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Installment Contracts

Reservists who entered an installment contract to purchase real or personal property prior to entering onto active duty are protected under the law if their ability to make payments is “materially affected” by military service.

Also if service members paid a deposit or installment under the contract prior to active duty, the sellers are prohibited from exercising any right or option to rescind or terminate the contract, resume possession of the property for nonpayment of any installment due or breach the terms of the contract, unless authorized by the court.