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#14618 - 04/02/02 05:27 PM SSCRA
Anonymous
Unregistered

In reading through this act I am not able to find out anything pertaining to if a spouse is the sole signer on a loan and that individual is not in the service does this act require the lowering of the spouse's interest rate if the person in military service is not on the loan?

Section 536, "Extension of benefits to dependents" states that dependents are entitled to benefits of sections 530 to 536, but there is no mention of rate reduction. I know this act was discussed however I am not able to find any mention of this particular issue. Can someone help me?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#14619 - 04/02/02 05:58 PM Re: SSCRA
Andy_Z Offline
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The extension of benefits means that they get the same reduced rate, limited foreclosure, etc. that the servicemember gets. But it only applies to the covered loans, those on which the servicemember is obligated.

So an obligation underwritten based on a spouses qualifications, not the servicemembers, would not be covered. In theory no benefit is necessary because it stands alone. How this may be interpreted in community property states may be another matter. One could argue there is no obligation unless the servicemember is signed on the note, conversely the Cockerham vs Cockerham case said that wasn't always necessary. I would also wonder if the debt was secured by community property even with a consent to pledge executed, would that allow forclosure or repossession. Hopefully I won't have to seek the answers to these questions.
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#14620 - 04/02/02 06:51 PM Re: SSCRA
Anonymous
Unregistered

I guess I needed some support for my thoughts on this topic. I felt that because the spouse received the loan on their own merits, income, and obligations, that their spouse really is not obligated. This is an unsecured loan with no collateral pledge. Thanks Andy for your information.

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#14621 - 04/02/02 08:03 PM Re: SSCRA
Gotwood Offline
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Joined: May 2001
Posts: 715
Since we are on this subject, I remember reading in a BOL email around the beginning of the year (I think) that revision(s) to the Act were pending. They had to do with affording national guardsman relief under the Act. Has anyone heard the status of the revision(s)?

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#14622 - 04/03/02 12:46 PM Re: SSCRA
Anonymous
Unregistered

Mary Beth Guard wrote an article "Understanding the Soldier's and Sailors' Civil Relief Act of 1940" pertaining to this isssue. National Guard are covered when called for active duty. I also read an article and it currently slips my memory that it is considered active duty if they work the airports and other areas within the U.S.

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