(a) Application for reliefA servicemember may, during military service or within 180 days of termination of or release from military service, apply to a court for relief—(1) from any obligation or liability incurred by the servicemember before the servicemember’s military service; or
(2) from a tax or assessment falling due before or during the servicemember’s military service.
(b) Tax liability or assessmentIn a case covered by subsection (a), the court may, if the ability of the servicemember to comply with the terms of such obligation or liability or pay such tax or assessment has been materially affected by reason of military service, after appropriate notice and hearing, grant the following relief:(1) Stay of enforcement of real estate contracts(A) In the case of an obligation payable in installments under a contract for the purchase of real estate, or secured by a mortgage or other instrument in the nature of a mortgage upon real estate, the court may grant a stay of the enforcement of the obligation—(i) during the servicemember’s period of military service; and
(ii) from the date of termination of or release from military service, or from the date of application if made after termination of or release from military service.
(B) Any stay under this paragraph shall be—(i) for a period equal to the remaining life of the installment contract or other instrument, plus a period of time equal to the period of military service of the servicemember, or any part of such combined period; and
(ii) subject to payment of the balance of the principal and accumulated interest due and unpaid at the date of termination or release from the applicant’s military service or from the date of application in equal installments during the combined period at the rate of interest on the unpaid balance prescribed in the contract or other instrument evidencing the obligation, and subject to other terms as may be equitable.
(2) Stay of enforcement of other contracts(A) In the case of any other obligation, liability, tax, or assessment, the court may grant a stay of enforcement—(i) during the servicemember’s military service; and
(ii) from the date of termination of or release from military service, or from the date of application if made after termination or release from military service.
(B) Any stay under this paragraph shall be—(i) for a period of time equal to the period of the servicemember’s military service or any part of such period; and
(ii) subject to payment of the balance of principal and accumulated interest due and unpaid at the date of termination or release from military service, or the date of application, in equal periodic installments during this extended period at the rate of interest as may be prescribed for this obligation, liability, tax, or assessment, if paid when due, and subject to other terms as may be equitable.
(c) Affect 11 So in original. Probably should be “Effect”. of stay on fine or penaltyWhen a court grants a stay under this section, a fine or penalty shall not accrue on the obligation, liability, tax, or assessment for the period of compliance with the terms and conditions of the stay.
(Oct. 17, 1940, ch. 888, title VII, § 701, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2860.)
Editorial Notes
Codification
Section was formerly classified to section 591 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.
Prior ProvisionsA prior section 701 of act Oct. 17, 1940, ch. 888, art. VII, as added Pub. L. 92–540, title V, § 504(2), Oct. 24, 1972, 86 Stat. 1098; amended Pub. L. 102–12, § 3, Mar. 18, 1991, 105 Stat. 34, related to power of attorney, prior to the general amendment of this Act by Pub. L. 108–189. See section 4022 of this title.
Provisions similar to this section were contained in section 700 of act Oct. 17, 1940, ch. 888, art. VII, as added Oct. 6, 1942, ch. 581, § 18, 56 Stat. 777, prior to the general amendment of this Act by Pub. L. 108–189.
Statutory Notes and Related Subsidiaries
Effective DateSection applicable to any case not final before Dec. 19, 2003, see section 3 of Pub. L. 108–189, set out as a note under section 3901 of this title.