Judge Daniel M. Crowley, Case Number: 23STCP03306, Date: 2023-10-06 Tentative Ruling

Petitioner Alex Tam’s unopposed petition for relief from financial obligation during military service is granted.

Petitioner Alex Tam (“Tam”) petitions this Court for relief with respect to a financial obligation or liability to Respondent PNC Bank (“PNC”) that Petitioner incurred before the effective date of the orders for Petitioner’s most current active duty military service. (Petition ¶4(b).) Petitioner is currently in full-time active duty service in the federal armed services. (Decl. of Tam ¶¶1, 3; Petition ¶3; Mil. & Vet. Code §400(b).) Petitioner requests relief in the form of a deferment of the payment of principal and interest on an auto loan for the purchase of a vehicle. (Petition ¶8(b)(3).) Petitioner requests a deferment period from December 1, 2023, through September 30, 2024, with payments to resume on October 1, 2024. (Petition ¶8(b)(3); Mil. & Vet. Code §409.3; 50 U.S.C. §4021.)

Petitioner filed the instant petition on September 11, 2023. On September 26, 2023, Petitioner and Respondent filed a joint stipulation for entry of relief from financial obligation during military service. Parties stipulate and agree that the instant petition should be granted.

When any court has granted a deferment as provided in this section, no fine or penalty shall accrue during the period the terms and conditions of the deferment are complied with by reason of failure to comply with the terms or conditions of the obligation, liability, tax, or assessment in respect of which the deferment was granted, including penalties on the nonpayment of principal or interest during this period. Interest shall not be charged or accumulated during the period of deferment unless otherwise ordered by the court. Foreclosure or repossession of property on which payment has been deferred shall not take place during the period specified in this section.

Petitioner’s unopposed petition is granted. The period of deferment will begin December 1, 2023, and end on September 30, 2024. (Stipulation ¶¶8-9.) If Petitioner is released from active military service before the expected the release date, Petitioner must immediately notify Respondent. (Stipulation ¶10.) At the end of the deferral period, regular monthly loan payments shall resume in the same amount prior to the deferral. (Stipulation ¶11.)

The unpaid balance of the loan at issue will remain unchanged during the deferral period, and no amount will be added to the principal balance during, or because of the deferral. (Stipulation ¶12.) No interest will be charged, accrued, or accumulated on principal or on interest during, or because of, the deferral. (Stipulation ¶13.) This deferment shall apply to the payment of principal and interest only and shall not relieve Petitioner of the obligation to maintain the vehicle and to maintain insurance and registration for the vehicle. (Stipulation ¶14.)

The maturity date of the loan at issue shall be extended for the same number of days as the deferral period to permit the additional payments necessary to pay off the extended obligation on the terms otherwise set forth in the loan documents. (Stipulation ¶15.) During the period of deferral, Respondent may not exercise any remedies otherwise available for Petitioner’s failure to make monthly payments of principal and interest according to the terms of the financial obligation. Respondent may not impose fines, penalties, or late charges and may not institute or continue proceedings to repossess, attach, or foreclose on the property securing the obligation. (Stipulation ¶16.)

Petitioner’s unopposed petition for relief from financial obligation during military service is granted.

Hon. Daniel M. Crowley

Judge of the Superior Court