Pennsylvania Act 1992-29 — MILITARY CODE (51 PA.C.S.) - AMEND

Act text

MILITARY CODE (51 PA.C.S.) - AMEND
                  Act of Apr. 16, 1992, P.L. 161, No. 29              Cl. 51
                             Session of 1992
                               No. 1992-29

     HB 626

                                  AN ACT

     Amending Title 51 (Military Affairs) of the Pennsylvania
        Consolidated Statutes, providing for termination of leases by
        persons in military service, for implementation of interest
        rate ceilings, for deferral of motor vehicle insurance and
        for exceptions to financial responsibility requirements.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Title 51 of the Pennsylvania Consolidated
     Statutes is amended by adding sections to read:
      § 7315.  Termination of leases and similar obligations by
                military personnel.
        (a)  Applicability.--This section shall apply to members of
     the Pennsylvania National Guard who are called or ordered to
     active duty with the armed forces of the United States, other
     than active duty for training, or to State active duty under
     this title, and members of other reserve components who are
     called or ordered to active duty with the armed forces of the
     United States, other than active duty for training, when the
     period of active duty or State active duty is 30 consecutive
     days or more.
        (b)  Leases which may be terminated.--A member of the
     Pennsylvania National Guard or other reserve component of the
     armed forces of the United States, as described in subsection
     (a), or his agent or attorney-in-fact, may terminate or cancel
     without cost, payment or penalty any lease for premises occupied
     or used by the member for dwelling, professional, business or
     agricultural purposes and any lease for an automobile, other
     motor vehicle, boat, aircraft, furniture, appliances, fixtures
     or other tangible personal property used by the member for
     personal, business, agricultural or other private use, provided
     the lease was executed by or on behalf of the member prior to
     the commencement of the period of active duty or State active
     duty and provided the lease was not intended as security under
     the definition of "security interest" in 13 Pa.C.S. § 1201
     (relating to general definitions).
        (c)  Procedures for termination.--The member may terminate or
     cancel the lease by notice in writing delivered to the lessor or
     to the lessor's agent at any time following the beginning of the
     member's active duty or State active duty. Delivery of the
     notice may be accomplished by placing it in an envelope properly
     stamped and duly addressed to the lessor or the lessor's agent
     and depositing the notice in the United States mail. In the case
     of leases of premises or tangible personal property providing
     for monthly payments, termination of the lease shall be
     effective 30 days after the first date on which the next rental
     or lease payment is due and payable subsequent to the date when
     the notice is mailed or delivered. In the case of all other
     leases, termination shall be effective on the last day of the
     month following the month in which the notice is delivered or
     mailed, and, in such case, any rental paid in advance for a
     period after termination shall be refunded to the member by the
     lessor or his agent.
        (d)  Relief granted to lessor.--Upon application by the
     lessor to the appropriate court of common pleas prior to the
     termination provided for in this section, any relief granted by
     this section shall be subject to such modifications or
     restrictions as, in the opinion of the court, justice and equity
     may require in the circumstances. This section does not prohibit
     the forfeiture, in whole or in part, of a security or damage
     deposit paid by the member when the forfeiture is authorized by
     law and the lessor demonstrates that the forfeiture of the
     deposit is necessary to pay for actual damages to the premises
     or tangible personal property arising during the period prior to
     termination of the lease when the premises or tangible personal
     property were under the care, custody and control of the member
     or his family.
        (e)  Memberships subject to termination.--A member of the
     Pennsylvania National Guard or other reserve component of the
     armed forces of the United States, as described in subsection
     (a), may terminate without cost or penalty any membership or
     similar obligation incurred prior to the member's entry on
     active duty in a health club, fitness center, country club,
     outdoor or indoor recreational organization or similar
     organization where periodic payments are required to maintain
     membership, or the member, at his option, may suspend his
     periodic payments during his period of active service and shall
     be readmitted to active membership without payment of any
     initiation or other initial membership fee upon release from
     active service. The notice described in subsection (c) shall be
     sufficient for a member to notify the club or organization of
     the termination or suspension of membership.
      § 7316.  Maximum rates of interest and scheduling of debts.
        (a)  Applicability.--This section shall apply to members of
