50 U.S.C. § 3934 — Stay or vacation of execution of judg-

Page 993 TITLE 50—WAR AND NATIONAL DEFENSE § 3934 tional purposes and does not constitute a waiver of any substantive or procedural defense (includ- ing a defense relating to lack of personal juris- diction). (d) Additional stay (1) Application A servicemember who is granted a stay of a civil action or proceeding under subsection (b) may apply for an additional stay based on con- tinuing material affect of military duty on the servicemember’s ability to appear. Such an ap- plication may be made by the servicemember at the time of the initial application under subsection (b) or when it appears that the servicemember is unavailable to prosecute or defend the action. The same information re- quired under subsection (b)(2) shall be included in an application under this subsection. (2) Appointment of counsel when additional stay refused If the court refuses to grant an additional stay of proceedings under paragraph (1), the court shall appoint counsel to represent the servicemember in the action or proceeding. (e) Coordination with section 3931 A servicemember who applies for a stay under this section and is unsuccessful may not seek the protections afforded by section 3931 of this title. (f) Inapplicability to section 3951 The protections of this section do not apply to section 3951 of this title. (Oct. 17, 1940, ch. 888, title II, § 202, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2842; amend- ed Pub. L. 108–454, title VII, § 703, Dec. 10, 2004, 118 Stat. 3624; Pub. L. 110–181, div. A, title V, § 584(b), Jan. 28, 2008, 122 Stat. 128.) Editorial Notes CODIFICATION Section was formerly classified to section 522 of the former Appendix to this title prior to editorial reclassi- fication and renumbering as this section. PRIOR PROVISIONS A prior section 202 of act Oct. 17, 1940, ch. 888, art. II, 54 Stat. 1181, related to fines and penalties on con- tracts, prior to the general amendment of this Act by Pub. L. 108–189. See section 3933 of this title. AMENDMENTS 2008—Subsec. (a). Pub. L. 110–181 inserted ‘‘, including any child custody proceeding,’’ after ‘‘civil action or proceeding’’ in introductory provisions. 2004—Subsec. (a). Pub. L. 108–454 inserted ‘‘plaintiff or’’ before ‘‘defendant’’ in introductory provisions. 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. STAY OF JUDICIAL PROCEEDINGS Pub. L. 102–12, § 6, Mar. 18, 1991, 105 Stat. 37, provided that: ‘‘(a) STAY OF ACTION OR PROCEEDING.—In any judicial action or proceeding (other than a criminal proceeding) in which a member of the Armed Forces described in subsection (b) is involved (either as plaintiff or defend- ant), the court shall, upon application by such member (or some other person on the member’s behalf) at any stage before final judgment is entered, stay the action or proceeding until a date after June 30, 1991. ‘‘(b) MEMBERS COVERED.—A member of the Armed Forces is covered by subsection (a) if at the time of ap- plication for the stay of a judicial action or proceeding the member— ‘‘(1) is on active duty; and ‘‘(2) is serving outside the State in which the court having jurisdiction over the action or proceeding is located. ‘‘(c) DEFINITION.—For purposes of this section, the term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, and Guam.’’ § 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 obliga- tion arising under a contract and a penalty is in- curred arising from that nonperformance, a court may reduce or waive the fine or penalty if— (1) the servicemember was in military serv- ice at the time the fine or penalty was in- curred; and (2) the ability of the servicemember to per- form 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.) Editorial Notes CODIFICATION Section was formerly classified to section 523 of the former Appendix to this title prior to editorial reclassi- fication and renumbering as this section. PRIOR PROVISIONS A prior section 203 of act Oct. 17, 1940, ch. 888, art. II, 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 3934 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. § 3934. Stay or vacation of execution of judg- ments, attachments, and garnishments (a) Court action upon material affect determina- tion If a servicemember, in the opinion of the court, is materially affected by reason of mili- tary service in complying with a court judgment or order, the court may on its own motion and shall on application by the servicemember— (1) stay the execution of any judgment or order entered against the servicemember; and Page 994 TITLE 50—WAR AND NATIONAL DEFENSE § 3935 (2) vacate or stay an attachment or garnish- ment of property, money, or debts in the pos- session of the servicemember or a third party, whether before or after judgment. (b) Applicability This section applies to an action or proceeding commenced in a court against a servicemember before or during the period of the servicemember’s military service or within 90 days after such service terminates. (Oct. 17, 1940, ch. 888, title II, § 204, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2843.) Editorial Notes CODIFICATION Section was formerly classified to section 524 of the former Appendix to this title prior to editorial reclassi- fication and renumbering as this section. PRIOR PROVISIONS A prior section 204 of act Oct. 17, 1940, ch. 888, art. II, 54 Stat. 1181, related to duration and term of stays and codefendants not in service, prior to the general amendment of this Act by Pub. L. 108–189. See section 3935 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. § 3935. Duration and term of stays; codefendants not in service (a) Period of stay A stay of an action, proceeding, attachment, or execution made pursuant to the provisions of this chapter by a court may be ordered for the period of military service and 90 days thereafter, or for any part of that period. The court may set the terms and amounts for such installment payments as is considered reasonable by the court. (b) Codefendants If the servicemember is a codefendant with others who are not in military service and who are not entitled to the relief and protections provided under this chapter, the plaintiff may proceed against those other defendants with the approval of the court. (c) Inapplicability of section This section does not apply to sections 3932 and 4021 of this title. (Oct. 17, 1940, ch. 888, title II, § 205, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2844.) Editorial Notes CODIFICATION Section was formerly classified to section 525 of the former Appendix to this title prior to editorial reclassi- fication and renumbering as this section. PRIOR PROVISIONS A prior section 205 of act Oct. 17, 1940, ch. 888, art. II, 54 Stat. 1181; Oct. 6, 1942, ch. 581, § 5, 56 Stat. 770; Pub. L. 102–12, § 9(6), Mar. 18, 1991, 105 Stat. 39, related to statutes of limitations as affected by period of service, prior to the general amendment of this Act by Pub. L. 108–189. See section 3936 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. § 3936. Statute of limitations (a) Tolling of statutes of limitation during mili- tary service The period of a servicemember’s military serv- ice may not be included in computing any period limited by law, regulation, or order for the bringing of any action or proceeding in a court, or in any board, bureau, commission, depart- ment, or other agency of a State (or political subdivision of a State) or the United States by or against the servicemember or the servicemember’s heirs, executors, administra- tors, or assigns. (b) Redemption of real property A period of military service may not be in- cluded in computing any period provided by law for the redemption of real property sold or for- feited to enforce an obligation, tax, or assess- ment. (c) Inapplicability to internal revenue laws This section does not apply to any period of limitation prescribed by or under the internal revenue laws of the United States. (Oct. 17, 1940, ch. 888, title II, § 206, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2844.) Statutory Notes and Related Subsidiaries CODIFICATION Section was formerly classified to section 526 of the former Appendix to this title prior to editorial reclassi- fication and renumbering as this section. PRIOR PROVISIONS A prior section 206 of act Oct. 17, 1940, ch. 888, art. II, as added Oct. 6, 1942, ch. 581, § 6, 56 Stat. 771; amended Pub. L. 102–12, § 9(7), Mar. 18, 1991, 105 Stat. 39, related to maximum rate of interest, prior to the general amendment of this Act by Pub. L. 108–189. See section 3937 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. § 3937. Maximum rate of interest on debts in- curred before military service (a) Interest rate limitation (1) Limitation to 6 percent An obligation or liability bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember, or the servicemember and the servicemember’s spouse jointly, before the servicemember en- ters military service shall not bear interest at a rate in excess of 6 percent—