House Bill 719

AN ACT TO PROVIDE THAT ANY PERSON WHO IS MEMBER OF THE MISSISSIPPI NATIONAL GUARD OR AN ARMED FORCES RESERVE UNIT BASED IN MISSISSIPPI WHO IS CALLED TO ACTIVE DUTY SERVICE, AND WHO HAS A LOAN OUTSTANDING WHEN THE ACTIVE DUTY SERVICE BEGINS, SHALL NOT HAVE TO PAY THE INTEREST AND OTHER FINANCE CHARGES THAT OTHERWISE WOULD BE DUE ON THE LOAN DURING THE TIME OF ACTIVE DUTY SERVICE; TO PROVIDE THAT PAYMENT OF THE INTEREST AND OTHER FINANCE CHARGES THAT OTHERWISE WOULD BE DUE ON THE LOAN WILL BE SUSPENDED WHILE THE PERSON IS SERVING ON ACTIVE DUTY, AND INTEREST AND FINANCE CHARGES WILL NOT ACCRUE ON THE LOAN DURING THAT TIME; TO PROVIDE THAT THIS ACT APPLIES TO ANY PERSON WHO IS CALLED TO ACTIVE DUTY SERVICE, WHETHER BEFORE OR AFTER THE EFFECTIVE DATE OF THE ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) Any person who is a member of the Mississippi National Guard or a member of a reserve component of the United States Armed Forces that is based in Mississippi, who is called to active duty service with the National Guard or the reserve component of the Armed Forces, and who has any type of loan of money or extension of credit outstanding at the time he or she begins the active duty service, shall not have to pay the interest and other finance charges that otherwise would be due on the loan or extension of credit during each month that he or she serves on active duty, after giving written notice of the active duty service to the lender.

(2) Payment of the interest and other finance charges that otherwise would be due on the loan or extension of credit will be suspended while the person is serving on active duty, and interest and finance charges will not accrue on the loan or extension of credit during that time.

(3) When the person is no longer serving on active duty, he or she shall give notice to the lender and resume payment of the interest and other finance charges on the loan or extension of credit in accordance with the original repayment schedule agreed upon by the lender and the borrower.

(4) The provisions of this section shall apply to any person who is called to active duty service with the National Guard or the reserve component of the Armed Forces, whether before or after the effective date of this act; however, suspension of payment of the interest and other finance charges that otherwise would be due on the loan or extension of credit shall not be effective until after the person has given written notice of the active duty service to the lender, and shall not be retroactive to cover any periods of active duty service that occurred before the effective date of this act.

SECTION 2. This act shall take effect and be in force from and after its passage.