The Soldiers and Sailors Civil Relief Act

Soldiers and Sailors Civil Relief Act
COAST GUARD PERSONNEL MANUAL CHAPTER 16.A.

16.A.  SOLDIERS' AND SAILORS' CIVIL RELIEF ACT 

16.A.1.  PURPOSE 

         The Soldiers' and Sailors' Civil Relief Act of 1940,as amended, 
         authorizes civil courts to protect U.S. Armed Forces members' 
         interests by temporarily suspending the enforcement of 
         certain of their civil liabilities if their military service 
         impairs their ability to meet their obligations or assert 
         their rights. The paragraphs below outline the Soldiers' and 
         Sailors' Civil Relief Act's major provisions and more 
         important protections. The articles in parentheses cite where 
         in the Act the material under discussion appears. (Members 
         desiring further information or advice should see the Legal 
         Assistance Officer.) 

16.A.2.  GENERAL PROVISIONS (ARTICLE I) 

16.A.2.a.  CIVIL RIGHTS AND OBLIGATIONS 

           It is important to emphasize the fact that subject Act implies 
           to civil rights and obligations only and in no way relieves 
           persons in the Service from the eventual payment of debts or 
           other obligations incurred by them before entering such 
           Service. The subject Act will, when invoked in 
           appropriate cases, defer the payment of such debts and 
           obligations. It will defer the collection of taxes in 
           certain cases regardless of when the same became due and 
           payable. It is further important to observe that, with the 
           exception mentioned as to taxes, subject Act affords no 
           relief to persons in the Service against the collection of 
           debts or other obligations contracted or assumed by them 
           after entering such Service. 

16.A.2.b.  IMPACT OF SERVICE ON DEBT 

           The courts are vested with a wide latitude of discretionunder 
           the Act. In determining whether or not persons in the 
           Service are entitled to the relief sought, the courts will 
           in each case inquire into and ascertain whether or not the 
           ability of such persons to pay their debts or obligations 
           has been materially impaired by reason of their service. The 
           court will then determine the proper relief to be given. 

16.A.2.c.  PROPER APPLICATION 

           Many of the benefits of the subject Act do not flow 
           automatically to persons in the Service, but will be 
           extended to them only if a proper application for said 
           relief is made to a court having jurisdiction in the 
           matter. 

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                COAST GUARD PERSONNEL MANUAL CHAPTER 16.A. 

16.A.2.d.  DEFINITION OF "SERVICE" 

           For the purpose of this section, the term "persons in the 
           Service" includes the following persons and no others: All 
           members of the United States Coast Guard, Coast Guard 
           Reserve, and all officers of the Public Health Service 
           detailed by proper authority for duty with the Coast Guard. 
           The term "service" means Federal service on active duty 
           with any branch of the Service heretofore mentioned as well 
           as training and education under the supervision of the 
           United States preliminary to induction into the Service. 
           The term "active service" includes the period during which 
           a person in service is absent from duty on account of 
           sickness, wounds, leave, or other lawful cause. 

16.A.2.e.  LENGTH OF SERVICE 

           The term "period of service" as used herein shall include the 

           time between the following dates: For persons in active 
           service from 17 October 1940, the date of the approval of 
           the Act, it begins with that date; for persons entering 
           active service after that date, with the date of entering 
           active duty. It shall terminate with the date of discharge 
           from active service, but in no case later than the date 
           when the Act ceases to be in force. 

16.A.2.f.  DEFINITION OF"PERSON" 

           The term "person," when used with reference to the holder of 
           any right alleged to exist against a person in the Service or 

           against a person secondarily liable under such right, shall 
           include individuals, parmerships, corporations, and any other 

           form of business association. 

16.A.2.g.  DEFINITION OF"COURT" 

           The term "court" includes any court of competent jurisdiction 

           of the United States or of any State, whether or not a court of 
           record. 

16.A.2.h.  APPLICABILITY TO OTHERS 

           Whenever pursuant to the Act the enforcement of anyobligation 
           or the performance of any other Act may be stayed, postponed, 
           or suspended as to a person in the Service, the court in its 
           discretion may also stay, postpone, or suspend said action 
           insofar as it applies to the accommodation makers, sureties, 
           guarantors, and endorsers thereon. 

