Prior to act Oct. 6, 1942, constituting the Soldiers' and Sailors' Civil Relief Act Amendments of 1942, "Article IV-Insurance" consisted of sections 400-414 of act Oct. 17, 1940, which were incorporated in sections 540-554 of this Appendix. For text of sections 400-414 of act Oct. 17, 1940, as originally enacted, see notes to sections 540554 of this Appendix.

§ 540. Definitions.

As used in this article [sections 540 to 548 of this Appendix]

(a) The term "policy" shall include any contract of life insurance or policy on a life, endowment, or term plan, including any benefit in the nature of life insurance arising out of membership in any fraternal or beneficial association, which does not provide for the payment of any sum less than the face value thereof or for the payment of an additional amount as premiums if the insured engages in the military service of the United States as defined in section 101 of article I of this Act [section 511 of this Appendix] or which does not contain any limitation or restriction upon coverage relating to engagement in or pursuit of certain types of activities which a person might be required to engage in by virtue of his being in such military service, and (1) which is in force on a premium-paying basis at the time of application for benefits hereunder, and (2) which was made and a premium paid thereon before the date of enactment of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942 [Oct. 6, 1942 or not less than one hundred and eighty days before the date the insured entered into the military service. The provisions of this Act [sections 501 to 548 and 560 to 590 of this Appendix] shall not be applicable to policies or contracts of life insurance issued under the War Risk Insurance Act, as amended, the World War Veterans Act, as amended, or the National Service Life Insurance Act of 1940, as amended.

(b) The term "premium" shall include the amount specified in the policy as the stipend to be paid by the insured at regular intervals during the period therein stated.

(c) The term "insured" shall include any person in the military service of the United States as defined in section 101, article I, of this Act [section 511 of this Appendix], whose life is insured under and who is the owner and holder of and has an interest in a policy as above defined.

(d) The term "insurer" shall include any firm. corporation, partnership, or association chartered or authorized to engage in the insurance business and to issue a policy as above defined by the laws of a State of the United States or the United States. (Oct. 17, 1940, ch. 888, § 400. 54 Stat. 1183; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 773; July 11, 1956, ch. 570, 1, 70 Stat. 528.)

REFERENCES IN TEXT

The Soldiers' and Sailors' Civil Relief Act Amendments of 1942, referred to in subsec. (a), amended, among other sections, this section. For other sections affected, see note under section 501, of this Appendix.

The War Risk Insurance Act, as amended, referred to in subsec. (a), was act Oct. 6, 1917, ch. 105, 40 Stat. 398, as amended, which was repealed by Pub. L. 85-56, Title XXII, 2202 (96), June 17, 1957, 71 Stat. 166.

The World War Veteran's Act as amended, referred to in subsec. (a), was act June 27, 1924, ch. 320, title I, 43 Stat. 607, as amended, which was repealed by Pub. L. 85857, 14(51), Sept. 2, 1958, 72 Stat. 1271, and subject

matter of which is now generally covered by subchapter II of chapter 19 of Title 38, Veterans' Benefits.

The National Service Life Insurance Act of 1940, as amended, referred to in subsec. (a) was act Oct. 8, 1940, ch. 757, title VI, pt. 1, 54 Stat. 1008, as amended, which was repealed by Pub. L. 85-857, § 14(75), Sept. 2, 1958, 72 Stat. 1272, and is now generally covered by chapter 19 of Title 38, Veterans' Benefits.

AMENDMENTS

1956 Subsec. (a). Act July 11, 1956, substituted "one hundred and eighty" for "thirty" preceding the words "days before the date the insured entered into the military service".

EFFECTIVE DATE OF 1956 AMENDMENT Section 2 of act July 11, 1956, provided that the amendment to subsec. (a) should take effect with respect to applications for benefits made after July 11, 1956.

