Article 1

Article 1

50 U. S. Code Appendix
War and National Defense Act
Oct 17, 1940, CH. 888, 54 STAT. 1178
Article 1 General Provisions

Sec.
510. Purpose; suspension of enforcement of civil liabilities.
511. Definitions.
512. Territorial application; jurisdiction of courts; form of procedure.
513. Protection of persons secondarily liable.
514. Extension of benefits to citizens serving with forces of war allies.
515. Notice of benefits to persons in and persons entering military service.
516. Extension of benefits to persons ordered to report for induction or military service.
517. Effect on rights, remedies, etc., pursuant to written agreements entered after commencement of military service.
518. Exercise of rights under Act not to affect certain future financial transactions.

Sec. 510. Purpose; suspension of enforcement of civil liabilities

In order to provide for, strengthen, and expedite the national defense under the emergent conditions which are threatening the peace and security of the United States and to enable the United States the more successfully to fulfill the requirements of the national defense, provision is made to suspend enforcement of civil liabilities, in certain cases, of persons in the military service of the United States in order to enable such persons to devote their entire energy to the defense needs of the Nation, and to this end the following provisions are made for the temporary suspension of legal proceedings and transactions which may prejudice the civil rights of persons in such service during the period herein specified over which this Act (sections 501 to 593 of this Appendix) remains in force.
SOURCE- (Oct. 17, 1940, ch. 888, art. I, Sec. 100, 54 Stat. 1179.)

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Sec. 511. Definitions

(1) The term "person in the military service", the term "persons in military service", and the term "persons in the military service of the United States", as used in this Act (sections 501 to 593 of this Appendix), shall include the following persons and not other: All members of the Army of the United States, the United States Navy, the Marine Corps, the Air Force, the Coast Guard, and all officers of the Public Health Service detailed by proper authority for duty either with the Army or the Navy. The term "military service", as used in this Act (said sections), shall signify Federal service on active duty with any branch of service heretofore referred to or mentioned as well as training or education under the supervision of the United States preliminary to induction into the military service. The terms "active service" or "active duty" shall include the period during which a person in military service is absent from duty on account of sickness, wounds, leave, or other lawful cause.

(2) The term "period of military service", as used in this Act (said sections), means, in the case of any person, the period beginning on the date on which the person enters active service and ending on the date of the person's release from active service or death while in active service, but in no case later than the date when this Act (said sections) ceases to be in force.

(3) The term "person", when used in this Act (said sections), with reference to the holder of any right alleged to exist against a person in military service or against a person secondarily liable under such right, shall include individuals, partnerships, corporations, and any other forms of business association.

(4) The term "court", as used in this Act (said sections), shall include any court of competent jurisdiction of the United States or of any State, whether or not a court of record.
SOURCE- (Oct. 17, 1940, ch. 888, art. I, Sec. 101, 54 Stat. 1179; Oct. 24, 1972, Pub. L. 92-540, title V, Sec. 504(1), 86 Stat. 1098; Mar. 18, 1991, Pub. L. 102-12, Sec. 9(1), 105 Stat. 38.)

AMENDMENTS

1991 - Par. (1). Pub. L. 102-12, Sec. 9(1)(A), inserted "the Air Force," after "the Marine Corps,".

Par. (2). Pub. L. 102-12, Sec. 9(1)(B), substituted "means, in the case of any person, the period beginning on the date on which the person enters active service and ending on the date of the person's release" for "shall include the time between the following dates: For persons in active service at the date of approval of this Act it shall begin with the date of approval of this Act; for persons entering active service after the date of this Act, with the date of entering active service. It shall terminate with the date of discharge".

1972 - Par. (1). Pub. L. 92-540 inserted provision relating to "person in the military service".
EFFECTIVE DATE OF 1972 AMENDMENT

Amendment by Pub. L. 92-540 effective 90 days after Oct. 24, 1972, see section 601(b) of Pub. L. 92-540, set out as a note under section 4101 of Title 38, Veterans' Benefits.

TRANSFER OF FUNCTIONS

Coast Guard transferred to Department of Transportation, and functions, powers, and duties relating to Coast Guard of Secretary of the Treasury and of all other officers and offices of Department of the Treasury transferred to Secretary of Transportation, by Pub. L. 89-670, Sec. 6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) of Pub. L. 89-670, however, provided that notwithstanding such transfer of functions, Coast Guard shall operate as part of Navy in time of war or when President directs as provided in section 3 of Title 14, Coast Guard. See section 108 of Title 49, Transportation.

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, Sec. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Functions of Coast Guard, and Commandant of Coast Guard, excepted from transfer when Coast Guard is operating as part of Navy under sections 1 and 3 of Title 14, Coast Guard.

