Creates New Jersey Servicemembers' Civil Relief Act.

S3527

SENATE, No. 3527

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� JAMES BEACH

District 6 (Burlington and Camden)

Senator� CARMEN F. AMATO, JR.

District 9 (Ocean)

Co-Sponsored by:

Senators Space and Diegnan

SYNOPSIS

���� Creates New Jersey Servicemembers� Civil Relief Act.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

creating the New Jersey Servicemembers� Civil
Relief Act, supplementing Title 38A of the New Jersey Statutes, and repealing
P.L.1979, c.317.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� This act shall be known
and may be referred to as the �New Jersey Servicemembers� Civil Relief Act.�

���� 2.��� The Legislature finds
and declares that the civil and property rights of persons serving on active
duty in the Armed Forces of the United States and the New Jersey National Guard
should be maintained, secured, and protected as a matter of public policy of
this State.� Such rights should be protected by this State, at least, to the
extent that those rights are protected by federal law.� To accomplish these
purposes, the provisions of this act shall be liberally construed.

���� 3.��� As used in this act:

���� �court� means any court or
administrative agency of the State, or a subdivision thereof, whether or not a
court or administrative agency of record.

���� �insurer� means a corporation,
partnership, or other form of association which secures or provides insurance
under a policy.

���� �legal representative of a
servicemember� means an attorney acting on the behalf of a servicemember or an
individual possessing power of attorney.

���� �military service� means duty
by any person in the active military service of the United States or active
duty in the military service of the State pursuant to an order of the Governor
issued pursuant to law.� The term also means service by a United
States citizen in the forces of a nation with which the United States is allied in the prosecution of a war or military action.

���� �person� means individuals,
partnerships, corporations, and any other forms of business association when
used herein with reference to the holder of any right alleged to exist against
a servicemember, or against a person secondarily liable under such right.

���� �servicemember� means a person
in military service.� Whenever the term �servicemember� is used, it shall be
treated as including a reference to a legal representative of a servicemember.

���� 4.��� a.� When the enforcement
of an obligation or liability, the prosecution of a suit or proceeding, the
entry or enforcement of an order, writ, judgment, or decree, or the performance
of an act may be stayed, postponed, or suspended pursuant to a provision of
this act, such stay, postponement, or suspension may likewise be granted to a
surety, guarantor, endorser, and other subject to the obligation, liability,
performance, or enforcement, at the discretion of the court.

���� b.��� When a judgment or
decree is vacated or set aside, in whole or in part, as provided in this act,
the judgment or decree may likewise be set aside and vacated as to a surety,
guarantor, endorser, accommodation maker, or other person whether primarily or
secondarily liable upon the obligation or enforcement, at the discretion of the
court.

���� c.���� Nothing contained in
this act shall prevent a waiver in writing of the benefits afforded by
subsections a. and b. of this section by a surety, guarantor, endorser,
accommodation maker, or other person whether primarily or secondarily liable
upon the obligation or liability.� A waiver shall not be valid unless it is
executed as an instrument separate from the obligation or liability to which it
applies.� A waiver shall not be valid after the beginning of the period of
active duty if executed by a servicemember who is called to active duty
subsequent to the execution of such waiver.

���� 5.��� The rights and
protections of this act shall extend to:

���� a.���� A member of a reserve
component who is ordered to report for military service during the period
beginning on the date of the member�s receipt of the order and ending either on
the date on which the member reports for military service or the date on which
the order is revoked.

���� b.��� A person who has been
ordered to report for induction under the �Military Selective Service Act,� 50
U.S.C. App. s.451 et seq., during the period beginning on the date of receipt
of the order for induction and ending either on the date on which the person
reports for induction or the date on which the order is revoked.

���� c.���� A dependent of a
servicemember who, upon application to a court, demonstrates that the
dependent�s ability to comply with a lease, contract, bailment, or other
obligation is materially affected by reason of the servicemember�s military
service.

���� 6.��� Application by a
servicemember for, or receipt by such a person of, a stay, postponement, or
suspension pursuant to this act in the payment of a tax, fine, penalty,
insurance premium, or other civil obligation or liability shall not provide the
sole basis for any of the following:

���� a determination by a lender or
other person that the servicemember is unable to pay the civil obligation or
liability in accordance with its terms;

���� a denial or revocation of
credit by a creditor, a change by a creditor in the terms of an existing credit
arrangement, or a refusal by a creditor to grant credit to the servicemember in
substantially the amount or on substantially the terms requested;

���� an adverse report relating to
the creditworthiness of the servicemember by or to a person engaged in the
practice of assembling or evaluating consumer credit information;

���� a refusal by an insurer to
insure the servicemember;

���� an annotation in the record of
a servicemember by a creditor or a person engaged in the practice of assembling
or evaluating consumer credit information, identifying the servicemember as a
member of the National Guard or a reserve component; or

���� a change in the terms offered
or conditions required for the issuance of insurance.

