
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC1053]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
              CHAPTER 53--MISCELLANEOUS RIGHTS AND BENEFITS
 
Sec. 1053. Financial institution charges incurred because of 
        Government error in direct deposit of pay: reimbursement
        
    (a)(1) A member of the armed forces (or a former member of the armed 
forces entitled to retired pay under chapter 1223 of this title) who, in 
accordance with law or regulation, participates in a program for the 
automatic deposit of pay to a financial institution may be reimbursed by 
the Secretary concerned for a covered late-deposit charge.
    (2) A covered late-deposit charge for purposes of paragraph (1) is a 
charge (including an overdraft charge or a minimum balance or average 
balance charge) that is levied by a financial institution and that 
results from an administrative or mechanical error on the part of the 
Government that causes the pay of the person concerned to be deposited 
late or in an incorrect manner or amount.
    (b) Reimbursements under this section shall be made from 
appropriations available for the pay and allowances of members of the 
armed force concerned.
    (c) The Secretaries concerned shall prescribe regulations to carry 
out this section, including regulations for the manner in which 
reimbursement under this section is to be made.
    (d) In this section:
        (1) The term ``financial institution'' means a bank, savings and 
    loan association, or similar institution or a credit union chartered 
    by the United States or a State.
        (2) The term ``pay'' includes (A) retired pay, and (B) 
    allowances.

(Added Pub. L. 99-661, div. A, title VI, Sec. 662(a)(1), Nov. 14, 1986, 
100 Stat. 3893; amended Pub. L. 101-189, div. A, title VI, 
Sec. 664(a)(1)-(3)(A), Nov. 29, 1989, 103 Stat. 1466; Pub. L. 102-25, 
title VII, Sec. 701(e)(8)(A), Apr. 6, 1991, 105 Stat. 115; Pub. L. 104-
106, div. A, title XV, Sec. 1501(c)(8), Feb. 10, 1996, 110 Stat. 499; 
Pub. L. 105-261, div. A, title V, Sec. 564(a), Oct. 17, 1998, 112 Stat. 
2029; Pub. L. 106-398, Sec. 1 [[div. A], title V, Sec. 579(c)(2)], Oct. 
30, 2000, 114 Stat. 1654, 1654A-141.)


                               Amendments

    2000--Pub. L. 106-398 substituted ``Financial institution charges 
incurred because of Government error in direct deposit of pay: 
reimbursement'' for ``Reimbursement for financial institution charges 
incurred because of Government error in direct deposit of pay'' in 
section catchline.
    1998--Subsec. (d)(1). Pub. L. 105-261 amended par. (1) generally. 
Prior to amendment, par. (1) read as follows: ``The term `financial 
institution' has the meaning given the term `financial organization' in 
section 3332(a) of title 31.''
    1996--Subsec. (a)(1). Pub. L. 104-106 substituted ``chapter 1223'' 
for ``chapter 67''.
    1991--Pub. L. 102-25 struck out ``mandatory'' after ``error in'' in 
section catchline.
    1989--Pub. L. 101-189, Sec. 664(a)(3)(A), amended section catchline 
generally, substituting ``Reimbursement for financial institution 
charges incurred because of Government'' for ``Relief for expenses 
because of''.
    Subsec. (a). Pub. L. 101-189, Sec. 664(a)(1), amended subsec. (a) 
generally. Prior to amendment, subsec. (a) read as follows: ``A member 
of the armed forces who, by law or regulation, is required to 
participate in a program for the automatic deposit of pay to a financial 
institution may be reimbursed for overdraft charges levied by the 
financial institution when such charges result from an administrative or 
mechanical error on the part of the Government that causes such member's 
pay to be deposited late or in an incorrect amount or manner.''
    Subsec. (d). Pub. L. 101-189, Sec. 664(a)(2), amended subsec. (d) 
generally. Prior to amendment, subsec. (d) read as follows: ``In this 
section, the term `financial institution' has the meaning given that 
term in section 3332 of title 31.''


                    Effective Date of 1996 Amendment

    Section 1501(c) of Pub. L. 104-106 provided that the amendment made 
by that section is effective as of Dec. 1, 1994, and as if included as 
an amendment made by the Reserve Officer Personnel Management Act, title 
XVI of Pub. L. 103-337, as originally enacted.


                    Effective Date of 1989 Amendment

    Section 664(c) of Pub. L. 101-189 provided that: ``The amendments 
made by subsection (a) [amending this section], and section 1594 of 
title 10, United States Code, as added by subsection (b), shall apply 
with respect to pay and allowances deposited (or scheduled to be 
deposited) on or after the first day of the first month beginning after 
the date of the enactment of this Act [Nov. 29, 1989].''


                             Effective Date

    Section 662(c) of Pub. L. 99-661 provided that: ``Section 1053 of 
title 10, United States Code, as added by subsection (a), shall apply 
only with respect to charges levied as a result of errors occurring on 
or after the date of the enactment of this Act [Nov. 14, 1986].''
