50a U.S. Code Rule - Fines and penalties under contracts

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(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.


(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.


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