---
kind: "section"
citation: "50 U.S.C. § 3952"
title: "50"
title_heading: "War and National Defense"
number: "3952"
heading: "Protection under installment contracts for purchase or lease"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/50/3952"
units:
  - "Chapter 50 — Servicemembers Civil Relief"
  - "Subchapter III — Rent, Installment Contracts, Mortgages, Liens, Assignment, Leases, Communications Service Contracts"
---

# §3952. Protection under installment contracts for purchase or lease

- (a) **Protection upon breach of contract—**
  - (1) **Protection after entering military service—** After a [servicemember](/usc/50/3911.md?p=1) enters [military service](/usc/50/3911.md?p=2), a contract by the [servicemember](/usc/50/3911.md?p=1) for—
    - (A) the purchase of real or personal property (including a [motor vehicle](/usc/50/3911.md?p=8)); or
    - (B) the lease or bailment of such property,

    may not be rescinded or terminated for a breach of terms of the contract occurring before or during that person’s [military service](/usc/50/3911.md?p=2), nor may the property be repossessed for such breach without a [court](/usc/50/3911.md?p=5) order.

  - (2) **Applicability—** This section applies only to a contract for which a deposit or installment has been paid by the [servicemember](/usc/50/3911.md?p=1) before the [servicemember](/usc/50/3911.md?p=1) enters [military service](/usc/50/3911.md?p=2).
- (b) **Misdemeanor—** A person who knowingly resumes possession of property in violation of [subsection (a)](#a), or in violation of [section 3918 of this title](/usc/50/3918.md), or who knowingly attempts to do so, shall be fined as provided in [title 18](/usc/18.md), or imprisoned for not more than one year, or both.
- (c) **Authority of court—** In a hearing based on this section, the [court](/usc/50/3911.md?p=5)—
  - (1) may order repayment to the [servicemember](/usc/50/3911.md?p=1) of all or part of the prior installments or deposits as a condition of terminating the contract and resuming possession of the property;
  - (2) may, on its own motion, and shall on application by a [servicemember](/usc/50/3911.md?p=1) when the [servicemember](/usc/50/3911.md?p=1)’s ability to comply with the contract is materially affected by [military service](/usc/50/3911.md?p=2), stay the proceedings for a period of time as, in the opinion of the [court](/usc/50/3911.md?p=5), justice and equity require; or
  - (3) may make other disposition as is equitable to preserve the interests of all parties.

## Source credit

(Oct. 17, 1940, ch. 888, title III, § 302, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2846; amended Pub. L. 111–275, title III, § 303(b)(3), Oct. 13, 2010, 124 Stat. 2878.)

## Notes

### Editorial Notes

### Codification

Section was formerly classified to section 532 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

### Prior Provisions

A prior section 302 of act Oct. 17, 1940, ch. 888, art. III, 54 Stat. 1182; Oct. 6, 1942, ch. 581, §§ 9(b), (c), 10, 56 Stat. 771, 772; June 23, 1952, ch. 450, 66 Stat. 151; Pub. L. 102–12, § 9(9), (10), Mar. 18, 1991, 105 Stat. 40, related to mortgages and trust deeds, prior to the general amendment of this Act by Pub. L. 108–189. See section 3953 of this title.

### Amendments

2010—Subsec. (b). Pub. L. 111–275 amended subsec. (b) generally. Prior to amendment, subsec. (b) related to penalties.

### 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.