issue. If the SCRA provisions are invoked as to the servicemember, the court has discretion to
grant a stay, postponement, or suspension of the proceedings against such persons, or to set aside
or vacate a judgment. Whether a court grants such relief appears to be influenced by equitable
considerations, including whether the servicemember is able to appear in court, whether the

15 See, e.g., Balconi v. Dvascas, 507 N.Y.S. 2d 788 (N.Y. Civ. Ct. 1986)(finding ex-spouse of serviceman who relied
on his child support payments to be a “dependent” within the meaning of the SCRA who could assert the protection
against eviction).
16 10 U.S.C. §101(a)(9) defines “Secretary” as the Secretary of the Army with respect to Army matters; the Secretary of
the Navy with respect to matters concerning the Navy, Marine Corps, and the Coast Guard when it is operating as a
service of the Department of the Navy; the Secretary of the Air Force with respect to matters concerning the Air Force;
and the Secretary of Homeland Security with respect to matters concerning the Coast Guard when it is not operating as
a service in the Department of the Navy.
17 P.L. 108-454, 118 Stat. 3598 (December 10, 2004) (The definition of the term “judgment” was added by Title VII of
the Veterans Benefits Improvement Act of 2004, titled Improvements to Servicemembers Civil Relief Act).
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The Servicemembers Civil Relief Act (SCRA): An Explanation

servicemember’s presence is necessary for the defense, and whether an unjust forfeiture could
otherwise result. If the servicemember is only nominally a party to the suit, as in cases of
negligence where the insurance company might be considered the “true defendant,” the modern
trend is to deny a stay.18
The act added the term “co-maker”19 to the list of persons who may be entitled to a stay in an
action which has been stayed with respect to a servicemember. This effectively codifies courts’
interpretations of the previous version of the SCRA.20 However, it does not explicitly adopt the
test some courts have used to determine whether a stay is appropriate.
Bail bondsmen who are unable to procure the appearance of the principal due to that person’s
active duty service receive protection under the act. In such a case, the court hearing the charge
may not enforce the bond during the period of military service of the accused, and has the
discretion to return the bail in its entirety to the bail bondsman in the interest of equity and
justice. While some courts have interpreted this subsection to allow for no discretion,21 others
have required sureties to make a further showing that the appearance of the principal was in fact
prevented due to military service and that the surety made an effort to secure the appearance of
the principal in court.22
Persons who are primarily or secondarily liable on the obligation of a person in military service
may waive their rights under the SCRA, but such a waiver must be executed in a separate
instrument from that which creates the obligation. If the individual executes the waiver and then
enters active military service, the waiver as applied to the individual, or to the dependents of the
person, is invalidated. In the event that the waiver is executed after the person receives orders to
active duty, but before entering active service, the waiver remains valid.
Extension of protections to citizens serving with allied forces—
Sec. 104 (50 U.S.C. app. §514).

Citizens of the United States who serve in the armed forces of allies of the United States in the
prosecution of a war or military action, as long as such service is similar to the service in the U.S.
armed forces, are protected under the act.

18 See Tabor v. Miller, 369 F.Supp. 647 (D. Pa.), aff’d, 389 F.2d 645 (3d Cir.), cert. denied sub nom Stearns v. Tabor,
391 U.S. 915 (1968) (where servicemember did not claim he was precluded by service from appearing and his insurer
had rejected an offer to settle within the limits of the policy, stay of proceedings was denied).
19 A co-maker is “one of two or more persons who sign an instrument to indicate a promise to pay a financial
obligation. Any co-maker may be sued for the entire amount of the indebtedness, although a co-maker who is forced to
pay more than his or her share may seek contribution from the other co-makers.” Merriam-Webster’s Dictionary of
Law (2001).
20 Modern Industrial Bank v. Zaentz, 29 N.Y.S.2d 969 (N.Y.Mun.Ct. 1941); Modern Industrial Bank v. Grossman, 40
N.Y.S.2d 628 (1943).
21 See United States v. Jeffries, 140 F. 2d 745 (7th Cir. 1944).
22 See Ex parte Moore, 12 So.2d 77 (Ala. 1943); Cumbie v. State, 367 S.W.2d 693 (Tex. Civ. App. 1963).
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The Servicemembers Civil Relief Act (SCRA): An Explanation

Notification of benefits—Sec. 105 (50 U.S.C. app. §515).
Military authorities are required to provide servicemembers with written information of their
rights and benefits under the SCRA.
Information for members of the Armed Forces and their
dependents on rights and protections of the Servicemembers Civil
Relief Act – Sec. 105a (50 U.S.C. app. §515a).

Military authorities must provide servicemembers with pertinent information on rights and
protections available under the SCRA during initial orientation; or in the case of reserve
servicemembers during initial orientation and when mobilized. Additionally, military authorities
may provide pertinent information to the adult dependents of servicemembers on the rights and
protections available to the servicemembers and dependents.
Extension of rights and protections to Reserves ordered to report
for military service and to persons ordered to report for induction—
Sec. 106 (50 U.S.C. app. §516).

Benefits under Titles I, II, and III of the SCRA are applicable to servicemembers during the
period of time between the date they receive their induction or activation orders and the date they
report for active duty. The coverage ends in the event the orders to active duty are revoked.
Waiver of rights pursuant to written agreement. Sec. 107 (50 U.S.C.
app. §517).

Servicemembers may waive some of the benefits of the SCRA by agreeing to modify or terminate
a contract, lease or bailment, or an obligation secured by a mortgage, trust, deed, lien, or other
security in the nature of a mortgage. In order for the waiver to be effective, it must be executed
during or after the servicemember’s period of active military service. The written agreement must
specify the legal instrument to which the waiver applies and, if the servicemember is not a party
to that instrument, the identity of the servicemember concerned. This section extends the
protections to servicemembers covered under Section 106 of the act (reservists ordered into active
duty and persons ordered to report for induction).
The act was amended in 2004 to include two additional requirements for a waiver to be
effective.23 The first requirement is that it must be executed separate from the legal instrument to
which it applies. The second is that it must be in at least 12 point type.

23 P.L. 108-454, 118 Stat. 3598 (December 10, 2004).
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The Servicemembers Civil Relief Act (SCRA): An Explanation

Exercise of rights under act not to affect certain future financial
transactions—Sec. 108 (50 U.S.C. app. §518).