���� 7.��� a.� When a servicemember
is involved as a plaintiff or defendant in an action or proceeding in a court
commenced before or during the period of active duty or within 60 days
thereafter, the court shall grant a stay of proceedings for a minimum period of
90 days upon application of counsel, or on the court�s own motion, if the court
determines that there may be a defense to the action and a defense cannot be
presented without the presence of the defendant or counsel, after due
diligence, has been unable to contact the defendant or otherwise determine if a
meritorious defense exists.

���� b.��� A servicemember may
apply, during military service or within 180 days thereafter, to a court for
relief from an obligation or liability incurred by the servicemember before
such military service or from a tax or assessment falling due before or during
such military service.� If the ability of a servicemember to comply with the
terms of such obligation, liability, tax, or assessment has been materially
affected by reason of military service, the court may stay the enforcement
thereof.

���� c.���� This section shall
apply unless the court determines that the defendant's ability to conduct a
defense or to comply with the judgment or order entered or sought, or the
plaintiff's ability to prosecute the action, or the servicemember�s ability to
comply with the obligation is not materially affected by reason of the military
service of the servicemember.

���� 8.��� a.� If the defendant
does not appear in a civil action or proceeding commenced in any court, the
plaintiff may file an affidavit setting forth facts to show that the defendant
is not serving on active duty.� The affidavit shall be filed within 20 days before
the entry of a judgment or final order.� If the plaintiff is unable to file
such an affidavit, the plaintiff may file an affidavit to show either that the
defendant is on active duty or that the plaintiff is not able to determine if
the defendant is on active duty.� If no affidavit is filed to show that the
defendant is not on active duty, a judgment or final order shall not be entered
without first securing an order of court directing such entry.� Such an order
shall not be made if the defendant is on active duty until after the court
appoints an attorney to represent the defendant and protect the defendant's
interest.

���� b.��� In an action or
proceeding in which a servicemember is a party, the court may appoint an
attorney to represent the person if such person does not personally appear
therein or is not represented by an authorized attorney.� An attorney appointed
under this act to protect a servicemember shall not have the power to waive a
right of the person for whom the attorney is appointed or bind the person by
the attorney's acts.

���� c.���� Unless it appears that
the defendant is not on active duty, the court may require that the plaintiff
file a bond, approved by the court and conditioned to indemnify the defendant,
as a condition before judgment or final order is entered against loss or damage
that the defendant, if on active duty, may suffer by reason of a judgment or
final order should the judgment or final order be thereafter set aside in whole
or in part.� The court may make such other and further order or enter such
judgment as in its opinion may be necessary to protect the rights of a
defendant under this act.

���� d.��� If a default judgment is
entered in an action covered by this section against a servicemember during the
servicemember�s period of military service or within 60 days thereafter, the
court entering the judgment shall, upon application by or on behalf of the
servicemember, reopen the judgment for the purpose of allowing the
servicemember to defend the action if it appears that the servicemember was
materially affected by reason of that military service in making a defense of
the action and has a meritorious or legal defense to the action or some part of
the action.� Application to reopen the order may be made by a servicemember not
later than 90 days after the termination of active duty.

���� e.���� Vacating, setting
aside, or reversing a judgment or final order because of a provision of this
act shall not impair a right or title acquired by a bona fide purchaser for
value under such judgment or order.

���� f.���� A person who knowingly
makes or uses a false affidavit for the purposes of this section shall be
guilty of perjury.

���� 9.��� When an action for
compliance with the terms of a contract is stayed pursuant to this act, no fine
or penalty shall accrue by reason of failure to comply with the terms of such
contract during the period of such stay, and in any case where a person fails
to perform an obligation and a fine or penalty for such nonperformance is
incurred, a court may, on such terms as may be just, relieve against the
enforcement of such fine or penalty if it shall appear that the person who
would suffer by such fine or penalty was in the military service when the
penalty was incurred, and that by reason of such service the ability of such
person to pay or perform was thereby materially impaired.

���� 10.� In any action or
proceeding commenced in any court against a servicemember, before or during the
period of such service, or within 90 days thereafter, the court may on its own
motion and shall upon application to it by the servicemember, unless in the opinion
of the court the ability of the servicemember to comply with the judgment or
order entered or sought is not materially affected by reason of the
servicemember�s military service:

���� stay the execution of any
judgment or order entered against such person; and

���� vacate or stay any attachment
or garnishment of property, money, or debts in the hands of another, whether
before or after judgment.

