### §8271. Settlement of accounts: remission or cancellation of indebtedness of members

(a) In General.—The Secretary of the Navy 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 naval service, 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.

(Added Pub. L. 86–511, §1(a), June 11, 1960, 74 Stat. 207, §6161; amended Pub. L. 109–163, div. A, title VI, §683(b)(1), Jan. 6, 2006, 119 Stat. 3322; Pub. L. 109–364, div. A, title VI, §673(b)(1), (2), (e)(2), Oct. 17, 2006, 120 Stat. 2271, 2272; Pub. L. 110–181, div. A, title X, §1063(c)(7)(B), Jan. 28, 2008, 122 Stat. 323; Pub. L. 114–328, div. A, title VI, §671(b)(2), Dec. 23, 2016, 130 Stat. 2173; renumbered §8271, Pub. L. 115–232, div. A, title VIII, §807(b)(10), Aug. 13, 2018, 132 Stat. 1835.)

#### **Editorial Notes**

#### Amendments

2018—Pub. L. 115–232 renumbered section 6161 of this title as this section.

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

2008—Subsec. (a). Pub. L. 110–181 made technical correction to directory language of Pub. L. 109–364, §673(b)(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 of the Navy may have remitted or canceled 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)(2), substituted "The Secretary of the Navy" for "If the Secretary of the Navy 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(b)(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 naval service" for "of a member of the Navy on active duty, or a member of a reserve component of the Navy 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(b)(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 of the Navy 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."

#### **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

Amendment by Pub. L. 114–328 effective Dec. 23, 2016, and applicable with respect to debt incurred on or after Oct. 7, 2001, see section 671(b)(5) of Pub. L. 114–328, set out as a note under section 7837 of this title.

#### 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)(B) 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(b)(3), Jan. 6, 2006, 119 Stat. 3323, which provided for termination of amendments by Pub. L. 109–163, §683(b), 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(b)(3), Oct. 17, 2006, 120 Stat. 2271.

#### Regulations

Secretary of Defense to prescribe regulations required for purposes of this section, as amended by Pub. L. 109–364, not later than Mar. 1, 2007, see section 673(d) of Pub. L. 109–364, set out as a note under section 7837 of this title.