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LegalText 10 U.S.C. § 2345 Liquidation of accrued credits and liabilities us united_states_code code_section 10 ARMED FORCES 138 COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER COUNTRIES 2345 10 U.S.C. § 2345 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc10@119-100.zip /us/usc/t10/s2345 data/legal/raw/us/code/title-10/usc10.xml 111df491c9951749070b176505c3f7655a27491d2795ac05b6a1988c5d5cc2ea 06a2679d38355c44f4219c983fdad34009233205d6ba271593a4c1b17a739ec1 489188bc7e8f925e9b2b2ebdda05a224725d075a4e285ee1dbb4a3842caec16f 2026-07-04 official
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10 U.S.C. § 2345 - Liquidation of accrued credits and liabilities

Text

(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.

(Added Pub. L. 96323, § 2(a), Aug. 4, 1980, 94 Stat. 1018, § 2325; renumbered § 2345, Pub. L. 99145, title XIII, § 1304(a)(1), Nov. 8, 1985, 99 Stat. 741; amended Pub. L. 99661, div. A, title XI, § 1104(c), Nov. 14, 1986, 100 Stat. 3965; Pub. L. 101189, div. A, title IX, § 931(e)(1), Nov. 29, 1989, 103 Stat. 1535; Pub. L. 103337, div. A, title XIII, § 1317(e), Oct. 5, 1994, 108 Stat. 2900; Pub. L. 114328, div. A, title X, § 1083(a), Dec. 23, 2016, 130 Stat. 2420.)

Notes

Editorial Notes

Amendments2016—Subsec. (c). Pub. L. 114328 added subsec. (c). 1994—Subsec. (a). Pub. L. 103337 substituted “12 months” for “three months”. 1989—Subsecs. (a), (b). Pub. L. 101189 substituted “this subchapter” for “this chapter”. 1986—Pub. L. 99661 designated existing provisions as subsec. (a) and added subsec. (b). 1985—Pub. L. 99145 renumbered section 2325 of this title as this section.

Statutory Notes and Related Subsidiaries

Effective Date of 2016 AmendmentPub. L. 114328, 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. 103337 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. 103337, set out as a note under section 2341 of this title.