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10 U.S.C. § 2740 — Property loss: reimbursement of members and civilian employees for full replacement value of household effects when contractor reimbursement not available
Federal law — U.S. Code and appendices · legal_authorities
The Secretary of Defense and the Secretaries of the military departments, in paying a claim under [section 3721 of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3721&num=0&edition=prelim) arising from loss or damage to household goods stored or transported at the expense of the Department of Defense, may pay the claim on the basis of full replacement value in any of the following cases in which reimbursement for the full replacement value for the loss or damage is not available directly from a carrier under [section 2636a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2636a&num=0&edition=prelim):
(1) A case in which—
(A) the lost or damaged goods were stored or transported under a contract, tender, or solicitation in accordance with [section 2636a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2636a&num=0&edition=prelim) that requires the transportation service provider to settle claims on the basis of full replacement value; and
(B) the loss or damage occurred under circumstances that exclude the transportation service provider from liability.
(2) A case in which—
(A) the loss or damage occurred while the lost or damaged goods were in the possession of an ocean carrier that was transporting, loading, or unloading the goods under a Department of Defense contract for ocean carriage; and
(B) the land-based portions of the transportation were under contracts, in accordance with [section 2636a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2636a&num=0&edition=prelim), that require the land carriers to settle claims on the basis of full replacement value.
(3) A case in which—
(A) the lost
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Source file: Laws/federal/codes/united-states-code/title-10/section-2740-property-loss-reimbursement-of-members-and-civilian-employees-for-full-r--6a00be6a2d.md
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Source location: Title 10, Chapter 163, § 2740; chapter-163-military-claims.md
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The Secretary of Defense and the Secretaries of the military departments, in paying a claim under [section 3721 of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3721&num=0&edition=prelim) arising from loss or damage to household goods stored or transported at the expense of the Department of Defense, may pay the claim on the basis of full replacement value in any of the following cases in which reimbursement for the full replacement value for the loss or damage is not available directly from a carrier under [section 2636a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2636a&num=0&edition=prelim):
(1) A case in which—
(A) the lost or damaged goods were stored or transported under a contract, tender, or solicitation in accordance with [section 2636a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2636a&num=0&edition=prelim) that requires the transportation service provider to settle claims on the basis of full replacement value; and
(B) the loss or damage occurred under circumstances that exclude the transportation service provider from liability.
(2) A case in which—
(A) the loss or damage occurred while the lost or damaged goods were in the possession of an ocean carrier that was transporting, loading, or unloading the goods under a Department of Defense contract for ocean carriage; and
(B) the land-based portions of the transportation were under contracts, in accordance with [section 2636a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2636a&num=0&edition=prelim), that require the land carriers to settle claims on the basis of full replacement value.
(3) A case in which—
(A) the lost or damaged goods were transported or stored under a contract or solicitation that requires at least one of the transportation service providers or carriers that handled the shipment to settle claims on the basis of full replacement value pursuant to [section 2636a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2636a&num=0&edition=prelim);
(B) the lost or damaged goods have been in the custody of more than one independent contractor or transportation service provider; and
(C) a claim submitted to the delivering transportation service provider or carrier is denied in whole or in part because the loss or damage occurred while the lost or damaged goods were in the custody of a prior transportation service provider or carrier or government entity.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** In this section—
(1) “agency” does not include a nonappropriated fund activity or a contractor with the United States Government.
(2) “head of an agency” means—
(A) for a military department, the Secretary of the military department;
(B) for the Department of Defense (except the military departments), the Secretary of Defense; and
(C) for another agency, the head of the agency.
(3) “settle” means consider, determine, adjust, and dispose of a claim by disallowance or by complete or partial allowance.
**(b)**
(1) The head of an agency may settle and pay not more than $40,000 for a claim against the Government made by a member of the uniformed services under the jurisdiction of the agency or by an officer or employee of the agency for damage to, or loss of, personal property incident to service. If, however, the claim arose from an emergency evacuation or from extraordinary circumstances, the amount settled and paid under the authority of the preceding sentence may exceed $40,000, but may not exceed $100,000. A claim allowed under this subsection may be paid in money or the personal property replaced in kind.
(2) The Secretary of State may waive the settlement and payment limitation referred to in paragraph (1) for claims for damage or loss by United States Government personnel under the jurisdiction of a chief of mission in a foreign country if such claims arise in circumstances where there is in effect a departure from the country authorized or ordered under circumstances described in [section 5522(a) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5522/a&num=0&edition=prelim), if the Secretary determines that there exists exceptional circumstances that warrant such a waiver.
**(c)** On paying a claim under t
Source: Supplied U.S. Code snapshot — release unconfirmed · 31 U.S.C. § 3721
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Procurement of Coverage.—** The Secretary of Defense shall include in a contract for the transportation at Government expense of baggage and household effects for members of the armed forces or civilian employees of the Department of Defense (or both) a clause that requires the carrier under the contract to pay the full replacement value for loss or damage to the baggage or household effects transported under the contract.
**(b) Deduction Upon Failure of Carrier To Settle.—** In the case of a loss or damage of baggage or household effects transported under a contract with a carrier that includes a clause described in subsection (a), the amount equal to the full replacement value for the baggage or household effects shall be deducted from the amount owed by the United States to the carrier under the contract upon a failure of the carrier to settle a claim for such loss or total damage within a reasonable time. The amount so deducted shall be remitted to the claimant, notwithstanding [section 2636 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2636&num=0&edition=prelim).
**(c) Inapplicability of Related Limits.—** The limitations on amounts of claims that may be settled under [section 3721(b) of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3721/b&num=0&edition=prelim) do not apply to a carrier’s contractual obligation to pay full replacement value under this section.
**(d) Regulations.—** The Secretary of Defense shall prescribe regulations for administering this section. The regulations shall include policies and procedures for validating and evaluating claims, validating proper claimants, and determining reasonable time for settlement. The regulations may include a requirement
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 2636a
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Federal law — U.S. Code and appendices · legal_authorities
Page 2197
TITLE 10—ARMED FORCES
§ 2740
Statutory Notes and Related Subsidiaries
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relat-
ing thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu-
rity, and the Department of Homeland Security Reor-
ganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 2738. Property loss: reimbursement of members
for certain losses of household effects caused
by hostile action
(a) AUTHORITY TO REIMBURSE.—The Secretary
concerned may reimburse a member of the
armed forces in an amount not more than
$100,000 for a loss described in subsection (b).
(b) COVERED
LOSSES.—This section applies
with respect to a loss of household effects sus-
tained during a move made incident to a change
of permanent station when, as determined by
the Secretary, the loss was caused by a hostile
action incident to war or a warlike action by a
military force.
(c) LIMITATION.—The Secretary may provide
reimbursement under this section for a loss de-
scribed in subsection (b) only to the extent that
the loss is not reimbursed under insurance or
under the authority of another provision of law.
(d) APPLICABILITY OF OTHER AUTHORITIES AND
REQUIREMENTS.—Subsections (b), (d), (e), (f), and
(g) of section 2733 of this title shall apply to a
request for a reimbursement under this section
as if the request were a claim against the United
States.
(Added Pub. L. 103–337, div. A, title V, § 557(a),
Oct. 5, 1994, 108 Stat. 2775.)
Statutory Notes and Related Subsidiaries
Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 2740
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