§6161. 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 on active duty as a member of the naval service, 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 ; 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.)

Amendments

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), which directed amendment of subsec. (a) by substituting "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" and all that follows through "on active duty", was executed by making the substitution 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", thus making the substitution for "of a member" and all that follows through "on active duty" the second place it appeared, to reflect the probable intent of Congress.

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."

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 4837 of this title.