���� 11.� Any stay of an action,
proceeding, attachment, or execution ordered by any court under the provisions
of this act may, except as otherwise provided, be ordered for the period of
military service and three months thereafter or any part of such period, and
subject to such terms as may be just, whether as to payment in installments of
such amounts and at such times as the court may fix or otherwise.� When the servicemember
is a codefendant with others, the plaintiff may nevertheless, by leave of
court, proceed against the others.

���� 12.� To the extent that it is
allowable by federal law, the period of military service shall not be included
in computing any period now or hereafter to be limited by any law, regulation
or order for the bringing of an action or proceeding in any court, board,
bureau, commission, department or other agency of government of this State or
any of its political subdivisions by or against a servicemember, or by or
against the servicemember�s heirs, executors, administrators, or assigns,
whether such cause of action or the right or privilege to institute such an
action or proceeding shall have accrued prior to or during the period of such
service, nor shall any part of such period which occurs after the effective date
of this act be included in computing any period now or hereafter provided by
any law for the redemption of real property sold or forfeited to enforce an
obligation, tax or assessment.

���� 13.� a.� An obligation or
liability incurred by a servicemember, or the servicemember and the
servicemember�s spouse jointly, before the servicemember enters military
service shall not bear interest at a rate in excess of six percent during the
period of military service or, in the case of an obligation or liability
consisting of a mortgage, trust deed, or other security in the nature of a
mortgage, during the period of military service and one year thereafter.� The
interest on an obligation or liability that would be incurred in excess of six
percent, if not for this subsection, is forgiven.� The amount of a periodic
payment due under the terms of an obligation or liability covered by this
subsection shall be reduced by the amount of the interest forgiven that is
allocable to the period for which such payment is made.

���� b.��� In order for the
provisions of subsection a. of this section to apply, the servicemember shall
provide to the creditor written notice, a copy of the military orders calling
the servicemember to military service, and, if applicable, a copy of any orders
further extending such military service, not later than 180 days after the date
of the servicemember�s termination or release from military service.� Upon
receipt, the creditor shall treat the debt in accordance with subsection a. of
this section effective as of the date on which the servicemember is called to
military service.

���� c.���� If, in the opinion of
the court, the ability of a servicemember to pay interest upon an obligation or
liability at a rate in excess of six percent is not materially affected by
reason of the servicemember�s military service, the court may grant a creditor
relief from the limitations of subsection a. of this section.

���� d.��� As used in this section,
the term �interest� includes service charges, renewal charges, fees, or any
other charges, except bona fide insurance, with respect to an obligation or
liability.

���� e.���� Whoever knowingly
violates subsection a. of this section shall be adjudged a disorderly person,
and shall be subject to a fine not to exceed $1,000, or imprisonment not to
exceed six months, or both.

���� 14.� a.� No eviction or
distress shall be made during the period of military service in respect to any
premises, occupied chiefly for dwelling purposes by the spouse, children, or
other dependents of a servicemember, for which the agreed rent does not exceed the
amount published pursuant to paragraph (3) of subsection (a) of section 531 of
the federal �Servicemembers� Civil Relief Act,� 50 U.S.C. App. s.501 et seq.,
except upon leave of court granted upon application therefore or granted in any
action or proceeding affecting the right of possession.

���� b.��� On any such application
or in any such action, the court may, on its own motion, and shall, upon
application, stay the proceedings for three months, unless in the opinion of
the court the ability of the tenant to pay the agreed rent is not materially
affected by reason of military service, or it may make such other order as may
be just.

���� c.���� A person who knowingly
takes part in an eviction or distress in violation of subsection a. of this
section, or attempts to do so, shall be adjudged a disorderly person, and shall
be subject to a fine not to exceed $1,000, or imprisonment not to exceed six
months, or both.

���� 15.� a. A lease that covers personal
property or premises occupied by a servicemember or the servicemember and the
servicemember�s dependent for dwelling, professional, business, agricultural,
or similar purposes, and was executed by or on behalf of a servicemember who
began service on active duty after the execution of the lease, may be
terminated by notice in writing delivered to the lessor, or the lessor's
grantee or the lessor's or grantee's agent, by the lessee at any time following
the beginning of the period of active duty, or in the case of a lease covering
personal property at any time after the 90th consecutive day of service.�
Termination of a lease providing for monthly payment of rent shall not be
effective until 30 days after the date on which the next rental payment is due,
and rent shall be payable until the date when the notice is delivered or
mailed.

���� b.��� For all other leases,
termination shall be effected on the last day of the month following the month
in which the notice is delivered or mailed, and an unpaid rental for the period
preceding termination shall be prorated.� A rental paid in advance for a period
succeeding termination shall be refunded by the lessor or the lessor's
assignee.

