50 U.S.C. § 3955 — Termination of residential or motor vehi-

Page 999 TITLE 50—WAR AND NATIONAL DEFENSE § 3955 Statutory Notes and Related Subsidiaries EFFECTIVE AND TERMINATION DATES OF 2012 AMENDMENT; REVIVAL Pub. L. 112–154, title VII, § 710(c), Aug. 6, 2012, 126 Stat. 1208, provided that: ‘‘The amendments made by subsections (a) and (b) [amending this section] shall take effect on the date that is 180 days after the date of the enactment of this Act [Aug. 6, 2012].’’ Pub. L. 112–154, title VII, § 710(d)(1), Aug. 6, 2012, 126 Stat. 1208, as amended by Pub. L. 113–286, § 2(1), Dec. 18, 2014, 128 Stat. 3093; Pub. L. 114–142, § 2(1), Mar. 31, 2016, 130 Stat. 326; Pub. L. 115–91, div. A, title V, § 557(1), Dec. 12, 2017, 131 Stat. 1405, which provided that the amend- ments made by subsecs. (a) and (b) of section 710 of Pub. L. 112–154 (amending this section) would expire on Dec. 31, 2019, was repealed by Pub. L. 115–174, title III, § 313, May 24, 2018, 132 Stat. 1356. Pub. L. 112–154, title VII, § 710(d)(3), Aug. 6, 2012, 126 Stat. 1208, as amended by Pub. L. 113–286, § 2(2), Dec. 18, 2014, 128 Stat. 3093; Pub. L. 114–142, § 2(2), Mar. 31, 2016, 130 Stat. 326; Pub. L. 115–91, div. A, title V, § 557(2), Dec. 12, 2017, 131 Stat. 1405, which provided that, effective Jan. 1, 2020, the provisions of subsecs. (b) and (c) of this section, as in effect on July 29, 2008, would be revived, was repealed by Pub. L. 115–174, title III, § 313, May 24, 2018, 132 Stat. 1356. EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110–289, div. B, title II, § 2203(c), July 30, 2008, 122 Stat. 2850, as amended by Pub. L. 111–346, § 2, Dec. 29, 2010, 124 Stat. 3622; Pub. L. 112–154, title VII, § 710(d)(2), Aug. 6, 2012, 126 Stat. 1208, provided that: ‘‘The amend- ments made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [July 30, 2008].’’ EFFECTIVE DATE Section 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. § 3954. Settlement of stayed cases relating to per- sonal property (a) Appraisal of property When a stay is granted pursuant to this chap- ter in a proceeding to foreclose a mortgage on or to repossess personal property, or to rescind or terminate a contract for the purchase of per- sonal property, the court may appoint three dis- interested parties to appraise the property. (b) Equity payment Based on the appraisal, and if undue hardship to the servicemember’s dependents will not re- sult, the court may order that the amount of the servicemember’s equity in the property be paid to the servicemember, or the servicemember’s dependents, as a condition of foreclosing the mortgage, repossessing the property, or rescind- ing or terminating the contract. (Oct. 17, 1940, ch. 888, title III, § 304, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2848.) Editorial Notes CODIFICATION Section was formerly classified to section 534 of the former Appendix to this title prior to editorial reclassi- fication and renumbering as this section. PRIOR PROVISIONS A prior section 304 of act Oct. 17, 1940, ch. 888, art. III, as added Oct. 6, 1942, ch. 581, § 12, 56 Stat. 772; amended Pub. L. 102–12, § 9(9), Mar. 18, 1991, 105 Stat. 40, related to termination of leases by lessees, prior to the general amendment of this Act by Pub. L. 108–189. See section 3955 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section 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. § 3955. Termination of residential or motor vehi- cle leases (a) Termination (1) Termination by lessee The lessee on a lease described in subsection (b) may, at the lessee’s option, terminate the lease at any time after— (A) the lessee’s entry into military service; (B) the date of the lessee’s military orders described in paragraph (1)(B) or (2)(B) of sub- section (b), as the case may be; or (C) the date of the lessee’s stop movement order described in paragraph (1)(C) or (2)(C) of subsection (b), as the case may be. (2) Joint leases A lessee’s termination of a lease pursuant to this subsection shall terminate any obligation a dependent of the lessee may have under the lease. (3) Death of lessee The spouse or dependent of the lessee on a lease described in subsection (b) may termi- nate the lease during the one-year period be- ginning on the date of the death of the lessee, if the lessee dies while in military service or while performing full-time National Guard duty, active Guard and Reserve duty, or inac- tive-duty training (as such terms are defined in section 101(d) of title 10). (4) Catastrophic injury or illness of lessee (A) Termination If the lessee