### §7837. Settlement of accounts: remission or cancellation of indebtedness of members

(a) In General.—The Secretary of the Army may have remitted or cancelled any part of the indebtedness of a person to the United States or any instrumentality of the United States incurred while the person was serving as a member of the Army, whether as a regular or a reserve in active status, but only if the Secretary considers such action to be in the best interest of the United States.

(b) Retroactive Applicability to Certain Debts.—The authority in subsection (a) may be exercised with respect to any debt covered by that subsection that is incurred on or after October 7, 2001.

(c) Regulations.—This section shall be administered under regulations prescribed by the Secretary of Defense.

(Aug. 10, 1956, ch. 1041, 70A Stat. 273, §4837; Pub. L. 85–861, §33(a)(27), Sept. 2, 1958, 72 Stat. 1566; Pub. L. 87–649, §14c(10), Sept. 7, 1962, 76 Stat. 501; Pub. L. 96–513, title V, §512(24)(A), (B), Dec. 12, 1980, 94 Stat. 2930; Pub. L. 109–163, div. A, title VI, §683(a)(1), Jan. 6, 2006, 119 Stat. 3322; Pub. L. 109–364, div. A, title VI, §673(a)(1), (2), (e)(1), Oct. 17, 2006, 120 Stat. 2271, 2272; Pub. L. 110–181, div. A, title X, §1063(c)(7)(A), Jan. 28, 2008, 122 Stat. 323; Pub. L. 114–328, div. A, title VI, §671(b)(1), Dec. 23, 2016, 130 Stat. 2173; renumbered §7837, Pub. L. 115–232, div. A, title VIII, §808(d), Aug. 13, 2018, 132 Stat. 1839.)

| Revised section | Source (U.S. Code) | Source (Statutes at Large) |
| --- | --- | --- |
| 4837(a) | 10:875. | R.S. 1300. |
| | 10:875b. | R.S. 1301. |
| 4837(b) 4837(c)4837(d) | 10:875a (less 3d and last provisos).10:875a (last proviso).10:875a (3d proviso). | May 22, 1928, ch. 676, 45 Stat. 698; June 26, 1934, ch. 751, 48 Stat. 1222. |
| 4837(e) | 10:871. | R.S. 1303. |
| 4837(f) | 10:872. | R.S. 1304. |
| 4837(g) | 10:875c. | R.S. 1299. |

4837(c)

4837(d)

10:875a (last proviso).

10:875a (3d proviso).

In subsection (a), the words "sold to the member on credit under section 4621(a)(1) of this title" are substituted for the words "articles designated by the inspectors general of the Army, and sold to him on credit by officers of the Quartermaster Corps", in 10:875. The words "at cost prices" are omitted to reflect section 4623 of this title.

In subsection (b), the last sentence is substituted for 10:875a (1st and 2d provisos). The words "on current payrolls" are omitted as surplusage.

In subsection (c), the words "Subject to subsection (b)" are substituted for the words "in the proportions hereinbefore indicated".

In subsection (d), the words "If he considers it in the best interest of the United States" are substituted for the words "when in his opinion the interests of the Government are best served by such action". The words "before, or at the time of" are substituted for the words "either on * * * or prior thereto".

In subsection (e), the words "member" and "his" are substituted for the words "officer or soldier". The words "or implement" are omitted as surplusage.

In subsection (f), the words "or if an article of military supply with whose issue a commissioned officer is charged is damaged" are substituted for 10:872 (last sentence). The words "that he was not at fault" are substituted for the words "that said deficiency [such damage] was not occasioned by any fault on his part".

In subsection (g), the words "bought on credit under section 4621(a)(1) of this title" are substituted for the words "designated by the officers of the Inspector-General's Department of the Army and purchased on credit from commissaries of subsistence".

#### 1958 Act

The change [in subsec. (b)] reflects the opinion of the Judge Advocate General of the Air Force (June 10, 1957) that the term "rate of pay", as used in the source law for section 4837(b) (Act of May 22, 1928, ch. 676 (45 Stat. 698), as amended), included special pay and incentive pay.

The change [in subsec. (f)] reflects the opinion of the Assistant General Counsel (Fiscal Matters), Department of Defense (July 19, 1957), that section 1304, Revised Statutes (formerly 10 U.S.C. 872), the source law for this section, applied to warrant officers as well as to commissioned officers.

#### **Editorial Notes**

#### Amendments

2018—Pub. L. 115–232 renumbered section 4837 of this title as this section.

2016—Subsec. (a). Pub. L. 114–328 substituted "as a member of the Army, whether as a regular or a reserve in active status" for "on active duty as a member of the Army".