���� c.���� Upon application by the
lessor to the appropriate court prior to the termination period provided for in
the notice, relief granted in this section shall be subject to such
modifications or restrictions as, in the opinion of the court, justice and
equity may in the circumstances require.

���� Upon termination of the lease,
the former lessee and any co-signer shall have no further liability to the
lessor or the lessor's assignee, except that the lessee and any co-signer shall
be obligated to the lessor or assignee for any damages to the leased property.�
The lessor or lessor's assignee shall not impose any penalty or charge upon the
lessee or any co-signer on the lease for early termination of the lease.� This
paragraph shall apply whether or not the person is the sole signatory of the
lease.

���� The provisions of this section
which apply to any lease covering personal property become effective after
military service of more than 90 consecutive days.

���� d.��� A person who knowingly
seizes, holds, or detains the personal effects, clothing, furniture, or other
property of a person who has lawfully terminated a lease covered by this
section, or in any manner interferes with the removal of property from the
premises covered by such lease, for the purpose of subjecting or attempting to
subject such property to a claim for rent accruing subsequent to the date of
termination of such lease, or who attempts to do so, shall be adjudged a
disorderly person and shall be subject to a fine not to exceed $1,000, or
imprisonment not to exceed six months, or both.

���� 16.� a.� (1)� A person who has
received, or whose assignor has received, a deposit or installment under a
contract for the purchase of real or personal property, or for a lease or
bailment with a view to purchase of such property, from a person or from the
assignor of a person who has begun service on active duty after the date of
payment of such deposit or installment shall not exercise a right or option
under such contract to rescind or terminate the contract or resume possession
of the property for nonpayment of an installment thereunder due or for another
breach of the terms thereof occurring prior to or during the period of active
duty, except by action in a court of competent jurisdiction.� Nothing contained
in this section shall prevent the modification, termination or cancellation of
such a contract, or prevent the repossession, retention, foreclosure, sale or
taking possession of property which is purchased or received, or which is
security for an obligation under such contract, pursuant to a mutual agreement
of the parties thereto or their assignees if such agreement is executed in
writing subsequent to the making of such contract and during or after the
period of active duty of the person concerned.

���� (2)�� A person who prior to
serving on active duty for a period of more than 90 consecutive days leased a
non-commercial motor vehicle for personal use, with or without a view to
purchase, may cancel the lease by giving written notice of cancellation to the
lessor or the lessor's assignor at any time following the date of receipt of
the order to enter active duty.� Cancellation of a lease providing for monthly
lease payments shall not be effective until the last day of the month following
the month in which notice of cancellation is made, or when the leased motor
vehicle is returned to the lessor or the lessor's assignor, whichever is
later.� Upon cancellation of the lease, the former lessee and a co-signer shall
have no further liability to the lessor or the lessor's assignor, except that
the lessee and a co-signer shall be obligated to the lessor or assignor for
damages to the motor vehicle and excess mileage over the pro rata amount
permitted as of the date of cancellation of the lease.� The lessor or lessor's assignor
shall not impose a penalty or charge upon the lessee or a co-signer on the
lease for early cancellation of the lease.� This subsection shall apply whether
or not the person is the sole signatory of the lease.

���� b.��� A person who knowingly
resumes possession of property described in this section other than as provided
in subsection a. of this section, or who attempts to do so, shall be adjudged a
disorderly person, and shall be subject to a fine not to exceed $1,000, or
imprisonment not to exceed six months, or both.

���� c.���� Upon the hearing of
such action, the court may order the repayment of prior installments or
deposits or any part thereof as a condition of terminating the contract and
resuming possession of the property.� The court also may order a stay of
proceedings as provided in this act at its discretion and on its own motion, or
shall order such stay on application to it by a servicemember or another person
on the servicemember�s behalf.� A stay under this section may be ordered for
the period of active duty and six months thereafter or any part of such period
unless the ability of the defendant to comply with the terms of the contract is
not materially affected, in the opinion of the court, by reason of service on
active duty.� The court may make such other disposition of the case as may be
equitable to conserve the interests of all parties.

���� d.��� (1)� A person who
entered into a contract for cellular telephone service or telephone exchange
service may terminate that contract provided that the person subsequently
receives military orders that require relocation for a period of not less than
90 days to a location that does not support that contract.� Termination of the
contract shall be made by delivery of a written or electronic notice of such
termination and a copy of the servicemember�s military orders to the service
provider, delivered in accordance with industry standards for notification of
terminations, together with the date on which the service is to be terminated.�

���� (2)�� In the case of a
contract terminated under paragraph (1) of this subsection, the service
provider under the contract shall allow the servicemember to keep the telephone
number under the contract unless the period of relocation is greater than three
years or the servicemember does not apply for reinstatement of the telephone
number within 90 days after the period of relocation has ended.