Servicemembers are protected from any penalty imposed solely due to their invocation of rights
under the SCRA. In other words, a lender cannot revoke a covered person’s credit card or
exercise foreclosure rights because the servicemember requests the rate of interest be capped at
6% pursuant to the SCRA. It provides that no stay, postponement, or suspension of any tax, fine,
penalty, insurance premium, or other civil obligation or liability applied for, or received by, a
person in military service can be the sole 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;
(2) a decision by a creditor to deny or to revoke credit; to change the terms of an existing credit
arrangement; or to refuse to grant credit in substantially the amount, or on substantially the terms,
requested;
(3) an adverse creditworthiness report by, or to, a consumer credit information enterprise;
(4) an insurer’s refusal to sell insurance coverage;
(5) an annotation by the creditor or a person engaged in the practice of assembling or evaluating
consumer credit information, to reference the servicemember’s military status on his or her credit
report; or,
(6) a change in the terms offered or conditions required for issuance of insurance.
Creditors may, however, take adverse action against a servicemember who fails to comply with
obligations after they are adjusted by reason of the act. The act does not appear to preclude
insurers or creditors from offering different terms or conditions, denying credit, or taking other
adverse actions based solely on the servicemember’s status in anticipation that the servicemember
might later invoke a right under the act.
Legal representatives—Sec. 109 (50 U.S.C. App. §519).
Legal representatives, such as attorneys or persons possessing a power of attorney, may assert the
benefits of the act when acting on the servicemember’s behalf.
Title II: General Relief
Sections 201 through 207 describe the general relief available in most kinds of court actions.
They serve to suspend civil liabilities of military personnel and preserve causes of action either
for or against them.
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The Servicemembers Civil Relief Act (SCRA): An Explanation

Protection of servicemembers against default judgments—Sec. 201
(50 U.S.C. app. §521).

In a civil lawsuit, the failure of the defendant to appear in court may result in the award of a
default judgment on behalf of the plaintiff. When a default judgment is entered in favor of the
plaintiff, it is done without consideration on the merits of the case. Under the act, servicemembers
are protected from default judgments in civil actions, including any child custody proceeding,
when they are unable to appear in court due to military service. An amendment to the act in
200824 added language clarifying that civil lawsuits include child custody proceedings.
Before a court can grant a default judgment, a plaintiff must file an affidavit stating that the
defendant is not on active duty in military service showing necessary facts to support the
affidavit25 or that the plaintiff was unable to determine whether or not the defendant is in military
service. A false affidavit to that effect is punishable by imprisonment for up to one year, a fine of
up to $1,000, or both. The court, before entering a judgment, must also appoint an attorney to
represent the person on active duty in order to protect his or her legal rights and interests.
However, if the attorney appointed to the case cannot locate the servicemember, actions by the
attorney would not waive any defenses or otherwise bind the servicemember. Additionally, if the
court is unable to determine if a defendant is in military service, the court may require a bond
which may later be used to indemnify the defendant if it is determined that he or she was in
military service and the judgment against the defendant is set aside or vacated in part. Moreover,
if a court enters a default judgment against a servicemember, the court may set aside its judgment
if the servicemember files a motion within 60 days after leaving active military service and can
demonstrate that military service prejudiced his or her availability to appear in court (unless the
default was based on a false affidavit by the plaintiff regarding military service of the defendant,
in which case such a showing is unnecessary) and that there are meritorious or legal defenses to
the suit.
This section does not provide a means to challenge judgments resulting from cases in which the
servicemember made an appearance before the court. Some courts have found that a
communication to the court regarding the servicemember’s military status, and the resulting
applicability of the SCRA to the suit, constitutes an appearance and bars asserting certain
defenses,26 such as a lack of jurisdiction, and negates the right to petition to have the judgment
overturned. An informal communication, such as a letter or a telegram to the court asking for
protection under the SCRA should not be counted as an appearance,27 but some courts have found
that a letter from a legal assistance attorney constitutes an appearance, waiving the
servicemember’s protection against a default judgment.28 An appearance by defendant’s counsel
may also waive protection, unless the counsel was appointed pursuant to this section.

24 P.L. 110-181, 122 Stat. 128 (January 28, 2008).
25 This requirement may be satisfied by a statement, declaration, verification, or certificate, in writing, under oath.
26 See Blankenship v. Blankenship, 263 Ala. 297, 82 So. 2d 335 (1978); Vara v. Vara, 14 Ohio 2d 261, 171 N.E.2d 384
(1961); Reynolds v. Reynolds, 21 Cal. 2d 580, 134 P.2d 251 (1943).
27 See Kramer v. Kramer, 668 S.W. 2d 457 (Tex. Ct. App. 1984) (letter from servicemember invoking the SCRA and
requesting a stay did not constitute an “appearance” for the purpose of providing personal jurisdiction); see generally
The Judge Advocate General’s Legal Center & School, U.S. Army, JA 260, Servicemembers Civil Relief Act [§3-2].
28 See Skates v. Stockton, 682 P.2d 304 (1984) (holding that a letter to the trial court from a legal assistance attorney
requesting a stay constituted an appearance and therefore waived the servicemember’s protections from a default
(continued...)
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The Servicemembers Civil Relief Act (SCRA): An Explanation

Subsection (h) contains a provision to protect the rights of a bona fide purchaser by stating that
vacating, setting aside, or reversing any judgment under the act will not impair any right or title
acquired by any bona fide purchaser for value under the judgment. Therefore, it may be
impossible to recover property that had been attached to satisfy a default judgment, although the
servicemember would have the right to damages for the value of the property.
Stay of proceedings when servicemember has notice—Sec. 202 (50
U.S.C. app. §522).

A court must stay further proceedings in civil litigation, including any child custody proceeding,
where the servicemember’s ability to participate in the litigation, as either the plaintiff29 or the
defendant, is materially affected by absence due to military service. It applies to servicemembers
who are in military service or within 90 days after termination or release from military service.
An amendment to the act in 200830 added language specifying that civil lawsuits includes child
custody proceedings.
The servicemember must set forth, in the application for a stay, facts stating the manner in which
current military duty requirements materially affect the ability to appear and state a date when he
or she will be able to appear. Additionally, the servicemember must submit a letter from his or her
commanding officer certifying that leave is not authorized to attend proceedings at that time.
While a stay is a reasonable imposition upon an individual citizen on behalf of those discharging
their obligations to the common defense, it is not available to shield wrongdoing or lack of
diligence or to postpone relief indefinitely, or to be used to stay proceedings in matters where the
interests or safety of the general public may be at stake. Courts may deny a stay in cases
involving purely legal issues or where the servicemember is not the true party in interest or in
which presence of the individual is not essential.31
A request for a stay under this section does not constitute an appearance for jurisdictional
purposes or a waiver of any substantive or procedural defense. Therefore, a servicemember may
apply for relief without waiving the right, for example, to assert that the court has no jurisdiction
in the case. Moreover, additional stays may be granted based on continuing material effect of
military duty. If additional stays are denied, the court must appoint counsel to represent the
servicemember. A servicemember who is unsuccessful in securing a stay under this section is
precluded from seeking the protections against default judgments granted under Section 201. This
section is inapplicable to Section 301 (protection from eviction or distress).

