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Simple English definitions for legal terms
Moratorium
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A quick definition of Moratorium:
Term: Moratorium
Definition: A moratorium is when someone is allowed to delay paying back money they owe or stop doing something for a period of time. This can be for a short or long time, until the reason for the moratorium is fixed. For example, if someone can't pay their rent because they lost their job, they might ask for a moratorium on rent payments until they find a new job. The Supreme Court has said that moratoriums don't always mean that someone's property has been taken away, but sometimes they might still have to pay for it.
A more thorough explanation:
A moratorium is a permission to delay the repayment of debts or the performance of obligations, or to stop some activity or law for a period of time. This period is often indefinite and lasts until the purpose for which the moratorium was granted is resolved.
For example, during the COVID-19 pandemic, many countries and states implemented a moratorium on evictions, which meant that landlords could not evict tenants who were unable to pay rent due to financial hardship caused by the pandemic. This moratorium was put in place to provide relief to tenants who were struggling financially due to the pandemic.
In another example, a city may impose a moratorium on new construction in a certain area while it studies the impact of the proposed development on the environment or the community. This moratorium would delay the construction until the city has completed its study and made a decision on whether to allow the development to proceed.
The Supreme Court has ruled that moratoria do not automatically constitute a taking of property, but depending on the circumstances, they may be considered a compensable taking. For example, if a moratorium on construction lasts for an extended period of time and causes significant financial harm to property owners, they may be entitled to compensation for the temporary deprivation of economic use of their land.