§3954 — Title 50 War and National Defense | U.S. Code

Summary

When a court pauses a foreclosure, repossession, or contract cancellation, it can appoint three neutral people to appraise the property. If paying the service member’s equity won’t unduly hurt their dependents, the court can require that equity be paid to the service member or their dependents before the lender goes ahead.

Title 50, §3954

War and National Defense — Source: USLM XML via OLRC

(a)When a stay is granted pursuant to this chapter in a proceeding to foreclose a mortgage on or to repossess personal property, or to rescind or terminate a contract for the purchase of personal property, the court may appoint three disinterested parties to appraise the property.

(b)Based on the appraisal, and if undue hardship to the servicemember’s dependents will not result, the court may order that the amount of the servicemember’s equity in the property be paid to the servicemember, or the servicemember’s dependents, as a condition of foreclosing the mortgage, repossessing the property, or rescinding or terminating the contract.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 534 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

Prior Provisions

A prior section 304 of act Oct. 17, 1940, ch. 888, art. III, as added Oct. 6, 1942, ch. 581, § 12, 56 Stat. 772; amended Pub. L. 102–12, § 9(9), Mar. 18, 1991, 105 Stat. 40, related to termination of leases by lessees, prior to the general amendment of this Act by Pub. L. 108–189. See section 3955 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.

§3954 Settlement of Stayed Cases Relating to Personal Property