US Code

Public Law 119-73 (01/23/2026)

10 U.S.C. § 1053

Financial institution charges incurred because of Government error in direct deposit of pay: reimbursement

(a)
(1)
A member of the armed forces (or a former member of the armed forces entitled to retired pay under chapter 1223 of this title) who, in accordance with law or regulation, participates in a program for the automatic deposit of pay to a financial institution may be reimbursed by the Secretary concerned for a covered late-deposit charge.
(2)
A covered late-deposit charge for purposes of paragraph (1) is a charge (including an overdraft charge or a minimum balance or average balance charge) that is levied by a financial institution and that results from an administrative or mechanical error on the part of the Government that causes the pay of the person concerned to be deposited late or in an incorrect manner or amount.
(b)
Reimbursements under this section shall be made from appropriations available for the pay and allowances of members of the armed force concerned.
(c)
The Secretaries concerned shall prescribe regulations to carry out this section, including regulations for the manner in which reimbursement under this section is to be made.
(d)
In this section:
(1)
The term “financial institution” means a bank, savings and loan association, or similar institution or a credit union chartered by the United States or a State.
(2)
The term “pay” includes (A) retired pay, and (B) allowances.

Pub. L. 99–661, div. A, title VI, § 662(a)(1)100 Stat. 3893Pub. L. 101–189, div. A, title VI, § 664(a)(1)103 Stat. 1466Pub. L. 102–25, title VII, § 701(e)(8)(A)105 Stat. 115Pub. L. 104–106, div. A, title XV, § 1501(c)(8)110 Stat. 499Pub. L. 105–261, div. A, title V, § 564(a)112 Stat. 2029Pub. L. 106–398, § 1 [[div. A]114 Stat. 1654(Added , , ; amended –(3)(A), , ; , , ; , , ; , , ; , title V, § 579(c)(2)], , , 1654A–141.)

Editorial Notes

Amendments

Pub. L. 106–3982000— substituted “Financial institution charges incurred because of Government error in direct deposit of pay: reimbursement” for “Reimbursement for financial institution charges incurred because of Government error in direct deposit of pay” in section catchline.

Pub. L. 105–261section 3332(a) of title 311998—Subsec. (d)(1). amended par. (1) generally. Prior to amendment, par. (1) read as follows: “The term ‘financial institution’ has the meaning given the term ‘financial organization’ in .”

Pub. L. 104–1061996—Subsec. (a)(1). substituted “chapter 1223” for “chapter 67”.

Pub. L. 102–251991— struck out “mandatory” after “error in” in section catchline.

Pub. L. 101–189, § 664(a)(3)(A)1989—, amended section catchline generally, substituting “Reimbursement for financial institution charges incurred because of Government” for “Relief for expenses because of”.

Pub. L. 101–189, § 664(a)(1)Subsec. (a). , amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “A member of the armed forces who, by law or regulation, is required to participate in a program for the automatic deposit of pay to a financial institution may be reimbursed for overdraft charges levied by the financial institution when such charges result from an administrative or mechanical error on the part of the Government that causes such member’s pay to be deposited late or in an incorrect amount or manner.”

Pub. L. 101–189, § 664(a)(2)section 3332 of title 31Subsec. (d). , amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “In this section, the term ‘financial institution’ has the meaning given that term in .”

Statutory Notes and Related Subsidiaries

Effective Date of 1996 Amendment

Pub. L. 104–106, div. A, title XV, § 1501(c)110 Stat. 498Pub. L. 103–337, , , provided that the amendment made by that section is effective as of , and as if included as an amendment made by the Reserve Officer Personnel Management Act, title XVI of , as originally enacted.

Effective Date of 1989 Amendment

Pub. L. 101–189, div. A, title VI, § 664(c)103 Stat. 1467

section 1594 of title 10“The amendments made by subsection (a) [amending this section], and , United States Code, as added by subsection (b), shall apply with respect to pay and allowances deposited (or scheduled to be deposited) on or after the first day of the first month beginning after the date of the enactment of this Act [].”
, , , provided that:

Effective Date

Pub. L. 99–661, div. A, title VI, § 662(c)100 Stat. 3894

Section 1053 of title 10“, United States Code, as added by subsection (a), shall apply only with respect to charges levied as a result of errors occurring on or after the date of the enactment of this Act [].”
, , , provided that: