50 U.S.C. § 3933 | Fines and penalties under contracts

(a)

Prohibition of penalties

When an action for compliance with the terms of a contract is stayed pursuant to this chapter, a penalty shall not accrue for failure to comply with the terms of the contract during the period of the stay.

(b)

Reduction or waiver of fines or penalties

If a servicemember fails to perform an obligation arising under a contract and a penalty is incurred arising from that nonperformance, a court may reduce or waive the fine or penalty if—

(1)

the servicemember was in military service at the time the fine or penalty was incurred; and

(2)

the ability of the servicemember to perform the obligation was materially affected by such military service.

Oct. 17, 1940, ch. 888 Pub. L. 108–189, § 1Dec. 19, 2003117 Stat. 2843(, title II, § 203, as added , , .)

Editorial Notes

Codification

Section was formerly classified to section 523 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

Prior Provisions

act Oct. 17, 1940, ch. 888 54 Stat. 1181 Pub. L. 108–189 section 3934 of this titleA prior section 203 of , art. II, , related to stay or vacation of execution of judgments and attachments, prior to the general amendment of this Act by . See .

Statutory Notes and Related Subsidiaries

Effective Date

Dec. 19, 2003section 3 of Pub. L. 108–189 section 3901 of this titleSection applicable to any case not final before , see , set out as a note under .