Bill Text: CA SB720 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Military service: benefits.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2013-09-06 - Chaptered by Secretary of State. Chapter 220, Statutes of 2013. [SB720 Detail]

Download: California-2013-SB720-Amended.html

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BILL NUMBER: SB 720	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 7, 2013
	AMENDED IN SENATE  APRIL 4, 2013

INTRODUCED BY   Senator Correa

                        FEBRUARY 22, 2013

   An act to amend Section 409.3 of the Military and Veterans Code,
relating to military service.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 720, as amended, Correa. Military service: benefits.
   Existing law authorizes a service member to apply to the court for
relief of an obligation, liability, tax, or assessment, as
specified. Existing law authorizes, in the case of an obligation
payable under its terms in installments under a contract for the
purchase of real estate, or secured by a mortgage or other
instrument, as specified, a stay of the enforcement of the obligation
during the applicant's period of military service and, from the date
of termination of the period of military service or from the date of
the application if made after the service, for a period equal to the
period of the remaining life of the installment contract or other
instrument plus a period of time equal to the period of military
service of the applicant or any part of the combined period, as
specified.
   This bill would instead authorize, in the case of an obligation
payable  under its terms  in installments under a
contract for the purchase of real estate, or secured by a mortgage or
other instrument, a deferment of the payments  due  on the
obligation  during   for a period of time equal
to  the service member's period of military service,  or
should the service member request such relief after the start of his
or her current period of military service, or within 6 months
thereafter, a deferment of such payments for a period of time equal
to the period of military service starting from the date of
application,  as specified. The bill would prohibit
penalties from being imposed on the nonpayment of principal or
interest during this period and interest from being charged or
accumulated on the principal or interest on which the payment was
delayed. The bill would also prohibit foreclosure or repossession of
property on which payment has been deferred, as specified. The bill
would require mortgage payments deferred during this period to be due
and payable upon the occurrence of specified conditions. The bill
would provide that a service member with a mortgage subject to an
impound account for the payment of property taxes, special
assessments, and certain insurance shall not be relieved from making
monthly payments, as specified, and that a service member shall not
be precluded from making payments toward mortgage payments deferred,
as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 409.3 of the Military and Veterans Code is
amended to read:
   409.3.  (a) A service member may, at any time during his or her
most current period of military service or within six months
thereafter, petition a court for relief in respect of any obligation
or liability incurred by the service member before the effective date
of the orders for his or her most current period of military service
or in respect of any tax or assessment whether falling due before or
during his or her most current period of military service.
   (b) The court shall set a hearing on the petition within 25 days
from the date the petition is filed, unless the court shows good
cause for extending the date of the hearing. The petition shall be
served at least 10 days before the hearing. The respondent shall file
and serve a response to the petition at least five days before the
hearing.
   (c) The court shall not charge a filing fee or court costs for a
petition filed pursuant to this section.
   (d)  The court, after notice and hearing, if 
 If  the court  , after notice and hearing,  finds
the ability of the service member to comply with the terms of any
such obligation or liability, or to pay the tax or assessment, has
been materially affected by reason of  orders for 
his or her most current period of military service,  the court
 may grant the following relief:
   (1) In the case of an obligation payable  under its terms
 in installments under a contract for the purchase of real
estate, or secured by a mortgage or other instrument in the nature of
a mortgage upon real estate, a deferment of the payments  due
 on the obligation  during   for a period
of time equal to  the service member's period of military
service,  or should the service member request such relief
after the start of his or her current period of military service, or
within six months thereafter, a deferment of such payments for a
period of time equal to the period of military service starting from
the date of application   even if the service member
requests such relief after the start of his or her current period of
military service, subject to subdivision (a), and  even if such
payments extend beyond the termination of the current period of
military service. The obligation shall be extended for the period of
time that payments were deferred, and the deferred  principal
  payments  shall be paid in equal installments
during the combined period at the rate of interest on the unpaid
balance as is prescribed in the contract, or other instrument
evidencing the obligation, for installments paid when due, and
subject to any other terms as may be just.
   (2) In the case of any other obligation, liability, tax, or
assessment, a deferment of any payments on the obligation during the
service member's period of military service and, from the date of
termination of the period of military service or from the date of
application if made after the service, for a period of time equal to
the period of military service of the applicant or any part of that
period, subject to payment of the balance of principal and
accumulated interest due and unpaid at the date of termination of the
period of military service or the date of application, as the case
may be, in equal periodic installments during the extended period at
the rate of interest as may be prescribed for the obligation,
liability, tax, or assessment, if paid when due, and subject to any
other terms as may be just.
   (e) (1) When any court has granted a deferment as provided in this
section, no fine or penalty shall accrue during the period the terms
and conditions of the deferment are complied with by reason of
failure to comply with the terms or conditions of the obligation,
liability, tax, or assessment in respect of which the deferment was
granted, including penalties on the nonpayment of principal or
interest during this period. Interest shall not be charged or
accumulated on the principal or interest on which the payment was
delayed. Foreclosure or repossession of property on which payment has
been deferred shall not take place during the period specified in
this section.
   (2) If a person has charged or accrued a fine or penalty in
violation of paragraph (1), that person shall be liable for actual
damages, reasonable attorney's fees, and costs incurred by the
injured party as a result of the violation.
   (f) Notwithstanding subdivision (d), any mortgage payments
deferred pursuant to this section are due and payable upon the
earlier of the following:
   (1) The sale of the property or other event specified in the
documents creating the obligation permitting the lender to accelerate
the loan, other than a deferment of payments authorized by this
section.
   (2) Further encumbrance of the property other than for
preservation or protection of the property.
   (3) The maturity of the obligation, as defined under the terms of
the documents creating the obligation, or, if applicable, as extended
pursuant to subdivision (d).
   (g) This section shall not relieve a service member with a
mortgage subject to an impound account for the payment of property
taxes, special assessments, mortgage insurance, and hazard insurance
from making monthly payments of an amount that is at least sufficient
to pay these amounts, unless the borrower and lender agree to a
lesser amount.
   (h) This section shall not preclude a service member from making
payments toward the mortgage payments deferred before the occurrence
of any of the events in subdivision (d).
   (i) This section shall not permit a service member ordered to
military service to obtain a delay, deferment, or stay on an
obligation to pay child support. This section shall not preclude a
service member ordered to military service from seeking a
modification of an order to pay child support due to a reduction in
income resulting from the order to service, or from seeking the
imposition of the maximum interest rate provided by this chapter on
arrearages in child support payments existing before the order to
service.