SCRA – When Does Active Duty Begin?
Answer by Dan Persfull, BOL Guru Guru Bio
Question: We have a borrower who is a member of the Army National Guard. It is my understanding that he now has the same rights as regular Army members as far as the SCRA is concerned regarding the 6% loan interest rate. The service member received orders dated 5/14/08 to report to active duty for training beginning 7/28/08 until a specified time. Then he received orders on 7/15/08 for temporary duty for one day on July 26th. On July 18th he received an order to active duty as a member of his Reserve Component Unit for a period beginning 9/6/08. Does his period of duty begin on May 14th when the first order for training came or July 18th when he received final orders?
Answer: I am going to opine his protection begins on 7/18/08 because his orders on 5/14/08 and 7/15/08 were revoked/suspended by the 7/18/08 orders. However, there is nothing to prohibit you from reducing the rate beginning with the 5/14/08 orders.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
