Borrower who is a reservist provided active duty paperwork dated 5/28/19. The period of active duty is for 400 days, however, the report on date is 8/20/19.

§ 516. Extension of rights and protections to reserves ordered to report for military
service and to persons ordered to report for induction [Sec. 106]
(a) Reserves ordered to report for military service. A member of a reserve component who is
ordered to report for military service is entitled to the rights and protections of this title and
titles II and III during the period beginning on the date of the member's receipt of the order
and ending on the date on which the member reports for military service (or, if the order is
revoked before the member so reports, or the date on which the order is revoked).

My understanding from the regulation is that the count for 400 days begins on 5/28/19; when the order is dated/received. Not on the date provided for report to mobilization station. Is this correct?

Thank you.

Thank you Adam.

Adam can you explain the meaning of that as it applies to interest rates on loans? I think it says any loan the servicemember took out prior to receiving the orders cannot have an interest rate greater than 6%, but what protection actually ends when the servicemember reports for service?

Bville - I'm not sure I understand your question so please clarify if this doesn't answer it. SCRA only applies to loans taken out while not on active duty. While they are active, SCRA doesn't apply to new loans - but that is where MLA steps in.

Your post above states that the protections of Sections II and III end when the member reports for military service, Can they take out new loans between receiving orders and reporting for service and receive the 6% rate?

Great question. If I understand you correctly, you are asking about a reservist covered under 3919 who obtains a loan and then, after going into military service, wishes to use the interest rate protections of 3937 on the loan obtained before military service but while covered under 3937 as a reservist. In other words, the question is whether a loan obtained as a covered reservist (but before "military service") is covered under the maximum rate protections once the borrower enters military service.

When we look at the definition of "military service" (in 3911), it still doesn't include reservists (whose protections are separately located in 3917). As I'm sure you know, the rate protections of 3937 apply to an obligation obtained "before the servicemember enters military service". Therefore, it would seem to me that loans obtained as a covered reservist are not technically obtained during "military service" and, therefore, the maximum rate protections would apply.

That said, I haven't looked into this before (as this would be rare), so maybe someone like Andy Z can chime in here...

The maximum rate (rate reduction) of interest is covered under Section II.

From the date the reservist receives their orders and up until they report for duty they are covered under the protections of Section II which means any loan they obtain while under the protection of Section II would be subject to the rate reduction once they report for duty. Once they report for duty they are no longer protected under Section II for any loan obtained while on active duty.