on a lease described in sub- section (b) incurs a catastrophic injury or illness during a period of military service or while performing covered service, during the one-year period beginning on the date on which the lessee incurs such injury or ill- ness— (i) the lessee may terminate the lease; or (ii) in the case of a lessee who lacks the mental capacity to contract or to manage his or her own affairs (including disburse- ment of funds without limitation) due to such injury or illness, the spouse or de- pendent of the lessee may terminate the lease. (B) Definitions In this paragraph: (i) The term ‘‘catastrophic injury or ill- ness’’ has the meaning given that term in section 439(g) of title 37. (ii) The term ‘‘covered service’’ means full-time National Guard duty, active Guard and Reserve duty, or inactive-duty training (as such terms are defined in sec- tion 101(d) of title 10). (b) Covered leases This section applies to the following leases: Page 1000 TITLE 50—WAR AND NATIONAL DEFENSE § 3955 (1) Leases of premises A lease of premises occupied, or intended to be occupied, by a servicemember or a servicemember’s dependents for a residential, professional, business, agricultural, or similar purpose if— (A) the lease is executed by or on behalf of a person who thereafter and during the term of the lease enters military service; (B) the servicemember, while in military service, executes the lease and thereafter re- ceives military orders for a permanent change of station or to deploy with a mili- tary unit, or as an individual in support of a military operation, for a period of not less than 90 days; or (C) the servicemember, while in military service— (i) executes a lease upon receipt of mili- tary orders for a permanent change of sta- tion or to deploy with a military unit, or as an individual in support of a military operation, for a period of not less than 90 days; and (ii) thereafter receives a stop movement order issued by the Secretary concerned in response to a local, national, or global emergency, effective for an indefinite pe- riod or for a period of not less than 30 days, which prevents the servicemember or servicemember’s dependents from occu- pying the lease for a residential, profes- sional, business, agricultural, or similar purpose. (2) Leases of motor vehicles A lease of a motor vehicle used, or intended to be used, by a servicemember or a servicemember’s dependents for personal or business transportation if— (A) the lease is executed by or on behalf of a person who thereafter and during the term of the lease enters military service under a call or order specifying a period of not less than 180 days (or who enters military service under a call or order specifying a period of 180 days or less and who, without a break in service, receives orders extending the period of military service to a period of not less than 180 days); (B) the servicemember, while in military service, executes the lease and thereafter re- ceives military orders— (i) for a change of permanent station— (I) from a location in the continental United States to a location outside the continental United States; or (II) from a location in a State outside the continental United States to any lo- cation outside that State; or (ii) to deploy with a military unit, or as an individual in support of a military oper- ation, for a period of not less than 180 days; or (C) the servicemember, while in military service— (i) executes a lease upon receipt of mili- tary orders described in subparagraph (B); and (ii) thereafter receives a stop movement order issued by the Secretary concerned in response to a local, national, or global emergency, effective for an indefinite pe- riod or for a period of not less than 30 days, which prevents the servicemember, or the servicemember’s dependents, from using the vehicle for personal or business transportation. (c) Manner of termination (1) In general Termination of a lease under subsection (a) is made— (A) by delivery by the lessee of written no- tice of such termination, and a copy of the servicemember’s military orders, to the les- sor (or the lessor’s grantee), or to the les- sor’s agent (or the agent’s grantee); and (B) in the case of a lease of a motor vehi- cle, by return of the motor vehicle by the lessee to the lessor (or the lessor’s grantee), or to the lessor’s agent (or the agent’s grant- ee), not later than 15 days after the date of the delivery of written notice under subpara- graph (A). (2) Delivery of notice Delivery of notice under paragraph (1)(A) may be accomplished— (A) by hand