CHAPTER 3. The California Military Families Financial Relief Act [800. - 813.]

Cal. Military and Veterans Code - MVC 3.

in effect

Cal. Military and Veterans Code - MVC § 800. Section 800.

(a) Subject to subdivision (b), in addition to any other benefits provided by law and to the extent permitted by federal law, a reservist who is called to active duty may defer payments on any of the following obligations while serving on active duty, or following a period of active duty: (1) An obligation secured by a mortgage or deed of trust. (2) Credit card as defined in Section 1747.02 of the Civil Code. (3) Retail installment contract as defined in Section 1802.6 of the Civil Code. (4) Retail installment account, installment account, or revolving account, as defined in Section 1802.7 of the Civil Code. (5) (A) Up to two vehicle loans. (B) For purposes of this chapter, “vehicle” means a vehicle as defined in Section 670 of the Vehicle Code. (6) A payment of property tax or any special assessment of in-lieu property tax imposed on real property that is assessed on residential property owned by the reservist and used as that reservist’s primary place of residence on the date the reservist was ordered to active duty. (7) An obligation owed to a utility company. (8) A student loan. (b) (1) In order for an obligation or liability of a reservist to be subject to the provisions of this chapter, the reservist or the reservist’s designee shall deliver to the obligor both of the following: (A) (i) A written request by or on behalf of the reservist for a deferment of financial obligations. (ii) For purposes of this subparagraph, “written request” includes an electronic communication. (B) A copy of the reservist’s military orders. (2) If required by a financial institution, proof that the reservist’s employer does not provide continuing income to the reservist while the reservist is on active military duty, including the reservist’s military pay, of more than 90 percent of the reservist’s monthly salary and wage income earned before the call to active duty. (c) Upon request of the reservist or the reservist’s dependent or designee and within five working days of that request, if applicable, the employer of a reservist shall furnish the letter or other comparable evidence showing that the employer’s compensation policy does not provide continuing income to the reservist, including the reservist’s military pay, of more than 90 percent of the reservist’s monthly salary and wage income earned before the call to active duty. (d) (1) The deferral period on financial obligations shall be the lesser of 180 days or the period of active duty plus 60 calendar days. The deferral shall apply only to those payments due subsequent to the notice provided to a lender as provided in subdivision (b). In addition, the total period of the deferment shall not exceed 180 days within a 365-day period. (2) A request for deferral shall be submitted no later than 90 days following the period of active duty on which the deferral is based. (e) If a lender defers payments on a closed end credit obligation or an open-end credit obligation with a maturity date, pursuant to this chapter, the lender shall extend the term of the obligation by the amount of months the obligation was deferred. However, any mortgage payments deferred pursuant to this section are due and payable upon the sale of the property or other event specified in the documents creating the obligation permitting the lender to accelerate the loan, other than a deferral of payments under this section. (f) If a lender defers payments on an open-end credit obligation pursuant to this chapter, the lender may restrict the availability of additional credit with respect to that obligation during the term of the deferral. (g) The deferment of payments on an obligation does not limit the ability of the reservist or any other person to make payments on the obligation.

Cal. Military and Veterans Code - MVC § 801. Section 801.

For purposes of this chapter, “mortgage” means an obligation secured by a mortgage or deed of trust, and is limited to an obligation secured by a mortgage or deed of trust for residential property owned by the reservist and used as that reservist’s primary place of residence on the date the reservist was ordered into active duty.

Cal. Military and Veterans Code - MVC § 802. Section 802.

Nothing in this chapter relieves a reservist with a mortgage subject to an impound account for the payment of property taxes, special assessments, mortgage insurance, and hazard insurance from making monthly payments of an amount which is at least sufficient to pay these amounts, unless the borrower and lender agree to a lesser amount.

Cal. Military and Veterans Code - MVC § 803. Section 803.

The following definitions apply for purposes of this chapter: (a) “Reservist” means either of the following: (1) A member of the militia, as defined in Section 120, called or ordered into state military service pursuant to Section 143 or 146 or federal law. (2) A member of a reserve component of the Armed Forces of the United States, as defined by Section 101 of Title 10 of the United States Code, who is ordered to active duty pursuant to federal law. (b) “Military orders” means, with respect to a service member, official military orders, or any notification, certification, or verification from the service member’s commanding officer, with respect to the service member’s current or future military duty status. (c) “Military service” means either of the following: (1) Full-time active state service or full-time active federal service of a service member who is a member of the militia, as described in paragraph (1) of subdivision (a). (2) Full-time active duty of a service member who is a reservist, as described in paragraph (2) of subdivision (a), for a period of no less than 30 consecutive days.

Cal. Military and Veterans Code - MVC § 804. Section 804.