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                 COAST GUARD PERSONNEL MANUAL CHAPTER 16.A. 

16.A.2.i.  WHEN SERVICE PREVENTS A MEMBER'S COURT APPEARANCE 

           Whenever by reason of the service of a principal upon a 
           criminal bail bond the surety is prevented from enforcing the 

           attendance of said principal, the court may discharge such 
           surety and exonerate the bail. A waiver of the rights afforded 
           to persons who are secondafily liable in such cases is 
           permitted under subject Act provided it is executed in writing 
           by a separate instrument from the obligation itself, and 
           provided that the person so executing it has not entered the 
           Service subsequent to the execution thereof. 
 

16.A.3.  HOW THE ACT AFFECTS MILITARY MEMBERS 

16.A.3.a.  TEMPORARY SUSPENSION OF SOME CIVIL OBLIGATIONS 

          The primary purpose of the Soldiers' and Sailors' Civil Relief 

          Act of 1940, as amended, is to relieve military service members 
          from worry over their inability to meet their civil obligations 
          by temporarily suspending enforcement of certain civil 
          liabilities if such military service impairs their ability to 
          meet such obligations. The Act does not free a Service member 
          from obligations or impose any automatic moratorium on them. 
          It does, however, contain provisions designed to affordprotection 
          to those in service with regard to debts, leases, evictions, 
          interest rates, income taxes, personal property 
          taxes, real estate taxes, installment purchases, conditional 
          sales, repossessions, foreclosures, mortgages, storage charges, 
          life insurance, suits, judgments, attachments, executions, 
          garnishments, penalties, statutes of limitation, homesteads, and 
          mining claims. Protection is also provided under certain 
          circumstances and in certain cases for dependents, sureties, 
          endorsers, and persons jointly obligated with service members, 
          and persons under orders to report for induction. The 
          interpretation and application of the provisions of the 
          Soldiers' and Sailors' Civil Relief Act of 1940, as amended, 
          in particular cases involve the determination of issues of fact 
          and the exercise of judicial discretion, and are functions of the 
          civil courts. It should be noted that the construction which 
          the courts of the several States have place on certain provisions of 
          the Act is not uniform. In some States it seems to be the 
           policy of the courts to stay an action whenever the defendant is in 
          military service unless he or she files an waiver of the 
          benefits of the act, whereas in other States a stay is not 
          granted in the absence of a showing that the ability of the 
          Servicedefendant to conduct his or her defense is materially 
          affected by his oservice. It would be difficult to list those 
          States whose courts do or do not gliberal construction to the 
          provisions of the Act since in determiningservice member is 
          entitled to relief each case stands upon its factual 
          circumstancesand its own merits. 

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                  COAST GUARD PERSONNEL MANUAL CHAPTER 16.A. 

16.A.3.b.  SERVICE MEMBER'S RIGHT TO AN ATTORNEY 

           Where an action is commenced in any court, if it is brought 
to 
           the attention of the court that a default in the appearance 
of 
           the defendant is a result of his or her being a member of the 

           Service the court shall not enter a judgment against such 
           person until it shall have first appointed an attorney to 
           represent the member. No attorney so appointed has the power 
to 
           waive any right of the person for whom appointed or bind him 
or 
           her by his or her acts. The court may in such cases require 
           bond of the plaintiff to protect the absent defendant in case 

           the judgment should be later set aside, or may make such 
           further order to enter judgment as in its opinion may be 
           necessary to protect the rights of the defendant. If the 
court 
           does render judgment against an absent defendant in the 
Service 
           and it appears that such person was prejudiced thereby, the 
           judgment may, upon a proper application made not later than 
90 
           days after the termination of service, be opened by the court 

           ordering the same and the defendant permitted to defend, 
           provided it appears that the defendant has a meritorious or 
           legal defense. 

