Home > 106th Congressional Bills > H.R. 3358 (ih) For the relief of Judith Lorraine Prendergast. [Introduced in House] ...H.R. 3358 (ih) For the relief of Judith Lorraine Prendergast. [Introduced in House] ...
108th CONGRESS
1st Session
H. R. 3357
To amend the Soldiers' and Sailors' Civil Relief Act of 1940 to provide
protections to members of the Armed Forces who terminate certain
consumer contracts and real estate residential purchase contracts
entered into before permanent change of station or deployment orders or
motor vehicle leases entered into before military service.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 21, 2003
Mr. Gibbons (for himself, Mr. Wynn, Mr. Bereuter, and Mr. Norwood)
introduced the following bill; which was referred to the Committee on
Veterans' Affairs
_______________________________________________________________________
A BILL
To amend the Soldiers' and Sailors' Civil Relief Act of 1940 to provide
protections to members of the Armed Forces who terminate certain
consumer contracts and real estate residential purchase contracts
entered into before permanent change of station or deployment orders or
motor vehicle leases entered into before military service.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TERMINATION OF RESIDENTIAL PURCHASE CONTRACTS AND CERTAIN
CONSUMER CONTRACTS.
Article III of the Soldiers' and Sailors' Civil Relief Act of 1940
(50 U.S.C. App. 530 et seq.) is amended by adding at the end the
following new section:
``SEC. 307. TERMINATION BY SERVICEMEMBERS OF RESIDENTIAL PURCHASE
CONTRACTS AND CERTAIN CONSUMER CONTRACTS ENTERED INTO
BEFORE MILITARY SERVICE OR BEFORE PERMANENT CHANGE OF
STATION OR DEPLOYMENT ORDERS.
``(a) Termination by Servicemember.--A person in military service
who is a party to a contract described in subsection (b) may, at the
person's option, terminate the contract at any time after--
``(1) the date of the entry of the person into military
service; or
``(2) the date of the military orders of the person
described in paragraph (1)(B) or (2)(B) of subsection (b), as
the case may be.
``(b) Covered Contracts.--This section applies to the following
contracts:
``(1) Leases of motor vehicles.--A lease of a motor vehicle
used, or intended to be used, by the lessee (or dependents of
the lessee) for personal or business transportation if--
``(A) the lease is executed by or on behalf of a
person who thereafter and during the term of the lease
enters military service (or receives order to enter
military service) under a call or order specifying a
period of not less than 90 days (or who enters military
service under a call or order specifying a period of 90
days or less and who, without a break in service,
receives orders extending the period of military
service to a period of not less than 90 days); or
``(B) the lessee, while in military service,
executes the lease and thereafter receives military
orders for a permanent change of station outside of the
continental United States or to deploy with a military
unit for a period of not less than 90 days.
``(2) Telecommunications contracts.--A telecommunications
contract for cellular phone service, cable or satellite
television service, or internet service if--
``(A) the contract is executed by or on behalf of a
person who thereafter and during the term of the
contract enters military service (or receives order to
enter military service) under a call or order
specifying a period of not less than 90 days (or who
enters military service under a call or order
specifying a period of 90 days or less and who, without
a break in service, receives orders extending the
period of military service to a period of not less than
90 days); or
``(B) the person enters into the contract while in
military service and thereafter receives military
orders for a permanent change of station outside of the
continental United States, or to deploy with a military
unit for a period of not less than 90 days, to a
location that does not support continuation of the
service under the contract.
``(3) Contract for purchase of residence.--A contract for
the purchase of real property occupied, or intended to be
occupied, by a person (or dependents of a person) for a
residential purpose if before the contract is closed the person
who executed the contract--
``(A) enters military service or receives orders to
enter military service; or
``(B) receives orders for a permanent change of
station or to deploy with a military unit for a period
of not less than 90 days.
``(c) Manner of Termination.--
``(1) In general.--Termination of a contract under
subsection (a) is made--
``(A) by delivery by the person in military service
of written notice of such termination to the other
party to the contract (or that person's grantee or
agent); and
``(B) in the case of a lease of a motor vehicle, by
return of the motor vehicle by the lessee to the lessor
not later than 10 days after the date of the delivery
of notice under subparagraph (A).
``(2) Nature of notice.--Delivery of notice under paragraph
(1)(A) may be accomplished--
``(A) by hand delivery;
``(B) by private business carrier; or
``(C) by placing the written notice in an envelope
with sufficient postage and with return receipt
requested, and addressed as designated by the party to
be notified (or that party's grantee or agent), and
depositing the written notice in the United States
mails.
``(d) Effective Date of Contract Termination.--
``(1) Lease of motor vehicles.--In the case of a contract
described in subsection (b)(1), termination of the lease under
subsection (a) is effective on the day on which the
requirements of subsection (c) are met for such termination.
``(2) Other contracts.--In the case of a contract described
in subsection (b)(2) or (b)(3) termination of the contract is
effective on the day on which the notice is delivered.
``(e) Arrearages and Other Obligations and Liabilities.--In the
case of a contract described in subsection (b)(1) or (b)(2), contract
amounts unpaid for the period preceding the effective date of the
contract termination shall be paid on a prorated basis. In the case of
the lease of a motor vehicle, the lessor may not impose an early
termination charge, but any taxes, summonses, and title and
registration fees and any other obligation and liability of the lessee
in accordance with the terms of the lease, including reasonable charges
to the lessee for excess wear, use and mileage, that are due and unpaid
at the time of termination of the lease shall be paid by the lessee.
``(f) Refund of Lease Amounts Paid in Advance.--Lease amounts paid
in advance for a period after the effective date of the termination of
the lease shall be refunded to the lessee by the lessor (or the
lessor's assignee or the assignee's agent).
``(g) Relief to Lessor.--Upon application by the other party to the
contract to a court before the termination date provided in the written
notice, relief granted by this section to a person in military service
may be modified as justice and equity require.
``(h) Penalties.--
``(1) Misdemeanor.--Any person who knowingly seizes, holds,
or detains the personal effects, security deposit, or other
property of a person in military service (or of a dependent of
a person in military service) who lawfully terminates a
contract covered by this section, or who knowingly interferes
with the removal of such property from premises covered by such
contract, for the purpose of subjecting or attempting to
subject any of such property to a claim for contract payments
accruing subsequent to the date of termination of such lease,
or attempts to do so, shall be fined as provided in title 18,
United States Code, or imprisoned for not more than one year,
or both.
``(2) Preservation of other remedies.--The remedy and
rights provided under this section are in addition to and do
not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including any award for consequential or punitive
damages.''.
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