���� (3)�� A service provider shall
not impose an early termination charge or reinstatement charge for services
terminated or reinstated under the provisions of this subsection.�
Notwithstanding any remainder of the monthly or periodic payment for the
billing period in which termination occurs, the service provider shall refund
the servicemember any fee or other amount paid for services after the effective
date of termination of the contract.

���� 17.� a.� When an obligation is
secured by mortgage, trust deed, or other security in the nature of a mortgage
upon real or personal property owned by a servicemember originating prior to
the commencement of the period of military service, a court may stay a proceeding
as provided in this act commenced during the period of active duty to enforce
such obligation arising out of nonpayment of a sum due or out of another breach
of terms occurring prior to or during the period of active duty, or make such
other disposition of the case as may be equitable to conserve the interest of
all parties. The court may do so at its discretion and on its own motion or
upon application to it by the servicemember or another person on the
servicemember�s behalf.� This subsection shall apply unless the ability of the
defendant to comply with the terms of the obligation, in the opinion of the
court, is not materially affected by reason of service on active duty.

���� b.��� A sale, foreclosure, or
seizure of property for nonpayment of a sum due under such an obligation, or
for another breach of the terms thereof, whether under a power of sale, under a
judgment entered upon warrant of attorney to confess judgment contained therein
or otherwise, shall not be valid if made during the period of active duty or
within three months thereafter except upon an order of sale previously granted
by the court and a return thereto is made and approved by the court.

���� c.���� A person who knowingly
causes to be made a sale, foreclosure, or seizure of property defined as
invalid by subsection b. of this section, or attempts to do so, shall be
adjudged a disorderly person, and shall be subject to a fine not to exceed
$1,000, or imprisonment not to exceed six months, or both.

���� 18.� When a proceeding to
foreclose a mortgage or to resume possession of personal property, or to
rescind or terminate a contract for the purchase thereof, has been stayed as
provided in this act the court may appoint three disinterested parties to
appraise the property, unless in its opinion an undue hardship would result to
the dependents of the servicemember.� Based upon the report of the appraisers,
the court may order such sum, if any, as may be just to be paid to the
servicemember or the servicemember�s dependent as a condition of foreclosing
the mortgage, resuming possession of the property, or rescinding or terminating
the contract.

���� 19.� a.� A sale of property
shall not be made to enforce the collection of a general or special tax or an
assessment for failure to pay prior to or during the period of active duty with
respect to personal property, money or credits or real property owned and
occupied for dwelling, agricultural, or business purposes by a servicemember or
the servicemember�s dependents at the commencement of the period of active duty
and still occupied by the person's dependents or employees in a proceeding or
action commenced for such purpose except upon leave of court granted upon
application made by the collector of taxes or other officer whose duty it is to
enforce the collection of taxes or assessments. The court may stay such
proceedings or sale as provided in this act for a period extending not more
than six months after the termination of the period of active duty, unless in
the opinion of the court the ability of the defendant to comply with the terms
of the obligation is not materially affected by reason of service on active
duty.

���� This section shall not apply
to taxes on income.

���� b.��� When by law property may
be sold or forfeited to enforce the collection of a tax or assessment described
in subsection a. of this section, a servicemember shall have the right to
redeem, or commence an action to redeem, such property at any time not later
than six months after the termination of service on active duty.� The
provisions of this subsection shall not be construed to shorten a period
provided by the laws of the State, or a political subdivision thereof, for such
redemption.

���� c.���� If a tax or assessment
is not paid when due, it shall bear interest until paid at the rate of six
percent per annum from the date when the tax first became a lien.� Another
penalty or interest shall not be incurred by reason of such nonpayment, whether
the penalty or interest accrued prior or accrues subsequent to the commencement
of the period of active duty.� A lien for unpaid taxes or assessment shall also
include such interest.

���� 20.� A policy that has not
lapsed for the nonpayment of premium before the commencement of the period of
active duty of the insured, and which has been brought within the protection of
the federal "Servicemembers� Civil Relief Act," 50 U.S.C. App. s.501
et seq., shall not lapse or be forfeited for the nonpayment of premium during
the period of active duty or two years thereafter.

���� For the purposes of this
section:

���� "policy" means any
individual contract for whole, endowment, universal, or term life insurance,
other than group term life insurance coverage, including any benefit in the
nature of such insurance arising out of membership in a fraternal or beneficial
association but shall not mean insurance exceeding a total face value of $400,000,
or an amount equal to the Servicemembers' Group Life Insurance maximum limit,
whichever is greater, whether in one or more companies.