16.A.3.c.  STAYING A CIVIL ACTION DUE TO MEMBER'S SERVICE 

           At any stage of any action or proceeding in which a person in 

           the Service (or a person separated from such Service for a 
           period of not longer than 60 days) is either a plaintiff or a 

           defendant the court may on its own motion, or shall on 
           application to it by such person or someone in his or her 
           behalf, stay said proceedings as provided in subject Act 
unless 
           in the opinion of the court the ability of the plaintiff to 
           prosecute the action or the defendant to conduct his or her 
           defense is not materially affected by reason of his or her 
           service. Where, upon bringing of any action which has for its 

           purpose the enforcement of the terms of any contract, such 
           action is stayed pursuant to the provisions of subject Act, 
no 
           free or penalty shall accrue by reason of such stay. 

16.A.3.d.  STAYING A JUDGEMENT AGAINST A SERVICE MEMBER 

           The subject Act provides that in any action commenced in any 
           court against a person in the Service, the court may stay in 
           the execution of any judgment or order entered against such 
           persons; or may vacate or stay any attachment or garnishment 
of 
           property, or money, or debts against such person in the hands 

           of another whether it be before or aRer judgment. A stay of 
           proceedings when ordered by the court under the provisions of 

           subject Act may be for the period of service and for three 
           months thereafer (or for any part of such period) and subject 

           to such terms as may be just, whether it be as to payments in 

           installments of such amounts and at such times as the court 
may 
           fix or otherwise. 

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                    COAST GUARD PERSONNEL MANUAL CHAPTER 16.A. 
16.A.3.e.  SERVICE TIME NOT COMPUTED IN STATUTE OF LIMITATIONS 

           The period of service will not be counted in computing the 
time 
           limited by any law for the bringing of any action or 
proceeding 
           by or against a person in the Service nor shall time be 
counted 
           against a person in the Service in computing the time in 
which 
           real property which has been sold or forfeited for any 
           obligation, tax, or assessment may be redeemed. 

16.A.3.f.  INTEREST LIMITED TO SIX PERCENT 

           No obligation or liability which bears interest at a rate in 
           excess of six percent and which was incurred by a person in 
the 
           Service prior to entry, shall, during his or her period of 
such 
           service which occurs after 6 October 1942, bear interest at a 

           rate greater than 6 percent unless a court upon application 
           made thereto by the obligee, determines that the ability of 
the 
           person in service to pay a rate greater than 6 percent is not 

           materially affected by reason of his or her said service. The 

           term "interest" shall be construed in such event to include 
           service charges, renewal charges or fees, or any other 
charges 
           (except bona fide insurance) in respect to such obligations 
or 
           liabilities. 

16.A.4.  RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, 
         ASSIGNMENTS, AND LEASES (ARTICLE III) 

16.A.4.a.  DEPENDENTS' EVICTION PROTECTION 

           The dependents of a person in the Service cannot be evicted 
           during the term of service from premises occupied by them 
           chiefly for dwelling purposes where the agreed rent is not 
more 
           than $150 a month, except by leave of court granted upon 
           application or in legal proceedings affecting the right of 
           possession. The court shall in such cases, upon application, 
           stay said proceedings for not more than three months as 
           provided in the Act unless it appears that the ability of the 

           person to pay the agreed rent is not materially affected by 
           reason of his/her service, or it may make such other order as 

           may be just. The Secretary is empowered to order an allotment 

           of the pay of a person in the Service in a reasonable 
           proportion to discharge rent on premises occupied by the 
           dependents of such person. 

16.A.4.b.  REAL ESTATE PAYMENTS WHILE IN THE SERVICE 

           No person who has received a deposit or installment under a 
           contract for the purchase of real or personal property from a 

           person who, after the date of payment of said installment, 
has 
           entered the Service, shall exercise any right or option under 

           such contract to terminate the contract or resume possession 
of 
           the property for nonpayment of any installment or for any 
other 
           breach of said contract during the period of such person's 
           service, unless it be done by an action for that purpose in a 

           competent jurisdiction. The court may order a repayment of 
           prior installments or 

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                COAST GUARD PERSONNEL MANUAL CHAPTER I6.A. 

           deposits as a condition of terminating the contract or 
resuming 
           possession of the property, and shall on an application to it 

           by such person in the Service, or by someone on his or her 
           behalf, order a stay of the proceedings as provided in 
subject 
           Act, if in the opinion of the court the ability of the 
           defendant to comply with the terms of the contract is 
           materially affected by reason of his or her service; or the 
           court may make such other disposition of the case as will, in 

           its judgment, conserve the interests of all parties. 
 

