50a U.S. Code Rule - 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 Act [sections 501 to 515 and 516 to 597b of this Appendix], 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.

Source

(Oct. 17, 1940, ch. 888, title II, § 203, as added Pub. L. 108–189, § 1,Dec. 19, 2003, 117 Stat. 2843.)
Prior Provisions

A prior section 523, act Oct. 17, 1940, ch. 888, art. II, § 203,54 Stat. 1181, related to stay or vacation of execution of judgments and attachments, prior to the general amendment of this Act by Pub. L. 108–189. See section 524 of this Appendix.

The table below lists the classification updates, since , for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.

The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013

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50aa USCDescription of ChangeSession YearPublic LawStatutes at Large

 

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