���� "insured" means a
person whose life is insured under a policy.

���� "premium" shall
include the membership dues or assessments in a fraternal or beneficial
association with the date of issuance of a policy as herein limited referring
to the date of admission to membership in such association.

���� 21.� A person holding a lien
for the storage, repair, or cleaning of the property or effects of a
servicemember shall not foreclose or enforce any such lien, during any period
of military service of the servicemember and for 90 days thereafter, without a
court order granted before foreclosure or enforcement.� A court may, on its own
motion, and shall, upon application by a servicemember whose ability to comply
with the obligation is materially affected by the servicemember�s military
service, stay the proceeding for a period of time as justice and equity may
require and adjust the obligation to preserve the interests of all parties.

���� A person who shall knowingly
take an action contrary to this section, or attempts to do so, shall be
adjudged a disorderly person, and shall be subject to a fine not to exceed
$1,000, or imprisonment not to exceed six months, or both.

���� 22.� a.� At any time during
the period of active duty or within six months thereafter, a person may apply
to a court for relief with respect to an obligation or liability incurred by
such person prior to the period of active duty or with respect to a tax or assessment
which becomes due prior to or during the period of active duty.� Unless in the
court's opinion the ability of the applicant to comply with the terms of such
obligation or liability or to pay such tax or assessment has not been
materially affected by reason of service on active duty, the court may grant
the following relief after appropriate notice and hearing:

���� (1)�� In the case of an
obligation payable under its terms 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 court may stay the enforcement of such
obligation during the applicant's period of active duty and, from the date of
termination of such period of active duty or from the date of application if
made after active duty, for a period equal to the period of the remaining life
of the installment contract or other instrument plus a period of time equal to
the period of active duty of the applicant, or any part of such combined
period.� The stay shall be subject to payment of the balance of principal and
accumulated interest due and unpaid at the date of termination of the period of
active duty or from the date of application in equal installments during such
combined period at such rate of interest on the unpaid balance as is prescribed
in such contract, or other instrument evidencing the obligation, for installments
paid when due.� The court may impose such other terms as may be just.

���� (2)�� In the case of another
obligation, liability, tax, or assessment, a court may stay the enforcement
thereof during the applicant's period of active duty and from the date of
termination of the period of active duty or from the date of application if
made after active duty, for a period of time equal to the period of active duty
of the applicant or any part of such period.� The stay shall be subject to
payment of the balance of principal and accumulated interest due and unpaid at
the date of the termination of such period of active duty or the date of
application in equal periodic installments during such extended period at such
rate of interest as may be prescribed for such obligation, liability, tax, or
assessment, if paid when due. The court may impose such other terms as may be
just.

���� b.��� When any court has
granted a stay as provided in this section, a fine or penalty shall not accrue
during the period the terms and conditions of such stay are complied with by
reason of failure to comply with the terms or conditions of the obligation, liability,
tax or, assessment with respect to which such stay was granted.

���� 23.� a.� In a proceeding under
this act, a certificate executed by an officer of the applicable force of the
Armed Forces of the United States or by an officer of the applicable force of
the National Guard shall be prima facie evidence of the facts therein certified
and of the authority of the signer to issue the same.

���� b.��� When a person serving on
active duty is reported missing, the person shall be presumed to continue on
active duty until accounted for.� A period herein limited that begins or ends
with the death of such person shall not begin or end until the death of such
person is in fact reported to or proved by the applicable force of the Armed
Forces of the United States or of the National Guard, or proved by a court of
competent jurisdiction.

���� 24.� A power of attorney of a
servicemember that expires by its terms after the servicemember enters missing
status shall be automatically extended for the period that the servicemember is
in a missing status, provided that the power of attorney: was duly executed by
the servicemember while in military service or before entry into military
service but after the servicemember received a call or order to report for
military service or notice that such call or order may occur; and designates
the servicemember�s spouse, parent, or other named relative as the
servicemember�s attorney in fact.� This section shall not apply to a document
that, by its terms, clearly indicates that the power granted expires on a
specific date.

���� 25.� a.� Coverage under a
professional liability insurance policy of a servicemember who was engaged in
furnishing professional services immediately before receiving an order to
active duty shall be suspended by the insurer upon receipt of a written request
from the servicemember.� The insurer shall not require that premiums be paid on
behalf of such a servicemember during the period that coverage is suspended and
shall refund any amount paid for coverage of the period of such suspension
unless the servicemember elects to apply such amount to any premium due upon
the reinstatement of coverage.� The insurer shall not be liable for a claim
that is based on professional conduct of a servicemember that occurs during the
period of suspension, except that the failure of a servicemember to make
adequate provision for a patient, client, or other person to receive
professional services or assistance during the period of the servicemember�s
military service shall be considered to arise prior to the period of suspension.

