ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release September 20, 2001 #01-59
E-mail: [email protected]

COMMUNITY BANKERS STAND READY TO ASSIST MILITARY PERSONNEL CALLED UP IN WAKE OF TERRORIST ATTACKS

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WASHINGTON, D.C. — Community bankers stand ready to assist the nation’s military personnel being called up in the wake of last week’s terrorist attacks, including available relief under the Soldiers’ and Sailors’ Relief Act.

The law, which is intended to help offset financial hardships suffered by members of the armed forces during their deployment in military service, mandates certain procedures and protections that apply in financial transactions with borrowers while in active military service, according to Diane M. Casey, president and CEO of America’s Community Bankers.

Casey emphasized that “America’s Community Bankers and its 1,200 members across the country are committed to supporting — and working with — all of the brave men and women defending our nation. Community bankers want to ensure that newly inducted service members and reservists called to active duty understand that assistance is available under the law.”

Casey urged service members and their families to work with their local community bankers, who are committed to meeting their financial needs.

Under the law, the interest rate on a military borrower’s existing obligations at the time he or she commences military service generally is capped at 6 percent. This includes retail installment, mortgage, credit card and other loans.

In addition, Casey explained that the law limits, stays or restricts foreclosures, repossessions and other legal proceedings taken as a result of non-payment and other default actions by borrowers in military service.

According to Casey, the provisions include:

Creditors generally may not proceed with default actions against persons who are in military service.
The law provides that litigation and other proceedings in which a person serving in the military is a party can be stayed for the period of that person’s military service and for 60 days after such service concludes.
During the period of their military service, and for three months thereafter, mortgage foreclosure proceedings generally are stayed.
The law generally prohibits lenders, except under prior court order, from repossessing real or personal property securing installment loan contracts during the period of active service.
The law does not apply to new obligations incurred while in military service.

Casey noted that the law also applies to dependents, guarantors and others who might be liable on an obligation with a borrower who enters military service.

For additional information on the Act, go to ACB’s website at www.AmericasCommunityBankers.com.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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