(Title 50 Appendix)
§ 535. Termination of residential or motor vehicle leases
(a) Termination by lessee
(1) In general
The lessee on a lease described in subsection (b) may, at the lessee’s option, terminate the lease at any time after—
(A) the lessee’s entry into military service; or
(B) the date of the lessee’s military orders described in paragraph (1)(B) or (2)(B) of subsection (b), as the case may be.
(2) Joint leases
A lessee’s termination of a lease pursuant to this subsection shall terminate any obligation a dependent of the lessee may have under the lease.
(b) Covered leases
This section applies to the following leases:
(1) Leases of premises
A lease of premises occupied, or intended to be occupied, by a servicemember or a servicemember’s dependents for a residential, professional, business, agricultural, or similar purpose if—
(A) the lease is executed by or on behalf of a person who thereafter and during the term of the lease enters military service; or
(B) the servicemember, while in military service, executes the lease and thereafter receives military orders for a permanent change of station or to deploy with a military unit, or as an individual in support of a military operation, for a period of not less than 90 days.
(2) Leases of motor vehicles
A lease of a motor vehicle used, or intended to be used, by a servicemember or a servicemember’s dependents for personal or business transportation if—
(A) the lease is executed by or on behalf of a person who thereafter and during the term of the lease enters military service under a call or order specifying a period of not less than 180 days (or who enters military service under a call or order specifying a period of 180 days or less and who, without a break in service, receives orders extending the period of military service to a period of not less than 180 days); or
(B) the servicemember, while in military service, executes the lease and thereafter receives military orders—
(i) for a change of permanent station—
(I) from a location in the continental United States to a location outside the continental United States; or
(II) from a location in a State outside the continental United States to any location outside that State; or
(ii) to deploy with a military unit, or as an individual in support of a military operation, for a period of not less than 180 days.
(c) Manner of termination
(1) In general
Termination of a lease under subsection (a) is made—
(A) by delivery by the lessee of written notice of such termination, and a copy of the servicemember’s military orders, to the lessor (or the lessor’s grantee), or to the lessor’s agent (or the agent’s grantee); and
(B) in the case of a lease of a motor vehicle, by return of the motor vehicle by the lessee to the lessor (or the lessor’s grantee), or to the lessor’s agent (or the agent’s grantee), not later than 15 days after the date of the delivery of written notice under subparagraph (A).
(2) Delivery of notice
Delivery of notice under paragraph (1)(A) may be accomplished—
(A) by hand delivery;
(B) by private business carrier; or
(C) by placing the written notice in an envelope with sufficient postage and with return receipt requested, and addressed as designated by the lessor (or the lessor’s grantee) or to the lessor’s agent (or the agent’s grantee), and depositing the written notice in the United States mails.
(d) Effective date of lease termination
(1) Lease of premises
In the case of a lease described in subsection (b)(1) that provides for monthly payment of rent, termination of the lease under subsection (a) is effective 30 days after the first date on which the next rental payment is due and payable after the date on which the notice under subsection (c) is delivered. In the case of any other lease described in subsection (b)(1), termination of the lease under subsection (a) is effective on the last day of the month following the month in which the notice is delivered.
(2) Lease of motor vehicles
In the case of a lease described in subsection (b)(2), termination of the lease under subsection (a) is effective on the day on which the requirements of subsection (c) are met for such termination.
(e) Arrearages and other obligations and liabilities
(1) Leases of premises
Rent amounts for a lease described in subsection (b)(1) that are unpaid for the period preceding the effective date of the lease termination shall be paid on a prorated basis. The lessor may not impose an early termination charge, but any taxes, summonses, or other obligations and liabilities of the lessee in accordance with the terms of the lease, including reasonable charges to the lessee for excess wear, that are due and unpaid at the time of termination of the lease shall be paid by the lessee.
