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#1839420 - 08/05/13 04:57 PM SCRA & John Warner - Commercial and Consumer?
LAK Offline
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Am I correct in saying that both SCRA and John Warner apply to COMMERCIAL as well as CONSUMER transactions? I think I may have been led astray and need to get back on track. Thanks

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#1839455 - 08/05/13 06:04 PM Re: SCRA & John Warner - Commercial and Consumer? LAK
Dan Persfull Offline
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SCRA applies to all credit obligations of the servicemember.

John Warner - § 232.2 Applicability.
This part applies to consumer credit extended by creditors to a covered borrower, as those terms are defined in this part.
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#1839475 - 08/05/13 06:29 PM Re: SCRA & John Warner - Commercial and Consumer? LAK
LAK Offline
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So SCRA applies to both consumer and commercial credit obligations...John Warner to consumer as you refer to consumer credit?

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#1841287 - 08/09/13 06:15 PM Re: SCRA & John Warner - Commercial and Consumer? LAK
Andy_Z Offline
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Yes.
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#1842883 - 08/15/13 05:44 PM Re: SCRA & John Warner - Commercial and Consumer? LAK
Trees Offline
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Can anyone point me to the section of SCRA that confirms applicability based on all the obligations of the person, whether consumer loans or the person's business. In our case the business is an LLC. Thanks,

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#1843144 - 08/16/13 02:59 PM Re: SCRA & John Warner - Commercial and Consumer? LAK
Dan Persfull Offline
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1843565 - 08/19/13 03:16 PM Re: SCRA & John Warner - Commercial and Consumer? LAK
Andy_Z Offline
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Regulators Q&A (included in the materials from my webinar last week - see Consumer Compliance Outlook: First Quarter 2013) Q4 as it discusses rate reductions says that commercial debts are included. Also in the materials were court cases as Dan linked to which confirm if the SM has personal liability, or personal assets were pledged, coverage applies. You won't find it in black and white in the SCRA, but it holds to the spirit and intent.

Also, check your examiners workpapers. You may find a footnote like this:

Section 207 of the SCRA (50 USC app. 527) applies to “an obligation or liability . . . incurred by the
servicemember, or the servicemember and the servicemember’s spouse jointly, before the service
member enters military service.” No distinction is made between personal versus business credit.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#1872957 - 11/20/13 09:03 PM Re: SCRA & John Warner - Commercial and Consumer? LAK
Starter Offline
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Can you provide a link to that Q&A?

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#1872958 - 11/20/13 09:04 PM Re: SCRA & John Warner - Commercial and Consumer? LAK
Starter Offline
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Also, are commercial debts covered only if secured by primary residence?
Last edited by Starter; 11/20/13 09:04 PM.
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#1873184 - 11/21/13 04:38 PM Re: SCRA & John Warner - Commercial and Consumer? LAK
Dan Persfull Offline
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Can you provide a link to that Q&A?

That Q&A appears to have been part of a Webinar so it is most likely only available if you purchase the recorded portion of the Webinar.


Also, are commercial debts covered only if secured by primary residence?

The SCRA applies to all loans the servicemember is obligated on, regardless if secured or unsecured.

John Warner only applies to its defined covered loans.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1874920 - 11/27/13 11:37 PM Re: SCRA & John Warner - Commercial and Consumer? LAK
Andy_Z Offline
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Starter - it was a webinar, but a freebie. I identified it in my post. Here is a link to teh Q&A.

http://www.philadelphiafed.org/bank-reso...ion-webinar.cfm
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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