16.A.4.c.  PROTECTIONS FOR MORTGAGE-HOLDERS 

           The provisions of this paragraph apply only to obligations 
           secured by mortgage, trust deed, or other security in the 
           nature of a mortgage upon real or personal property owned by 
           the person in the Service at the commencement of his or her 
           period of service and still owned by the person, which 
           obligations originated prior to such person' s period of 
           service. In any proceeding commenced in any court during the 
           period of service to enforce such obligation arising out of 
           nonpayment of any sum due or out of any other breach of the 
           terms thereof occurring prior to or during the period of such 

           service the court may, after heating, in its discretion, on 
its 
           own motion, and shall, on application to it by such person in 

           service or some person on his/her behalf, unless in the 
           court's opinion the ability of the defendant to comply with 
the 
           terms of the obligation is not materially affected by reason 
of 
           his or her service: (1) Stay the proceedings as provided in 
           subject Act; or (2) make such other disposition of the case 
as 
           may be equitable to conserve the interest of all parties. No 
           sale, foreclosure, or seizure shall be made of the property 
of 
           a person in the Service for said person's nonpayment of any 
           obligation thereon, whether it be under a power of sale, 
           judgment, or otherwise after 6 October 1942 and during the 
           period of service or within three months thereafter, unless 
           such sale is an agreement between the parties as provided in 
           subject Act or upon an order previously granted by the court. 

           Said sale to be valid must also be approved by the court. 
When 
           a proceeforeclose a mortgage, to resume possession of 
personal 
           property, oterminate a contract for the purchase thereof, has 

           been stayed by the court, thmay, unless it would result in an 

           undue hardship to the dependents of member, have the property 

           appraised by three disinterested partiesand based upon said 
           appraisal order such sum as may be just paid to the 
           personService, or to the service member's dependents, as a 
           condition of fomortgage, resuming possession of the property 
or 
           rescinding or terminating thecontract. 

16.A.4.d.  LESSORS' PROTECTIONS 

           A lease involving a Service member may be terminated by a 
           notice in writing to that effect, delivered to the lessor at 
           any time following the date of the beginning of such person's 

           service, provided: (1) Such lease covers premises occupied 
for 
           dwelling, professional, business, agricultural, or similar 
           purposes; (2) such lease was executed by such person or 
           designated agent prior to this entry into the Service; (3) 
the 
 

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           COAST GUARD PERSONNEL MANUAL CHAPTER 16.A. 

           premises so leased have been occupied for such purposes by 
such 
           person or by the person and dependents. The delivery of the 
           notice terminating the lease may be accomplished by mailing 
the 
           same to the lessor or the lessors agent. Where the lease 
called 
           for monthly payments, the termination shall not become 
           effective until 30 days after the first date on which the 
next 
           rental payment is due and payable subsequent to the date when 

           such notice is delivered and mailed. The lessor may obtain a 
           modification of the above provisions regarding the 
termination 
           of a lease where the same is justified in the opinion of the 
           court. 

16.A.4.e.  MODEL LEASE CLAUSE 

           The Act does not relieve the service member from the 
           obligations of a lease entered into after entrance into the 
           Service. It is therefore suggested that wide publicity be 
given 
           to the desirability of including a military clause in every 
           lease of real property. The following language is recommended 

           as accomplishing the desired protection for service 
personnel. 
           The language is, or course, subject to modification dictated 
by 
           local conditions. 

                  The said LESSOR covenants and agrees that in the event 

                   the said LESSEE shall be transferred from    , or be 
                   required to occupy Government quarters then, in 
either 
                   of such events, said LESSEE has and shall have the 
                   right to terminate this lease before its expiration 
                   date by delivering to the LESSOR a thirty 
                   (30)-day written notice of such transfer of 
                   assignment, and its effective date, said notice to be 

                   sent to the LESSOR by registered mail. 

