409.3
. (a) A service member may, at any time during his or her most
current period of military service or within six months thereafter,
petition a court for relief in respect of any obligation or liability
incurred by the service member before the effective date of the
orders for his or her most current period of military service or in
respect of any tax or assessment whether falling due before or during
his or her most current period of military service.
(b) The court shall set a hearing on the petition within 25 days
from the date the petition is filed, unless the court shows good
cause for extending the date of the hearing. The petition shall be
served at least 10 days before the hearing. The respondent shall file
and serve a response to the petition at least five days before the
hearing.
(c) The court shall not charge a filing fee or court costs for a
petition filed pursuant to this section.
(d) If, after notice and hearing, the court finds the ability of
the service member to comply with the terms of any such obligation or
liability, or to pay any such tax or assessment, has been materially
affected by reason of his or her most current period of military
service as defined in this chapter, the court may grant the following
relief:
(1) In the case of an obligation payable in installments under a
contract for the purchase of real estate, or secured by a mortgage or
other instrument in the nature of a mortgage upon real estate, a
deferment of the payments due on the obligation for a period of time
equal to the period of military service, even if the service member
requests the relief after the start of his or her current period of
military service, subject to subdivision (a), and even if such
payments extend beyond the termination of the period of military
service. The obligation shall be extended for the period of time that
payments were deferred, and the deferred payments shall be paid in
equal installments during the combined period at the rate of interest
on the unpaid balance as is prescribed in the contract, or other
instrument evidencing the obligation, for installments paid when due,
and subject to any other terms as may be just.
(2) In the case of any other obligation, liability, tax, or
assessment, a deferment of any payments on the obligation during the
service member's period of military service and, from the date of
termination of the period of military service or from the date of
application if made after the service, for a period of time equal to
the period of military service of the applicant or any part of that
period, subject to payment of the balance of principal and
accumulated interest due and unpaid at the date of termination of the
period of military service or the date of application, as the case
may be, in equal periodic installments during the extended period at
the rate of interest as may be prescribed for the obligation,
liability, tax, or assessment, if paid when due, and subject to any
other terms as may be just.
(e) (1) When any court has granted a deferment as provided in this
section, no fine or penalty shall accrue during the period the terms
and conditions of the deferment are complied with by reason of
failure to comply with the terms or conditions of the obligation,
liability, tax, or assessment in respect of which the deferment was
granted, including penalties on the nonpayment of principal or
interest during this period. Interest shall not be charged or
accumulated on the principal or interest on which the payment was
delayed. Foreclosure or repossession of property on which payment has
been deferred shall not take place during the period specified in
this section.
(2) If a person has charged or accrued a fine or penalty in
violation of paragraph (1), that person shall be liable for actual
damages, reasonable attorney's fees, and costs incurred by the
injured party as a result of the violation.
(f) Notwithstanding subdivision (d), any mortgage payments
deferred pursuant to this section are due and payable upon the
earlier of the following:
(1) The sale of the property or other event specified in the
documents creating the obligation permitting the lender to accelerate
the loan, other than a deferment of payments authorized by this
section.
(2) Further encumbrance of the property other than for
preservation or protection of the property.
(3) The maturity of the obligation, as defined under the terms of
the documents creating the obligation, or, if applicable, as extended
pursuant to subdivision (d).
(g) This section shall not relieve a service member with a
mortgage subject to an impound account for the payment of property
taxes, special assessments, mortgage insurance, and hazard insurance
from making monthly payments of an amount that is at least sufficient
to pay these amounts, unless the borrower and lender agree to a
lesser amount.
(h) This section shall not preclude a service member from making
payments toward the mortgage payments deferred before the occurrence
of any of the events in subdivision (d).
(i) This section shall not permit a service member ordered to
military service to obtain a delay, deferment, or stay on an
obligation to pay child support. This section shall not preclude a
service member ordered to military service from seeking a
modification of an order to pay child support due to a reduction in
income resulting from the order to service, or from seeking the
imposition of the maximum interest rate provided by this chapter on
arrearages in child support payments existing before the order to
service.