(1) If an action for compliance with the terms of a contract is stayed pursuant to this chapter, a penalty shall not accrue for failure to comply with the terms of the contract during the period of the stay. (2) If a service member or his or her dependent 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: (a)(i) The service member was in military service at the time the fine or penalty was incurred; or (ii) The action is against a dependent of the service member and the service member was in military service at the time the fine or penalty was incurred; and (b) The ability of the service member or dependent to perform the obligation was materially affected by the military service.
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