§ 28-3-1405 — Installment contracts - purchase of property

(1) (a) Except as
otherwise provided in paragraph (b) of this subsection (1), a creditor who has
received a deposit or installment of the purchase price under an installment
contract for the purchase of real or personal property from a person who, after the
date of the payment of such deposit or installment, is called to state military
service or state defense force active duty as described in section 28-3-1402, may
not:

(I) Exercise any right or option under said contract to rescind or terminate
the contract; or

(II) Resume possession of the property.

(b) A creditor described in paragraph (a) of this subsection (1) may rescind or
terminate the installment contract or resume possession of the property for
nonpayment if:

(I) The person, within thirty days after being called to said service or duty,
has not provided the creditor with written notice of the service or duty;

(II) A court of competent jurisdiction has affirmatively authorized such
rescission, termination, or possession; or

(III) The nonpayment of any installment under the installment contract or any
other breach of the terms thereof did not occur during the period of the service or
duty or for thirty days thereafter.

(2) (a) Upon hearing said action, a 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.

(b) Notwithstanding the provisions of paragraph (a) of this subsection (2), a
court may, on its own motion, stay the proceedings for the duration of the period of
service or duty and for thirty days thereafter or otherwise dispose of the case as
may be equitable to conserve the interests of all parties. The court shall stay the
proceedings upon the application of a person, or an agent of the person, engaged in
state military service or state defense force active duty unless, in the opinion of the
court, the ability of the person to comply with the terms of the obligation is not
materially affected.

Legislative History

Source: L. 2002: Entire part added, p. 691, � 1, effective July 1. L. 2003: IP(1)(a) and (2)(b) amended, p. 2000, � 59, effective May 22.