((a)) ** Prohibition of penalties** When 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.

((b)) ** Reduction or waiver of fines or penalties** If a servicemember 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—

((1)) the servicemember was in military service at the time the fine or penalty was incurred; and

((2)) the ability of the servicemember to perform the obligation was materially affected by such military service.