The Servicemembers Civil Relief Act of 1940 (SCRA) is a federal law that provides extra protections for servicemembers when legal or financial transactions adversely affect their rights during military or uniformed service. These protections are designed to allow servicemembers to devote their full time and energy to defending the United States of America.

The SCRA is located in the United States Code at 50 U.S.C. §§ 3901-4043 and applies to the following servicemembers:

•Active-duty members of the Army, Marine Corps, Navy, Air Force, and Coast Guard;

•Members of the Reserve component when serving on active duty;

•Members of the National Guard component mobilized under federal orders for more than 30 consecutive days; or

•Active duty commissioned officers of the Public Health Service or the National Oceanic and Atmospheric Administration.

SCRA rights may be exercised by anyone holding a valid power of attorney for the servicemember. Some SCRA protections also apply to dependents.

According to the U.S. Department of Justice, these are five protections that servicemembers often ask about:

•Reducing the interest rate on any pre-service loans to a maximum of 6 percent

•Protections against default judgments in civil cases

•Protections against foreclosure on their home

•Protections again repossession of their property

•Termination of residential housing and automobile leases without penalty


In North Dakota, as in all states, the Servicemembers Civil Relief Act (SCRA) of 1940 provides federal protections to eligible servicemembers to ensure their legal and financial affairs do not suffer due to their military service. The SCRA covers active-duty members of all military branches, reservists on active duty, National Guard members federalized for more than 30 days, and commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration. Protections under the SCRA include a cap on interest rates at 6% for pre-service loans and obligations, safeguards against default judgments in civil cases, prevention of home foreclosure, protection against repossession of property without a court order, and the ability to terminate residential and automobile leases without penalty under certain conditions. These protections are designed to allow servicemembers to focus on their duties without undue stress about certain legal and financial obligations at home. Dependents of servicemembers may also benefit from some SCRA protections, and a valid power of attorney can be used to exercise a servicemember's rights under the SCRA.