50 U.S.C. § 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may not be rescinded or terminated for a breach of terms of the contract occurring before or during that person’s military service, nor may the property be repossessed for such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
This section applies only to a contract for which a deposit or installment has been paid by the servicemember before the servicemember enters military service.
(b) Misdemeanor
A person who knowingly resumes possession of property in violation of subsection (a), or in violation of section 3918 of this title , or who knowingly attempts to do so, shall be fined as provided in title 18, or imprisoned for not more than one year, or both.
(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 .)