delivery; (B) by private business carrier; (C) by placing the written notice in an en- velope with sufficient postage and with re- turn receipt requested, and addressed as des- ignated by the lessor (or the lessor’s grant- ee) or to the lessor’s agent (or the agent’s grantee), and depositing the written notice in the United States mails; or (D) by electronic means, including— (i) the direct delivery of material to an electronic address designated by the lessor (or the lessor’s grantee) or the lessor’s agent (or the agent’s grantee); (ii) the posting of material to a website or other internet or electronic-based infor- mation repository to which access has been granted to the lessee, the lessor (or the lessor’s grantee), or the lessor’s agent (or the agent’s grantee); and (iii) other electronic means reasonably calculated to ensure actual receipt of the material by the lessor (or the lessor’s grantee) or the lessor’s agent (or the agent’s grantee). (d) Effective date of lease termination (1) Lease of premises (A) Entrance to military service, permanent change of station, or deployment In the case of a lease described in subpara- graph (A) or (B) of subsection (b)(1) that pro- vides for monthly payment of rent, termi- nation of the lease under subsection (a) is ef- fective 30 days after the first date on which the next rental payment is due and payable after the date on which the notice under sub- section (c) is delivered. In the case of any other lease described in subparagraphs (A) and (B) of subsection (b)(1) termination of the lease under subsection (a) is effective on the last day of the month following the month in which the notice is delivered. Page 1001 TITLE 50—WAR AND NATIONAL DEFENSE § 3955 (B) Stop movement orders In the case of a lease described in sub- section (b)(1)(C), termination of the lease under subsection (a) is effective on the date on which the requirements of subsection (c) are met for such termination. (2) Lease of motor vehicles In the case of a lease described in subsection (b)(2), termination of the lease under sub- section (a) is effective on the day on which the requirements of subsection (c) are met for such termination. (e) Arrearages and other obligations and liabil- ities (1) Leases of premises Rent amounts for a lease described in sub- section (b)(1) that are unpaid for the period preceding the effective date of the lease termi- nation shall be paid on a prorated basis. The lessor may not impose an early termination charge, but any taxes, summonses, or other obligations and liabilities of the lessee in ac- cordance with the terms of the lease, includ- ing reasonable charges to the lessee for excess wear, that are due and unpaid at the time of termination of the lease shall be paid by the lessee. (2) Leases of motor vehicles Lease amounts for a lease described in sub- section (b)(2) that are unpaid for the period preceding the effective date of the lease termi- nation shall be paid on a prorated basis. The lessor may not impose an early termination charge, but any taxes, summonses, title and registration fees, or other obligations and li- abilities of the lessee in accordance with the terms of the lease, including reasonable charges to the lessee for excess wear or use and mileage, that are due and unpaid at the time of termination of the lease shall be paid by the lessee. (f) Rent paid in advance Rents or lease amounts paid in advance for a period after the effective date of the termi- nation of the lease shall be refunded to the les- see by the lessor (or the lessor’s assignee or the assignee’s agent) within 30 days of the effective date of the termination of the lease. (g) Relief to lessor Upon application by the lessor to a court be- fore the termination date provided in the writ- ten notice, relief granted by this section to a servicemember may be modified as justice and equity require. (h) Misdemeanor Any person who knowingly seizes, holds, or de- tains the personal effects, security deposit, or other property of a servicemember or a servicemember’s dependent who lawfully termi- nates a lease covered by this section, or who knowingly interferes with the removal of such property from premises covered by such lease, for the purpose of subjecting or attempting to subject any of such property to a claim for rent accruing subsequent to the date of termination of such lease, or attempts to do so, shall be fined as provided in title 18, or imprisoned for not more than one year, or both. (i) Definitions In this section: (1) Military orders The term ‘‘military orders’’, with