An Act to authorize the collection of indebtedness of military and civilian personnel resulting from erroneous payments, and for other purposes
PL 83-497 (S.2728), enacted 07/15/1954

482 
PUBLIC LAW 497-JULY 15, 1954 
[68 S T A T * 
60 Stat. 41. 
50 u s e 
app 
1736. 
(b) After consultation with the Secretary of Defense it is deter-
mined that the sale of such vessels would not adversely affect the 
defense of the United States; 
(c) After investigation it is determined that there are no privately 
owned Cl-MAV-1 type vessels offered and available for sale by Ameri-
can citizens as defined in section 2 of the Shipping Act, 1916, as 
amended, at prices equal to or less than, and upon credit terms similar 
to, those provided for below; 
(d) The sale of such vessels shall be at prices determined under 
section 3 of the Merchant Ship Sales Act, 1946, as amended, as-is, 
where-is; 
(e) At the time of sale the purchasers shall pay at least 25 per 
centum of the price determined under subsection (d). 
The Secretary 
of Commerce, after consultation with the National Advisory Council 
on International Monetary and Financial Problems, shall fix the terms 
of payment on unpaid balances, which terms shall in no event be 
more favorable than the terms applicable in the case of sales to citizens 
of the United States; 
(f) The obligation of the purchasers with respect to the payment 
of such unpaid balance of the purchase price and interest thereon 
shall be secured by a mortgage which shall contain, among others, 
provisions according to such mortgage, the priorities over other liens 
and encumbrances accorded such mortgages on merchant vessels under 
the laws of the country to which the registry of the vessels is trans-
ferred; and 
(g) Every transfer under the authority of this Act, including trans-
fers under the authority of section 9, or section 37, of the Snipping 
Stat 9^1** ^^^' *° ^^^^ 1916, within the intent of subsection (c) hereof, shall be subject 
46*usc*808, 835. to an agreement by the Government of Brazil that the vessels whether 
under mortgage to the United States or not shall not engage in inter-
national trade or in other than the coastwise trade of Brazil. 
Approved July 15, 1954. 
July 15,1954 
[S.2728] 
Public Law 497 
CHAPTER 509 
AN ACT 
To authorize the collection of indebtedness of military and civilian personnel 
resulting from erroneous payments, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
F^*^*em"'io''^M'* United /States of America in Congress assembled, That, when it is 
s'^i^y "deductfon determined by the Secretary of the department concerned or the head 
menu'°"*°"° ^^^ of the agency or independent establishment concerned, or one of their 
designees, that an employee of the United States or any member of the 
Army, Navy, Air Force, Marine Corps, or Coast Guard, or a reserve 
component thereof, is indebted to the United States as the result of 
any erroneous payment made by the department, agency, or independ-
ent establishment concerned to or on behalf of any such person, the 
amount of the indebtedness may be collected in monthly installments, 
or at officially established regular pay period intervals, by deduction 
in reasonable amounts from the current pay account of such person. 
The deductions may be made only from basic compensation, basic pay, 
special pay, and incentive pay, retired pay, retainer pay, or in the case 
of persons not entitled to basic pay, other authorized pay. Collection 
shall be eflPected over a period not greater than the anticipated period 
of active duty or period of employment, as the case may be. 
The 
amount deducted for any period shall not exceed an amount equal to 
two-thirds of the pay from which the deduction is made, unless the 
68 
S T A T . ] 
PUBLIC LAW 499-JULY 15, 1954 
483 
deduction of a greater amount is necessary to effect collection within 
the period or anticipated period of active duty or employment. 
If 
such individual retires, resigns, or h,is employment or period of active 
duty is otherwise terminated before such adjustment has been com-
pleted, adjustment shall be made by decreasing subsequent payments, 
of whatever nature, due such person by the department, agency, or 
independent establishment concerned. Nothing in this section shall 
modify any existing law which provides for forfeiture of pay or 
allowances. 
SEC. 2. Each Secretary of a department, or head of an agency or 
independent establishment, as appropriate, shall prescribe regula-
tions to carry out the purposes of this Act. Such regulations shall be 
approved by the Director of the Bureau of the Budget. 
Regulations 
prescribed by the Secretaries of the Army, Navy, and Air Force shall 
be uniform for the military services insofar as practicable. 
SEC. 3. (a) In accordance with settlement procedures prescribed by 
the Comptroller General of the United States, the Secretary of the 
department concerned or the head of the agency or independent 
establishment concerned is authorized to charge the net amount of 
the unpaid and overpaid balances occurring in individual pay accounts 
against the appropriation for the fiscal year in which the balances 
occurred, and from which the amount was payable, and the net amount 
shall be credited to and paid from the corresponding appropriation 
for the next succeeding fiscal year. 
(b) The Act of February 9,1946 (ch. 2, 60 Stat. 3) is repealed. 
SEC. 4. Nothing contained in this Act shall be construed as repeal-
ing, amending, or modifying in any way the provisions of the Act of 
May 22, 1928 (ch. 676, 45 Stat. 698). 
Approved July 15, 1954. 
Regulations. 
Unpaid and over-
paid balances. 
Repeal. 
31 u s e 634a. 
10 u s e 875a. 
Public Law 498 
CHAPTER 510 
AN ACT 
July 15.1954 
To amend section 12 of the Alaska Public Works Act, approved August 24, 1949 
[H. R. 2683] 
(63 Stat. 029). 
Be it enacted hy the Seriate and House of Representatives 
of the 
United 
States 
of America 
in Congress assembled, 
That section 
12 of the Alaska Public Works Act, approved August 24, 1949 (63 
Stat. 629), is amended to read as follows: 
"SEC. 12, The authority of the Secretary under this Act to provide 
public works and to enter .into agreements with applicants in connec-
tion therewith shall terminate on June 30, 1959, or on the date he 
obligates for such purposes the total amount authorized 4;o be appro-
priated hereunder, whichever first occurs." 
Approved July 15, 1954. 
A l a s k a public 
works program. 
48 u s e 486J. 
T e r m i n a t i o n 
date. 
Public Law 499 
CHAPTER 511 
AN ACT 
To suspend for two years the duty on crude bauxite and on certain calcined 
bauxite and to remit the duty on certain bells to be imiwrted for addition to 
the carillon of The Citadel, Charleston, South Carolina. 
July 15,1954 
[H. R.222] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That, effective only 
f u^"** ^ • 
with respect to articles entered, or withdrawn from warehouse, for duty.'^""^^*"*°