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Title 10, Armed ForcesRelease 119-102

§1594 Reimbursement for Financial Institution Charges Incurred Because of Government Error in Direct Deposit of Pay

Title 10 › Subtitle A — General Military Law › PART II — PERSONNEL › CHAPTER 81 — CIVILIAN EMPLOYEES › § 1594

Last updated Aug 21, 2026|Official source

Summary

If a civilian Department of Defense worker uses automatic direct deposit and the Government makes an administrative or mechanical mistake that causes pay to arrive late or in the wrong amount, the worker can be paid back for bank fees that result, like overdraft or minimum-balance charges. The payments must come from the money set aside for that worker’s pay. The department secretaries must make rules about how to handle these repayments. Financial institution = bank, savings and loan, or similar, or a credit union chartered by the U.S. or a State. Pay also covers allowances.

Full Legal Text

Title 10, §1594

Armed Forces, Source: USLM XML via OLRC

(a)(1)A civilian officer or employee of the Department of Defense who, in accordance with law or regulation, participates in a program for the automatic deposit of pay to a financial institution may be reimbursed 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 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 officer or employee 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 of the officer or employee 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 allowances.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1998—Subsec. (d)(1). Pub. L. 105–261 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 section 3332(a) of title 31.” 1991—Pub. L. 102–25 struck out “mandatory” after “error in” in section catchline. 1990—Subsec. (d). Pub. L. 101–510 substituted “In this section” for “in this section”.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable with respect to pay and allowances deposited (or scheduled to be deposited) on or after first day of first month beginning after Nov. 29, 1989, see section 664(c) of Pub. L. 101–189, set out as an

Effective Date

of 1989 Amendment note under section 1053 of this title.

Reference

Citations & Metadata

Citation

10 U.S.C. § 1594

Title 10, Armed Forces

Last Updated

Aug 21, 2026

Release point: 119-102