2008—Subsec. (a). Pub. L. 110–181 made technical correction to directory language of Pub. L. 109–364, §673(a)(1). See 2006 Amendment note below.

2006—Pub. L. 109–163 amended section catchline and text generally. Prior to amendment, text read as follows: "If he considers it in the best interest of the United States, the Secretary may have remitted or cancelled any part of an enlisted member's indebtedness to the United States or any of its instrumentalities remaining unpaid before, or at the time of, that member's honorable discharge."

Subsec. (a). Pub. L. 109–364, §673(e)(1), substituted "The Secretary of the Army" for "If the Secretary considers it to be in the best interest of the United States, the Secretary" and inserted ", but only if the Secretary considers such action to be in the best interest of the United States" before period at end.

Pub. L. 109–364, §673(a)(1), as amended by Pub. L. 110–181, substituted "of a person to the United States or any instrumentality of the United States incurred while the person was serving on active duty as a member of the Army" for "of a member of the Army on active duty, or a member of a reserve component of the Army in an active status, to the United States or any instrumentality of the United States incurred while the member was serving on active duty".

Subsecs. (b) to (d). Pub. L. 109–364, §673(a)(2), redesignated subsecs. (c) and (d) as (b) and (c), respectively, and struck out heading and text of former subsec. (b). Text read as follows: "The Secretary may exercise the authority in subsection (a) with respect to a member—

"(1) while the member is on active duty or in active status, as the case may be;

"(2) if discharged from the armed forces under honorable conditions, during the one-year period beginning on the date of such discharge; or

"(3) if released from active status in a reserve component, during the one-year period beginning on the date of such release."

1980—Pub. L. 96–513, substituted "remission or cancellation of indebtedness of enlisted members" for "deductions from pay" in section catchline, and in text substituted "If he" for "(d) If he".

1962—Pub. L. 87–649 repealed subsecs. (a) to (c) and (e) to (g) which related to deductions from pay. See subsecs. (b) to (g), respectively, of section 1007 of Title 37, Pay and Allowances of the Uniformed Services.

1958—Subsec. (b). Pub. L. 85–861, §33(a)(27)(A), substituted "his pay for that month" for "his basic pay for that month".

Subsec. (f). Pub. L. 85–861, §33(a)(27)(B), substituted "an officer" for "a commissioned officer" in two places.

#### **Statutory Notes and Related Subsidiaries**

#### Effective Date of 2018 Amendment

Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title.

#### Effective Date of 2016 Amendment

Pub. L. 114–328, div. A, title VI, §671(b)(5), Dec. 23, 2016, 130 Stat. 2174, provided that: "The amendments made by this subsection [amending this section, sections 6161 and 9837 of this title, and section 461 of Title 14, Coast Guard] shall take effect on the date of the enactment of this Act [Dec. 23, 2016], and shall apply with respect to debt incurred on or after October 7, 2001."

#### Effective Date of 2008 Amendment

Pub. L. 110–181, div. A, title X, §1063(c), Jan. 28, 2008, 122 Stat. 322, provided that the amendment made by section 1063(c)(7)(A) is effective as of Oct. 17, 2006, and as if included in the John Warner National Defense Authorization Act for Fiscal Year 2007, Pub. L. 109–364, as enacted.

#### Termination Date of 2006 Amendment

Pub. L. 109–163, div. A, title VI, §683(a)(3), Jan. 6, 2006, 119 Stat. 3322, which provided for termination of amendments by Pub. L. 109–163, §683(a), amending this section and the analysis to this chapter, on Dec. 31, 2007, and restoration of provisions as in effect on the day before Jan. 6, 2006, was repealed by Pub. L. 109–364, div. A, title VI, §673(a)(3), Oct. 17, 2006, 120 Stat. 2271.

#### 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.

#### Effective Date of 1962 Amendment

Amendment by Pub. L. 87–649 effective Nov. 1, 1962, see section 15 of Pub. L. 87–649, set out as an Effective Date note preceding section 101 of Title 37, Pay and Allowances of the Uniformed Services.

#### Effective Date of 1958 Amendment

Amendment by Pub. L. 85–861 effective Aug. 10, 1956, see section 33(g) of Pub. L. 85–861, set out as a note under section 101 of this title.

#### Regulations

Pub. L. 109–364, div. A, title VI, §673(d), Oct. 17, 2006, 120 Stat. 2272, provided that: "The Secretary of Defense shall prescribe the regulations required for purposes of sections 4837, 6161, and 9837 [now 7837, 8271, and 9837] of title 10, United States Code, as amended by this section, not later than March 1, 2007."