50 U.S.C. § 3933

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 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.

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