(...continued)
judgment).
29 P.L. 108-454, 118 Stat 3598 (December 10, 2004) (added the words “plaintiff or” before “defendant” in the
introductory statement of the section. The former SSCRA contained both terms “plaintiff” and “defendant,” but prior to
the 2004 amendment to the SCRA, the term “plaintiff” had been omitted).
30 P.L. 110-181, 122 Stat. 128 (January 28, 2008).
31 See Posey v. Lake Pend Oreille Sch. Dist. No. 84, 2007 U.S. Dist. LEXIS 7829 (D. Idaho February 2, 2007)
(Defendants request for a stay of proceedings denied. Court denied request based on fact that the motion for summary
judgment being considered, filed by the defense, had been fully briefed, and under advisement, prior to co-defendants
activation to active duty).
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The Servicemembers Civil Relief Act (SCRA): An Explanation

Fines and penalties under contracts—Sec. 203 (50 U.S.C. app. §523).
Whenever an action is stayed by the court pursuant to the SCRA, penalties that would otherwise
accumulate against the person for failing to carry out the terms of the contract cannot be imposed
during the period the stay remains in effect. In the absence of a stay, the court has discretion to
relieve a servicemember of the obligations to pay fines or penalties for failing to carry out the
terms of a contract if that person’s ability to pay or to carry out the terms is impaired by military
service.
Stay or vacation of execution of judgments, attachments, and
garnishments—Sec. 204 (50 U.S.C. app. §524).

If a servicemember is materially affected by reason of service from complying with a court
judgment or order, the court may, on its own motion, and will on the application of the
servicemember, stay the execution of any judgment or order against the servicemember and
vacate or stay an attachment or a garnishment of property, money, or debts in the possession of
the person on active duty for actions or proceedings commenced against the servicemember. This
section applies to actions brought against the servicemember before or during the period of
military service or within 90 days after termination of service.
Duration and term of stays; co-defendants not in service—Sec. 205
(50 U.S.C. app. §525).

Stays granted by courts under the SCRA can remain in effect for the entire period of a
servicemember’s military service plus 90 days, or any part thereof. As a practical matter,
however, courts do not look favorably on protracted stays, and expect most military members to
make themselves available to participate in proceedings within a reasonable period of time,
especially during peacetime if the servicemember is not stationed abroad.32 Suits against any co-
defendants not in military service may proceed even if the suit has been stayed with respect to the
person in the military. This section does not apply to Sections 202 (stays for actions for which the
defendant has notice) and 701 (anticipatory relief). These sections contain their own rules for
determining the maximum length of a stay.
Statute of limitations—Sec. 206 (50 U.S.C. app. §526).
In cases in which a statute of limitations would prohibit any court action with respect to a lawsuit
brought after expiration of the time specified by law, this section tolls (extends) the time period
applicable to a covered servicemember by an amount of time equal to the person’s period of
military service.33 That time is not counted in determining the servicemember’s deadline for
exercising the right to redeem real estate that has been sold or forfeited to enforce an obligation,

32 See Roger M. Baron, The Staying Power of the Soldiers’ and Sailors’ Civil Relief Act, 32 Santa Clara L. Rev. 137
(1992).
33 See Bretherick v. Crittenden County, 2007 U.S. Dist. LEXIS 20213 (E.D. Ark. March 21, 2007) (Stating that SCRA
tolling provision is “crystal clear” in that the period of a servicemember’s military service may not be included in
computing any period limited by law).
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The Servicemembers Civil Relief Act (SCRA): An Explanation

tax, or assessment. The section applies not just to an action or proceeding in a court but also to
any federal or state board, commission, or agency, and may be exercised by the servicemember’s
heirs, executors, administrators, or assigns, regardless of whether the right or cause of action
arose prior to or during the person’s period of military service.34 It does not, however, apply to
federal tax laws.
Maximum rate of interest on debts incurred before military
service—Sec. 207 (50 U.S.C. app. §527).

This section caps the maximum interest charged on any debt incurred by a servicemember
individually or with the servicemembers’ spouse jointly prior to entering active duty at a rate of
interest no higher than six percent (6%) a year, if the servicemember’s ability to pay is materially
affected by active duty status.35 The interest above the 6% cap is to be forgiven by the creditor
and does not accrue to be owed after the debtor’s release from active duty. The monthly payments
of an obligation or liability covered by this section is to be reduced by the amount in excess of the
6%, but the terms of the original obligation are to remain the same. A court may grant a creditor
relief from this section if, in the opinion of the court, the ability of the servicemember to pay a
interest rate in excess of 6% is not materially affected by the military service.
A servicemember who wrongly receives an adverse credit report or has his or her credit limit
reduced or further credit denied after invoking the 6% interest cap provision may seek relief
through the Fair Credit Reporting Act36 (FCRA) provisions for “adverse actions” and consumer
remedies for “willful or negligent noncompliance by credit reporting agencies upon consumer
showing of causal connection between inaccurate credit report and denial of credit or other
consumer benefit.”37
Historically, federally guaranteed student loans were not eligible for the 6% interest rate cap.
Section 428(d) of the Federal Family Education Loan Program, addressing applicability of usury
laws, excluded the SCRA interest rate limitation on those loans.38 P.L. 110-315, the Higher
Education Opportunity Act, amended Section 428(d) to explicitly permit application of the SCRA
interest rate cap on federally guaranteed student loans.39 As of August 14, 2008, federally
guaranteed student loans are treated like all other debts incurred prior to entering active duty.
Loans disbursed prior to enactment of the amendment are not covered and therefore are not

34 See Giel v. Winter, 503 F. Supp 2d 208 (D.D.C. 2007) (Former naval reserve officer appealed decision by the Board
for the Correction of Naval Records denying his request for a special selection board remedy to reconsider promotion.
Secretary of the Navy argued that claim was time-barred under the Administrative Procedure Act (APA). Court
rejected argument finding that limitations period under the APA was tolled during active duty under the SCRA).
35 The 6% interest rate cap remains in effect during the period of military service and one year thereafter, in the case of
an obligation or liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage; or during
the period of military service, in the case of any other obligation or liability (P.L. 110-289, 122 Stat. 2654 (July 30,
2008)).
36 Fair Credit Reporting Act, 84 Stat. 1128, codified at 15 U.S.C. §§1681 et seq.
37 See The Judge Advocate General’s Legal Center & School, U.S. Army, JA 260, Servicemembers Civil Relief Act
[§3-8].
38 20 U.S.C. §1078(d).
39 P.L. 110-315, 122 Stat. 3078 (August 14, 2008).
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The Servicemembers Civil Relief Act (SCRA): An Explanation

subject to the 6% interest rate limitation. Additionally, servicemembers currently on active duty
that received loans prior to entering active duty will not be able to claim the 6% cap.
P.L. 110-389, the Veterans’ Benefits Improvement Act, added two new subsections addressing
penalties for violation of the section.40 The section, as amended, closely mirrors the penalty and
preservation of remedies provisions found in other sections of the SCRA. Anyone who violates
the maximum interest prohibition may be fined or imprisoned for not more than one year. An
individual claiming protection under this section may also be awarded consequential or punitive
damages.
Title III: Rent, Installment Contracts, Mortgages,
Liens, Assignments, Leases, Telephone Service
Contracts

