ablish a practical budget which will reclude hopeless entrapment in overurdening and ever-increasing debts.

(4) Consultation with a legal assistnce officer when contemplating large urchases on credit will assist personnel o avoid commitments which may be difcult or impossible to carry out.

(5) Be wary of the "high pressure" alesman. Think carefully and seek adice before signing an agreement or conTact. Never sign a blank contract and lways multiply the number of payments y the amount to determine the total ayment. Note particularly the penalty lauses.

(6) Failure to pay just debts jeopardzes an individual's naval career because he individual is subject to disciplinary ction or administrative discharge and may become ineligible to reenlist or to Extend an enlistment.

(7) A substantial saving may be relized by setting funds aside to provide or cash purchases through either civilan or military stores.

(8) Take advantage of the saving, counseling, and lending services provided by credit unions organized by and for Department of the Navy civilian and military personnel as encouraged by Secretary of the Navy Instruction 5381.2 series.

(9) The use of the Full Disclosure and related forms (Attachment A to Part 43 of this title) will be included in this indoctrination and each serviceman desiring to obtain credit or execute a loan will be encouraged and advised to require the creditor or lender to complete the Full Disclosure form with the Certificate of Compliance which is to be signed by both parties to the transaction.

(10) Members who did not seek or heed advice beforehand or who otherwise encounter difficulties in paying their debts should be encouraged to consult with a legal assistance officer in accordance with the provisions of Secretary of the Navy Instruction 5801.1 series, which governs the legal assistance program.

(e) Course of action. Upon receipt of an indebtedness complaint, the commanding officer will:

(1) Determine if the creditor is in one of the following categories:

(i) A nonjudgment creditor who either has:

(a) Complied with the Standards of Fairness, made a full disclosure of the terms of the obligation and executed the Certificate of Compliance before consum

mating the loan or credit contract, and has submitted a copy of the Full Disclosure statement and the Certificate with the signatures of both parties and the date of its execution, or

(b) Certified that the Standards of Fairness are complied with and that the unpaid balance is adjusted accordingly or needs no adjustment, including a Full Disclosure statement reflecting compliance. This provision applies only to those cases in which the creditor has not executed a certificate prior to the consummation of the contract or is unable to produce it.

(ii) A creditor who has procured a judgment in a civil court of competent jurisdiction.

If the creditor is not one of these types, the commanding officer will notify the creditor in accordance with § 43.10 (b) (2) of this title. If the creditor is one of these types, subparagraph (3) of this paragraph applies. Upon receipt of the additional information from the creditor, the commanding officer will review the correspondence to determine whether or not the creditor has complied with the provisions of the Standards of Fairness and the Full Disclosure test. If the creditor has done so, subparagraph (3) of this paragraph applies. If not, the creditor will be so advised, and the correspondence will be returned to him, with copy to the Chief of Naval Personnel, and no further action will be taken by the commanding officer or other officials of the Navy Department until such time as the Standards of Fairness are met and the creditor forwards the adjusted statement of Full Disclosure with a Certificate of Compliance to the commanding officer. Claims in which compliance with these requirements is questionable, or in which the total cost of the loan or credit, including all finance charges, although stated, appears excessive or exorbitant, will be referred to the officer designated by the command as responsible for such consideration and disposition as may be appropriate. Before deciding on the proper course of action, he will give the creditor an opportunity to demonstrate that the finance charges conform to the law of the State governing the contract and the extent to which the finance charges and rates conform to the prevailing rates and charges for similar consumer credit transactions.