PRIOR PROVISIONS

Section 400 of act Oct. 17, 1940, as originally enacted, which, by the provisions of section 408 of act Oct. 17, 1940 as amended and incorporated in section 548 of this Appendix, is continued in force as to applications for protection executed prior to Oct. 6, 1942, read: "In this article the term 'policy' shall include any contract of life insurance on the level premium or legal reserve plan. It shall also include any benefit in the nature of life insurance arising out of membership in any fraternal or beneficial association; the term 'premium' shall include membership dues or assessments in such association, and the date of issuance of policy as herein limited shall refer to the date of admission to membership in such association; the term 'insured' shall include any person who is the holder of a policy as defined in this article: the term 'insurer' shall include any corporation, partnership, or other form of association which secures or provides insurance under any policy as defined in this article."

VETERANS' LIFE INSURANCE REFUNDS

Pub. L. 85-586, Aug. 1, 1958, 72 Stat. 487, authorized the Administrator of Veterans' Affairs to make refunds, without interest, which are due on account of amounts collected by the United States Government by offset or otherwise from persons who made valid application for and were legally entitled to the protection of article IV of the Soldiers' and Sailors' Civil Relief Act of 1940, former sections 540-554 of this Appendix, as it existed prior to the amendments of October 6, 1942, application to be made to the Veterans' Administration, within two years after Aug. 1, 1958 and authorized appropiration of additional sums for such purposes.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 501, 510 to 536, 541 to 548 and 560 to 590 of this Appendix.

§ 541. Persons entitled to benefits of article; applications; amount of insurance protected.

The benefits and privileges of this article [sections 540 to 548 of this Appendix] shall apply to any insured, when such insured, or a person designated by him, or, in case the insured is outside the continental United States (excluding Alaska and the Panama Canal Zone), a beneficiary, shall make written application for protection under this article [said sections], unless the Administrator of Veterans' Affairs in passing upon such application as provided in this article [said sections] shall find that the policy is not entitled to protection hereunder. The Veterans' Administration shall give notice to the military and naval authorities of the provisions of this article [said sections], and shall include in such notice an explanation of such provisions for the information of those desiring to make application for the benefits thereof. The original of such application shall be sent by the insured to the insurer, and a copy thereof to the Veterans' Administration. The total

amount of insurance on the life of one insured under policies protected by the provisions of this article [said sections] shall not exceed $10,000. If an insured makes application for protection of policies on his life totaling insurance in excess of $10,000, the Administrator is authorized to have the amount of insurance divided into two or more policies so that the protection of this article [said sections] may be extended to include policies for a total amount of insurance not to exceed $10,000, and a policy which affords the best security to the Government shall be given preference. (Oct. 17, 1940, ch. 888, § 401, 54 Stat. 1183; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 774.)

PRIOR PROVISIONS

Section 401 of act Oct. 17, 1940, as originally enacted, which, by the provisions of section 408 of act Oct. 17, 1940 as amended and incorporated in section 548 of this Appendix, is continued in force as to applications for protection executed prior to Oct. 6, 1942, read:

"(1) The benefits of this article shall apply to any person in military service who is the holder of a policy of life insurance, when such holder shall apply for such benefits on a form prepared in accordance with regulations which shall be prescribed by the Administrator of Veterans' Affairs. Such form shall set forth particularly that the application therein made is a consent to such modification of the terms of the original contract of insurance as are made necessary by the provisions of this article and by receiving and filing the same the insurer shall be deemed to have assented thereto, to the extent, if any, to which the policy on which the application is made is within the provisions of this article. The original of such application shall be sent by the insured to the insurer, and a copy thereof to the Veterans' Administration.

"(2) The Veterans' Administration shall issue through suitable military and naval channels a notice for distribution by appropriate military and naval authorities to persons in the military service explaining the provisions of this article and shall furnish forms to be distributed to those desiring to make application for its benefits."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 501, 510 to 540, 548 to 548 and 560 to 590 of this Appendix.

§ 542. Form of application; reports to Veterans' Administration by insurer; policy deemed modified upon application for protection.

Any writing signed by the insured and identifying the policy and the insurer, and agreeing that his rights under the policy are subject to and modified by the provisions of this article [sections 540 to 548 of this Appendix], shall be sufficient as an application for the benefits of this article [said sections], but the Veterans' Administration may require the insured and insurer to execute such other forms as may be deemed advisable. Upon receipt of the application of the insured the insurer shall furnish such report to the Veterans' Administration concerning the policy as shall be prescribed by regulations. The insured who has made application for protection under this article [said sections] and the insurer shall be deemed to have agreed to such modification of the policy as may be required to give this article [said sections] full force and effect with respect to such policy. (Oct. 17, 1940, ch. 888, § 402, 54 Stat. 1183; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 774.)

