Author: Veterans Affairs
BILL NUMBER: AB 2475 INTRODUCED
INTRODUCED BY Committee on Veterans Affairs (Assembly Members Cook (Chair), Pan
(Vice Chair), Atkins, Block, Beth Gaines, Nielsen, V. Manuel Perez, and Yamada)
FEBRUARY 24, 2012
An act to amend Section 408 of the Military and Veterans Code, relating to
LEGISLATIVE COUNSEL'S DIGEST
AB 2475, as introduced, Committee on Veterans Affairs. Military service
protections: real and personal property rights.
Existing law provides legal rights, as specified, for service members in regard
to court proceedings, interest liabilities, contracts, eviction proceedings,
leases, tax and assessments, life insurance policies, and health insurance.
Existing law prohibits any sale, foreclosure, or seizure of real or personal
property subject to a mortgage, or other security, for nonpayment by the
service member owner if made during the period of military service or within
three months thereafter. Court orders and party agreements are exceptions to
this provision. Violation of this provision is a misdemeanor.
This bill would extend the prohibition from 3 months to 9 months after the
military service period.
By changing the definition of a crime, this bill would impose a state mandated
The California Constitution requires the state to reimburse local agencies and
school districts for certain costs mandated by the state. Statutory provisions
establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 408 of the Military and Veterans Code is amended to read:
408. (a) This section shall apply only to obligations secured by mortgage,
trust deed, or other security in the nature of a mortgage upon real or personal
property owned by a service member at the commencement of the period of the
military service and still so owned by the service member whose obligations
originated prior to the person's period of military service.
(b) In any proceeding commenced in any court during the period of military
service to enforce that obligation as provided in subdivision (a) arising out
of nonpayment of any sum due or out of any other breach of the terms of the
mortgage, trust deed, or other security occurring prior to or during the period
of the service the court may, after hearing and in its discretion on its own
motion, and shall, on application to it by the service member or some person on
the defendant's behalf, 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 the defendant's military service, do either of the following:
(1) Stay the proceedings for any period as the court deems just.
(2) Make any other disposition of the case as may be equitable to conserve the
interests of all parties.
(c) No sale, foreclosure, or seizure of property for nonpayment of any sum due
under any obligation as provided in subdivision (a), or for any other 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
be valid if made during the period of military service or within
months thereafter, except pursuant to an agreement
between the parties, unless upon an order previously granted by the court and a
return thereto made and approved by the court.
(d) Any person violating this section shall be liable for actual damages,
reasonable attorney's fees, and costs incurred by the injured party.
(e) Any person who shall knowingly make or cause to be made any sale,
foreclosure, or seizure of property, defined as invalid by subdivision (c), or
attempts to do so, is guilty of a misdemeanor, and shall be punishable by
imprisonment not to exceed one year or by a fine not to exceed one thousand
dollars ($1,000), or both.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of
Article XIII B of the California Constitution because the only costs that may
be incurred by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of Section
17556 of the Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California Constitution.