HB 832-FN – AS INTRODUCED
2007 SESSION
09/01
HOUSE BILL 832-FN
AN ACT relative to financial relief for members of the military reserve or national guard called to active duty.
SPONSORS: Rep. Buco, Carr 1; Rep. Nord, Rock 1
COMMITTEE: State-Federal Relations and Veterans Affairs
This bill requires the deferment of payments owed on certain financial obligations by members of the military reserve or national guard called to active duty.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0212
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to financial relief for members of the military reserve or national guard called to active duty.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Financial Relief for Military Reserve and National Guard Members. Amend RSA by inserting after chapter 110-C the following new chapter:
CHAPTER 110-D
FINANCIAL RELIEF FOR MILITARY RESERVE AND NATIONAL GUARD MEMBERS
110-D:1 Definitions. In this chapter:
I. “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.
II. “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.
110-D:2 Deferral of Payments.
I. Subject to paragraph II, 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 effective date 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:
(a) An obligation secured by a mortgage or deed of trust.
(b) Credit card.
(c) Retail installment contract, installment account, or revolving account.
(d) 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.
II. 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:
(a) A letter signed by the reservist, under penalty of perjury, requesting a deferment of financial obligations.
(b) 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.
III. Upon request of the reservist or the reservist’s dependent or designee and within 5 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.
IV. 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 paragraph II.
V. 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.
VI. 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.
110-D:3 Mortgage Payments.
I. Notwithstanding RSA 110-D:2, V and VI, any mortgage payments delayed pursuant to RSA 110-D:2 are due and payable upon the earlier of the following:
(a) 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 RSA 110-D:2.
(b) Further encumbrance of the property.
(c) The maturity of the obligation as defined under the terms of the documents creating the obligation or, if applicable, as extended pursuant to RSA 110-D:2, V.
II. 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.
III. 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 paragraph I.
110-D:4 Interest, Penalties, and Foreclosure Prohibited. During the period specified in RSA 110-D:2, 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 RSA 110-D:2.
110-D:5 Credit Not Affected. Subject to RSA 110-D:2, 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.
110-D:6 Insurance Coverage.
I. 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.
II.(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 RSA 110-D:2 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.
110-D:7 Leased Motor Vehicles. The reservist may defer payments for leased motor vehicles without breach of the lease or the foreclosure or repossession of the motor 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.
110-D:8 Applicability.
I. 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 chapter.
II. 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.
III. 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.
2 Effective Date. This act shall take effect upon its passage.
LBAO
07-0212
1/17/07
HB 832-FN - FISCAL NOTE
AN ACT relative to financial relief for members of the military reserve or national guard called to active duty.
FISCAL IMPACT:
The New Hampshire Municipal Association states this bill may have an indeterminable fiscal impact on local revenue in FY 2007 and each year thereafter. This bill would have no fiscal impact on state, county, and local expenditures, or state and county revenue.
METHODOLOGY:
The New Hampshire Municipal Association states this bill would allow any member of the military reserve or the national guard of New Hampshire who is called to active duty in Iraq or Afghanistan to defer, among other things, property taxes on a primary residence for a period of 180 days or the period of active duty plus 60 days, whichever is less. No interest or penalties could be assessed on the deferred payment during the permitted period of deferral. If a property owner elects to take advantage of this provision, it would result in a loss of revenue, at least temporarily, to the municipality in which the person’s residence is located. The Association states it is unable to determine the fiscal impact on municipal revenue at this time, since it is impossible to know how many people would take advantage of the provision or the amounts of property taxes that would be deferred.
The Adjutant General states this bill would have no fiscal impact on the Department.
The Association of Counties states this bill would have no fiscal impact on county revenue or expenditures.