
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: 31USC3728]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
                           CHAPTER 37--CLAIMS
 
       SUBCHAPTER III--CLAIMS AGAINST THE UNITED STATES GOVERNMENT
 
Sec. 3728. Setoff against judgment

    (a) The Secretary of the Treasury shall withhold paying that part of 
a judgment against the United States Government presented to the 
Secretary that is equal to a debt the plaintiff owes the Government.
    (b) The Secretary shall--
        (1) discharge the debt if the plaintiff agrees to the setoff and 
    discharges a part of the judgment equal to the debt; or
        (2)(A) withhold payment of an additional amount the Secretary 
    decides will cover legal costs of bringing a civil action for the 
    debt if the plaintiff denies the debt or does not agree to the 
    setoff; and
        (B) have a civil action brought if one has not already been 
    brought.

    (c) If the Government loses a civil action to recover a debt or 
recovers less than the amount the Secretary withholds under this 
section, the Secretary shall pay the plaintiff the balance and interest 
of 6 percent for the time the money is withheld.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 977; Pub. L. 104-316, title 
II, Sec. 202(p), Oct. 19, 1996, 110 Stat. 3844.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
3728(a)..............................  31:227(1st sentence words       Mar. 3, 
1875, ch. 149, 18 Stat. 481;
                                        before semicolon).              restate
d Mar. 3, 1933, ch. 212, Sec.
                                                                        13, 47 
Stat. 1516.
3728(b)..............................  31:227(1st sentence words
                                        after semicolon, 2d, 3d
                                        sentences).
3728(c)..............................  31:227(last sentence).
-------------------------------------------------------------------------------
---------------------------------

    In the section, the words ``of the United States'' are omitted as 
unnecessary.
    In subsection (a), the words ``final . . . recovered . . . duly 
allowed by legal authority'', ``for payment'', and ``in any manner, 
whether as principal or surety'' are omitted as surplus.
    In subsection (b)(1), the words ``due from the plaintiff to the 
United States'' are omitted as surplus.
    In subsection (b)(2)(A), the words ``of such judgment'', ``be 
sufficient to'', and ``charges and'' are omitted as surplus. The words 
``of bringing a civil action'' are substituted for ``in prosecuting the 
debt'' for consistency in the revised title and with other titles of the 
United States Code. The words ``of the United States to final judgment'' 
and ``to the United States'' are omitted as surplus.
    Subsection (b)(2)(B) is substituted for 31:227(3d sentence) for 
consistency and to eliminate unnecessary words.
    In subsection (c), the words ``for debt and costs'', ``thereon'', 
and ``from the plaintiff'' are omitted as surplus.


                               Amendments

    1996--Subsec. (a). Pub. L. 104-316, Sec. 202(p)(1), (2), substituted 
``Secretary of the Treasury'' for ``Comptroller General'' before ``shall 
withhold'' and ``Secretary'' for ``Comptroller General'' after 
``presented to the''.
    Subsecs. (b), (c). Pub. L. 104-316, Sec. 202(p)(2), substituted 
``Secretary'' for ``Comptroller General'' wherever appearing.

                  Section Referred to in Other Sections

    This section is referred to in title 26 section 6422.