PRIOR PROVISIONS

Section 402 of act Oct. 17, 1940, as originally enacted, which, by the provisions of section 408 of act Oct. 17, 1940 as amended and incorporated in section 548 of this

Appendix, is continued in force as to applications for protection executed prior to Oct. 6, 1942, read:

"The benefits of this act shall be available to any person in military service in respect of contracts of insurance in force under their terms up to but not exceeding a face value of $5,000, irrespective of the number of policies held by such person whether in one or more companies, when such contracts were made and a premium was paid thereon before the date of approval of this act or not less than thirty days before entry into the military service; but in no event shall the provisions of this article apply to any policy on which premiums are due and unpaid for a period of more than one year at the time when application for the benefits of this article is made or in respect of any policy on which there is outstanding a policy loan or other indebtedness equal to or greater than 50 per centum of the cash surrender value of the policy."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 501, 510 to 541, 543 to 548 and 560 to 590 of this Appendix.

§ 543. Determination of policies entitled to protection; notice to parties; lapse of policies for nonpayment of premiums, etc.

The Administrator of Veterans' Affairs shall find whether the policy is entitled to protection under this article [sections 540 to 548 of this Appendix] and shall notify the insured and the insurer of such finding. Any policy found by the Administrator of Veterans' Affairs to be entitled to protection under this article [said sections] shall not, subsequent to date of application, and during the period of military service of the insured or during two years after the expiration of such service, lapse or otherwise terminate or be forfeited for the nonpayment of a premium becoming due and payable, or the nonpayment of any indebtedness or interest. (Oct. 17, 1940, ch. 888, § 403, 54 Stat. 1184; Oct. 6, 1942. ch. 581, § 13, 56 Stat. 775.)

PRIOR PROVISIONS

Section 403 of act Oct. 17, 1940, as originally enacted, which, by the provisions of section 408 of act Oct. 17, 1940 as amended and incorporated in section 548 of this Appendix, is continued in force as to applications for protection executed prior to Oct. 6, 1942, read:

"The Veterans' Administration shall, subject to regulations, which shall be prescribed by the Administrator of Veterans' Affairs, compile and maintain a list of such persons in military service as have made application for the benefits of this article, and shall (1) reject any application for such benefits made by persons who are not persons in military service; (2) reject any applications for such benefits in excess of the amount permitted by section 402 [section 542 of this Appendix]; and (3) reject any applications in respect of contracts of insurance otherwise not entitled to the benefits of this article. Said Administration shall immediately notify the insurer and the insured in writing of every rejection or approval."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 501, 510 to 542, 544 to 548 and 560 to 590 of this Appendix.

§ 544. Rights and privileges of insured during period of protection.

No dividend or other monetary benefit under a policy shall be paid to an insured or used to purchase dividend additions while a policy is protected by the provisions of this article [sections 540 to 548 of this Appendix] except with the consent and approval of the Veterans' Administration. If such consent is not procured, such dividends or benefits shall be added to the value of the policy to be used as a credit when final settlement is made with

the insurer. No cash value, loan value, or withdrawal of dividend accumulation, or unearned premium, or other value of similar character shall be available to the insured while the policy is protected under this article [said sections] except upon approval by the Veterans' Administration. The insured's right to change a beneficiary designation or select an optional settlement for a beneficiary shall not be affected by the provisions of this article [said sections]. (Oct. 17, 1940, ch. 888, § 404, 54 Stat. 1184; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 775.) PRIOR PROVISIONS

Section 404 of act Oct. 17, 1940, as originally enacted, which, by the provisions of section 408 of act Oct. 17, 1940, as amended and incorporated in section 548 of this Appendix, is continued in force as to applications for protection executed prior to Oct. 6, 1942, read:

"When one or more applications are made under this article by any one person in military service in respect of insurance exceeding a total face value of $5,000, whether on one or more policies or in one or more companies, and the insured shall not in his application indicate an order of preference, the Veterans' Administration shall reject such policies as have the inferior cash surrender value, so as to reduce the total benefits conferred within the face value of $5,000, and where necessary for this purpose shall direct the insurer to divide any policy into two separate policies. The said Administration shall Immediately notify the insurer and the insured in writing of such selection."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 501, 510 to 543, 545 to 548 and 560 to 590 of this Appendix.