(2) The requirements of subparagraph (1) of this paragraph for certification of

compliance with standards of fairness and full disclosure do not extend to

(1) Claims of companies furnishing utility services, milk, laundry and related delivery services in which credit is extended solely to facilitate the service, as distinguished from inducing the purchase of the product or service;

(ii) Claims by accommodation endorsers, comakers or lenders against the party primarily liable on obligations not intended to benefit the accommodating party through payment of interest or otherwise; contracts for the purchase, sale or rental of real estate; claims in which the total unpaid amount does not exceed $50; claims for support of dependents; claims based on a revolving or open-end credit account if the account shows the periodic rate and its annual rate equivalent and the balance to which it is applied to compute the charge; or purchase money liens on real property (this does not include other liens on real property and related obligations such as those which represent obligations for improvement or repair).

In these cases, the correspondence will be referred to the serviceman concerned for further reply to the writer in accordance with the provisions of subparagraph (3) of this paragraph. Such referral and the nonapplication of certification and full disclosure requirements, however, do not foreclose any right of the debtor to question service charges and other finance charges and to negotiate a fair and reasonable settlement; when referring such correspondence to the serviceman concerned and urging payments on acknowledged debts, the commanding officer may indicate in appropriate cases (such as some falling under subdivision (ii) of this subparagraph) that the referral does not foreclose any right the serviceman might have as indicated in this section.

(3) Upon determining that the credior is the type listed in subparagraph (1) (i), (1) (ii), or (2) of this paragraph, the commanding officer will refer the creditor's correspondence to the alleged debtor. The commanding officer will:

(i) Have the individual concerned correspond in a courteous manner with the complainant regarding his intentions in the matter.

(ii) Urge individuals to make payments on acknowledged debts by U.S. Postal money order, check, or by any positive method whereby they will have

an actual record or receipt of payment. (iii) Notify the creditor that the serviceman has been advised to communicate directly with the creditor concerning the alleged indebtedness.

(f) Requests for information. Requests to furnish information concerning the personal credit rating of an individual in the naval service should be courteously refused. Current policy of the Department of the Navy requires that replies to such inquiries be limited to a verification that the individual is in the naval service and to a statement of his mailing address and basic pay. The requester should be further informed that information concerning personal credit rating may be requested from civilian agencies which have been established for this purpose. The commanding officer, however, may furnish the serviceman concerned with a statement of service including a statement of pay and allowances. This information should be complete enough to meet the needs of the individual such as those in connection with home mortgage or purchase applications.

(g) Foreign cases. The Chief of Naval Personnel receives letters from various sources in foreign territories and countries regarding alleged indebtedness or related matters concerning naval personnel. In the interest of maintaining harmonious relationships with other nations, these letters are forwarded to the commanding officer who should expeditiously dispose of these cases and insure satisfactory and positive conclusion of the matter. If the situation cannot be satisfactorily or permanently disposed of before the individual's departure from the foreign port or station in question, a report setting forth all pertinent facts should be made to the senior officer present afloat or other authority as appropriate.

(h) Action to be taken in aggravated situations.-(1) Officers. A commanding officer's action in the case of an officer should be governed by the provisions of Article C-7801 (7) of the Bureau of Naval Personnel Manual.

the commanding officer. If, after counseling, the individual fails to make a constructive effort toward resolution of his indebtedness, he should be processed in accordance with the provisions of § 730.12 of this chapter.

(i) When commands receive letters from creditors desiring to contact a serviceman about his indebtedness and the serviceman is not or no longer attached to the command, the creditor should, unless a different course of action is clearly indicated, be advised that the member is not with the command and that the creditor might obtain the serviceman's address by writing to the locator service of the Bureau of Naval Personnel, Washington, D.C. 20370, and enclosing $1.50 as a fee for the service.

[31 F.R. 16620, Dec. 29, 1966]

§ 765.10 Financial

responsibility

of

Marine Corps personnel in commercial affairs and action on complaints of indebtedness.

(a) Course of action when complaint is received. When a complaint alleging indebtedness is received, the following action will be taken:

(1) Commanders will examine the complaint to ascertain if the complainant has complied with the requirements of Part 43 of this title. If the complaint fails to meet the requirements specified therein, the commander will return the complaint to the sender with an explanation of why the complaint was not processed.