respect to a servicemember, means official military or- ders (including orders for separation or retire- ment), or any notification, certification, or verification from the servicemember’s com- manding officer, with respect to the servicemember’s current or future military duty status. (2) ConUS The term ‘‘continental United States’’ means the 48 contiguous States and the Dis- trict of Columbia. (3) Permanent change of station The term ‘‘permanent change of station’’ in- cludes separation or retirement from military service. (Oct. 17, 1940, ch. 888, title III, § 305, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2848; amended Pub. L. 108–454, title VII, § 704, Dec. 10, 2004, 118 Stat. 3624; Pub. L. 111–275, title III, §§ 301, 303(b)(5), Oct. 13, 2010, 124 Stat. 2875, 2878; Pub. L. 115–407, title III, § 301, Dec. 31, 2018, 132 Stat. 5373; Pub. L. 116–92, div. A, title V, §§ 545, 546, Dec. 20, 2019, 133 Stat. 1377; Pub. L. 116–158, § 1(a)–(d), Aug. 14, 2020, 134 Stat. 706, 707; Pub. L. 116–283, div. A, title V, § 549, Jan. 1, 2021, 134 Stat. 3620; Pub. L. 116–315, title VII, §§ 7201(a), 7202(a), Jan. 5, 2021, 134 Stat. 5063.) Editorial Notes CODIFICATION Section was formerly classified to section 535 of the former Appendix to this title prior to editorial reclassi- fication and renumbering as this section. PRIOR PROVISIONS A prior section 305 of act Oct. 17, 1940, ch. 888, art. III, as added Oct. 6, 1942, ch. 581, § 12, 56 Stat. 773; amended Pub. L. 102–12, § 9(9), Mar. 18, 1991, 105 Stat. 40, related to protection of assignor of life insurance policy, en- forcement of storage liens, and penalties, prior to the general amendment of this Act by Pub. L. 108–189. See sections 3957 and 3958 of this title. AMENDMENTS 2021—Subsec. (a)(3). Pub. L. 116–283, § 549(b), sub- stituted ‘‘The spouse or dependent of the lessee’’ for ‘‘The spouse of the lessee’’. Subsec. (a)(4). Pub. L. 116–283, § 549(a), amended par. (4) generally. Prior to amendment, text read as follows: ‘‘The spouse of the lessee on a lease described in sub- section (b) may terminate the lease during the one- year period beginning on the date on which the lessee incurs a catastrophic injury or illness (as that term is defined in section 439(g) of title 37, if the lessee incurs the catastrophic injury or illness during a period of military service or while performing full-time National Guard duty, active Guard and Reserve duty, or inac- tive-duty training (as such terms are defined in section 101(d) of title 10).’’ Subsec. (b)(1)(C)(ii), (2)(C)(ii). Pub. L. 116–315, § 7202(a), substituted ‘‘Secretary concerned’’ for ‘‘Secretary of Defense’’. Subsec. (c)(2)(D). Pub. L. 116–315, § 7201(a), added sub- par. (D). Page 1002 TITLE 50—WAR AND NATIONAL DEFENSE § 3956 2020—Subsec. (a)(1)(C). Pub. L. 116–158, § 1(a), added subpar. (C). Subsec. (b)(1)(C). Pub. L. 116–158, § 1(b)(1), added sub- par. (C). Subsec. (b)(2)(C). Pub. L. 116–158, § 1(b)(2), added sub- par. (C). Subsec. (d)(1). Pub. L. 116–158, § 1(c), amended par. (1) generally. Prior to amendment, text read as follows: ‘‘In the case of a lease described in subsection (b)(1) that provides for monthly payment of rent, termi- nation of the lease under subsection (a) is effective 30 days after the first date on which the next rental pay- ment is due and payable after the date on which the no- tice under subsection (c) is delivered. In the case of any other lease described in subsection (b)(1), termination of the lease under subsection (a) is effective on the last day of the month following the month in which the no- tice is delivered.’’ Subsec. (i). Pub. L. 116–158, § 1(d), which directed amendment of subsec. (i) by inserting ‘‘In this section:’’ before par. (1) without specifying the section being amended, was executed to subsec. (i) of this section, to reflect the probable intent of Congress. 2019—Subsec. (a)(3). Pub. L. 116–92, § 545(b), sub- stituted ‘‘in subsection (b)’’ for ‘‘in subsection (b)(1)’’. Subsec. (a)(4). Pub. L. 116–92, § 545(a), added par. (4). Subsec. (i)(1). Pub. L. 116–92, § 546(1), inserted ‘‘(in- cluding orders for separation or retirement)’’ after ‘‘of- ficial military orders’’. Subsec. (i)(3). Pub. L. 116–92, § 546(2), added par. (3). 2018—Subsec. (a). Pub. L. 115–407, § 301(1), struck out ‘‘by lessee’’ after ‘‘Termination’’ in heading. Subsec. (a)(1). Pub. L. 115–407, § 301(2), substituted ‘‘Termination by lessee’’ for ‘‘In general’’ in heading. Subsec. (a)(3). Pub. L. 115–407, § 301(3), added par. (3). 