     the Pennsylvania National Guard who are called or ordered to
     active duty with the armed forces of the United States, other
     than active duty for training, or to State active duty under
     this title, and members of other reserve components who are
     called or ordered to active duty with the armed forces of the
     United States, other than active duty for training, when the
     period of active duty or State active duty is 30 consecutive
     days or more.
        (b)  Maximum rates of interest.--No obligation or liability
     bearing interest at a rate in excess of the rate established
     under section 206 of the Soldiers' and Sailors' Civil Relief Act
     of 1940 (54 Stat. 1178, 50 U.S.C. App. § 526), as may be amended
     from time to time, incurred by a person in military service, as
     described in subsection (a), shall, during any part of the
     period of service which occurs after the enactment of this
     section, bear interest at a rate in excess of the rate under
     section 206, calculated as an annual percentage rate in
     accordance with applicable laws and regulations, unless, in the
     opinion of the court, upon application thereto by the obligee,
     the ability of the person in the military service to pay
     interest upon the obligation or liability at a rate in excess of
     the rate under section 206 is not materially affected by reason
     of service, in which case the court may make the order as in its
     opinion may be just.
        (c)  Recalculation of repayment schedule.--Upon the reduction
     of the annual rate of interest pursuant to this section, there
     shall be a corresponding and proportionate reduction of the
     amount of any periodic payments made to satisfy the obligation
     based on a recalculation of the repayment schedule with the same
     repayment frequency and an interest rate equal to the rate
     established under section 206 of the Soldiers' and Sailors'
     Civil Relief Act of 1940, amortized over the original term of
     the loan.
        (d)  Rescheduling of debt payments.--When a member's income
     is materially reduced as a result of his being called or ordered
     to active duty, the member, his spouse or his agent or attorney-
     in-fact may apply to his creditors for a rescheduling of his
     debt payments to take into account the material reduction in his
     income. The member, his spouse or his agent or attorney-in-fact
     shall provide the creditor with a statement of his income prior
     to being called or ordered to active duty and his income
     thereafter. Based on proof of a material reduction in income,
     the creditor shall thereafter adjust or reschedule the monthly
     or other periodic payments of the member. Nothing in this
     subsection shall be construed to relieve a member of the
     obligation to repay the principal of his debt after his release
     or discharge from active duty and restoration of his income at
     periodic payments equal to those in effect prior to activation.
        (e)  Interest.--As used in this section, the term "interest"
     includes service charges, renewal fees, fees or any other
     charges, except bona fide insurance, in respect of the
     obligation or liability.
      § 7317.  Deferred motor vehicle insurance coverage.
        (a)  Applicability.--This section shall apply to members of
     the Pennsylvania National Guard who are called or ordered to
     active duty with the armed forces of the United States, other
     than active duty for training, or to State active duty under
     this title, and members of other reserve components who are
     called or ordered to active duty with the armed forces of the
     United States, other than active duty for training, when the
     period of active duty or State active duty is 30 consecutive
     days or more.
        (b)  Deferral of coverage.--A member of the Pennsylvania
     National Guard or other reserve component of the armed forces of
     the United States, as described in subsection (a), may defer
     without cost or penalty motor vehicle insurance coverage during
     the period of active duty on one or more vehicles owned by the
     member, either individually or jointly with another person,
     provided the member certifies to the insurer the vehicle will
     not be operated during his absence on active duty, and, if a
     motor vehicle serves as collateral for a loan, the member shall
     continue to insure it against the risks of property damage and
     theft as required by the lender.
        (c)  Limited exemption.--Any person described in subsection
     (a) shall have the same limited exemption from financial
     responsibility requirements as established in 75 Pa.C.S. §
     1786(d)(2) (relating to required financial responsibility).
        (d)  Refund or crediting of prepaid premiums.--The insurer
     shall, at the election of the member, refund premiums paid for
     coverage during the period of deferral or credit such premiums
     to coverage in effect after the end of the deferral period.
        (e)  Reinstatement of deferred coverage.--Upon the member's
     release or discharge from active duty, the insurer shall, upon
     notice, reinstate the member's coverage at the rates then in
     effect.
        Section 2.  This act shall take effect immediately.

     APPROVED--The 16th day of April, A. D. 1992.

     ROBERT P. CASEY