(2) When a complaint is received that complies with the requirements of Part 43 of this title, the person against whom the complaint is directed will be interviewed in private. Before the interview, he shall be read and have explained to him Article 31, Uniform Code of Military Justice (10 U.S.C. 831). He will then be afforded the opportunity to examine the complaint and will be advised that dishonorable disregard of private indebtedness is an offense under the Uniform Code of Military Justice (see Manual for Courts-Martial, United States, 1951, par.

213b).

(3) If the indebtedness is acknowledged, the individual will be advised to communicate with the complainant setting forth his intentions in the matter. The commander will reply to the complainant, if the provisions of Part 43 of this title have been complied with, and will state that the matter has been brought to the attention of the person

concerned and that he has been advised to notify the complainant as to intended disposition of the matter.

(4) If the debt is denied or disputed, or if the individual does not desire to make a statement after considering the provisions of the Uniform Code of Military Justice, Article 31, the commander will so advise the complainant. The reply to the complainant will include a statement to the effect that:

(i) The Marine Corps exercises no jurisdiction or control over Federal pay or savings of its personnel and cannot, therefore, adjudicate the matter.

(ii) A dishonorable failure to pay a just debt is a military offense and, in such cases, disciplinary action may be taken. However, a mere negligent omission or financial inability to pay is not criminally punishable under the Uniform Code of Military Justice. Where disciplinary action is appropriate and taken, this action cannot provide for settlement of the indebtedness.

(iii) Marine Corps personnel do not, by their service connection, escape the jurisdiction of the civil courts, and that any further action on the claim must be pursued through a civil court of competent jurisdiction.

(b) Investigation. When an individual declines to make a statement, or when his statement is vague, uncertain, indefinite, or the indebtedness is denied or disputed, the commander will cause an investigation to be conducted into the matter in order to determine the facts and validity of the complaint.

(c) Valid complaint. A valid complaint of indebtedness is one where a debt has been incurred:

(1) By a Marine, or

(2) On his behalf by his legal dependents, with or without his consent, for necessities (including but not limited to food, shelter, clothing and medical expenses) and

(3) The debt is past due, or

(4) There is a court order in existence ordering the Marine to pay alimony, as distinguished from support of dependents, and payment thereon is past due.

(d) Forwarding to Headquarters Marine Corps of valid complaints about officers, warrant officers, and sergeants and above; filing in official personnel files. In the case of officers, warrant officers, and sergeants and above, all valid letters of indebtedness with a copy of the commanding officer's reply and the signed statement of the individual con

cerned will be forwarded to the Commandant of the Marine Corps (Code DK). Provided it is not contrary to local command administrative procedures, these documents may be forwarded direct to the Commandant of the Marine Corps (Code DK), without letters of transmittal (only one complete set stapled securely together) by the individual's immediate commanding officer. The Commandant of the Marine Corps (Code DK) will review all correspondence received to determine whether it is to be filed in the individual's official personnel file or in the central files of Headquarters Marine Corps. In the case of enlisted personnel, the provisions of subparagraph 15115.3z of the Marine Corps Personnel Manual apply. In the case of officers and warrant officers, the provisions of subparagraph 15157.2g of that manual apply.

(e) Correspondence concerning enlisted members in the grade of corporal and below. In the case of enlisted personnel in the grade of corporal and below, indebtedness correspondence will be retained in the files of the individual's unit or organization, as appropriate. Even though this correspondence is not forwarded to the Commandant of the Marine Corps, an entry will be made on page 11 of the individual's service record, as required by paragraph 15115.3z of the Marine Corps Personnel Manual.

(f) Right of alleged debtor to submit a statement. Prior to forwarding valid complaints to the Commandant of the Marine Corps (Code DK), the individual shall be advised thereof and of his right to submit a statement in connection therewith along with any relevant evidence. In the event he does not desire to submit a written statement, he shall so certify in writing.

