FINES AND PENALTIES UNDER CONTRACTS.

SEC. 203. [50 U.S.C. 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 Act, 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.