
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC1035]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
              CHAPTER 53--MISCELLANEOUS RIGHTS AND BENEFITS
 
Sec. 1035. Deposits of savings

    (a) Under joint regulations prescribed by the Secretaries concerned, 
a member of the armed forces who is on a permanent duty assignment 
outside the United States or its possessions may deposit during that 
tour of duty not more than his unallotted current pay and allowances in 
amounts of $5 or more, with any branch, office, or officer of a 
uniformed service. Amounts so deposited shall be deposited in the 
Treasury and kept as a separate fund, and shall be accounted for in the 
same manner as public funds.
    (b) Interest at a rate prescribed by the President, not to exceed 10 
percent a year, will accrue on amounts deposited under this section. 
However, the maximum amount upon which interest may be paid under this 
subsection to any member is $10,000, except that such limitation shall 
not apply to deposits made on or after September 1, 1966, in the case of 
those members in a missing status during the Vietnam conflict, the 
Persian Gulf conflict, or a contingency operation. Interest under this 
subsection shall terminate 90 days after the member's return to the 
United States or its possessions.
    (c) Except as provided in joint regulations prescribed by the 
Secretaries concerned, payments of deposits, and interest thereon, may 
not be made to the member while he is on duty outside the United States 
or its possessions.
    (d) An amount deposited under this section, with interest thereon, 
is exempt from liability for the member's debts, including any 
indebtedness to the United States or any instrumentality thereof, and is 
not subject to forfeiture by sentence of a court-martial.
    (e) The Secretary concerned, or his designee, may in the interest of 
a member who is in a missing status or his dependents, initiate, stop, 
modify, and change allotments, and authorize a withdrawal of deposits, 
made under this section, even though the member had an opportunity to 
deposit amounts under this section and elected not to do so. Interest 
may be computed from the day the member entered a missing status, or 
September 1, 1966, whichever is later.
    (f) The Secretary of Defense may authorize a member of the armed 
forces who is on a temporary duty assignment outside of the United 
States or its possessions in support of a contingency operation to make 
deposits of unallotted current pay and allowances during that duty as 
provided in subsection (a). The Secretary shall prescribe regulations 
establishing standards and procedures for the administration of this 
subsection.
    (g) In this section:
        (1) The term ``missing status'' has the meaning given that term 
    in section 551(2) of title 37.
        (2) The term ``Vietnam conflict'' means the period beginning on 
    February 28, 1961, and ending on May 7, 1975.
        (3) The term ``Persian Gulf conflict'' means the period 
    beginning on January 16, 1991, and ending on the date thereafter 
    prescribed by Presidential proclamation or by law.

(Aug. 10, 1956, ch. 1041, 70A Stat. 80; Pub. L. 89-538, Sec. 1(1), Aug. 
14, 1966, 80 Stat. 347; Pub. L. 90-122, Sec. 1, Nov. 3, 1967, 81 Stat. 
361; Pub. L. 91-200, Feb. 26, 1970, 84 Stat. 16; Pub. L. 98-525, title 
XIV, Sec. 1405(20), Oct. 19, 1984, 98 Stat. 2623; Pub. L. 99-661, div. 
A, title XIII, Sec. 1343(a)(3), Nov. 14, 1986, 100 Stat. 3992; Pub. L. 
102-25, title III, Sec. 310, Apr. 6, 1991, 105 Stat. 84; Pub. L. 102-
190, div. A, title VI, Sec. 639, Dec. 5, 1991, 105 Stat. 1384.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
1035(a)...............................  10:908(a) (less words after last     Ju
ly 15, 1954, ch. 513, Secs.  1-3,
                                         semicolon).                          6
8 Stat. 485.
                                        34:937 (less words after last
                                         semicolon).
1035(b)...............................  10:908b (1st 20, and last 13,
                                         words).
                                        34:938 (1st 20, and last 13,
                                         words).
1035(c)...............................  10:908a (words after last
                                         semicolon).
                                        10:908b (less 1st 20, and last 13,
                                         words).
                                        34:937 (words after last
                                         semicolon).
                                        34:938 (less 1st 20, and last 13,
                                         words).
1035(d)...............................  10:908c.
                                        34:939.
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), the words ``in amounts of $5 or more'' are 
substituted for the words ``in sums not less than $5''. 10:908a (words 
before 1st semicolon of last sentence) and 34:937 (words before 1st 
semicolon of last sentence) are omitted as covered by subsection (c).
    In subsection (b), the word ``accrues'' is substituted for the words 
``shall be paid''.
    In subsection (c), the words ``not less than $5'' are omitted as 
surplusage.


