[§657D-22]  Installment contracts for purchase of property.  (a)  No person who has received, or whose assignor has received, under a contract for the purchase of real or personal property, or of lease or bailment with a view to purchase of that property, a deposit or installment of the purchase price, or a deposit or installment under the contract, lease, or bailment, from a person or from the assignor of a person who, after the date of payment of such deposit or installment, has entered military service, shall exercise any right or option under the contract to rescind or terminate the contract or resume possession of the property for nonpayment of any installment due or for any other breach of the terms occurring prior to or during the period of such military service, except by action in a court of competent jurisdiction.

     (b)  Any person who knowingly resumes possession of property that is the subject of this section otherwise than as provided in subsection (a) or in section 657D-6 or attempts so to do, shall be guilty of a misdemeanor.

     (c)  Upon the hearing of that action the 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, or on its own motion or on application to it by the person in military service or a person on behalf of such person, shall order a stay of proceedings as provided in this chapter unless, in the opinion of the court, the ability of the defendant to comply with the terms of the contract is not materially affected by reason of that service; or it may make such other disposition of the case as may be equitable to preserve the interests of all parties. [L 1994, c 257, pt of §2]