§ 545. Deduction of unpaid premiums upon settlement of policies maturing during protection.

In the event of maturity of a policy as a death claim or otherwise before the expiration of the period of protection under the provisions of this article [sections 540 to 548 of this Appendix], the insurer in making settlement will deduct from the amount of insurance the premiums guaranteed under this article [said sections], together with interest thereon at the rate fixed in the policy for policy loans. If no rate of interest is specifically fixed in the policy, the rate shall be the rate fixed for policy loans in other policies issued by the insurer at the time the policy brought under the Act [sections 501 to 548 and 560 to 590 of this Appendix] was issued. The amount deducted by reason of the protection afforded by this article [sections 540 to 548 of this Appendix] shall be reported by the insurer to the Administrator of Veterans' Affairs. (Oct. 17, 1940, ch. 888, § 405, 54 Stat. 1184; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 775.)

PRIOR PROVISIONS

Section 405 of act Oct. 17, 1940, as originally enacted, which, by the provisions of section 408 of act Oct. 17, 1940 as amended and incorporated in section 548 of this Appendix, is continued in force as to applications for protection executed prior to Oct. 6, 1942, read:

"No policy which has not lapsed for the nonpayment of premium before the commencement of the period of military service of the insured, and which has been brought within the benefits of this article, shall lapse or be forfeited for the nonpayment of premium during the period of such service or during one year after the expiration of such period: Provided, That in no case shall this prohibition extend for more than one year after the date when this Act ceases to be in force."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 501, 510 to 544, 546 to 548 and 560 to 590 of this Appendix.

§ 546. Guaranty of premiums and interest by United States; settlement of amounts due upon expiration of protection; subrogation of United States: crediting debt repayments.

Payment of premiums and interest thereon at the rate specified in section 405 hereof [section 545 of this Appendix] becoming due on a policy while protected under the provisions of this article [sections 540 to 548 of this Appendix] is guaranteed by the United States, and if the amount so guaranteed is not paid to the insurer prior to the expiration of the period of insurance protection under this article [said sections], the amount then due shall be treated by the insurer as a policy loan on such policy, but if at the expiration of said period the cash surrender value is less than the amount then due, the policy shall then cease and terminate and the United States shall pay the insurer the difference between such amount and the cash surrender value. The amount paid by the United States to an insurer on account of applications approved under the provisions of this article, as amended [said sections], shall become a debt due to the United States by the insured on whose account payment was made and, notwithstanding any other Act, such amount may be collected either by deduction from any amount due said insured by the United States or as otherwise authorized by law. Any moneys received as repayment of debts incurred under this article, as originally enacted and as amended I said sections], shall be credited to the appropriation for the payment of claims under this article [said sections]. (Oct. 17, 1940, ch. 888, § 406, 54 Stat. 1184; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 775; Apr. 3, 1948, ch. 170, § 6, 62 Stat. 160.)

AMENDMENTS

1948-Act Apr. 3, 1948, added last sentence to section.

PRIOR PROVISIONS

Section 406 of act Oct. 17, 1940, as originally enacted, which, by the provisions of section 408 of act Oct. 17, 1940 as amended and incorporated in section 548 of this Appendix, is continued in force as to applications for protection executed prior to Oct. 6, 1942, read:

"Within the first fifteen days of each calendar month after the date of approval of this Act until the expiration of one year after the date when this Act ceases to be in force every insurance corporation or association to which application has been made as herein provided, for the benefits of this article, shall render to the Veterans' Administration a report, duly verified, setting forth the following facts:

"First. The names of the persons who have applied for such benefits, and the face value of the policies in respect of which such benefits have been applied for by such persons, during the preceding calendar month.