During the period specified in Section 800, the reservist may defer the payment of principal and interest on the specified obligations. No penalties shall be imposed on the nonpayment of principal or interest during this period. No interest shall be charged or accumulated on the principal or interest on which the payment was delayed. No foreclosure or repossession of property shall take place during the period of deferment unless otherwise ordered by a court or agreed to by the parties to the obligation.

Cal. Military and Veterans Code - MVC § 805. Section 805.

Subject to subdivisions (e) and (f) of Section 800, a stay, postponement, or suspension under this chapter of the payment of any tax, fine, penalty, insurance premium, or other civil obligation or liability of a person in military service shall not provide the basis for affecting credit ratings, denial or revocation of credit, or a change by the lender in the terms of an existing credit arrangement.

Cal. Military and Veterans Code - MVC § 806. Section 806.

(a) Any entity, which was providing any type of health care coverage, including, but not limited to, health care service plans, specialized health care service plans, and health insurance to a reservist at the time the reservist was ordered to active duty, shall reinstate the health care coverage without waiting periods or exclusion of coverage for preexisting conditions. (b) Pursuant to Section 1386 of the Health and Safety Code, the Director of the Department of Managed Health Care has the authority to enforce the provisions of this section concerning any person or entity subject to regulation under Chapter 2.2 (commencing with Section 1340) of Part 2 of Division 2 of the Health and Safety Code, and may impose any applicable penalties provided for under that section. (c) Pursuant to subdivision (a) of Section 12921 of the Insurance Code, the Insurance Commissioner has the authority to enforce the provisions of this section concerning any person or entity subject to regulation under the Insurance Code, and may impose any applicable penalties provided for under the Insurance Code. (d) The enforcement and penalty provisions of the act that added this subdivision shall apply only to reservists ordered to active duty on or after January 1, 2007.

Cal. Military and Veterans Code - MVC § 807. Section 807.

(a) The holder of a loan or retail installment sales contract with respect to which the debtor has purchased prepaid credit disability insurance shall give notice to the debtor not less than 30 days before the expiration date of the insurance that the debtor will not be protected during the period between that expiration date and the deferred maturity date of the loan or contract unless the insurance is extended. The debtor may, at their option, direct the holder to add the amount of the additional premium to the unpaid balance of the loan or contract. (b) The holder of an open-ended loan or retail installment account with respect to which the debtor has purchased credit disability insurance with premiums payable monthly together with the installment payments on the loan or the account shall give notice to the debtor that the debtor will not be protected by the insurance during the period specified in Section 800 unless the debtor elects to continue payment of premiums during that period. The debtor may, at their option, direct the holder to add the amount of those premiums to the unpaid balance of the account.

Cal. Military and Veterans Code - MVC § 808. Section 808.

(a) During the period specified in Section 800, the reservist may defer payments for leased vehicles without breach of the lease or the foreclosure or repossession of the vehicle. If a lender defers payments pursuant to this section, the lender shall extend the term of the lease by the amount of months the lease was deferred. (b) For the purposes of this chapter, “vehicle” means a vehicle as defined in Section 670 of the Vehicle Code.

Cal. Military and Veterans Code - MVC § 810. Section 810.

In those instances where a financial obligation covered by this chapter is sold, any requirement to defer payments as specified in this chapter transfers to the purchaser of the obligation.

Cal. Military and Veterans Code - MVC § 811. Section 811.

(a) The spouse or legal dependent, or both, of a reservist who is called to active duty, shall be entitled to the benefits accorded to a reservist under this chapter, provided that the reservist is eligible for the benefits. (b) This chapter applies only to an obligation specified in this chapter that was incurred prior to the date that a reservist was called to their current period of active duty.

Cal. Military and Veterans Code - MVC § 812. Section 812.

(a) A person violating any provision of this chapter shall be liable for actual damages, reasonable attorney’s fees, and costs incurred by the service member or other person entitled to the benefits and protections of this chapter. (b) A service member or other person seeking to enforce rights pursuant to this chapter shall not be required to pay a filing fee or court costs.

Cal. Military and Veterans Code - MVC § 813. Section 813.

(a) Any person who receives a good faith request from a service member for relief pursuant to this chapter and who believes the request is incomplete or otherwise not legally sufficient, or that the service member is not entitled to the relief requested, shall, within 30 days of the request, provide the service member with a written response acknowledging the request, setting forth the person’s basis for believing or asserting that the request is incomplete or not legally sufficient, or that the service member is not entitled to the relief requested. The response shall clearly identify the specific information or materials that are missing from the request and that would be required to grant the relief requested, and provide contact information, including a mailing address and telephone number, which the service member can use to contact the person. (b) If the person fails to make such a response in the timeframe set forth in this section, the person waives any objection to the request, and the service member shall be entitled to the relief requested.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026