                               Amendments

    1991--Subsec. (b). Pub. L. 102-190, Sec. 639(a), substituted ``, the 
Persian Gulf conflict, or a contingency operation'' for ``or during the 
Persian Gulf conflict'' before period at end of second sentence and 
struck out at end ``For purposes of this subsection, the Vietnam 
conflict begins on February 28, 1961, and ends on May 7, 1975, and the 
Persian Gulf conflict begins on January 16, 1991, and ends on the date 
thereafter prescribed by Presidential proclamation or by law.''
    Pub. L. 102-25, Sec. 310(a), (c)(1), struck out ``, as defined in 
section 551(2) of title 37,'' after ``missing status'', inserted ``or 
during the Persian Gulf conflict'' before period at end of second 
sentence, and substituted ``May 7, 1975, and the Persian Gulf conflict 
begins on January 16, 1991, and ends on the date thereafter prescribed 
by Presidential proclamation or by law'' for ``the date designated by 
the President by Executive order as the date of the termination of 
combatant activities in Vietnam''.
    Subsec. (e). Pub. L. 102-25, Sec. 310(c)(2), struck out ``(as 
defined in section 551(2) of title 37)'' after ``in a missing status''.
    Subsec. (f). Pub. L. 102-190, Sec. 639(b), added subsec. (f) and 
redesignated former subsec. (f) as (g).
    Pub. L. 102-25, Sec. 310(b), added subsec. (f).
    Subsec. (g). Pub. L. 102-190, Sec. 639(b)(1), (c), redesignated 
subsec. (f) as (g) and amended it generally. Prior to amendment, subsec. 
(g) read as follows: ``In this section, the term `missing status' has 
the meaning given such term in section 551(2) of title 37.''
    1986--Subsec. (a). Pub. L. 99-661 substituted ``armed forces'' for 
``armed force''.
    1984--Subsec. (b). Pub. L. 98-525 substituted ``percent'' for ``per 
centum'', ``subsection'' for ``Act'' after ``paid under this'', and 
``90'' for ``ninety''.
    1970--Subsec. (b). Pub. 91-200 permitted accrual of interest on 
savings above $10,000 ceiling in case of soldiers involved in Vietnam 
conflicts who have made deposits on or after Sept. 1, 1966, and who are 
in missing status contemplated by section 551(2) of Title 37, and set 
out duration of Vietnam conflict as starting Feb. 28, 1961, and ending 
on the date that the President may designate by Executive order.
    1967--Subsec. (e). Pub. L. 90-122 added subsec. (e).
    1966--Subsec. (a). Pub. L. 89-538 permitted not only enlisted 
personnel but any member of the armed forces, provided he is on 
permanent duty outside the United States, to participate in the savings 
program organized under this section and changed the fund into which 
such savings deposits are made.
    Subsec. (b). Pub. L. 89-538 changed rate of interest from 4 per 
centum per annum to a rate prescribed by the President, not to exceed 10 
per centum per annum, did away with the necessity that amounts be on 
deposit for six months or more, set a maximum of $10,000 upon which 
interest shall be paid, and provided for termination of interest 90 days 
after the member's return to the United States or its possessions.
    Subsec. (c). Pub. L. 89-538 substituted provisions that, unless 
changed by joint regulations of the Secretaries concerned, payments of 
deposits and interest may not be made to the individual while stationed 
outside of the United States, for provisions that payment of deposits 
and interest could be made only to the member upon discharge, or before 
discharge as prescribed by the Secretary concerned, or to the member's 
heirs or legal representatives.
    Subsec. (d). Pub. L. 89-538 reenacted subsec. (d) substantially 
without change.


                    Effective Date of 1967 Amendment

    Section 2 of Pub. L. 90-122 provided that: ``This Act [amending this 
section] becomes effective as of September 1, 1966.''


                 Savings Program for Overseas Personnel

    Pub. L. 101-510, div. A, title XI, Sec. 1114, Nov. 5, 1990, 104 
Stat. 1636, as amended by Pub. L. 102-25, title III, Sec. 314(1), (3), 
Apr. 6, 1991, 105 Stat. 86, provided that:
    ``(a) Eligibility To Participate.--The Secretary of Defense may 
authorize a member of the Armed Forces who is serving outside the United 
States or its possessions under arduous conditions (as determined by the 
Secretary of Defense) pursuant to an assignment or duty detail as part 
of the Persian Gulf conflict to make deposits of unallotted current pay 
and allowances, and to earn interest, under section 1035 of title 10, 
United States Code.
    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations establishing standards and procedures for the administration 
of this section.''


