2010 US Code
Title 50 - WAR AND NATIONAL DEFENSE
TITLE 50 - APPENDIX-WAR AND NATIONAL DEFENSE
SERVICEMEMBERS CIVIL RELIEF ACT
Sec. 523 - Fines and penalties under contracts

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Metadata
Publication TitleUnited States Code, 2006 Edition, Supplement 4, Title 50 - WAR AND NATIONAL DEFENSE
CategoryBills and Statutes
CollectionUnited States Code
SuDoc Class NumberY 1.2/5:
Contained WithinTitle 50 - WAR AND NATIONAL DEFENSE
TITLE 50 - APPENDIX-WAR AND NATIONAL DEFENSE
SERVICEMEMBERS CIVIL RELIEF ACT
ACT OCT. 17, 1940, CH. 888, 54 STAT. 1178
TITLE II - GENERAL RELIEF
Sec. 523 - Fines and penalties under contracts
Containssection 523
Date2010
Laws in Effect as of DateJanuary 7, 2011
Positive LawNo
Dispositionstandard
Source CreditOct. 17, 1940, ch. 888, title II, §203, as added Pub. L. 108-189, §1, Dec. 19, 2003, 117 Stat. 2843.
Statutes at Large References54 Stat. 1178, 1181
117 Stat. 2843
Public Law ReferencesPublic Law 108-189


§523. 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 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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