§531. Installment contracts for purchase of property

(1) No person who has received, or whose assignor has received, under a contract for the purchase of real or personal property, or of lease or bailment with a view to purchase of such property, a deposit or installment of the purchase price, or a deposit or installment under the contract, lease, or bailment, from a person or from the assignor of a person who, after the date of payment of such deposit or installment, has entered military service, shall exercise any right or option under such contract to rescind or terminate the contract or resume possession of the property for nonpayment of any installment thereunder due or for any other breach of the terms thereof occurring prior to or during the period of such military service, except by action in a court of competent jurisdiction.

(2) Any person who shall knowingly resume possession of property which is the subject of this section otherwise than as provided in subsection (1) of this section or in section 107 [section 517 of this Appendix], or attempts so to do, shall be fined as provided in title 18, United States Code, or imprisoned for not to exceed one year, or both.

(3) Upon the hearing of such action the court may order the repayment of prior installments or deposits or any part thereof, as a condition of terminating the contract and resuming possession of the property, or may, in its discretion, on its own motion, and shall, on application to it by such person in military service or some person on his behalf, order a stay of proceedings as provided in this Act [sections 501 to 593 of this Appendix] unless, in the opinion of the court, the ability of the defendant to comply with the terms of the contract is not materially affected by reason of such service; or it may make such other disposition of the case as may be equitable to conserve the interests of all parties.

(Oct. 17, 1940, ch. 888, art. III, §301, 54 Stat. 1182 ; Oct. 6, 1942, ch. 581, §9(a), (c), (d), 56 Stat. 771 ; Pub. L. 102–12, §9(9), Mar. 18, 1991, 105 Stat. 40 .)

Amendments

1991-Par. (2). Pub. L. 102–12 substituted "shall be fined as provided in title 18, United States Code, or imprisoned for not to exceed one year," for "shall be guilty of a misdemeanor and shall be punished by imprisonment not to exceed one year or by fine not to exceed $1,000,".

1942-Subsec. (1). Act Oct. 6, 1942, §9(a), in amending subsec. (1) generally, omitted provision limiting applicability to transactions prior to Oct. 10, 1940, and proviso relating to modification, termination, or cancellation of contracts and repossession or retention of property by mutual written agreement of the parties, inserted provision relating to deposit or installment under contract, lease, or bailment, and included other breaches of terms in addition to nonpayment of installments.

Subsec. (2). Act Oct. 6, 1942, §9(d), substituted "of this section or in section 107, or attempts so to do," for "hereof".

Subsec. (3). Act Oct. 6, 1942, §9(c), struck out "except as provided in section 303," before "on application".

Section Referred to in Other Sections

This section is referred to in section 530 of this Appendix.