"Second. A list as far as practicable of the premiums in respect of policies entitled to the benefits of this article, which remain unpaid on the last day of the preceding calendar month, which day is at least thirty-one days after the due date of the premiums, provided such premiums have not previously been so reported as in default.

"Third. A list of premiums which, having been previously reported as in default, have been paid by the policyholder or someone on his behalf in whole or in part during the preceding calendar month.

"Fourth. A computation of the difference between the total amount of defaulted premiums therein reported and the total amount of premiums paid as therein reported, after having been previously reported as in default. From this sum shall be deducted the total sum of any premiums previously reported as in default, upon policies in respect of which the Veterans' Administration

has, since the date of such report, rejected an application for the benefits of this article. The final sum so arrived at shall be denominated the monthly difference."

CROSS REFERENCES

Termination of war for purposes of sections 540-548 of this Appendix, see note to section 584 of this Appendix. SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 501, 510 to 545, 547, 548 and 560 to 590 of this Appendix.

§ 547. Regulations; finality of determinations.

The Administrator of Veterans' Affairs is authorized and directed to provide by regulations for such rules of procedure and forms as he may deem advisable in carrying out the provisions of this article [sections 540 to 548 of this Appendix]. The findings of fact and conclusions of law made by the Administrator of Veterans' Affairs in administering the provisions of this article [said sections] shall be final, and shall not be subject to review by any other official or agency of the Government. (Oct. 17, 1940, ch. 888, § 407, 54 Stat. 1185; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 775; Sept. 2, 1958, Pub. L. 85-857, § 14(76), 72 Stat. 1272.)

PRIOR PROVISIONS

Section 407 of act Oct. 17, 1940, as originally enacted, which, by the provisions of section 408 of act Oct. 17, 1940, as amended and incorporated in section 548 of this Appendix, is continued in force as to applications for protection executed prior to Oct. 6, 1942, read:

"The Administrator of Veterans' Affairs shall verify the computation of monthly difference reported by each insurer and shall, within ten days thereafter, deliver each month to the proper officer of such insurer, a certificate in the amount of the monthly difference certified in respect of each insurer. Such certificate shall be signed

by said Administrator in the name of the United States, shall be in such form as the Administrator shall determine, shall be payable to the insurer within sixty days after the approval of the statement of account, as provided in section 411 hereof [section 551 of this Appendix], and shall bear interest at a rate to be prescribed by the Secretary of the Treasury, payable with the principal. Such certificate shall not be transferred except with the approval of said Administrator and shall remain with the insurer until settlement is made in accordance with this article."

AMENDMENTS

1958 Pub. L. 85-857 eliminated provisions which required the Administrator of Veterans' Affairs to report annually to the Congress on the administration of sections 540-548 of this Appendix. See section 214 of Title 38, Veterans' Benefits.

EFFECTIVE DATE OF 1958 AMENDMENT Amendment of section by Pub. L. 85-857 effective Jan. 1, 1959, see section 2 of Pub. L. 85-857, set out as a note preceding Part I of Title 38, Veterans' Benefits. SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 501, 510 to 546, 548 and 560 to 590 of this Appendix.

§ 548. Law governing applications for protection prior to October 6, 1942.

(1) The provisions of this article [sections 540548 of this Appendix] in force immediately prior to the enactment of the Soldiers' and Sailors' Civil Relief Act amendments of 1942 [Act Oct. 6, 1942, which, among other things, amended this article generally] (hereinafter in this section called "such provisions") shall remain in full force and effect with respect to all valid applications for protection executed prior to the date of enactment of the Soldiers' and Sailors' Civil Relief Act amend

ments of 1942 [Oct. 6, 1942] and all policies to which such applications pertain shall continue to be entitled to the protection granted thereby.

