View all text of Subchapter III [§ 3951 - § 3959]
§ 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may not be rescinded or terminated for a breach of terms of the contract occurring before or during that person’s military service, nor may the property be repossessed for such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
(b) Misdemeanor
(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.)