Legal Definitions - Moratorium

A moratorium is a temporary suspension or postponement of a specific activity, law, or obligation. It is typically authorized by a government or other authority to address a particular issue or achieve a specific goal, and it remains in effect until that purpose is fulfilled or the situation is resolved.

Here are some examples:

• Example 1: Postponing Debt Repayment

  After a severe hurricane devastates a coastal region, the state government declares a moratorium on residential mortgage foreclosures for six months.

  Explanation: This illustrates a moratorium because the government is temporarily suspending a legal obligation (mortgage foreclosure) to allow homeowners time to recover and rebuild without the immediate threat of losing their homes. The suspension is for a defined period (six months) and has a clear purpose: to aid disaster recovery.

• Example 2: Suspending an Activity or Regulation

  A rapidly growing city, concerned about strain on its infrastructure, imposes a moratorium on the approval of new large-scale commercial development projects in its downtown core for one year.

  Explanation: Here, the city government is temporarily halting a specific activity (approving new commercial developments). The purpose is to allow city planners to reassess infrastructure capacity, update zoning regulations, and develop a sustainable growth plan before further development proceeds.

• Example 3: Suspending a Legal Process

  During a widespread public health emergency, the federal government issues a moratorium on residential evictions nationwide.

  Explanation: This demonstrates a moratorium as it temporarily suspends a legal process (eviction) that landlords would normally be able to pursue. The purpose is to prevent homelessness and further spread of disease by ensuring people can remain in their homes during a crisis, even if they are struggling to pay rent.