Sections 301 through 308 provide protections from eviction and loss of other benefits or rights
due to the failure of a servicemember to meet payments on rent, loans, mortgages, or insurance
policies. Unlike the other parts of the SCRA, the rights described in these sections can be asserted
by a servicemember’s dependents in their own right.
Evictions and distress—Sec. 301 (50 U.S.C. app. §531).
Under this section as it was enacted in 2003, unless a court orders otherwise, a landlord or person
with “paramount title” may not evict a servicemember during a period of military service or his or
her dependents from a rented home (such as an apartment, a trailer, or a house) if the rent is
$2,400 per month or less. The rent ceiling is adjusted annually for inflation and in 2014 the
amount is $3,217.81.41 In a case where the landlord seeks a court order for the eviction of a
servicemember or his or her dependents, the court is obligated to stay the proceedings for up to
three months if the servicemember requests it. In the alternative, the court may adjust the
obligation under the lease to preserve the interests of all the parties. Section 202 (stay of
proceedings when servicemember has notice) of the act is not applicable to this section.
The section provides that anyone who knowingly takes part in an eviction in violation of this
section can be punished by imprisonment for up to one year, a fine as provided in Title 18, U.S.
Code, or both. Persons claiming relief under this section may collect consequential and punitive
damages in cases involving wrongful eviction.
Additionally, courts are allowed to grant landlords, or other persons with “paramount title,”
equitable relief in cases where a stay is granted. If the court orders payment, Subsection (d)
authorizes the Secretary concerned to make an allotment from the servicemember’s military pay
to satisfy the terms of the order.

40 P.L. 110-389, 122 Stat. 4189 (October 8, 2008).
41 Publication of Housing Price Inflation Adjustment Under 50 U.S.C. App. Section 531, 79 Fed. Reg. 115 (January 2,
2014) (The Secretary of Defense is required to publish annually in the Federal Register the rent ceiling amount
adjusted for inflation.).
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The Servicemembers Civil Relief Act (SCRA): An Explanation

Protection under installment contracts for purchase or lease—
Sec. 302 (50 U.S.C. app. §532).

Except by court order, no one who has collected a deposit as partial payment for property, where
the remainder of the price is to be paid in installments, can repossess the property or cancel the
sale, lease, or bailment because of the failure to meet the terms of the contract, if the buyer enters
active duty military service after paying the deposit and subsequently breaches the terms of the
contract. A violation of this section is punishable by imprisonment for up to one year, a fine as
provided in Title 18, U.S. Code, or both. A court may order the cancellation of the installment
sale, mandating the return of the property to the seller as well as the return of paid installments to
the buyer, or the court may stay the proceedings. This section does not permit a servicemember
unilaterally to terminate the contract, although the servicemember may be able to bring an action
under Section 701 for relief.
Mortgages and trust deeds—Sec. 303 (50 U.S.C. app. §533).
This section covers servicemembers who, prior to a period of active military service, entered into
a property transaction subject to a mortgage, a trust deed, or other security loan. As amended, if
the servicemember is unable to make payments on the loan due to military service, the provision
prevents the vendor from exercising any right or option under the contract to rescind or terminate,
to resume possession of the property for nonpayment of any installment due, or to breach the
terms, except by action in a court of competent jurisdiction, until one year after the term of active
duty terminates.42 A sale, foreclosure, or seizure of property during a servicemember’s period of
military service, and one year after, is prohibited unless such action is taken under a court order
issued prior to foreclosure on the property, or pursuant to an agreement under Section 107 of the
act. However, the one-year prohibition of foreclosure against a servicemember is set to expire on
December 31, 2014; at that point the period prohibiting foreclosure will revert to 90 days.43
If the servicemember breaches the terms of a mortgage, trust deed, or other loan, the court may
stay any proceedings brought by the lender to enforce the terms of the agreement. The court may
also order any other disposition of the property that it decides is fair to both the borrower and the
lender. Property repossessed or other action taken without benefit of a court order is punishable
by imprisonment up to one year, a fine as provided by Title 18, U.S. Code, or both, and may
subject the creditor to a suit for wrongful conversion. In addition, where a covered person can
show oppression, fraud, or malice on the part of the creditor, consequential and punitive damages,
among other remedies, may be awarded.
Settlement of stayed cases relating to personal property—Sec. 304
(50 U.S.C. app. §534).

If a court stays an action for foreclosure on property, repossession, or the cancellation of a sales
contract against a servicemember, the court can appoint three disinterested persons to appraise the
property and, on the basis of the appraisal, order the amount of the servicemember’s equity to be

42 P.L. 112-154 (August 6, 2012).
43 Id.
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The Servicemembers Civil Relief Act (SCRA): An Explanation

paid back to the person on active duty in military service as a condition for allowing the
foreclosure, repossession, or cancellation.
Termination of residential or motor vehicle leases—Sec. 305
(50 U.S.C. app. §535).

Military persons who live in rental property are allowed to terminate leases entered into prior to a
period of active service. It applies to: (1) property leased for a dwelling or for professional,
business, or farm use, or other similar purpose, where the person leasing the property later enters
active duty in military service, or where the servicemember executes the lease while in military
service and thereafter receives military orders for a permanent change of duty station (PCS) or to
deploy with a military unit for a period of at least 90 days; and (2) motor vehicle leases for
personal or business transportation where the person later enters active military service of not less
than 180 days or where the servicemember executes the lease while in military service and
thereafter receives PCS orders outside of the continental United States or to deploy with a
military unit for at least 180 days. Servicemembers who rent premises are advised to ensure the
rental agreement contains a “military” clause to allow for early termination of a lease in case of
military orders to deploy.44 In 2004 the right to terminate leases was expanded to include joint
leases.45 The added language specifies that any lease terminated pursuant to this section also
terminates any obligation a dependent of the lessee may have under the lease.
The servicemember may terminate a property lease by delivering by hand, private business
carrier, or mailing return receipt requested, a written notice and a copy of his or her’s military
orders to the lessor or its agent. With regard to a motor vehicle lease, the servicemember must
return the motor vehicle to the lessor or its agent no later than 15 days after the date of delivery of
the written notice. As for a residential lease, if the lease called for monthly rent, then cancellation
takes effect thirty days after the next due date for rent following the day the written notice is sent.
For all other property leases, the cancellation is considered effective at the end of the month
following the month in which the written notice is sent. Any unpaid rent prior to the effective
cancellation must be paid to the landlord on a prorated basis. The servicemember is entitled to a
refund of any prepaid rent for time after the lease is canceled within 30 days of the termination of
the lease. The recent amendment to the act prohibits the lessor from charging an early termination
fee, but the servicemember is liable for any taxes, summonses, or other obligation in accordance
with the terms of the lease.46 A court can make adjustments if the landlord petitions the court for
an “equitable offset” prior to the date the lease is effectively canceled.47 For motor vehicle leases,
the cancellation is considered effective on the day on which the vehicle is returned to the lessor.
The lessor cannot impose early termination fees, but the servicemember is still responsible for
any taxes, summonses, title and registration fees, and any other obligation and liability under the
lease, including reasonable fees for excessive wear, use, and mileage.

