
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: 10USC2575]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
CHAPTER 153--EXCHANGE OF MATERIAL AND DISPOSAL OF OBSOLETE, SURPLUS, OR 
                           UNCLAIMED PROPERTY
 
Sec. 2575. Disposition of unclaimed property

    (a) The Secretary of any military department, and the Secretary of 
Transportation, under such regulations as they may respectively 
prescribe, may each by public or private sale or otherwise, dispose of 
all lost, abandoned, or unclaimed personal property that comes into the 
custody or control of the Secretary's department, other than property 
subject to section 4712, 6522, or 9712 of this title or subject to 
subsection (c). However, property may not be disposed of until diligent 
effort has been made to find the owner (or the heirs, next of kin, or 
legal representative of the owner). The diligent effort to find the 
owner (or the heirs, next of kin, or legal representative of the owner) 
shall begin, to the maximum extent practicable, not later than seven 
days after the date on which the property comes into the custody or 
control of the Secretary. The period for which that effort is continued 
may not exceed 45 days. If the owner (or the heirs, next of kin, or 
legal representative of the owner) is determined but not found, the 
property may not be disposed of until the expiration of 45 days after 
the date when notice, giving the time and place of the intended sale or 
other disposition, has been sent by certified or registered mail to that 
person at his last known address. When diligent effort to determine the 
owner (or heirs, next of kin, or legal representative of the owner) is 
unsuccessful, the property may be disposed of without delay, except that 
if it has a fair market value of more than $300, the Secretary may not 
dispose of the property until 45 days after the date it is received at a 
storage point designated by the Secretary.
    (b)(1) In the case of lost, abandoned, or unclaimed personal 
property found on a military installation, the proceeds from the sale of 
the property under this section shall be credited to the operation and 
maintenance account of that installation and used--
        (A) to reimburse the installation for any costs incurred by the 
    installation to collect, transport, store, protect, or sell the 
    property; and
        (B) to the extent that the amount of the proceeds exceeds the 
    amount necessary for reimbursing all such costs, to support morale, 
    welfare, and recreation activities under the jurisdiction of the 
    armed forces that are conducted for the comfort, pleasure, 
    contentment, or physical or mental improvement of members of the 
    armed forces at such installation.

    (2) The net proceeds from the sale of other property under this 
section shall be covered into the Treasury as miscellaneous receipts.
    (c) No property covered by this section may be delivered to the 
Armed Forces Retirement Home by the Secretary of a military department, 
except papers of value, sabers, insignia, decorations, medals, watches, 
trinkets, manuscripts, and other articles valuable chiefly as keepsakes.
    (d)(1) The owner (or heirs, next of kin, or legal representative of 
the owner) of personal property the proceeds of which are credited to a 
military installation under subsection (b)(1) may file a claim with the 
Secretary of Defense for the amount equal to the proceeds (less costs 
referred to in subparagraph (A) of such subsection). Amounts to pay the 
claim shall be drawn from the morale, welfare, and recreation account 
for the installation that received the proceeds.
    (2) The owner (or heirs, next of kin, or legal representative of the 
owner) may file a claim with the Secretary of Defense for proceeds 
covered into the Treasury under subsection (b)(2).
    (3) Unless a claim is filed under this subsection within 5 years 
after the date of the disposal of the property to which the claim 
relates, the claim may not be considered by a court, the Secretary of 
Defense (in the case of a claim filed under paragraph (1)), or the 
Secretary of Defense (in the case of a claim filed under paragraph (2)).

(Aug. 10, 1956, ch. 1041, 70A Stat. 144; Pub. L. 89-143, Aug. 28, 1965, 
79 Stat. 581; Pub. L. 96-513, title V, Sec. 511(84), Dec. 12, 1980, 94 
Stat. 2927; Pub. L. 101-189, div. A, title III, Sec. 322(a), (b), title 
XVI, Sec. 1622(f)(1), Nov. 29, 1989, 103 Stat. 1413, 1605; Pub. L. 101-
510, div. A, title XV, Sec. 1533(a)(2), Nov. 5, 1990, 104 Stat. 1733; 
Pub. L. 104-106, div. A, title III, Sec. 374(a), Feb. 10, 1996, 110 
Stat. 281; Pub. L. 104-316, title II, Sec. 202(d), Oct. 19, 1996, 110 
Stat. 3842.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
2575(a)...............................  5:150e.                              Ap
r. 14, 1949, ch. 50, 63 Stat. 45.
                                        5:150h.
                                        [Uncodified: Apr. 14, 1949, ch. 50,
                                         Sec.  6, 63 Stat. 45].
2575(b)...............................  5:150f.
                                        5:150g.
2575(c)...............................  5:150i.
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), the words ``under such regulations as they may 
respectively prescribe'' are substituted for 5:150h. The words ``other 
than property * * * subject to subsection (c)'' of this section are 
substituted for the words ``subject to the provisions of section 150i of 
this title''. The words ``other than property subject to sections 4712, 
4713, 6522, 9712, or 9713 of this title'' are inserted, since uncodified 
section 6 of the source statute provided that the source statute for 
this revised section did not repeal or amend the source statutes for 
those revised sections. The words ``that comes into'' are substituted 
for the words ``which is now or may hereafter come into''. The word 
``possession'' is omitted as covered by the words ``custody or 
control''. The words ``However, property may not be disposed of until'' 
are inserted for clarity. The word ``find'' is substituted for the words 
``determine and locate''. The words ``until the expiration'' are 
substituted for the words ``prior to the expiration of a period''. The 
words ``determined but not found'' are substituted for the words ``have 
or has been determined''. The words ``or owners'', ``or 
representatives'', and ``sold or otherwise'' are omitted as surplusage.
    In subsection (b), the words ``may file * * * within five years'' 
are substituted for the words ``may be filed * * * at any time prior to 
the expiration of five years'', in 5:150g, since the claim must be 
disallowed if not filed within that period. The words ``If not filed 
within that period'' are substituted for the words ``If claims are not 
filed prior to the expiration of five years from the date of the 
disposal of the property'', in 5:150g. The words ``such a claim may not 
be considered'' are substituted for the words ``they shall be barred 
from being acted on'', in 5:150g.
    In subsection (c), the words ``No property * * * may * * * except'' 
are substituted for the words ``Any property * * * shall be limited''. 
The last sentence is substituted for 5:150i (proviso).


