SCRA Flashcards
The SCRA applies to any __________________ in any court or agency subject to the jurisdiction of the US.
civil, judicial, or administrative
T or F
SCRA protections cannot be waived?
FALSE
Servicemembers who qualify for the protections of the law may waive any right or protection afforded by the act but the waiver must be executed wither while the servicemember is on active duty or after they receive orders to active duty and in some cases the waiver must be in writing.
When must an SCRA waiver be in writing?
* if it pertains to a modification, termination, or cancellation of a lease, contract or obligation secured by a mortgage, deed, or lien OR
* it relates to a repossession, retention, foreclosure, sale, forfeiture, or taking possession of property that is security for an obligation or purchased under a contract, lease, or bailment
T or F
A creditor may use the fact a servicemember exercises their rights under SCRA as a reason to change the terms of an existing arrangement.
FALSE
While most of the other SCRA protections apply to dependents, the 6% maximum interest rate provision does not apply to dependents UNLESS
the obligation or liability is incurred jointly by the servicemember and the servicemembers spouse
For the purposes of SCRA, ‘interest’ includes:
service charges - renewal charges, fees, or any other charge except bona fide insurance
Obligations and liabilities bearing interest, which were incurred by the servicemember, ________ entrance into service, shall not bear interest in excess of ___________ per _______.
* before
* 6%
* year
When a creditor reduces a servicemembers interest rate as per the SCRA requirement, what must happen with the excess interest and payments?
* excess interest must be forgiven
* the amount of installment payments must be reduced by the amount of the interest forgiven
What must a servicemember provide to be eligible for the SCRA rate cap?
* written notice AND
* a copy of the orders for military service
Are there situations where a creditor can be relieved of the SCRA rate cap?
YES
a court may grant a creditor relief if the servicemember’s ability to pay interest at a rate greater than 6% is not materially affected by reasons of the servicemember’s military service
If the defendant does not appear in a court action, the plaintiff must file an affidavit stating whether the defendant is _____________ or stating that it cannot be determined.
in active military service
No default judgement may be entered against a person in military service without:
*a court approving such judgement AND
* an attorney representing the person in military service
In actions to execute judgments or attachment or garnishment of property against a person in military service that commended _____________________, the court shall stay or vacate the disposition unless the court determines that the ability of the defendant is not materially affected by his or her military service.
*before or during service OR
*within 90 days after
T or F
The period of military service will not be used in computing any statue of limitations.
TRUE
A person who receives a deposit or installment payment for the purchase or lease of property (real or personal) may not exercise any right or option under the contract to rescind or terminate the contract or regain possession of the property if the debtor has entered military services UNLESS
approved by a court of competent jurisdiction (courts may either order a stay of the proceedings or require that all deposits and previously paid installments be repaid to the debtor)