44 See The Judge Advocate General’s Legal Center & School, U.S. Army, JA 260, Servicemembers Civil Relief Act
[§4-7].
45 P.L. 108-454, 118 Stat. 3598 (December 10, 2004).
46 P.L. 111-275, §301 (October 13, 2010).
47 An “equitable offset” may allow the landlord to retain part, or all, of the amount of rent remaining on the lease as
well as the security deposit, to compensate for unreasonable expenses incurred as the result of early lease termination.
Omega Industries, Inc., v. Raffaele, 894 F.Supp. 1425 (D. Nev. 1995).
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Anybody who knowingly seizes personal effects, a security deposit, or any other property
belonging to a person who has lawfully canceled a lease pursuant to this section is subject to
punishment. Anyone who seizes or otherwise interferes with the removal of property in order to
satisfy a claim for rent due for any time after the date of the effective cancellation of the lease
may be punished by imprisonment for up to one year, a fine as provided in Title 18, U.S. Code, or
both.
Termination of telephone service contracts—Sec. 305a (50 U.S.C.
app. §535a).

Originally added to the SCRA by P.L. 110-389, the Veterans’ Benefits Improvement Act of
2008,48 this section was replaced in its entirety by P.L. 111-275, the Veterans’ Benefits Act of
2010.49 Under the new Section 305a, a servicemember is able to terminate a contract for
telephone exchange service, in addition to the previously covered cellular phone service in certain
circumstances. To be eligible, the servicemember must receive orders to relocate for a period of at
least 90 days to a location that does not support the contract and the contract must have been
entered into prior to receiving the orders. The telephone service provider is required to cancel the
contract without assessing an early termination charge and in the case of a period of relocation
less than three years in duration, allow the servicemember to retain the phone number previously
terminated. Additionally, dependents of the servicemember may also terminate their cellular
telephone service if they accompany the servicemember to an area that does not support the
service contract.
Protection of life insurance policy—Sec. 306 (50 U.S.C. app. §536).
If a person entering military service has used a life insurance policy as collateral to secure a debt,
they are protected from foreclosure on the policy to satisfy the debt unless the assignee first
obtains a court order, except where the assignee is the insurance company itself (in which case the
debt amounts to a policy loan). A court may refuse to grant the order if it determines that the
servicemember’s ability to repay is materially affected by military service. This rule applies
during the entire time the insured is on active duty plus one year. The rule does not apply in three
cases: (1) if the insured gives his or her written permission to let a creditor make a claim against
the policy in order to satisfy the debt involved; (2) if any premiums required under the life
insurance policy are due and unpaid (excluding premiums guaranteed under Title IV of this act);
or (3) if the person whose life is insured has died. Anyone who knowingly takes or attempts
action contrary to this section shall be punished by imprisonment for up to a year, or a fine as
provided in title 18, U.S. Code, or both.
Enforcement of storage liens—Sec. 307 (50 U.S.C. app. §537).
A servicemember with property or effects subject to a lien, including liens for storage, repair or
cleaning of property, is protected from foreclosure or enforcement of the lien during the period of
military service plus three months unless a court finds that the servicemember’s ability to meet

48 P.L. 110-389, 122 Stat. 4145 (October 10, 2008).
49 P.L. 111-275 (October 13, 2010).
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The Servicemembers Civil Relief Act (SCRA): An Explanation

the obligation is not materially affected by military service. A court can also stay the proceedings
in these types of enforcement actions or order some other disposition of the case it deems
equitable to the parties. This section does not affect the scope of Section 303 (mortgages and trust
deeds). Anyone who knowingly takes any action contrary to the provisions is punishable by
imprisonment up to one year, a fine as provided by title 18, U.S. Code, or both.
Extension of protections to dependents—Sec. 308 (50 U.S.C. app.
§538).

The benefits of the rules provided under Title III (50 U.S.C. app. §§531 to 537) of the SCRA are
extended to dependents of active duty personnel in their own right. A dependent must petition a
court for permission to take advantage of those rules, and the court is not required to grant
permission if it determines that the ability of the applicant dependent to comply with the terms of
the obligation, contract, lease, or bailment has not been materially impaired by the military
service of the person upon whom the applicant is dependent.
Title IV: Life Insurance
Title IV provides relief from insurance premiums and guarantees servicemembers continued
coverage under certain commercial life insurance policies.
Definitions—Sec. 401 (50 U.S.C. app. §541).
For the purposes of Title IV of the SCRA, the following definitions apply:
‘Policy’—“Policy” includes any individual contract for whole, endowment, universal, or term life
insurance (other than group term life insurance), or benefit similar to life insurance that comes
from membership in any fraternal or beneficial association and has to satisfy all of the following
conditions:
(1) the policy does not include a provision limiting the amount of insurance coverage based on
the insured’s military service;
(2) the policy does not require the insured to pay higher premiums if he or she is in military
service;
(3) the policy does not include a provision that limits or restricts coverage if the insured person
engages in any activity required by military service; and
(4) the policy has to be “in force” (premiums have to be paid on time before any benefit
guaranteed by these sections of the law can be claimed) for at least 180 days before the insured
enters military service.
‘Premium’—“Premium” is the amount specified in the policy to be paid to keep the policy in
force.
‘Insured’—“Insured” is defined as a servicemember who owns a life insurance policy.
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‘Insurer’—“Insurer” includes any firm, corporation, partnership, association, or business that
can, by law, provide insurance and issue contracts or policies.
Insurance rights and protections—Sec. 402 (50 U.S.C. app. §542).
Either the person insured, an insured’s legal representative, or, when the insured person is outside
the United States, a beneficiary of the insurance policy must apply for protection of a covered
policy under the act. The written application must be submitted to the insurer with a copy sent to
the Secretary of Veterans Affairs. The total amount of policies covered are limited to the greater
of $250,000, or an amount equal to the maximum limit of the Servicemember’s Group Life
Insurance(SGLI). In 2005, the maximum limit of SGLI was increased to $400,000 thereby raising
the maximum amount of covered policies.50
Application for insurance protection—Sec. 403 (50 U.S.C. app.
§543).

In order to invoke protection for the policies covered under this part of the SCRA, the
servicemember, his or her legal representative, or beneficiary must submit an application in
writing identifying the policy and insurer, with an acknowledgment that the insured’s rights under
the policy are subject to and modified by the provisions of Title IV of this act. The Secretary of
Veterans Affairs may require the parties to provide additional information as necessary. The
insurer then reports the action to the Department of Veterans Affairs as required by regulation
(found in 38 C.F.R. Part 7).51 By making an application for the protection guaranteed by these
sections of the law, the insurer and insured are deemed to have accepted any necessary
modifications to the terms of the life insurance policy.
Policies entitled to protection and lapse of protections—Sec. 404
(50 U.S.C. app. §544).

The Secretary of Veterans Affairs determines whether a policy is entitled to the protection
guaranteed by these sections, and is responsible for notifying the insurer and the insured as to his
determination. Once the policy is deemed qualified for protection, it may not lapse or otherwise
be terminated or be forfeited for the nonpayment of a premium, or interest or indebtedness on a
premium. This protection applies during the time the insured person is in military service and for
two years after he or she leaves military service.

