
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: 10USC2774]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
             CHAPTER 165--ACCOUNTABILITY AND RESPONSIBILITY
 
Sec. 2774. Claims for overpayment of pay and allowances and of 
        travel and transportation allowances
        
    (a) A claim of the United States against a person arising out of an 
erroneous payment of any pay or allowances made before, on, or after 
October 2, 1972, or arising out of an erroneous payment of travel and 
transportation allowances, to or on behalf of a member or former member 
of the uniformed services, the collection of which would be against 
equity and good conscience and not in the best interest of the United 
States, may be waived in whole or in part by--
        (1) the Director of the Office of Management and Budget; or
        (2) the Secretary concerned, as defined in section 101(5) of 
    title 37, when--
            (A) the claim is in an amount aggregating not more than 
        $1,500; and
            (B) the waiver is made in accordance with standards which 
        the Director of the Office of Management and Budget shall 
        prescribe.

    (b) The Director of the Office of Management and Budget or the 
Secretary concerned, as the case may be, may not exercise his authority 
under this section to waive any claim--
        (1) if, in his opinion, there exists, in connection with the 
    claim, an indication of fraud, misrepresentation, fault, or lack of 
    good faith on the part of the member or any other person having an 
    interest in obtaining a waiver of the claim; or
        (2) if application for waiver is received in his office after 
    the expiration of three years immediately following the date on 
    which the erroneous payment was discovered.

    (c) A person who has repaid to the United States all or part of the 
amount of a claim, with respect to which a waiver is granted under this 
section, is entitled, to the extent of the waiver, to refund, by the 
department concerned at the time of the erroneous payment, of the amount 
repaid to the United States, if he applies to that department for that 
refund within two years following the effective date of the waiver. The 
Secretary concerned shall pay from current applicable appropriations 
that refund in accordance with this section.
    (d) In the audit and settlement of accounts of any accountable 
officer or official, full credit shall be given for any amounts with 
respect to which collection by the United States is waived under this 
section.
    (e) An erroneous payment, the collection of which is waived under 
this section, is considered a valid payment for all purposes.
    (f) This section does not affect any authority under any other law 
to litigate, settle, compromise, or waive any claim of the United 
States.

(Added Pub. L. 92-453, Sec. 1(1), Oct. 2, 1972, 86 Stat. 758; amended 
Pub. L. 96-513, title V, Sec. 511(98), Dec. 12, 1980, 94 Stat. 2928; 
Pub. L. 99-224, Sec. 2(a), Dec. 28, 1985, 99 Stat. 1741; Pub. L. 100-26, 
Sec. 7(j)(7)(A), (B), Apr. 21, 1987, 101 Stat. 283; Pub. L. 102-190, 
div. A, title VI, Sec. 657(b), Dec. 5, 1991, 105 Stat. 1393; Pub. L. 
104-316, title I, Sec. 105(b), Oct. 19, 1996, 110 Stat. 3830.)


                               Amendments

    1996--Subsec. (a). Pub. L. 104-316, Sec. 105(b)(1), substituted 
``Director of the Office of Management and Budget'' for ``Comptroller 
General'' in par. (1), and in par. (2) inserted ``and'' at end of 
subpar. (A), redesignated subpar. (C) as (B) and substituted ``Director 
of the Office of Management and Budget'' for ``Comptroller General'', 
and struck out former subpar. (B) which read as follows ``the claim is 
not the subject of an exception made by the Comptroller General in the 
account of any accountable officer or official; and''.
    Subsec. (b). Pub. L. 104-316, Sec. 105(b)(2), substituted ``Director 
of the Office of Management and Budget'' for ``Comptroller General''.
    1991--Subsec. (a)(2)(A). Pub. L. 102-190 substituted ``$1,500'' for 
``$500''.
    1987--Pub. L. 100-26, Sec. 7(j)(7)(A), substituted ``allowances and 
of'' for ``allowances, and'' in section catchline.
    Subsec. (a). Pub. L. 100-26, Sec. 7(j)(7)(B), struck out ``as 
defined in section 101(3) of title 37,'' after ``uniformed services,''.
    1985--Pub. L. 99-224, Sec. 2(a)(1), substituted ``and'' for ``other 
than'' in section catchline.
    Subsec. (a). Pub. L. 99-224, Sec. 2(a)(2), substituted ``made 
before, on, or after October 2, 1972, or arising out of an erroneous 
payment of travel and transportation allowances'' for ``, other than 
travel and transportation allowances, made before or after October 2, 
1972''.
    Subsec. (b)(2). Pub. L. 99-224, Sec. 2(a)(3), struck out ``of pay or 
allowances, other than travel and transportation allowances,'' after 
``payment''.
    1980--Subsec. (a). Pub. L. 96-513 substituted ``October 2, 1972'' 
for ``the effective date of this section''.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-316 effective 60 days after Oct. 19, 1996, 
see section 101(e) of Pub. L. 104-316, set out as a note under section 
130c of Title 2, The Congress.


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-224 applicable to any claim arising out of 
an erroneous payment of travel and transportation allowances made on or 
after Dec. 28, 1985, see section 4 of Pub. L. 99-224, set out as a note 
under section 5584 of Title 5, Government Organization and Employees.


                    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.


Cancellation of Debts Up To $2,500 of Uniformed Service Members Incurred 
            in Connection With Operation Desert Shield/Storm

    Pub. L. 104-61, title VIII, Sec. 8052, Dec. 1, 1995, 109 Stat. 662, 
provided that: ``Notwithstanding any other provision of law, the 
Secretary of Defense may, when he considers it in the best interest of 
the United States, cancel any part of an indebtedness, up to $2,500, 
that is or was owed to the United States by a member or former member of 
a uniformed service if such indebtedness, as determined by the 
Secretary, was incurred in connection with Operation Desert Shield/
Storm: Provided, That the amount of an indebtedness previously paid by a 
member or former member and cancelled under this section shall be 
refunded to the member.''
    Similar provisions were contained in the following prior 
appropriation acts:
    Pub. L. 103-335, title VIII, Sec. 8060, Sept. 30, 1994, 108 Stat. 
2633.
    Pub. L. 103-139, title VIII, Sec. 8071, Nov. 11, 1993, 107 Stat. 
1457.
    Pub. L. 102-396, title IX, Sec. 9100, Oct. 6, 1992, 106 Stat. 1926.
    Pub. L. 102-172, title VIII, Sec. 8138, Nov. 26, 1991, 105 Stat. 
1212.
