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Title 10 — Armed ForcesRelease 119-73

§2345 Liquidation of accrued credits and liabilities

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART IV— - SERVICE, SUPPLY, AND PROPERTY › Chapter CHAPTER 138— - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER COUNTRIES › Subchapter SUBCHAPTER I— - ACQUISITION AND CROSS-SERVICING AGREEMENTS › § 2345

Last updated Apr 6, 2026|Official source

Summary

The agency that receives logistics, supplies, or services must pay the supplier directly at least once every 12 months to clear any credits or debts. If payment is by goods or exchange instead of cash, it must be completed within 12 months after delivery. If a credit is still unpaid after 18 months, the Secretary of Defense, with the Secretary of State’s agreement, may settle it by offsetting the amount against what the Department of Defense owes that government or international organization. Any amount offset will be recorded the same way as a U.S. receipt.

Full Legal Text

Title 10, §2345

Armed Forces — Source: USLM XML via OLRC

(a)Credits and liabilities of the United States accrued as a result of acquisitions and transfers of logistic support, supplies, and services under the authority of this subchapter shall be liquidated not less often than once every 12 months by direct payment to the entity supplying such support, supplies, or services by the entity receiving such support, supplies, or services.
(b)Payment-in-kind or exchange entitlements accrued as a result of acquisitions and transfers of logistic support, supplies, and services under authority of this subchapter shall be satisfied within 12 months after the date of the delivery of the logistic support, supplies, or services.
(c)(1)Any credits of the United States accrued as a result of the provision of logistic support, supplies, and services under the authority of this subchapter that remain unliquidated more than 18 months after the date of delivery of the logistic support, supplies, or services may, at the option of the Secretary of Defense, with the concurrence of the Secretary of State, be liquidated by offsetting the credits against any amount owed by the Department of Defense, pursuant to a transaction or transactions concluded under the authority of this subchapter, to the government or international organization to which the logistic support, supplies, or services were provided by the United States.
(2)The amount of any credits offset pursuant to paragraph (1) shall be credited as specified in section 2346 of this title as if it were a receipt of the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2016—Subsec. (c). Pub. L. 114–328 added subsec. (c). 1994—Subsec. (a). Pub. L. 103–337 substituted “12 months” for “three months”. 1989—Subsecs. (a), (b). Pub. L. 101–189 substituted “this subchapter” for “this chapter”. 1986—Pub. L. 99–661 designated existing provisions as subsec. (a) and added subsec. (b). 1985—Pub. L. 99–145 renumbered section 2325 of this title as this section.

Statutory Notes and Related Subsidiaries

Effective Date

of 2016 Amendment Pub. L. 114–328, div. A, title X, § 1083(b), Dec. 23, 2016, 130 Stat. 2420, provided that: “Subsection (c) of section 2345 of title 10, United States Code, as added by subsection (a), shall apply with respect to credits accrued by the United States that— “(1) were accrued prior to, and remain unpaid as of, the date of the enactment of this Act [Dec. 23, 2016]; or “(2) are accrued after the date of the enactment of this Act.”

Effective Date

of 1994 AmendmentAmendment by Pub. L. 103–337 applicable with regard to any acquisition or transfer of logistic support, supplies, and services under authority of this subchapter that is initiated after Oct. 5, 1994, see section 1317(j) of Pub. L. 103–337, set out as a note under section 2341 of this title.

Reference

Citations & Metadata

Citation

10 U.S.C. § 2345

Title 10 — Armed Forces

Last Updated

Apr 6, 2026

Release point: 119-73