2010—Subsec. (e). Pub. L. 111–275, § 301, amended sub- sec. (e) generally. Prior to amendment, text read as fol- lows: ‘‘Rents or lease amounts unpaid for the period preceding the effective date of the lease termination shall be paid on a prorated basis. In the case of the lease of a motor vehicle, the lessor may not impose an early termination charge, but any taxes, summonses, and title and registration fees and any other obligation and liability of the lessee in accordance with the terms of the lease, including reasonable charges to the lessee for excess wear, use and mileage, that are due and un- paid at the time of termination of the lease shall be paid by the lessee.’’ Subsec. (h). Pub. L. 111–275, § 303(b)(5), amended sub- sec. (h) generally. Prior to amendment, subsec. (h) re- lated to penalties. 2004—Subsec. (a). Pub. L. 108–454, § 704(a), amended subsec. (a) generally, designating existing provisions as par. (1), inserting par. heading, and adding par. (2). Subsec. (b)(1)(B). Pub. L. 108–454, § 704(c), inserted ‘‘, or as an individual in support of a military oper- ation,’’ after ‘‘deploy with a military unit’’. Subsec. (b)(2)(B). Pub. L. 108–454, § 704(b)(1), sub- stituted ‘‘military orders—’’ for ‘‘military orders for a permanent change of station outside of the continental United States or to deploy’’, added cl. (i), and inserted ‘‘(ii) to deploy’’ before ‘‘with a military unit’’. Subsec. (b)(2)(B)(ii). Pub. L. 108–454, § 704(c), inserted ‘‘, or as an individual in support of a military oper- ation,’’ after ‘‘deploy with a military unit’’. Subsec. (i). Pub. L. 108–454, § 704(b)(2), added subsec. (i). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 116–315, title VII, § 7201(b), Jan. 5, 2021, 134 Stat. 5063, provided that: ‘‘The amendments made by subsection (a) [amending this section] shall apply to delivery of notice of lease terminations on or after the date the enactment of this Act [Jan. 5, 2021].’’ Pub. L. 116–315, title VII, § 7202(b), Jan. 5, 2021, 134 Stat. 5064, provided that: ‘‘The amendments made by this section [amending this section] shall apply to stop movement orders issued on or after March 1, 2020.’’ EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–158, § 1(e), Aug. 14, 2020, 134 Stat. 708, pro- vided that: ‘‘The amendments made by this section [amending this section] shall apply to stop movement orders issued on or after March 1, 2020.’’ EFFECTIVE DATE Section 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. § 3956. Termination of certain consumer con- tracts (a) Termination by servicemember or dependent of a servicemember (1) Termination A servicemember may terminate a contract described in subsection (b) at any time after— (A) the date the servicemember receives military orders to relocate for a period of not less than 90 days to a location that does not support the contract; or (B) the date the servicemember, while in military service, receives military orders for a permanent change of station, thereafter enters into the contract, and then receives a stop movement order issued by the Sec- retary of Defense or the Secretary of Home- land Security in response to a local, na- tional, or global emergency, effective for an indefinite period or for a period of not less than 30 days, that prevents the servicemember from using the services pro- vided under the contract. (2) Notice In the case that a servicemember terminates a contract as described in paragraph (1), the service provider under the contract shall pro- vide such servicemember with written or elec- tronic notice of the servicemember’s rights under such paragraph. (3) Manner of termination Termination of a contract under paragraph (1) shall be made by delivery of a written or electronic notice of such termination and a copy of the servicemember’s military orders to the service provider, delivered in accordance with industry standards for notification of ter- minations, together with the date on which the service is to be terminated. (4) Additional individuals covered For purposes of this section, the following individuals shall be treated as a servicemember covered by paragraph (1): (A) A spouse or dependent of a servicemember who dies while in military service or a spouse or dependent of a mem- ber of the reserve components who dies while performing duty described in subpara- graph (C). (B) A spouse or dependent of a servicemember who incurs a catastrophic in- jury or illness (as that term is defined in section 439(g) of title 37), if the servicemember incurs the catastrophic in- jury or illness while in military service or performing duty described in subparagraph (C).