Statute · United States Code
50 U.S.C. § 3933 — Fines and penalties under contracts
50 U.S.C. § 3933
- Type
- Statute
- Source
- United States Code
- Jurisdiction
- Federal
- Date
- 2025-01-06
- Topic
- bankruptcy
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. 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.
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. 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.