I was contacted by someone in my company's loan servicing area with the following questions regarding any state laws that are similar to the federal SSCRA laws. I was not aware of any state laws similar to SSCRA but thought I would post this in case anyone else was:

Question 1:
Do you know of any state(s) that have soldiers and airmen relief acts that
are similar to the Federal Soldier's & Sailors Civil Relief Act? (I'm
primarily interested in states that have a rate cap). If so, can you provide a copy of any such state law. Alternatively I would love a law cite.

Question 2:
Would you know whether the particular state Governor has called up the state national
guard or air guard.

Question 3:
Would you know of any reason your company or loans would not be covered by the state law?

Thanks in advance for your assistance.

jon m

jonm:

1) OH has a state law (Chapter 5903 of the Ohio Revised Code) that is similar to the SSCRA, but only w/regard to re-employment rights. There is no provision in OH for reduction of the interest rate on a loan.

2) I dont know of any state call-ups in OH

3) The only reason I can think that state law wouldnt apply is under the doctrine of federal preemeption (if you institution is federally chartered). If your primary regulator has determined that a federal law and state law are inconsistent, the regulator usually preempts state law (at least to the extent of the inconsistency). Your regulator's website should have info on any preemptions of state laws.

a) if you are state chartered (in the same state as the state that has a law similar to SSCRA) I think you must follow the state law.

b) if you are state chartered in a state other than the state which has a law similar to the SSCRA, the answer depends upon whether you have enough "significant contacts" with the state with a law similar to SSCRA in order for you to be required to comply w/the state law. This is a complicated area and your lawyer should be consulted. To (grossly perhaps) oversimplify, if you are conducting "enough" business in the state with a law similar to SSCRA, you most likely will have to comply with it. Whether originating or servicing "X" number of loans is "enough" will be something your lawyer should help you determine based upon case law in the state w/a law similar to SSCRA.

I AM NOT ENGAGED IN PROVIDING LEGAL ADVICE AND THE VIEWS EXPRESSED ARE NOT THOSE OF MY EMPLOYER

jon m: Sorry my earlier reply wasnt as clear as it should have been.

OH has a state version (Chapter 5903) of the federal Uniformed Services Employment and Re-employment Rights Act (38 USC §4301-4333). The USERRA is a COMPANION right of service members (along with SSCRA) and relates only to employment rights of service members. I know of no state counterpart to the SSCRA in OH.

jon m: Sorry my earlier reply wasnt as clear as it should have been.

OH has a state version (Chapter 5903) of the federal Uniformed Services Employment and Re-employment Rights Act (38 USC §4301-4333). The USERRA is a COMPANION right of service members (along with SSCRA) and relates only to employment rights of service members. I know of no state counterpart to the SSCRA in OH.