50 P.L. 109-80, 119 Stat. 2045 (September 30, 2005) (increased the maximum SGLI benefit to $400,000).
51 Title 38, Part 7, of the Code of Federal Regulations, revised as of July 1, 2008, addresses Soldiers’ and Sailors’ Civil
Relief not Servicemembers Civil Relief and cites 50 U.S.C. app 511, 540-547 as authority. SCRA as enacted by P.L.
108-183 does not contain a Section 540 and includes two additional Sections 548 and 549 that are not referenced in the
regulations. The authority for the Secretary of Veterans Affairs to promulgate regulations to carry out the provisions of
the Title are now contained in 50 U.S.C. app §548, and judicial review of decisions by the Secretary, previously not
included in the SSCRA, is found in 50 U.S.C. app §549.
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Policy restrictions—Sec. 405 (50 U.S.C. app. §545).
The approval of the Secretary of Veterans Affairs is necessary for a policy holder to make certain
withdrawals and other payments or credits under a policy protected by this part of the SCRA. If
such approval is not obtained, rather than paying dividends to the insured or reinvesting them to
purchase additional coverage, the insurer must add dividends to the value of the policy to be
treated as a credit. The insured is not permitted to take out loans against the policy or cash it in
while it is protected without the approval of the Secretary of Veterans Affairs. However, the
insured retains the right to modify the designation of beneficiaries.
Deduction of unpaid premiums—Sec. 406 (50 U.S.C. app. §546).
If a covered policy matures due to the death of the insured, the insurance company may reduce its
settlement with the beneficiaries by the amount of any unpaid premiums (plus interest). If the rate
of interest is not specified in the policy, it will be the same rate applied to policy loans in other
policies issued at the time when the insured’s policy was issued. Deductions must be reported to
the Secretary of Veterans Affairs.
Premiums and interest guaranteed—Sec. 407 (50 U.S.C. app. §547).
In the event the insured fails to pay all of the premiums owed on a policy at the time the
guarantee period expires and the cash surrender value of the policy is less than the amount due,
the United States will pay the unpaid premiums and may then attempt to collect the amount from
the insured. (Any funds collected from the insured are added to appropriations for the payment of
guaranteed premiums under this part of the SCRA.) If the unpaid premiums do not exceed the
policy’s cash surrender value, the insurer will treat them as a policy loan. Moreover, any money
paid by the government to an insurance provider under this section is a debt owed by the insured
to the government and may not be discharged by bankruptcy.
Regulations—Sec. 408 (50 U.S.C. app. §548).
The Secretary of Veterans Affairs will promulgate regulations to carry out the provisions of the
article.
Review of findings of fact and conclusions of law—Sec. 409
(50 U.S.C. app §549).

The findings of fact and conclusions made by the Secretary in administering these sections are
subject to review by the Board of Veterans’ Appeals and the U.S. Court of Appeals for Veterans’
Claims. Judicial review is permitted only to the extent provided by chapter 72 of Title 38, U.S.
Code.
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Title V: Taxes and Public Lands
The fifth broad category of provisions of the SCRA provides certain rights regarding public lands
and relieves servicemembers from having to pay certain taxes to multiple jurisdictions. It also
prevents the attachment of certain personal or real property in order to satisfy tax liens.
Taxes respecting personal property, money, credits, and real
property—Sec. 501 (50 U.S.C. app. §561).

Personal property (including motor vehicles) belonging to a person in military service, as well as
real property used by the servicemember as a home, a business, or for agriculture, as long as the
property continues to be occupied by the servicemember’s family or employees, cannot be sold to
collect unpaid taxes or assessments, except income taxes, without a court order. A court may stay
an action to force the sale of property belonging to a person in military service for the collection
of unpaid taxes if it finds that the debtor’s ability to pay the taxes is materially affected by his or
her military service. In the event a servicemember’s property is sold to satisfy tax liabilities, the
servicemember has the right to redeem the property up to six months after the person leaves
military service. This section may not be construed to shorten any period of redemption provided
by state law. If a servicemember fails to pay a tax or assessment on property covered by this
section when due, the amount unpaid and due shall accrue interest at 6%, but no other penalties or
interest may be assessed. Additionally, joint ownership of all forms of personal and real property
by a servicemember and his or her dependents are covered by this section.
Rights in public lands—Sec. 502 (50 U.S.C. app. §562).
Servicemembers cannot be deemed to have forfeited any right (including mining and mineral
leasing rights) they had to use public lands of the United States prior to entering military service
based on absence from the land or failure to perform required maintenance or other
improvements. Holders of permits and licenses who subsequently enter military service may
suspend the licenses for the duration of military service plus six months, allowing the
servicemember to obtain a reduction or cancellation of fees for the duration of that time.
Desert-land entries—Sec. 503 (50 U.S.C. app. §563).
Servicemembers with claims to desert lands prior to entering military service may not have those
claims contested or cancelled (1) for failing to expend required amounts in improvements
annually, (2) failing to effect the reclamation of the claim during the period of service, or (3)
during hospitalization or rehabilitation due to an injury or disability incurred in the line of duty.
The protection is in force during and for six months after he or she leaves military service or is
released from hospitalization. To qualify for this protection, notice must be given to the
appropriate land office within six months after entering military service.
Mining claims—Sec. 504 (50 U.S.C. app. §564).
Certain requirements for maintaining a mining claim are suspended during the holder’s period of
active military service and for six months after or is released from hospitalization because of
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wounds or disability suffered while in the line of duty. During this period, the mining claim
cannot be forfeited due to nonperformance of the requirements of the lease. To qualify for this
protection, the servicemember must notify the appropriate claims office of commencement of
military service within 60 days after the end of the assessment year in which the service began.
Mineral permits and leases—Sec. 505 (50 U.S.C. app. §565).
Any person who holds a permit or a lease under the federal mineral leasing laws who enters
military service is allowed to suspend all operations during military service (plus six months), in
which case the period of service is not counted as part of the term of the person’s permit or
license but the holder is not required to pay rentals or royalties during that time. However, to
qualify for these privileges, the person has to notify the Bureau of Land Management that he or
she has entered military service within six months after entering.
Perfection or defense of rights—Sec. 506 (50 U.S.C. app. §566).
Nothing in Title V of the SCRA prevents a person in military service from taking any action
authorized by law or regulations of the Department of the Interior to assert, perfect, or protect the
rights covered in those sections. A servicemember may submit any evidence required to assert
this right in the form of affidavits or notarized documents. Affidavits provided pursuant to this
section are subject to 18 U.S.C. §1001.
Distribution of information concerning benefits of title—Sec. 507
(50 U.S.C. app. §567).

