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Service Members Civil Relief Act of 20031 - page 4 / 6





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V. Lending — SCRA

Insurance Assigned as Security for a Loan

  • 15.

    Determine, in the case of an insurance policy on the life of a servicemember that is assigned before the servicemember’s military service as security for an obligation, that the institution does not exercise, during a period of military service or within one year thereafter, any right or option obtained under the assignment, absent a court order. This prohibition does not apply—

    • if the assignee has written consent of the insured servicemember, obtained during his/her military service;

    • when the premiums on the policy are due and unpaid; or

    • upon the death of the insured.

Adverse Action

  • 16.

    Determine, in the case of an application from or receipt by a servicemember of a stay, postponement, or suspension of an obligation, that the institution does not use such action as a basis of:

    • a determination that the lender is unable to pay the obligation or liability in accordance with its terms;

    • denial or revocation of credit; change in terms of an existing credit; or refusal by the creditor to grant credit to the servicemember in substantially the same amount or terms; or

    • an adverse credit report or reference.

Examination Conclusions

  • 17.

    Conclude the examination after taking the following actions:

    • Fully address identified deficiencies and violations, if any

    • Attach appropriate supporting workpaper documentation

    • Discuss findings with management and board of directors

    • Write comments, as applicable, in the Report of Examination

    • Include appropriate violation write-ups

    • Discuss proposed enforcement action, if needed



Servicemembers Civil Relief Act, Pub. L. 108-189 (codified at 50 U.S.C. App. 501 et seq.


eterans Benefits Improvement Act of 2004, Pub. L. 108-454

Housing and Economic Recovery Act of 2008, Pub. L. 110-289 20 U.S.C. § 1078(d), Federal payments to reduce student interest costs

FDIC Compliance Manual — June 2009

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