Functions of Public Health Service, Surgeon General of Public Health Service, and all other officers and employees of Public Health Service, and functions of all agencies of or in Public Health Service transferred to Secretary of Health, Education, and Welfare by Reorg. Plan No. 3 of 1966, eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, set out in the Appendix to Title 5, Government Organization and Employees. Secretary of Health, Education, and Welfare redesignated Secretary of Health and Human Services by section 3508(b) of Title 20, Education.

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Sec. 512. Territorial application; jurisdiction of courts; form of procedure

(1) The provisions of this Act (sections 501 to 593 of this Appendix) shall apply to the United States, the several States and Territories, the District of Columbia, and all territory subject to the jurisdiction of the United States and to proceedings commenced in any court therein, and shall be enforced through the usual forms of procedure obtaining in such courts or under such regulations as may be by them prescribed.

(2) When under this Act (sections 501 to 593 of this Appendix), any application is required to be made to a court in which no proceeding has already been commenced with respect to the matter, such application may be made to any court.

SOURCE- (Oct. 17, 1940, ch. 888, art. I, Sec. 102, 54 Stat. 1179; Mar. 18, 1991, Pub. L. 102-12, Sec. 9(2), 105 Stat. 39.)

AMENDMENTS

1991 - Par. (1). Pub. L. 102-12 struck out provision including the Philippine Islands while under sovereignty of the United States within territories to which this Act applies.

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Sec. 513. Protection of persons secondarily liable

(1) Whenever pursuant to any of the provisions of this Act (sections 501 to 593 of this Appendix) the enforcement of any obligation or liability, the prosecution of any suit or proceeding, the entry or enforcement of any order, writ, judgment, or decree, or the performance of any other act, may be stayed, postponed, or suspended, such stay, postponement, or suspension may, in the discretion of the court, likewise be granted to sureties, guarantors, endorsers, accommodation makers, and others, whether primarily or secondarily subject to the obligation or liability, the performance or enforcement of which is stayed, postponed, or suspended.

(2) When a judgment or decree is vacated or set aside in whole or in part, as provided in this Act (sections 501 to 593 of this Appendix), the same may, in the discretion of the court, likewise be set aside and vacated as to any surety, guarantor, endorser, accommodation maker, or other person whether primarily or secondarily liable upon the contract or liability for the enforcement of which the judgment or decree was entered.

(3) Whenever, by reason of the military service of a principal upon a criminal bail bond the sureties upon such bond are prevented from enforcing the attendance of their principal and performing their obligation the court shall not enforce the provisions of such bond during the military service of the principal thereon and may in accordance with principles of equity and justice either during or after such service discharge such sureties and exonerate the bail.

(4) Nothing contained in this Act (sections 501 to 593 of this Appendix) shall prevent a waiver in writing of the benefits afforded by subsections (1) and (2) of this section by any surety, guarantor, endorser, accommodation maker, or other person whether primarily or secondarily liable upon the obligation or liability, except that no such waiver shall be valid unless it is executed as an instrument separate from the obligation or liability in respect of which it applies, and no such waiver shall be valid after the beginning of the period of military service if executed by an individual who subsequent to the execution of such waiver becomes a person in military service, or if executed by a dependent of such individual, unless executed by such individual or dependent during the period specified in section 106 (section 516 of this Appendix).

SOURCE- (Oct. 17, 1940, ch. 888, art. I, Sec. 103, 54 Stat. 1179; Oct. 6, 1942, ch. 581, Sec. 2, 3, 56 Stat. 769; Mar. 18, 1991, Pub. L. 102-12, Sec. 9(3), 105 Stat. 39.)

AMENDMENTS

1991 - Par. (4). Pub. L. 102-12, which directed that "after the date of the enactment of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942" be struck out, was executed by striking out "after the date of enactment of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942" before "no such waiver" to reflect the probable intent of Congress.

1942 - Subsec. (1). Act Oct. 6, 1942, Sec. 2(a), substituted "accommodation makers, and others, whether primarily or secondarily" for "and others".

Subsec. (2). Act Oct. 6, 1942, Sec. 2(b), substituted "accommodation maker, or other person whether primarily or secondarily" for "or other person".

Subsecs. (3), (4). Act Oct. 6, 1942, Sec. 3, added subsecs. (3) and (4).

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Sec. 514. Extension of benefits to citizens serving with forces of war
allies


Persons who serve with the forces of any nation with which the United States may be allied in the prosecution of any war in which the United States engages while this Act (sections 501 to 593 of this Appendix) remains in force and who immediately prior to such service were citizens of the United States shall, except in those cases provided for in section 512 (section 572 of this Appendix), be entitled to the relief and benefits afforded by this Act (said sections) if such service is similar to military service as defined in this Act (said sections), unless they are dishonorably discharged therefrom, or it appears that they do not intend to resume United States citizenship.

SOURCE- (Oct. 17, 1940, ch. 888, art. I, Sec. 104, as added Oct. 6, 1942, ch. 581, Sec. 4, 56 stat. 770.)