���� b.��� Coverage under a
professional liability insurance policy that has been suspended pursuant to
subsection a. of this section shall be reinstated by the insurer on the date on
which that servicemember transmits a written request for reinstatement to the
insurer, provided that the written request is transmitted to the insurer within
30 days after the date on which the servicemember is released from active
duty.� Such reinstatement shall be for a period of at least the balance of the
period for which coverage would have continued under the insurance policy if
coverage had not been suspended.� The insurer shall not increase the amount of
the premium during such required period except to the extent that the insurer
has increased premiums with general applicability.

���� c.���� The insurer shall be
liable for a claim for damages for professional negligence or other
professional liability during the period of suspension, to the same extent the
insurer would be liable during a period of coverage, in the case where a
servicemember dies during the period of suspension.

���� 26.� Upon application within
120 days after the date of termination of or release from military service, a
servicemember shall be entitled to reinstatement of health insurance that was
in effect on the day before entrance into military service and was terminated
during the period of such service.� Such reinstatement shall not be subject to
an exclusion or waiting period if the condition arose before or during the
period of military service, an exclusion or waiting period would not have been
imposed for the condition during the period of coverage, and the condition has
not been determined by the Secretary of Veterans Affairs to be a disability
incurred or aggravated in the line of duty.� The insurer shall not increase the
amount of the premium during the balance of the period for which coverage would
have been continued had the coverage not been terminated except to the extent
that the insurer has increased premiums with general applicability.

���� 27.� If the trade or business
of a servicemember has an obligation or liability for which the servicemember
is personally liable, the assets of the servicemember not held in connection
with that trade or business shall not be available for satisfaction of the
obligation or liability during the period of the servicemember�s military
service, except where a court determines, upon application by an obligor
affected by this section, that justice and equity require otherwise.

���� 28.� a.� When a person leaves
a position other than a temporary one in the employ of an employer in order to
serve on active duty, the employer shall restore such person to the position,
or to a position of like seniority, status, and pay, unless the employer's
circumstances have so changed as to make it impossible or unreasonable to do
so, if the person:

���� receives a certificate of
completion of active duty duly executed by an officer of the applicable force
of the Armed Forces of the United States or by an officer of the applicable
force of the National Guard;

���� is still qualified to perform
the duties of such position; and

���� in the case of a private
employer, makes application for reemployment within 90 days after the person
has completed service on active duty.

���� If the circumstances of an
employer have so changed because of reasons of economy or efficiency or other
related reason as to make it impossible or unreasonable to restore a person who
left to enter active military service in the Armed Forces of the United States
in time of war or emergency, such employer shall restore such person to any
available position, if requested by such person, for which the person is able
or qualified to perform the duties.

���� b.��� The benefits, rights,
and privileges granted to a servicemember by this section shall be applicable
to a person who temporarily leaves a position other than a temporary one in the
employ of an employer in order to participate in assemblies or annual training
or in order to attend service schools conducted by the Armed Forces of the
United States for a period up to and including three months, if the person is
still qualified to perform the duties of such position and makes application
for reemployment within 10 days after completion of such temporary period of
service.� A person shall not be entitled to the benefits, rights, and
privileges for such attendance at a service school exceeding a total of three
months during any four-year period.

���� c.���� The benefits, rights,
and privileges granted to a servicemember by this section shall be applicable
to a person who is or becomes a member of the National Guard or of a reserve
component of the Armed Forces of the United States and who is discharged or suspended
by the person�s employer because of such membership, if the person is still
qualified to perform the duties of such position and makes application for
reemployment or termination of suspension within 10 days after such discharge
or suspension.

���� d.��� A person who is restored
to a position in accordance with the provisions of this section shall be
considered as having been on furlough or leave of absence during the period of
active duty, temporary service, discharge, or suspension. The person shall be
so restored without loss of seniority and entitled to participate in insurance
or other benefits offered by the employer pursuant to established rules and
practices relating to employees on furlough or leave of absence in effect with
the employer at the time such person began serving on active duty or commenced
such temporary service or was so discharged or suspended.� The person shall not
be discharged from the position without cause, within one year after such
restoration.