16.A.4.f.  FORECLOSURE PROTECTION 

           Persons in the Service and dependents of persons in service 
are 
           protected against foreclosure or the enforcement of any lien 
           for storage of household goods, furniture, and personal 
effects 
           during such person's service for three months thereafter, in 
           the same manner as is hereinabove set forth for the 
protection 
           of a service member's mortgaged property. 

16.A.4.g.  INSURANCE AS COLLATERAL 

           Where any life insurance policy upon the life of a person in 
           the Service has been assigned before he or she entered the, 
           Service to secure the payment of any obligation of such 
person, 
           the assignee of such policy (except the insurer in connection 

           with a policy loan) shall not during the period of such 
           person's service nor within one year thereafter exercise any 
           right of option by virtue of such assignment, unless it be 
with 
           the consent of the insured in writing made during such period 

           of service or when the premiums thereon are due and unpaid, 
or 
           upon the death of the insured, or upon leave of court granted 

           on an application made therefor by the assignee. 

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           COAST GUARD PERSONNEL MANUAL CHAPTER 16.A. 

16.A.5.  INSURANCE(ARTICLE IV) 

16.A.5.a.  DEFINITIONS 

           For the purpose of this paragraph the following definitions 
shall apply: 

           1.  The term "insured" includes any person (male or female) 
on 
               active duty with the Armed Forces of the United States 
               except personnel performing an initial period of active 
               duty for training of three to six months under the 
               provisions of section 262 (c) of the Armed Forces Reserve 

               Act of 1952, as amended, who is the insured and the owner 

               and holder of a policy. 

           2.  The term "policy" includes any contract of life insurance 

               on a life or endowment, or term plan, and any benefit in 
               the nature of life insurance arising out of a membership 
in 
               any fraternal or beneficial association which was made 
and 
               a premium paid before 6 October 1942, or not less than 
180 
               days before the date the insured entered into the 
military 
               service. A policy is not eligible for protection if it 
               contains any provision excluding or restricting liability 

               for death arising from or in connection with military 
               service or any activity which the insured may be called 
               upon to perform in connection with military service or 
               requires the payment of an additional premium because of 
               military service. A policy must be in force on a 
               premium-paying basis at the time of application for 
               benefits under the Act. Policies of United States 
               Government Life Insurance and National Service Life 
               Insurance are not included within the provisions of the 
Act. 

           3.  The term "premium" includes that amount specified in the 
               policy as a stipend to be paid by the insured at regular 
               intervals during the period therein stated, and 
membership 
               dues and assessments in an association. 

           4.  The term "insurer" includes any firm, corporation, 
               parnership, or association which is chartered or 
authorized 
               to engage in the insurance business and to issue a policy 

               by the laws of a State of the United States or the United 

               States. 
 

16.A.5.b.  APPLICABILITY 

           The provisions of the Act are not available except upon 
           application made by the insured, by a person designated by 
the 
           insured, or by the beneficiary if the insured is outside the 
           continental United States, Alaska, and the Panama Canal Zone. 

           Any writing signed by the insured designating a person, firm, 

           or corporation to make application for benefits under the Act 

           shall be sufficient authority for the making of such 
           application for the insured by such agent. When application 
is 
           made by a person designated by the insured, the instrument or 

           other writing authorizing such action must be attached to the 

           application executed by the agent. 

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                   COAST GUARD PERSONNEL MANUAL CHAPTER 16.A. 

16.A.5.c.  PROTECTION MAXIMUM 

           The provisions of the Act are not applicable to insurance in 
           excess of $10,000 on the life of an insured, and a policy (or 

           policies) for a face amount exceeding that amount will be 
           divided into two policies at the request of the Veterans 
           Administration. If applications are made by an insured on 
           policies exceeding a face amount of $10,000 (one or more 
           polices with one or more insurers), without indicating a 
           preference, the Veterans Administration will select the 
policy 
           (or policies) which affords the best security to the 
Government. 

