2005 California Military and Veterans Code Sections 800-811 CHAPTER 3. THE CALIFORNIA MILITARY FAMILIES FINANCIAL RELIEF ACT

800.  (a) Subject to subdivision (b), in addition to any other
benefits provided by law and to the extent permitted by federal law,
any member of the United States Military Reserve or the National
Guard of this state who is called to active duty after the enactment
of this chapter as a part of the Iraq and Afghanistan conflicts may
defer payments on any of the following obligations while serving on
active duty:
   (1) An obligation secured by a mortgage or deed of trust.
   (2) Credit card as defined in Section 1747.02 of the Civil Code.
   (3) Retail installment contract as defined in Section 1802.6 of
the Civil Code.
   (4) Retail installment account, installment account, or revolving
account as defined in Section 1802.7 of the Civil Code.
   (5) Up to two loans subject to the Automobile Sales Finance Act
(Chapter 2b (commencing with Section 2981) of Part 4 of Division 3 of
Title 14 of the Civil Code).
   (6) Any payment of property tax or any special assessment of
in-lieu property tax imposed on real property which is assessed on
residential property owned by the reservist and used as that
reservist's primary place of residence on the date the reservist was
ordered to active duty.
   (b) In order for an obligation or liability of a reservist to be
subject to the provisions of this chapter, the reservist or the
reservist's designee shall deliver to the lender:
   (1) A letter signed by the reservist, under penalty of perjury,
requesting a deferment of financial obligations.
   (2) If required by a financial institution, proof that the
reservist's employer does not provide continuing income to the
reservist while the reservist is on active military duty, including
the reservist's military pay, of more than 90 percent of the
reservist's monthly salary and wage income earned before the call to
active duty.
   (c) Upon request of the reservist or the reservist's dependent or
designee and within five working days of that request, if applicable,
the employer of a reservist shall furnish the letter or other
comparable evidence showing that the employer's compensation policy
does not provide continuing income to the reservist, including the
reservist's military pay, of more than 90 percent of the reservist's
monthly salary and wage income earned before the call to active duty.
   (d) The deferral period on financial obligations shall be the
lesser of 180 days or the period of active duty plus 60 calendar days
and shall apply only to those payments due subsequent to the notice
provided to a lender as provided in subdivision (b).
   (e) If a lender defers payments on a closed end credit obligation
or an open-end credit obligation with a maturity date, pursuant to
this chapter, the lender shall extend the term of the obligation by
the amount of months the obligation was deferred.
   (f) If a lender defers payments on an open-end credit obligation
pursuant to this chapter, the lender may restrict the availability of
additional credit with respect to that obligation during the term of
the deferral.
801.  For purposes of this chapter, "mortgage" means an obligation
secured by a mortgage or deed of trust, and is limited to an
obligation secured by a mortgage or deed of trust for residential
property owned by the reservist and used as that reservist's primary
place of residence on the date the reservist was ordered into active
duty.
802.  (a) Notwithstanding subdivisions (e) and (f) of Section 800,
any mortgage payments delayed pursuant to Section 800 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 deferral of payments authorized by Section
800.
   (2) Further encumbrance 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 (e) of Section 800.
   (b) Nothing in this section relieves a reservist 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 which is at least sufficient to
pay these amounts, unless the borrower and lender agree to a lesser
amount.
   (c) Nothing in this chapter shall preclude a reservist from making
payments toward the mortgage payments deferred prior to the
occurrence of any of the events in subdivision (a).
803.  For purposes of this chapter, "reservist" means a member of
the United States Military Reserve or National Guard of this state
called to active duty as a result of the Iraq conflict pursuant to
the Authorization for Use of Military Force Against Iraq Resolution
of 2002 (Public Law 107-243) or the Afghanistan conflict pursuant to
Presidential Order No. 13239.
804.  During the period specified in Section 800, the reservist may
defer the payment of principal and interest on the specified
obligations. No penalties shall be imposed on the nonpayment of
principal or interest during this period. No interest shall be
charged or accumulated on the principal or interest on which the
payment was delayed. No foreclosure or repossession of property on
which payment has been deferred shall take place during the period
specified in Section 800.
805.  Subject to subdivisions (e) and (f) of Section 800, a stay,
postponement, or suspension under this chapter of the payment of any
tax, fine, penalty, insurance premium, or other civil obligation or
liability of a person in military service shall not provide the basis
for affecting credit ratings, denial or revocation of credit, or a
change by the lender in the terms of an existing credit arrangement.
806.   Any insurer, which was providing health or medical insurance
to a reservist at the time the reservist was ordered to active duty,
shall reinstate the health or medical insurance without waiting
periods or exclusion of coverage for preexisting conditions.
807.   (a) The holder of a loan or retail installment sales contract
with respect to which the debtor has purchased prepaid credit
disability insurance shall give notice to the debtor not less than 30
days before the expiration date of the insurance that the debtor
will not be protected during the period between that expiration date
and the deferred maturity date of the loan or contract unless the
insurance is extended. The debtor may, at his or her option, direct
the holder to add the amount of the additional premium to the unpaid
balance of the loan or contract.
   (b) The holder of an open-ended loan or retail installment account
with respect to which the debtor has purchased credit disability
insurance with premiums payable monthly together with the installment
payments on the loan or the account shall give notice to the debtor
that the debtor will not be protected by the insurance during the
period specified in Section 800 unless the debtor elects to continue
payment of premiums during that period. The debtor may, at his or her
option, direct the holder to add the amount of those premiums to the
unpaid balance of the account.
808.   (a) During the period specified in Section 800, the reservist
may defer payments for leased vehicles without breach of the lease
or the foreclosure or repossession of the vehicle. If a lender defers
payments pursuant to this section, the lender shall extend the term
of the lease by the amount of months the lease was deferred.
   (b) For the purposes of this chapter, "vehicle" means a vehicle as
defined in Section 670 of the Vehicle Code.
809.   This chapter shall not apply to any active duty voluntarily
served after the close of the Iraq or Afghanistan conflicts or to any
reservist on active duty as part of the Iraq or Afghanistan
conflicts prior to the effective date of this measure.
810.   In those instances where a financial obligation covered by
this chapter is sold, any requirement to defer payments as specified
in this chapter transfers to the purchaser of the obligation.
811.   This chapter applies only to an obligation specified in this
chapter that was incurred prior to the date that a member of the
United States Military Reserve or National Guard of this state was
called to active duty as part of the Iraq and Afghanistan conflicts.