US Code

Public Law 119-83 (04/13/2026)

50 U.S.C. § 3952

Protection under installment contracts for purchase or lease

(a)

Protection upon breach of contract

(1)

Protection after entering military service

After a servicemember enters military service, a contract by the servicemember for—
(A)
the purchase of real or personal property (including a motor vehicle); or
(B)
the lease or bailment of such property,
may not be rescinded or terminated for a breach of terms of the contract occurring before or during that person’s military service, nor may the property be repossessed for such breach without a court order.
(2)

Applicability

This section applies only to a contract for which a deposit or installment has been paid by the servicemember before the servicemember enters military service.

(b)

Misdemeanor

section 3918 of this titleA person who knowingly resumes possession of property in violation of subsection (a), or in violation of , or who knowingly attempts to do so, shall be fined as provided in title 18, or imprisoned for not more than one year, or both.

(c)

Authority of court

In a hearing based on this section, the court—
(1)
may order repayment to the servicemember of all or part of the prior installments or deposits as a condition of terminating the contract and resuming possession of the property;
(2)
may, on its own motion, and shall on application by a servicemember when the servicemember’s ability to comply with the contract is materially affected by military service, stay the proceedings for a period of time as, in the opinion of the court, justice and equity require; or
(3)
may make other disposition as is equitable to preserve the interests of all parties.

Oct. 17, 1940, ch. 888 Pub. L. 108–189, § 1117 Stat. 2846 Pub. L. 111–275, title III, § 303(b)(3)124 Stat. 2878 (, title III, § 302, as added , , ; amended , , .)

Editorial Notes

Codification

Section was formerly classified to section 532 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. 1182 Oct. 6, 1942, ch. 581 56 Stat. 771 June 23, 1952, ch. 450 66 Stat. 151 Pub. L. 102–12, § 9(9)105 Stat. 40 Pub. L. 108–189section 3953 of this titleA prior section 302 of , art. III, ; , §§ 9(b), (c), 10, , 772; , ; , (10), , , related to mortgages and trust deeds, prior to the general amendment of this Act by . See .

Amendments

Pub. L. 111–2752010—Subsec. (b). amended subsec. (b) generally. Prior to amendment, subsec. (b) related to penalties.

Statutory Notes and Related Subsidiaries

Effective Date

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