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 under this chapter, a penalty may 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.