16.A.5.d. FAILURE TO PAY PREMIUMS 

           A policy which has been brought within the provisions of the 
           Act shall not lapse or otherwise terminate for the nonpayment 

           of a premium or the nonpayment of any indebtedness or 
interest, 
           during the period of military service of the insured and two 
           years thereafter, but this guarantee shall not extend for 
more 
           than two years after the date when the Act ceases to be in 
           force. Premiums may be paid by the insured direct to the 
           insurer when due even though a policy has been placed under 
the 
           protection of the Act; also after an indebtedness has been 
           established under authority of the Act payments may be made 
           from time to time to reduce the indebtedness. It is also the 
           insured's privilege to withdraw the policy from protection of 

           the Act at any time during the period of protection by making 

           such a request over the insured's signature either to 
           the insurance company or the Veterans Administration. 

16.A.5.e.  OBTAINING VA APPROVAL 

           Before any dividend is paid, or any loan or settlement made 
on 
           a policy while protected by the provisions of the Act, the 
           written consent of the Veterans Administration must be 
           obtained. The United States will guarantee payment of 
premiums 
           and interest thereon at the rate specified in the policy for 
           policy loans. If the amount guaranteed by the United States 
is 
           not paid to the insurer prior to the expiration of the period 

           of protection under the Act, the amount due will be treated 
by 
           the insurer as a policy loan. If the cash surrender value of 
           the policy is less than the amount then due, the policy shall 

           cease and terminate and the United States shall pay the 
insurer 
           the difference between the amount guaranteed and the cash 
           surrender value. The amount paid by the United States to an 
           insurer shall become a debt to the United States by the 
insured 
           on whose account payment was made. 

16.A.5.f.  PAYING DEATH CLAIMS 

           In the event a policy protected by the provisions of the Act 
           matures as a death claim, the insurer will deduct the amount 
of 
           any unpaid premiums, with interest at the rate provided for 
           policy loans, from the proceeds of the policy and report the 
           amount so deducted to the Veterans Administration. 

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                 COAST GUARD PERSONNEL MANUAL CHAPTER 16.A. 

16.A.5.g.  ACT'S PROVISIONS EXTENDED 

           Under the provisions of section 14 of the Selective Service 
Act 
           of 1948 (Public Law 759, 80th Cong., 62 Stat. 623) the 
           provisions of the Soldiers' and Sailors' Civil Relief Act, as 

           amended, were extended until Such time as the Act is repealed 

           or otherwise terminated by a subsequent act of Congress. 

16.A.6.  TAXES(ARTICLE V) 

16.A.6.a.  RELIEVING TAX OBLIGATIONS 

           Under certain conditions subject Act relieves against any 
           unpaid taxes or assessments, whether general or special 
(other 
           than taxes on income), whether falling due prior to or during 

           the period of service, respecting personal property, money, 
or 
           credits, or real property owned and occupied for dwelling, 
           professional, business, or agricultural purposes by a person 
in 
           the Service or the individuals dependents at the commencement 

           of the member's period of service and still so occupied by 
his 
           or her dependents or employees. The Act does not prohibit 
           selling such property for delinquent taxes, but provides that 
a 
           tax collect must first apply to obtain a court's permission 
to 
           do so. If said property is sold, as aforesaid, the Service 
           member has a fight to begin an action to redeem the same 
within 
           six months after the termination of the members service, but 
           not later than six months after the termination of the war. 
           Said delinquent taxes or assessments during the period of 
           service shall bear interest at six percent per annum and no 
           other penalty shall be added. 

16.A.6.b.  DEFERRING PAYING TAXES 

           Collecting income tax from Service members whose service 
           materially impairs their ability to pay such taxes, may, 
where 
           application is made therefor, be deferred for a period of 
time 
           extending not more than six months after the termination of 
           such person's service, but not later than six months after 
           termination of the war. The relief afforded by the subject 
Act 
           applies whether the tax becomes due prior to or during the 
           person's term of service, and where such deferment is 
granted, 
           no interest or penalty will be charged theton. The above 
           provisions do not provide for deferment in the filing of 
income 
           tax returns. The collector may also require a financial 
           statement from the person requesting deferment of payment. 