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Sec. 515. Notice of benefits to persons in and persons entering military
service


The Secretary of Defense and the Secretary of Transportation, with respect to the Coast Guard when it is not operating as a service in the Navy, shall ensure the giving of notice of the benefits accorded by this Act (sections 501 to 593 of this Appendix) to persons in and to persons entering military service. The Director of Selective Service shall cooperate with the Secretary of Defense and the Secretary of Transportation in carrying out the provisions of this section.

SOURCE- (Oct. 17, 1940, ch. 888, art. I, Sec. 105, as added Oct. 6, 1942, ch. 581, Sec. 4, 56 Stat. 770; amended Mar. 18, 1991, Pub. L. 102-12, Sec. 9(4), 105 Stat. 39.)

AMENDMENTS

1991 - Pub. L. 102-12 substituted "The Secretary of Defense and the Secretary of Transportation, with respect to the Coast Guard when it is not operating as a service in the Navy, shall ensure" for "The Secretary of War and the Secretary of the Navy shall make provision, in such manner as each may deem appropriate for his respective Department, to insure" in first sentence and "the Secretary of Defense and the Secretary of Transportation" for "the Secretary of War and the Secretary of the Navy" in second sentence.

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Sec. 516. Extension of benefits to persons ordered to report for
induction or military service


Any person who has been ordered to report for induction under the Military Selective Service Act (50 U.S.C. App. 451 et seq.) shall be entitled to the relief and benefits accorded persons in military service under articles I, II, and III of this Act (sections 510 to 518, 520 to 527, and 530 to 536 of this Appendix) during the period beginning on the date of receipt of such order and ending on the date upon which such person reports for induction; and any member of a reserve component of the Armed Forces who is ordered to report for military service shall be entitled to such relief and benefits during the period beginning on the date of receipt of such order and ending on the date upon which such member reports for military service or the date on which the order is revoked, whichever is earlier.

SOURCE- (Oct. 17, 1940, ch. 888, art. I, Sec. 106, as added Oct. 6, 1942, ch. 581, Sec. 4, 56 Stat. 770; amended Mar. 18, 1991, Pub. L. 102-12, Sec. 9(5), 105 Stat. 39.)

REFERENCES IN TEXT-- The Military Selective Service Act, referred to in text, is act June 24, 1948, ch. 625, 62 Stat. 604, as amended, which is classified principally to section 451 et seq. of this Appendix. For complete classification of this Act to the Code, see note set out under section 451 of this Appendix and Tables.

AMENDMENTS

1991 - Pub. L. 102-12 substituted "Military Selective Service Act (50 U.S.C. App. 451 et seq.)" for "Selective Training and Service Act of 1940, as amended,", "a reserve component of the Armed Forces" for "the Enlisted Reserve Corps", and "such member reports for military service or the date on which the order is revoked, whichever is earlier" for "he reports for such service".

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Sec. 517. Effect on rights, remedies, etc., pursuant to written
agreements entered after commencement of military service


Nothing contained in this Act (sections 501 to 593 of this Appendix) shall prevent -

(a) the modification, termination, or cancellation of any contract, lease, or bailment or any obligation secured by mortgage, trust deed, lien, or other security in the nature of a mortgage, or

(b) the repossession, retention, foreclosure, sale, forfeiture, or taking possession of property which is security for any obligation or which has been purchased or received under a contract, lease, or bailment, pursuant to a written agreement of the parties thereto (including the person in military service concerned, or the person to whom section 106 (section 516 of this Appendix) is applicable, whether or not such person is a party to the obligation), or their assignees, executed during or after the period of military service of the person concerned or during the period specified in section 106 (section 516 of this Appendix).

SOURCE- (Oct. 17, 1940, ch. 888, art. I, Sec. 107, as added Oct. 6, 1942, ch. 581, Sec. 4, 56 Stat. 770.)

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Sec. 518. Exercise of rights under Act not to affect certain future
financial transactions


Application by a person in military service for, or receipt by a person in military service of, a stay, postponement, or suspension pursuant to the provisions of this Act (sections 501 to 593 of this Appendix) in the payment of any tax, fine, penalty, insurance premium, or other civil obligation or liability of that person shall not itself (without regard to other considerations) provide the basis for any of the following:

(1) A determination by any lender or other person that such person in military service is unable to pay such civil obligation or liability in accordance with its terms.

(2) With respect to a credit transaction between a creditor and such person in military service -

(A) a denial or revocation of credit by the creditor;

(B) a change by the creditor in the terms of an existing credit arrangement; or

(C) a refusal by the creditor to grant credit to such person in substantially the amount or on substantially the terms requested.

(3) An adverse report relating to the creditworthiness of such person in military service by or to any person or entity engaged in the practice of assembling or evaluating consumer credit information.

(4) A refusal by an insurer to insure such person.

SOURCE- (Oct. 17, 1940, ch. 888, art. I, Sec. 108, as added Mar. 18, 1991, Pub. L. 102-12, Sec. 7, 105 Stat. 38.)



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