The California Military and Veterans Code provides servicemember protections that mirror certain protections under the Federal Servicemembers Civil Relief Act. Specifically, California imposes its own 6 percent interest rate protection for servicemembers who entered into credit obligations prior to being called to active duty.
Assembly Bill 2476 amended Section 405 of the California Military and Veterans Code to extend the 6 percent interest rate protection from the current protection, which is the period of military service, to also include the year following the period of military service for any obligation or liability secured by a mortgage, trust deed, or security in the nature of a mortgage.
The amendment brings the California protection in line with the current federal protection that extends the 6 percent interest rate protection for the one year following military service for the same type of obligations. As with the federal law, for all obligations other than mortgages, the 6 percent interest rate protection only applies to the period of military service. The amendment will be effective January 1, 2013.