(2) Leases of motor vehicles
Lease amounts for a lease described in subsection (b)(2) that are unpaid for the period preceding the effective date of the lease termination shall be paid on a prorated basis. The lessor may not impose an early termination charge, but any taxes, summonses, title and registration fees, or other obligations and liabilities of the lessee in accordance with the terms of the lease, including reasonable charges to the lessee for excess wear or use and mileage, that are due and unpaid at the time of termination of the lease shall be paid by the lessee.
(f) Rent paid in advance
Rents or lease amounts paid in advance for a period after the effective date of the termination of the lease shall be refunded to the lessee by the lessor (or the lessor’s assignee or the assignee’s agent) within 30 days of the effective date of the termination of the lease.
(g) Relief to lessor
Upon application by the lessor to a court before the termination date provided in the written notice, relief granted by this section to a servicemember may be modified as justice and equity require.
(h) Misdemeanor
Any person who knowingly seizes, holds, or detains the personal effects, security deposit, or other property of a servicemember or a servicemember’s dependent who lawfully terminates a lease covered by this section, or who knowingly interferes with the removal of such property from premises covered by such lease, for the purpose of subjecting or attempting to subject any of such property to a claim for rent accruing subsequent to the date of termination of such lease, or attempts to do so, shall be fined as provided in title 18, United States Code, or imprisoned for not more than one year, or both.
(i) Definitions
(1) Military orders
The term “military orders”, with respect to a servicemember, means official military orders, or any notification, certification, or verification from the servicemember’s commanding officer, with respect to the servicemember’s current or future military duty status.
(2) ConUS
The term “continental United States” means the 48 contiguous States and the District of Columbia.
(Oct. 17, 1940, ch. 888, title III, § 305, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2848; amended Pub. L. 108–454, title VII, § 704, Dec. 10, 2004, 118 Stat. 3624; Pub. L. 111–275, title III, §§ 301, 303(b)(5), Oct. 13, 2010, 124 Stat. 2875, 2878.)
heading: Prior Provisions
text: A prior section 535, act Oct. 17, 1940, ch. 888, art. III, § 305, as added Oct. 6, 1942, ch. 581, § 12, 56 Stat. 773; amended Pub. L. 102–12, § 9(9), Mar. 18, 1991, 105 Stat. 40, related to protection of assignor of life insurance policy, enforcement of storage liens, and penalties, prior to the general amendment of this Act by Pub. L. 108–189. See sections 536 and 537 of this Appendix.
heading: Amendments
text: 2010—Subsec. (e). Pub. L. 111–275, § 301, amended subsec. (e) generally. Prior to amendment, text read as follows: “Rents or lease amounts unpaid for the period preceding the effective date of the lease termination shall be paid on a prorated basis. In the case of the lease of a motor vehicle, the lessor may not impose an early termination charge, but any taxes, summonses, and title and registration fees and any other obligation and liability of the lessee in accordance with the terms of the lease, including reasonable charges to the lessee for excess wear, use and mileage, that are due and unpaid at the time of termination of the lease shall be paid by the lessee.”
Subsec. (h). Pub. L. 111–275, § 303(b)(5), amended subsec. (h) generally. Prior to amendment, subsec. (h) related to penalties.
2004—Subsec. (a). Pub. L. 108–454, § 704(a), amended subsec. (a) generally, designating existing provisions as par. (1), inserting par. heading, and adding par. (2).
Subsec. (b)(1)(B). Pub. L. 108–454, § 704(c), inserted “, or as an individual in support of a military operation,” after “deploy with a military unit”.
Subsec. (b)(2)(B). Pub. L. 108–454, § 704(b)(1), substituted “military orders—” for “military orders for a permanent change of station outside of the continental United States or to deploy”, added cl.(i), and inserted “(ii) to deploy” before “with a military unit”.
Subsec. (b)(2)(B)(ii). Pub. L. 108–454, § 704(c), inserted “, or as an individual in support of a military operation,” after “deploy with a military unit”.
Subsec. (i). Pub. L. 108–454, § 704(b)(2), added subsec. (i).