���� e.���� If a private employer
fails or refuses to comply with the provisions of this section, a person
entitled to the benefits of such provisions may file a complaint in the
Superior Court and the court shall have the power to specifically require the
employer to comply with such provisions.� The court may also compensate the
person for loss of wages or benefits suffered by reason of the employer's
unlawful action.� The court shall order an expedited hearing in such a case.� A
person claiming to be entitled to the benefits of the provisions of this
section may appear and be represented by counsel.� A person may request in
writing that the Attorney General of the State appear and act on the person's
behalf.� If the Attorney General is reasonably satisfied that the person so
applying is entitled to such benefits, the Attorney General shall appear and
act as attorney for such person in the amicable adjustment of the claim, or in
the filing of a complaint and the prosecution thereof.� In the hearing and
determination of a complaint or application under this section, fees or court
costs shall not be assessed against a person applying for such benefits.

���� 29.� Nothing in this act shall
be construed to limit, restrict, or forfeit the rights and privileges of a
servicemember in regard to public lands, desert-land entries, mining claims,
mineral permits and leases, and any other land rights that may be provided for
by federal law.

���� 30.� A servicemember may waive
any of the rights or protections provided by this act only if such waiver is in
writing, in at least 12-point font, executed as an instrument separate from the
obligation or liability to which it applies, and includes an acknowledgment of
the desirability of seeking advice from an attorney in connection with the
waiver, and the servicemember is given a reasonable opportunity to seek such
advice.

���� 31.� In any proceeding to
enforce a civil right, if a court determines that any interest, property, or
contract has been transferred or acquired with the intent to improperly delay
the just enforcement of such right, the court may enter such judgment or make such
order as justice and equity may require.

���� 32.� a.� The Attorney General
may commence a civil action against any person who engages in a pattern or
practice of violating this act or engages in a violation of this act that
raises an issue of significant public importance.

���� In a civil action commenced
under this subsection, a court may grant any appropriate equitable or
declaratory relief with respect to the violation of this act, award all other
appropriate relief, including monetary damages, to any person aggrieved by the
violation, and assess a civil penalty, to vindicate the public interest, in an
amount not to exceed $55,000 for a first violation or $110,000 for any
subsequent violation.

���� Upon timely application, a
person aggrieved by a violation of this act with respect to which a civil
action is commenced may intervene in such action, and may obtain such
appropriate relief as the person could obtain in a civil action under
subsection b. of this section with respect to that violation, along with costs
and a reasonable attorney fee.

���� b.��� Any person aggrieved by
a violation of this act may, in a civil action, obtain any appropriate
equitable or declaratory relief with respect to the violation and recover all
other appropriate relief, including monetary damages.� The court may award a
person aggrieved by a violation of this act who prevails in an action brought
under this subsection the costs of the action, including a reasonable attorney
fee.

���� c.���� Nothing in subsection
a. or b. of this section shall be construed to preclude or limit any remedy
otherwise available under other law, including consequential and punitive
damages.

���� 33.� The Department of
Military Affairs shall ensure that notice of the benefits and protections
afforded by this act is provided to servicemembers and their dependents.

���� 34.� The �New Jersey Soldiers�
and Sailors� Civil Relief Act of 1979,� P.L.1979, c.317 (C.38:23C-1 et seq.) is
repealed.

���� 35.� This act shall take
effect immediately.

STATEMENT

This bill creates the New Jersey
Servicemembers� Civil Relief Act and repeals the �New Jersey Soldiers� and
Sailors� Civil Relief Act of 1979,� (C.38:23C-1 et seq.). The purpose of the
bill is to update and modernize the benefits and protections afforded to
military servicemembers and their dependents and to bring such benefits and
protections in line with those provided for by federal law. No benefits or
protections are reduced in this bill.

This bill expands the definition of
those who are protected under New Jersey law, reconciles any differences
between State and federal law, and affords greater protections to
servicemembers in the State. These protections include:

�

Mandatory stays of civil
proceedings and executions of

judgments in circumstances when the
servicemember�s ability to represent themself is materially affected by the
servicemember�s military service;

�

Allowance of application for
anticipatory relief by the

servicemember;

�

Protections against default
judgments which cannot be properly defended by reason of military service;

�

Relief from contracts that
cannot be performed due to military service;

�

Tolling of the statute of
limitations during the period of

military service;

�

A maximum six-percent rate of
interest on debts incurred

before military service;

�

Relief related to evictions,
foreclosures, and certain taxes;

�

Termination of leases executed
before an individual was called into military service;

�

Protections against liens for
storage, repair, and cleaning of

����������������� property and effects;

�

Automatic extension of the power
of attorney for

����������������� servicemembers who have entered
missing status;

�

Protections regarding life
insurance, professional liability

����������������� insurance, and health insurance;

�

Employment protections for those
returning from military

����������������� service;

�

Reservation of land rights
provided under federal law;

�

Procedures to effect waiver of
any rights provided under the act; and

�

Creation of a civil action which
may be brought by the

Attorney General or a person aggrieved
by a violation of the��������� act.
