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§ 3933. Fines and penalties under contracts

[Section 203 of Act]

(a) PROHIBITION OF PENALTIES- 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.

(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.



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