(2) Any insurer under a policy accepted under such provisions shall, subject to the approval of the Administrator of Veterans' Affairs and upon complete surrender by it to the United States, within ninety days after the date of enactment of the Soldiers' and Sailors' Civil Relief Act amendments of 1942 [Oct. 6, 1942], of all certificates issued in accordance with such provisions together with all right to payment thereunder, be entitled to the guarantee of unpaid premiums and interest thereon and the mode of settlement for such policies as provided by this article, as amended [sections 540 to 548 of this Appendix]. The privileges and benefits granted by the foregoing sentence shall be in lieu of the method of settlement, and the requirement for accounts and reports prescribed by such provisions. In the event any such insurer fails to surrender within the said ninety days all such certificates and rights to payment, the accounts, reports, and settlements required to be made by such insurer under such provisions shall continue to be made as required and shall be governed by such provisions. (Oct. 17, 1940, ch. 888, § 408, 54 Stat. 1185; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 776.)

REFERENCES IN TEXT

The provisions of this article in force immediately prior to the enactment of the Soldiers' and Sailors' Civil Relief Act amendments of 1942, referred to in text, are set out in notes under sections 540-548 and 549-554 of this Appendix.

The Soldiers' and Sailors' Civil Relief Act Amendments of 1942, referred to in the text, amended, among other sections, this section. For other sections affected, see note under section 501 of this Appendix.

PRIOR PROVISIONS

Section 408 of act Oct. 17, 1940, as originally enacted, continued in force by this section as amended by act Oct. 6, 1942, read: "The certificate so delivered shall be held by the respective insurers as security for the payment of the defaulted premiums with interest. To indemnify it against loss the United States shall have a first lien upon any policy receiving the benefits of this article, subject only to any lien existing at the time the policy became subject to this Act, and no loan or settlement or payment of dividend shall be made by the insurer on such policy which may prejudice the security of such lien. Before any dividend is paid or any loan or settlement is made the written consent of the Veterans' Administration must be obtained."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 501, 510 to 547 and 560 to 590 of this Appendix. S$ 549 to 554. Omitted.

CODIFICATION

Sections 549-554 of this Appendix were omitted from "Article IV-Insurance" in the general amendment thereof by act Oct. 6, 1942, ch. 581, § 13, 56 Stat. 773. They were from sections 409-414, respectively, of act Oct. 17, 1940, ch. 888, 54 Stat. 1185, 1186, and read:

"§ 549. Deduction of unpaid premiums from proceeds of policies. In the event that the military service of any person being the holder of a policy receiving the benefits of this article shall be terminated by death, the amount of any unpaid premiums, with interest at the rate provided for in the policy for policy loans, shall be deducted from the proceeds of the policy and shall be included in the next monthly report of the insurer as premiums paid. Oct. 17, 1940, ch. 888 § 409, 54 Stat. 1185.

"§ 550. Lapsing of policy for failure to pay past due premiums upon termination of service. If the insured

does not within one year after the termination of his period of military service pay to the insurer all past due premiums with interest thereon from their several due dates at the rate provided in the policy for policy loans, the policy shall at the end of such year immediately lapse and become void, and the insurer shall thereupon become liable to pay the cash surrender value thereof, if any: Provided, That if the insured is in the military service when this Act ceases to be in force, such lapse shall occur and surrender value be payable at the expiration of one year after the date when this Act ceases to be in force Oct. 17, 1940, ch. 888, § 410, 54 Stat. 1185.

"§ 551. Accounts stated between insurers and United States. At the expiration of one year after the date when this Act ceases to be in force there shall be an account stated between each insurer and the United States, in which there shall be credited to the insurer the total amount of the certificates held as security under this article, together with accrued interest to the date of the account, and in which there shall be credited to the United States the amount of the cash surrender value of each policy lapsed or forfeited as provided in section 410 [section 550 of this Appendix], but not in any case a greater amount on any policy than the total of the unpaid premiums with interest thereon at the rate provided for in the policy for policy loans. Oct. 17, 1940, ch. 888, § 411, 54 Stat. 1185.

"§ 552. Payment of balances due insurers by Secretary of Treasury. The balance in favor of the insurer in each case shall be certified by the Administrator of Veterans' Affairs to the Secretary of the Treasury, who shall pay to the insurer the amount thereof, which is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, upon the surrender by the insurer of the certificates delivered to it from time to time by the Administrator of Veterans' Affairs under the provisions of this article. Oct. 17, 1940, ch. 888, § 412, 54 Stat. 1185.

