50 USC 3952 - Protection under installment contracts for purchase or lease

U.S Code last checked for updates: Nov 22, 2024

§ 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may not be rescinded or terminated for a breach of terms of the contract occurring before or during that person’s military service, nor may the property be repossessed for such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

(b)

Misdemeanor

(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, title III, § 302, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2846; amended Pub. L. 111–275, title III, § 303(b)(3), Oct. 13, 2010, 124 Stat. 2878.)

cite as: 50 USC 3952