The Secretary concerned is responsible for providing military authorities with information about
the benefits of this Title (except those pertaining to taxation) for distribution among
servicemembers and shall provide application forms to be used by applicants requesting relief.
Land rights of servicemembers—Sec. 508 (50 U.S.C. app. §568).
Protection of land rights under this Title are extended to servicemembers under the age of 21.
Residency requirements related to the establishment of a residence within a limited time will be
suspended for six months after release from military service for both the servicemember and his
or her spouse.
Regulations—Sec. 509 (50 U.S.C. app. §569).
The Secretary of the Interior has the authority to issue regulations necessary to carry out Title V
of the act, other than the sections that deal with taxes (Sections 501, 510, and 511).
Income taxes—Sec. 510 (50 U.S.C. app. §570).
The collection of income taxes (excluding Social Security (FICA) taxes) owed by a
servicemember, either before or after entering service, may be deferred during the period of
service, and for up to six months after, if his or her ability to pay the taxes is materially affected
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by military service. No interest or other penalty may be imposed on a debt deferred under this
section. The statute of limitations for paying the debt is tolled for the length of the person’s period
of service plus nine months.
Residence for tax purposes—Sec. 511 (50 U.S.C. app. §571).
In order to prevent multiple state taxation on the property and income of military personnel
serving within various tax jurisdictions by reason of military service, this section provides that
servicemembers neither lose nor acquire a state of domicile or residence for taxation purposes
when they serve at a duty station outside their home state in compliance with military orders. A
servicemember who conducts other business while in military service may be taxed by the
appropriate jurisdiction for resulting income. However, a tax jurisdiction cannot include the
military compensation earned by nonresident servicemembers to compute the tax liability
imposed on the non-military income earned by the servicemember.
Spouses of servicemembers neither lose nor acquire a state of domicile or residence for taxation
purposes when they are present in any tax jurisdiction solely to be with the servicemember in
compliance with the servicemember’s orders.52 However, the guarantee of residency is contingent
on the spouse having the same original residence or domicile as the servicemember. The section
further provides that income earned by a spouse while in a duty-station tax jurisdiction, other than
his or her original residence or domicile, solely to be with the servicemember may not be taxed
by that tax jurisdiction.
Personal property of a servicemember and his or her spouse will not be subject to taxation by a
jurisdiction other than their domicile or residence while stationed at a duty station outside of their
home state.53 However, relief from personal property taxes does not depend on whether the
property is taxed by the state of domicile. Property used for business is not exempt from taxation.
An Indian servicemember whose legal residence or domicile is a Federal Indian reservation will
only pay taxes under the laws of the Federal Indian reservation and not to the state where the
reservation is located.
“Tax jurisdiction” is defined to include “a State or a political subdivision of a State,” which would
include the District of Columbia and any commonwealth, territory or possession of the United
States (Section 101(6)). “Taxation” includes licenses, fees, or excises imposed on an automobile
that is also subject to licensing, fees or excise in the servicemember’s state of residence.
“Personal property” includes intangible and tangible property including motor vehicles.

52 P.L. 111-97, 123 Stat. 3007 (November 11, 2009) (The Military Spouses Residency Relief Act extended residency
protections to the spouses of active-duty servicemembers).
53 Dameron v. Brodhead, 345 U.S. 322, 325 (1953) (Holding that the SCRA preempts state laws which would tax the
service-related income or personal property of servicemembers at their duty station when it is not their domicile. The
Court concluded the constitutional discussion by stating, “[w]hat has been said in no way affects the reserved powers of
the states to tax. For this statute merely states that the taxable domicile of servicemen shall not be changed by military
assignments. This we think is within the federal power.”).
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Title VI: Administrative Remedies
Title VI provides courts the authority to deny remedies that would abuse the purpose of the
SCRA, indicates how a servicemember’s military and financial status can be established in court,
and covers other procedural requirements.
Inappropriate use of act—Sec. 601 (50 U.S.C. app. §581).
A court may deny a servicemember the protections of the act with respect to a transfer it finds
was made with the intent to exploit the provisions of the act, in order to delay enforcement of the
contract, to obtain reduced interest rates, or to avoid obligations with respect to property that was
the subject of the transaction.
Certificates of service; persons reported missing—Sec. 602 (50
U.S.C. app. §582).