         Adjustment of Deposit Accounts of Certain Enlisted Men

    Pub. L. 89-738, Nov. 2, 1966, 80 Stat. 1165, provided: ``That the 
Secretary of a military department or his designee, shall adjust the 
deposit account of any enlisted member or former enlisted member of the 
Army, Navy, Air Force, or Marine Corps, as the case may be, who, after 
July 14, 1954, and before the effective date of this Act [Nov. 2, 1966], 
upon discharge and immediate reenlistment or retirement and immediate 
recall to active duty, continued, without withdrawal and redeposit, his 
account for deposits made under section 1035 of title 10, United States 
Code, or prior laws authorizing enlisted members' deposits, to show that 
his deposits and interest accrued thereon were withdrawn and redeposited 
on the date of such reenlistment or recall to active duty.
    ``Sec. 2. The Secretary of the military department concerned, or his 
designee, shall pay to a former enlisted member described in section 1 
of this Act any amount found due as a result of the adjustment 
prescribed by that section if he submits an application within two years 
following the date of enactment of this Act [Nov. 2, 1966]. If the 
member is currently serving on active duty and has an active deposit 
account, the amount due him will automatically be credited to such 
account. In the case of a deceased member, application under this 
section shall be made within two years following the date of enactment 
of this Act [Nov. 2, 1966] by the person determined to be eligible under 
section 2771 of Title 10, United States Code.
    ``Sec. 3. All payments heretofore made which would, but for the fact 
of such payment, be payable under this Act are validated. However, if 
such a payment has been repaid to the United States, the fact of payment 
shall not affect entitlement under this Act.''


         Rates of Interest on Deposits Made Before Aug. 14, 1966

    Section 2 of Pub. L. 89-538 provided that:
    ``(a) Notwithstanding the first section of this Act [amending this 
section], an amount on deposit under section 1035 of title 10, United 
States Code, on the date of enactment of this Act [Aug. 14, 1966], shall 
accrue interest at the rate and under the conditions in effect on the 
day before the date of enactment of this Act [Aug. 14, 1966], until the 
member's current enlistment terminates or earlier, as may be jointly 
prescribed by the Secretaries concerned. However, a member who is on a 
permanent duty assignment outside the United States or its possessions 
on the date of enactment of this Act [Aug. 14, 1966], or who reports for 
that duty on or after that date but before the termination of his 
current enlistment, will be entitled to interest on such deposit, on and 
after that date, at the rate and under the conditions prescribed 
pursuant to section 1 [amending this section]. Payments of deposits, and 
interest thereon, may be made to the member's heirs or legal 
representatives.
    ``(b) Any amounts deposited between May 4, 1966, and the date of 
enactment of this Act [Aug. 14, 1966] while a member was assigned to 
permanent duty within the United States and its possessions, and any 
amounts deposited between May 4, 1966, and the date of enactment of this 
Act [Aug. 14, 1966] by a member on permanent duty assignment outside the 
United States and its possessions which are in excess of his unallotted 
pay and allowances for that period, shall accrue interest at the rate in 
effect before enactment of this Act.''


 Extension of Coverage to Public Health Service and Coast and Geodetic 
                 Survey Personnel; Rules and Regulations

    Section 3(c) of Pub. L. 89-538 provided that: ``Regulations 
prescribed by the Secretary of Commerce and the Secretary of Health, 
Education, and Welfare [now Health and Human Services] under subsections 
(a) and (b) [extending savings deposits benefits to commissioned 
officers of the Public Health Service and the Coast and Geodetic Survey 
(now the National Oceanic and Atmospheric Administration), respectively] 
shall be prescribed jointly with regulations prescribed by the 
Secretaries concerned under section 1035 of title 10, United States 
Code.''


                          Public Health Service

    Authority vested by this section in ``the Secretary concerned'' to 
be exercised with respect to commissioned officers of the Public Health 
Service, by the Secretary of Health and Human Services or his designee, 
see section 213a of Title 42, The Public Health and Welfare.


             National Oceanic and Atmospheric Administration

    Authority vested by this chapter in ``the Secretary concerned'' to 
be exercised, with respect to the Coast and Geodetic Survey [now the 
commissioned officer corps of the National Oceanic and Atmospheric 
Administration], by the Secretary of Commerce or his designee, see 
section 857a of Title 33, Navigation and Navigable Waters.

                    Ex. Ord. No. 11298. Interest Rate

    Ex. Ord. No. 11298, Aug. 14, 1966, 31 F.R. 10915, provided:
    By virtue of the authority vested in me by Section 1035 of Title 10 
of the United States Code, as amended by the Act of August 14, 1966, I 
hereby prescribe that amounts deposited by members of the uniformed 
services under that Section shall accrue interest at the rate of ten 
percent per annum, compounded quarterly.
    This order shall be effective September 1, 1966.
                                                      Lyndon B. Johnson.

                  Section Referred to in Other Sections

    This section is referred to in title 33 section 857a; title 42 
section 213a.