                               Amendments

    1996--Subsec. (b). Pub. L. 104-106, Sec. 374(a)(1), added subsec. 
(b) and struck out former subsec. (b) which read as follows: ``The net 
proceeds from the sale of property under this section shall be covered 
into the Treasury as miscellaneous receipts. The owner (or the heirs, 
next of kin, or legal representative of the owner) may file a claim for 
those proceeds with the General Accounting Office within five years 
after the date of the disposal of the property. If not filed within that 
period, such a claim may not be considered by a court or the General 
Accounting Office.''
    Subsec. (d). Pub. L. 104-106, Sec. 374(a)(2), added subsec. (d).
    Subsec. (d)(2), (3). Pub. L. 104-316 substituted ``Secretary of 
Defense'' for ``Comptroller General of the United States''.
    1990--Subsec. (a). Pub. L. 101-510, Sec. 1533(a)(2)(A), substituted 
``section 4712, 6522, or 9712'' for ``section 4712, 4713, 6522, 9712, or 
9713''.
    Subsec. (c). Pub. L. 101-510, Sec. 1533(a)(2)(B), substituted 
``Armed Forces Retirement Home'' for ``United States Soldiers' and 
Airmen's Home'' and ``Secretary of a military department'' for 
``Secretary of the Army or the Secretary of the Air Force'' and struck 
out at end ``The Home shall deliver the property to the owner (or the 
heirs, next of kin, or legal representative of the owner), if that 
person establishes a right to it within two years after its receipt by 
the Home.''
    1989--Subsec. (a). Pub. L. 101-189, Sec. 1622(f)(1), struck out ``of 
this section'' after ``subsection (c)''.
    Pub. L. 101-189, Sec. 322(b)(2)(A), substituted ``the Secretary's 
department'' for ``his department''.
    Pub. L. 101-189, Sec. 322(b)(1), substituted ``owner (or the heirs, 
next of kin, or legal representative of the owner)'' for ``owner, his 
heirs or next of kin, or his legal representative'' in two places.
    Pub. L. 101-189, Sec. 322(a)(3), inserted after second sentence: 
``The diligent effort to find the owner (or the heirs, next of kin, or 
legal representative of the owner) shall begin, to the maximum extent 
practicable, not later than seven days after the date on which the 
property comes into the custody or control of the Secretary. The period 
for which that effort is continued may not exceed 45 days.''
    Pub. L. 101-189, Sec. 322(a)(1), substituted ``45 days'' for ``120 
days''.
    Pub. L. 101-189, Sec. 322(b)(2)(B), substituted ``owner (or heirs, 
next of kin, or legal representative of the owner)'' for ``owner, his 
heirs or next of kin, or his legal representatives'' after ``When 
diligent effort to determine the''.
    Pub. L. 101-189, Sec. 322(a)(2), substituted ``more than $300, the 
Secretary may not dispose of the property until 45 days'' for ``$25 or 
more the property may not be disposed of until three months''.
    Subsec. (b). Pub. L. 101-189, Sec. 322(b)(1), substituted ``owner 
(or the heirs, next of kin, or legal representative of the owner)'' for 
``owner, his heirs or next of kin, or his legal representative''.
    Subsec. (c). Pub. L. 101-189, Sec. 322(b)(1), (3), substituted 
``owner (or the heirs, next of kin, or legal representative of the 
owner)'' for ``owner, his heirs or next of kin, or his legal 
representative'', and ``that person'' for ``he'' before ``establishes a 
right''.
    1980--Subsec. (a). Pub. L. 96-513, Sec. 511(84)(A), substituted 
``Secretary of Transportation'' for ``Secretary of the Treasury''.
    Subsec. (c). Pub. L. 96-513, Sec. 511(84)(B), substituted ``United 
States Soldiers' and Airmen's Home'' for ``Soldiers' Home''.
    1965--Subsec. (a). Pub. L. 89-143 provided for notice by certified 
mail and substituted provision for disposition of property without delay 
when diligent effort to determine ownership is unsuccessful and after 
three months following receipt at designated storage point of property 
with fair market value of $25 or more, for former provision for 
disposition of property one year after receipt at designated storage 
point.


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-510 effective one year after Nov. 5, 1990, 
see section 1541 of Pub. L. 101-510, set out as an Effective Date note 
under section 401 of Title 24, Hospitals and Asylums.


                    Effective Date of 1989 Amendment

    Section 322(c) of Pub. L. 101-189 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply with respect 
to property that comes into the custody or control of the Secretary of a 
military department or the Secretary of Transportation after the date of 
the enactment of this Act [Nov. 29, 1989].''


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section 
701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in title 5 section 5564; title 24 
section 420; title 37 section 554.
