50 USC § 3933 - Fines and penalties under contracts

---
identifier: "/us/usc/t50/s3933"
source: "usc"
legal_status: "official_prima_facie"
title: "50 USC § 3933 - Fines and penalties under contracts"
title_number: 50
title_name: "WAR AND NATIONAL DEFENSE"
section_number: "3933"
section_name: "Fines and penalties under contracts"
chapter_number: 50
chapter_name: "SERVICEMEMBERS CIVIL RELIEF"
subchapter_number: "II"
subchapter_name: "GENERAL RELIEF"
positive_law: false
currency: "119-84"
last_updated: "2026-04-21"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Oct. 17, 1940, ch. 888, title II, § 203, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2843.)"
---


# § 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.

---

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

## Editorial Notes

### Codification

Section was formerly classified to section 523 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

### Prior Provisions

A prior section 203 of , art. II, , related to stay or vacation of execution of judgments and attachments, prior to the general amendment of this Act by . See .

## Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable to any case not final before , see , set out as a note under .