
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: 10USC9514]

 
                         TITLE 10--ARMED FORCES
 
                          Subtitle D--Air Force
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
                  CHAPTER 931--CIVIL RESERVE AIR FLEET
 
Sec. 9514. Indemnification of Department of Transportation for 
        losses covered by defense-related aviation insurance
        
    (a) Prompt Indemnification Required.--(1) In the event of a loss 
that is covered by defense-related aviation insurance, the Secretary of 
Defense shall promptly indemnify the Secretary of Transportation for the 
amount of the loss consistent with the indemnification agreement between 
the two Secretaries that underlies such insurance. The Secretary of 
Defense shall make such indemnification--
        (A) in the case of a claim for the loss of an aircraft hull, not 
    later than 30 days after the date on which the Secretary of 
    Transportation determines the claim to be payable or that amounts 
    are due under the policy that provided the defense-related aviation 
    insurance; and
        (B) in the case of any other claim, not later than 180 days 
    after the date on which the Secretary of Transportation determines 
    the claim to be payable.

    (2) When there is a loss of an aircraft hull that is (or may be) 
covered by defense-related aviation insurance, the Secretary of 
Transportation may make, during the period when a claim for such loss is 
pending with the Secretary of Transportation, any required periodic 
payments owed by the insured party to a lessor or mortgagee of such 
aircraft. Such payments shall commence not later than 30 days following 
the date of the presentment of the claim for the loss of the aircraft 
hull to the Secretary of Transportation. If the Secretary of 
Transportation determines that the claim is payable, any amount paid 
under this paragraph arising from such claim shall be credited against 
the amount payable under the aviation insurance. If the Secretary of 
Transportation determines that the claim is not payable, any amount paid 
under this paragraph arising from such claim shall constitute a debt to 
the United States, payable to the insurance fund. Any such amounts so 
returned to the United States shall be promptly credited to the fund or 
account from which the payments were made under this paragraph.
    (b) Source of Funds for Payment of Indemnity.--The Secretary of 
Defense may pay an indemnity described in subsection (a) from any funds 
available to the Department of Defense for operation and maintenance, 
and such sums as may be necessary for payment of such indemnity are 
hereby authorized to be transferred to the Secretary of Transportation 
for such purpose.
    (c) Notice to Congress.--In the event of a loss that is covered by 
defense-related aviation insurance in the case of an incident in which 
the covered loss is (or is expected to be) in an amount in excess of 
$1,000,000, the Secretary of Defense shall submit to Congress--
        (1) notification of the loss as soon after the occurrence of the 
    loss as possible and in no event more than 30 days after the date of 
    the loss; and
        (2) semiannual reports thereafter updating the information 
    submitted under paragraph (1) and showing with respect to losses 
    arising from such incident the total amount expended to cover such 
    losses, the source of those funds, pending litigation, and estimated 
    total cost to the Government.

    (d) Implementing Matters.--(1) Payment of indemnification under this 
section is not subject to section 2214 or 2215 of this title or any 
other provision of law requiring notification to Congress before funds 
may be transferred.
    (2) Consolidation of claims arising from the same incident is not 
required before indemnification of the Secretary of Transportation for 
payment of a claim may be made under this section.
    (e) Construction With Other Transfer Authority.--Authority to 
transfer funds under this section is in addition to any other authority 
provided by law to transfer funds (whether enacted before, on, or after 
the date of the enactment of this section) and is not subject to any 
dollar limitation or notification requirement contained in any other 
such authority to transfer funds.
    (f) Annual Report on Contingent Liabilities.--Not later than March 1 
of each year, the Secretary of Defense shall submit to Congress a report 
setting forth the current amount of the contingent outstanding liability 
of the United States under the insurance program under chapter 443 of 
title 49.
    (g) Definitions.--In this section:
        (1) Defense-related aviation insurance.--The term ``defense-
    related aviation insurance'' means aviation insurance and 
    reinsurance provided through policies issued by the Secretary of 
    Transportation under chapter 443 of title 49 that pursuant to 
    section 44305(b) of that title is provided by that Secretary without 
    premium at the request of the Secretary of Defense and is covered by 
    an indemnity agreement between the Secretary of Transportation and 
    the Secretary of Defense.
        (2) Loss.--The term ``loss'' includes damage to or destruction 
    of property, personal injury or death, and other liabilities and 
    expenses covered by the defense-related aviation insurance.

(Added Pub. L. 104-201, div. A, title X, Sec. 1079(a)(1), Sept. 23, 
1996, 110 Stat. 2667.)

                       References in Text

    The date of the enactment of this section, referred to in subsec. 
(e), is the date of enactment of Pub. L. 104-201, which was approved 
Sept. 23, 1996.
