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10 U.S.C. § 2783 — Nonappropriated fund instrumentalities: financial management and use of nonappropriated funds
Federal law — U.S. Code and appendices · legal_authorities
**(a) Regulation of Management and Use of Nonappropriated Funds.—** The Secretary of Defense shall prescribe regulations governing—
(1) the purposes for which nonappropriated funds of a nonappropriated fund instrumentality of the United States within the Department of Defense may be expended; and
(2) the financial management of such funds to prevent waste, loss, or unauthorized use.
**(b) Penalties for Violations.—**
(1) A civilian employee of the Department of Defense who is paid from nonappropriated funds and who commits a substantial violation of the regulations prescribed under subsection (a) shall be subject to the same penalties as are provided by law for misuse of appropriations by a civilian employee of the Department of Defense paid from appropriated funds. The Secretary of Defense shall prescribe regulations to carry out this paragraph.
(2) The Secretary shall provide in regulations that a violation of the regulations prescribed under subsection (a) by a person subject to chapter 47 of this title (the Uniform Code of Military Justice) is punishable as a violation of [section 892 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section892&num=0&edition=prelim) (article 92 of the Uniform Code of Military Justice).
**(c) Notification of Violations.—**
(1) A civilian employee of the Department of Defense (whether paid from nonappropriated funds or from appropriated funds), and a member of the armed forces, whose duties include the obligation of nonappropriated funds, shall notify the Secretary of Defense of information which the person reasonably believes evidences—
(A) a violation by another person of any law, rule, or regulation regarding the management of such funds; or
(B) other mismanagement or gross waste of su
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Source file: Laws/federal/codes/united-states-code/title-10/section-2783-nonappropriated-fund-instrumentalities-financial-management-and-use-of-n--dc7ab2578e.md
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Source location: Title 10, Chapter 165, § 2783; chapter-165-accountability-and-responsibility.md
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**(a) Regulation of Management and Use of Nonappropriated Funds.—** The Secretary of Defense shall prescribe regulations governing—
(1) the purposes for which nonappropriated funds of a nonappropriated fund instrumentality of the United States within the Department of Defense may be expended; and
(2) the financial management of such funds to prevent waste, loss, or unauthorized use.
**(b) Penalties for Violations.—**
(1) A civilian employee of the Department of Defense who is paid from nonappropriated funds and who commits a substantial violation of the regulations prescribed under subsection (a) shall be subject to the same penalties as are provided by law for misuse of appropriations by a civilian employee of the Department of Defense paid from appropriated funds. The Secretary of Defense shall prescribe regulations to carry out this paragraph.
(2) The Secretary shall provide in regulations that a violation of the regulations prescribed under subsection (a) by a person subject to chapter 47 of this title (the Uniform Code of Military Justice) is punishable as a violation of [section 892 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section892&num=0&edition=prelim) (article 92 of the Uniform Code of Military Justice).
**(c) Notification of Violations.—**
(1) A civilian employee of the Department of Defense (whether paid from nonappropriated funds or from appropriated funds), and a member of the armed forces, whose duties include the obligation of nonappropriated funds, shall notify the Secretary of Defense of information which the person reasonably believes evidences—
(A) a violation by another person of any law, rule, or regulation regarding the management of such funds; or
(B) other mismanagement or gross waste of such funds.
(2) The Secretary of Defense shall designate civilian employees of the Department of Defense or members of the armed forces to receive a notification described in paragraph (1) and ensure the prompt investigation of the validity of information provided in the notification.
(3) The Secretary shall prescribe regulations to protect the confidentiality of a person making a notification under paragraph (1).
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Federal law — U.S. Code and appendices · legal_authorities
Any person subject to this chapter who—
(1) violates or fails to obey any lawful general order or regulation;
(2) having knowledge of any other lawful order issued by a member of the armed forces, which it is his duty to obey, fails to obey the order; or
(3) is derelict in the performance of his duties;
shall be punished as a court-martial may direct.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority to Establish Restrictions.—** The Secretary of Defense may establish restrictions on the ability of eligible patrons of commissary and exchange stores located outside of the United States to purchase certain merchandise items (or the quantity of certain merchandise items) otherwise included within an authorized merchandise category if the Secretary determines that such restrictions are necessary to prevent the resale of such merchandise in violation of treaty obligations of the United States or host nation laws (to the extent such laws are not inconsistent with United States laws).
**(b) Limitations on Use of Authority.—** In establishing a quantity or other restriction, the Secretary—
(1) may not discriminate among the various categories of eligible patrons of the commissary and exchange system; and
(2) shall ensure that the restriction is consistent with the purpose of the overseas commissary and exchange system to provide reasonable access for eligible patrons to purchase merchandise items made in the United States.
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Federal law — U.S. Code and appendices · legal_authorities
Page 2208
TITLE 10—ARMED FORCES
§ 2781
CONTRACTS FOR RECOVERY OF INDEBTEDNESS
Pub. L. 101–165, title IX, § 9019, Nov. 21, 1989, 103 Stat.
1133, provided that: ‘‘During the current fiscal year and
hereafter, the Department of Defense may enter into
contracts to recover indebtedness to the United States
pursuant to section 3718 of title 31, United States
Code.’’
§ 2781. Availability of appropriations: exchange
fees; losses in accounts
Amounts appropriated to the Department of
Defense may be used for—
(1) exchange fees; and
(2) losses in the accounts of disbursing offi-
cials and agents in accordance with law.
(Added Pub. L. 100–370, § 1(m)(1), July 19, 1988, 102
Stat. 849.)
HISTORICAL AND REVISION NOTES
Section is based on Pub. L. 99–190, § 101(b) [title VIII,
§ 8006(c)], Dec. 19, 1985, 99 Stat. 1185, 1203.
§ 2782. Damage to real property: disposition of
amounts recovered
Except as provided in section 2775 of this title,
amounts recovered for damage caused to real
property under the jurisdiction of the Secretary
of a military department or, with respect to the
Defense Agencies, under the jurisdiction of the
Secretary of Defense shall be credited to the ac-
count available for the repair or replacement of
the real property at the time of recovery. In
such amounts as are provided in advance in ap-
propriation Acts, amounts so credited shall be
available for use for the same purposes and
under the same circumstances as other funds in
the account.
(Added Pub. L. 104–106, div. B, title XXVIII,
§ 2821(a), Feb. 10, 1996, 110 Stat. 556.)
Editorial Notes
PRIOR PROVISIONS
A prior section 2782, added Pub. L. 101–189, div. A,
title XVI, § 1603(a)(1), Nov. 29, 1989, 103 Stat. 1597, re-
lated to limits on restoration of unobligated balances
withdrawn f
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