16.A.6.c.  MAINTAINING RESIDENCE 

           For the purposes of taxation of a person, the persons 
personal 
           property, or income by any State, territory, possession, or 
           political subdivision thereof, or the District of Columbia, 
           subject Act provides that no person in the Service shall be 
           deemed to have lost residence or domicile in any of the 
           foregoing solely by reason of being absent therefrom in 
           compliance with military or naval orders, nor to have become 
a 
           resident 

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           COAST GUARD PERSONNEL MANUAL CHAPTER 16.A. 

           of any other State, territory, possession, political 
           subdivision, or the District of Columbia while and solely by 
           reason of being so absent. The compensation for military or 
           naval service shall not be deemed income for services 
performed 
           within, or from sources within, such State, territory, 
           possession, political subdivision, or District, and personal 
           property shall not be deemed to be located or present in, or 
           have a situs for taxation in, any State, territory, or other 
           jurisdiction of which the person is not a resident, or in 
which 
           the person is not domiciled. This Act does not prevent 
taxation 
           by any State, territory, possession, or political subdivision 

           of any of the foregoing, or the District of Columbia in 
respect 
           of personal property used in or arising from a trade or 
           business if it otherwise has jurisdiction. When used in this 
           section, "personal property" includes tangible and intangible 

           property (including motor vehicles); "taxation" includes (but 

           is not limited to) licenses, fees, or excises imposed in 
           respect to motor vehicles or the use thereoff provided the 
           license, fee, or excise required by the State, territory, 
           possession, or District of Columbia, of which the person is a 

           resident or in which the person is domiciled has been paid. 

16.A.6.d.  MODEL STATEMENT 

           Below is the general form of statement of a member of the 
Armed 
           Forces to the State or local taxing authority claiming 
           exemption from personal property tax or income tax under the 
           Soldiers' and Sailors' Civil Relief Act, as amended. The form 

           of statement can be changed to cover the specific tax 
involved 
           and may be altered to fit the facts as to place of duty 
station 
           and domicile: 

                   Exception from the tangible personal property tax 
                   (income tax ) of the State of     is hereby claimed 
                   under the provisions of Section 514 of the Soldiers' 
                   and Sailors' Civil Relief Act, as amended. The 
                   undersigned, whose permanent residence is in the 
State 
                   of     is a member of the Armed Forces and is 
residing 
                   in the State of        solely in compliance with 
                   military orders requiring the members presence in 
this 
                   area. 

                       (Name and grade or rating 

                       (Local residence ) 

                       (Service number ) USCG 

CH 26                             16.A. Page 12 
 
 

                 COAST GUARD PERSONNEL MANUAL CHAPTER 16.A. 

16.A.7.  FURTHER RELIEF (ARTICLE VII) 

         A person may, at any time during his or her period of service 
or 
         within six months thereafter, apply to a court for relief in 
         respect to any obligation or liability incurred by such person 
         prior to his or her period of service or in respect of any tax 
or 
         assessment, whether falling due prior to or during such 
service. 
         The court, after appropriate notice and hearing, unless in its 
         opinion the ability of the applicant to comply with the terms 
of 
         such obligation or liability or to pay such tax or assessment 
has 
         not been materially affected by reason of his or her service, 
may 
         grant the following relief: 

         1.  If the obligation is an installment contract to purchase 
real 
             estate, or is secured by a mortgage on real estate, stay 
its 
             enforcement during the period of service, and from the date 

             of the member's release from active duty or the date of 
             application for relief, if made after such service, for a 
             period equal to the remainder of the life of the 
instrument, 
             plus the time in service of the applicant, or any part of 
             such combined period, subject to the payment of the unpaid 
             principal and interest in equal installments during the 
             combined period, with interest thereon at the rate provided 

             in the instrument for installments paid when due. 

         2.  A court similarly may stay other obligations, liabilities, 
             taxes, or assessments for a period of time equal to the 
             applicant's period of service or any part thereof. The 
member 
             must pay principal and interest due in equal periodic 
             installments during the extended period, with interest at 
the 
             rate prescribed in the obligation, liabilities, tax or 
             assessment, as if the member had paid when due. 
                                                        


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