A certificate signed by the Secretary concerned serves as prima facie evidence in an action under
the SCRA that the individual is in the military service, date of induction or discharge, person’s
residence at time of induction, rank and rate of pay, and other facts relevant to asserting rights
under the SCRA. A servicemember who is missing in action is presumed to continue in military
service until he or she is accounted for or his or her death has been reported to the Department of
Defense or determined by a court or board with the authority to make such determination.
Interlocutory orders—Sec. 603 (50 U.S.C. app. §583).
Courts may revoke, modify, or extend any interlocutory orders they issued pursuant to the SCRA.
Title VII: Further Relief
Title VII of the SCRA provides a means for servicemembers to petition for relief without having
to wait until a creditor brings an enforcement action against them. It also treats powers of attorney
and provides relief from liability insurance premiums for servicemembers who need to maintain
such policies for their civilian occupations.
Anticipatory relief—Sec. 701 (50 U.S.C. app. §591).
A servicemember may initiate an action for relief prior to defaulting on any pre-service obligation
or liability, including tax obligations, rather than waiting for the creditor to commence
proceedings. Dependents do not have independent protection under this section as they do for the
provisions of Title III.
Courts may grant the following relief:
(1) if the obligation involves payments of installments for the purchase of real estate (like a
mortgage), the court can stay enforcement of the obligation by adding a period of time, no greater
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than the period of military service, to the remaining life of the contract, subject to the payment of
the balance of principal and accumulated interest that remains unpaid at the termination of the
applicant’s military service, in equal installments over the duration of the extended life of the
contract; and
(2) for any other type of obligation, liability, tax, or assessment, the court can stay enforcement,
for a period of time equal to the petitioner’s period of military service, subject to payment of the
balance of principal due plus accumulated interest in equal installments over the duration of the
stay.
If a stay has been granted under this section, no fine or penalty can be imposed for its duration as
long as the servicemember complies with the terms and conditions of the stay. This provision
allows servicemembers who are not yet in default on an obligation, but whose ability to make
payments is materially affected by military service, to petition the court in effect to rewrite the
contract by extending its life, allowing the servicemember to pay down the amount in arrears with
equal installments over a longer of period of time. The servicemember must resume making
regular payments on the debt after leaving active duty, in addition to the payments to make up for
the smaller payments he or she made while on active duty.
Power of attorney—Sec. 702 (50 U.S.C. app. §592).
A valid power of attorney for a person who is declared to be missing in action is automatically
extended. Unless the document explicitly states that it is to expire, even in the event the person
who executed it becomes missing in action, the document continues in force for the entire period
the person remains in a missing status. It is limited to documents that designate the
servicemember’s spouse, parent, or named relative as the servicemember’s attorney in fact.
Professional liability protection—Sec. 703 (50 U.S.C. app. §593).
Certain persons who, prior being called to active duty, were furnishing health-care or legal
services or any other services which the Secretary of Defense determines to be professional
services and who had in effect a professional liability (i.e., malpractice) insurance policy, may
suspend payment of premiums on their liability insurance while they serve on active duty without
losing any coverage. The section covers insurance policies that, according to their terms, would
not continue to cover claims arising prior to a lapse in coverage unless the insured continues to
pay premiums.
Definitions—“Profession” is defined in Subsection (i) to include “occupation.” Similarly, the
expression “professional” includes the term “occupational.” Subsection (i) also defines “active
duty,” adopting the definition used in Section 101 of Title 10, U.S. Code. However, the provision
is further limited to persons called to active duty (other than for training) under 10 U.S.C. §§688
(retired members of regular armed forces, members of the Retired Reserves, and members of the
Fleet Reserve or Fleet Marine Corps Reserve); 12301(a) (activation of Reserves during war or
national emergency declared by Congress); 12301(g) (member of Reserve component in captive
status); 12302 (Ready Reserve); 12304 (Selected Reserve and certain Individual Ready Reserve
members called to active duty other than during war or national emergency); 12306 (Standby
Reserve); 12307 (Retired Reserve); and, if any of the preceding sections are invoked, Section
12301(d) (volunteer member of a Reserve component).
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Suspension of coverage—Professional liability insurance policies covered by this section are
suspended from the time the insurer receives a request for protection until the insured requests in
writing to have the policy reinstated. In the case of a joint insurance policy, no suspension of
coverage is required for the policyholders who are not called to active duty. For example, if
several physicians jointly purchase a group policy of malpractice insurance, and only one of them
is called to active duty, the coverage of those not called to active duty need not be suspended by
the insurer.
Premiums—The insurer may not charge premiums for coverage that is suspended. The insurer
must either refund any amount already paid for coverage that is suspended or, if the insured
professional person chooses, apply the amount toward payment of any premium that comes due
after coverage is reinstated.
Liability during suspension—The insurer is not obligated to pay any claim that is based on a
professional’s actions (or inaction) during a period when a policy is suspended. In the case of
claims involving obligations imposed by state law on a professional person to assure that his or
her patients or clients will receive professional assistance in his or her absence to serve on active
duty, the section clarifies that the failure of the professional person to satisfy such an obligation
will generally be considered to be a breach that occurred before the professional person began
active duty. In such a situation, the insurer would be liable for the claim. In the event a claim
arises while the patient is receiving alternate care as arranged by the servicemember for patients
during his or her absence, the insurer would not be liable for the claim.
Actions against policy holder during suspension of coverage—In the event a malpractice suit (or
administrative action) is filed during the period when the insurance is suspended, the litigation
will be stayed until the end of the suspension period. The stay only applies where the malpractice
is alleged to have occurred before the suspension began, and would thus be covered by the policy.
Litigation stayed under this rule is deemed to be filed on the date the suspended insurance is
reinstated. The period of any stay granted under this provision is not counted when computing
whether or not the relevant statute of limitations has run.
In the event that a professional person whose malpractice insurance coverage has been suspended
should die during the period of the suspension, any stay of litigation or administrative action
against the person under this section is lifted. In addition, the insurer providing the coverage that
was suspended is to be liable under the policy just as if the deceased person had died while
covered by the policy but before the claim was filed.
Reinstatement of coverage—The insurer is required to reinstate the insurance coverage on the
date the servicemember transmits a written request for reinstatement, which must occur within 30
days after the covered servicemember is released from active duty. The insurer must notify the
policy-holder of the due date for payment of any premium required for reinstatement of the
policy, and that the premium must be paid within 30 days after the notice is received by the
professional person. The section also limits the premium that the insurer can charge for reinstated
coverage to the rate that would have applied if the servicemember had not been deployed. The
insurer is not allowed to recoup missing premiums by charging higher rates for reinstated
coverage, but it may charge higher rates for reinstated coverage if it raised the rates for all
policyholders with similar coverage, if the servicemember would have had to pay a higher
premium even if he or she had not suspended coverage.
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Health insurance reinstatement—Sec. 704 (50 U.S.C. app. §594).
This section grants servicemembers who were called to military service as described in
§703(a)(1) the right, upon termination or release from military service, to reinstatement of any
health insurance policy that was in effect on the day before the servicemember entered military
service, and that terminated at any time during his or her service. No new exclusions from
coverage or waiting periods for reinstatement of coverage may be imposed with respect to
conditions arising prior to or during the servicemember’s period of military service, if such an
exclusion or waiting period would not have applied during regular coverage and the condition has
not been determined to be a disability incurred in the line of duty under 38 U.S.C. §105. The
section does not apply to employer-sponsored health insurance plans covered by the provisions of
the Uniformed Services Employment and Reemployment Rights Act (USERRA).54 Insurance
plans covered by USERRA are subject to similar protections under 38 U.S.C. §4317.
Servicemembers must apply for reinstatement within 120 days of termination or release from
active duty.
In 2006, language was added limiting premium increases on a health insurance policy covered by
the section.55 The amount of the premium may not be increased on a policy being reinstated for
the balance of the period for which the coverage would have continued had it not be terminated,
above an amount that would have been charged before termination. In the event that the
premiums for similarly covered individuals increased during the terminated period, the increased
premium may be assessed to the servicemember upon reinstatement of the policy.
Guarantee of residency for military personnel and spouses of
military personnel—Sec. 705 (50 U.S.C. app. §595).

Military personnel and their spouses are not deemed to have changed their state residence or
domicile for the purpose of voting for any federal, state, or local office, solely because of their
absence from the respective state in compliance with military or naval orders.
Business or trade obligations—Sec. 706 (50 U.S.C. app. §596).
The assets of a servicemember are protected from attachments to satisfy business debts for which
the servicemember is personally liable, as long as the assets sought to be attached are not held in
connection with the business. The obligor would have the right to apply to the court for a
modification of the servicemember’s relief where warranted by equitable considerations.

54 P.L. 103-353, 108 Stat. 3161 (1994), codified at 38 U.S.C. §§4301 et seq.
55 P.L. 109-233, 120 Stat. 397 (June 15, 2006).
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Title VIII: Civil Liability56
Enforcement by the Attorney General—Sec. 801 (50 U.S.C. app
§597).

This section authorizes the U.S. Attorney General to commence a civil action in U.S. district
court for violations of the SCRA by a person who (1) engages in a pattern or practice of violating
the act; or (2) engages in a violation that raises an issue of significant public importance. Courts
may grant any appropriate equitable or declaratory relief, including monetary damages.
Additionally, courts, in order to vindicate the public interest, may assess a civil penalty up to
$55,000 for a first violation, and up to $110,000 for subsequent violations. Finally, individuals
alleging violations of the SCRA, for which the Attorney General has commenced an action, are
authorized to intervene in previously commenced cases as a plaintiff.
Private right of action—Sec. 802 (50 U.S.C. app. §597a).
In addition to the right to join a previously commenced case, covered individuals have the ability
to commence a civil action for an alleged violation of the SCRA in their own right. The court may
grant an appropriate equitable or declaratory relief, including monetary damages. The court is
also authorized to award the costs of the action and reasonable attorney fees to a covered
individual who prevails in a civil action under this section.
Preservation of remedies—Sec. 803 (50 U.S.C. app. §597b).
This section provides that Sections 801 and 802 do not preclude or limit any other remedies
available under the law, including consequential or punitive damages for violations of the SCRA.

Author Contact Information

R. Chuck Mason

Legislative Attorney
rcmason@crs.loc.gov, 7-9294



56 Title VIII addressing civil liability was created by P.L. 111-275, §303 (October 13, 2010).
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