"§ 553. Policies excepted from application of article. This article shall not apply to any policy which is void or which may at the option of the insured be voidable, if the insured is in military service, either in this country or abroad, nor to any policy which as a result of being in military service, either in this country or abroad, provides for the payment of any sum less than the face thereof or for the payment of an additional amount as premium. Oct. 17, 1940, ch. 888, § 413, 54 Stat. 1186.

This

"§ 554. Insurers within application of article. article shall apply only to insurance companies or associations which are required, by the law under which they are organized or doing business to maintain a reserve, or, which if not so required, have made or shall make provision for the collection from all those insured in such insurer of a premium to cover the special war risk of those insured persons who are in military service. Oct. 17, 1940, ch. 888, § 414, 54 Stat. 1186."

ARTICLE V.-TAXES AND PUBLIC LANDS

§ 560. Taxes respecting personalty, money, credits, or realty; sale of property to enforce collection; redemption of property sold; penalty for nonpayment; notice of rights to beneficiaries of section. (1) The provisions of this section shall apply when any taxes or assessments, whether general or special (other than taxes on income), whether falling due prior to or during the period of military service, in respect of personal property, money, or credits, or real property owned and occupied for dwelling, professional, business, or agricultural purposes by a person in military service or his dependents at the commencent of his period of military service and still so occupied by his dependents or employees are not paid.

(2) No sale of such property shall be made to enforce the collection of such tax or assessment, or any proceeding or action for such purpose commenced, except upon leave of court granted upon application made therefor by the collector of taxes or

other officer whose duty it is to enforce the collection of taxes or assessments. The court thereupon, unless in its opinion the ability of the person in military service to pay such taxes or assessments is not materially affected by reason of such service, may stay such proceedings or such sale, as provided in this Act [sections 501 to 548 and 560 to 590 of this Appendix], for a period extending not more than six months after the termination of the period of military service of such person.

(3) When by law such property may be sold or forfeited to enforce the collection of such tax or assessment, such person in military service shall have the right to redeem or commence an action to redeem such property, at any time not later than six months after the termination of such service, but in no case later than six months after the date when this Act [said sections] ceases to be in force; but this shall not be taken to shorten any period, now or hereafter provided by the laws of any State or Territory for such redemption.

(4) Whenever any tax or assessment shall not be paid when due, such tax or assessment due and unpaid shall bear interest until paid at the rate of 6 per centum per annum, and no other penalty or interest shall be incurred by reason of such nonpayment. Any lien for such unpaid taxes or assessment shall also include such interest thereon. (Oct. 17, 1940, ch. 888, § 500, 54 Stat. 1186; Oct. 6, 1942, ch. 581, § 14, 56 Stat. 776.)

AMENDMENTS

1942-Subsec. (1). Act Oct. 6, 1942, inserted parenthetical clause excepting income taxes, included taxes and assessments falling due prior to period of military service, and extended benefits to cover personal property, money, or credits, and real property owned and occupied for professional purposes.

Subsec. (2). Act Oct. 6, 1942, § 14(a), amended section generally.

Subsec. (5). Act Oct. 6, 1942, § 14(b), repealed subsec. (5), which required the Secretaries of War, Navy, and Treasury to give notice of the benefits of this section to persons in the military service.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 501, 510 to 548 and 561 to 590 of this Appendix.

§ 561. Rights to public lands not forfeited; grazing lands.

(1) No right to any lands owned or controlled by the United States initiated or acquired under any laws of the United States, including the mining and mineral leasing laws, by any person prior to entering military service shall during the period of such service be forfeited or prejudiced by reason of his absence from the land or his failure to perform any work or make any improvements thereon or his failure to do any other act required by or under such laws.

(2) If a permittee or licensee under the Act of June 28, 1934 (48 Stat. 1269) [sections 315 to 315g, 315h to 315m, 315n, 3150-1 and 1171 of Title 43] enters military service, he may elect to suspend his permit or license for the period of his military service and six months thereafter, and the Secretary of the Interior by regulations shall provide for such suspension of permits and licenses and for the remission, reduction, or refund of grazing fees during such suspension.