(g) Insufficient or invalid complaints. Complaints of indebtedness not complying with Part 43 of this title, and those determined to be invalid by the commander, and other correspondence concerning financial affairs of Marines, are not to be forwarded to the Commandant of the Marine Corps.

(h) Locator service, but no credit rating. No person will, in his official capacity, furnish information regarding the personal credit rating or financial responsibility of any individual of the naval service. The mailing addresses of personnel may be furnished by the Commandant of the Marine Corps (Code

DGH), if requested. A service fee of $1.50 shall be charged for each address furnished.

(1) Indoctrination. All commanders are directed to continually indoctrinate and counsel members of their commands concerning the pitfalls of installment buying, incurring debts beyond capacity to pay and the necessity for liquidating debts in a timely manner. The counseling and indoctrination should include information regarding the need for a full disclosure of the terms of the agreement, how finance and interest rates are quoted and computed, the standards of fairness which should be observed, and the forms available for this purpose.

(j) Counselling and corrective action. The responsibility to indoctrinate and counsel Marine Corps personnel in this matter is a basic precept of military leadership. The receipt of too-numerous complaints of indebtedness, the failure of personnel to liquidate indebtedness in a timely manner, and the failure to take prompt corrective action relative thereto are indicative of a lack of genuine interest and performance of duties on the part of responsible commanders. It is the nondelegable responsibility of command, at every echelon, to insure that Marines are indoctrinated and counseled concerning this matter and that prompt, effective corrective action is taken to eliminate, insofar as is possible, the number of complaints of indebtedness concerning Marines.

[31 F.R. 16622, Dec. 29, 1966]

§ 765.11 Deserters; accomplices.

Every person who entices or aids any person in the naval service to desert, or who harbors or conceals any such person knowing him to be a deserter, or who refuses to give up such person on the demand of any officer authorized to receive him, is liable to punishment by imprisonment and fine, to be enforced in any court of the United States having jurisdiction.

[13 F.R. 8571, Dec. 28, 1948] § 765.12

Navy and Marine Corps absentees; rewards.

The following is set forth as it applies to Navy and Marine Corps absentees. The term "absentee," as used in this section, refers to a service member who commits the offense of absence without leave. Cf. article 86 of the Uniform Code of Military Justice (10 U.S.C. 886).

(a) Payment of rewards-(1) Authority. When authorized by military officials of the Armed Forces, any civil officer having authority to arrest offenders may apprehend an individual absent without leave from the military service of the United States and deliver him into custody of the military authorities. The receipt of Absentee Wanted by the Armed Forces (DD Form 553) or oral or written notification from military officials or Federal law enforcement officials that the person is absent and that his return to military control is desired is authority for apprehension and will be considered as an offer of a reward. When such a reward has been offered, persons or agency representatives (except salaried officers or employees of the Federal Government, or service members) apprehending or delivering absentees or deserters to military control will be entitled to a payment of

(i) $15 for the apprehension and detention until military authorities assume control, or

(ii) $25 for the apprehension and delivery to military control.

Payment of reward will be made to the person or agency representative actually making the arrest and the turnover or delivery to military control. If two or more persons or agencies join in performing these services, payment will be made only to the apprehending person or agency. Payment of a reward is authorized whether the absentee or deserter voluntarily surrenders to civil authorities or is apprehended. Payment is not authorized for information merely leading to the apprehension of an absentee or deserter.

(2) Payment procedure. The disbursing officer, special disbursing agent or agent officer of the military activity to which an absentee or deserter is first delivered will be responsible for payment of the reward. Payment of rewards will be made on Standard Form 1034 supported by a copy of DD Form 553 or other form or notification that an individual is absent and that his return to military control is desired, and a statement signed by the claimant specifying that he apprehended (or accepted voluntary surrender) and detained the absentee or deserter until military authorities assumed control, or that he apprehended (or accepted voluntary surrender) and delivered the absentee or deserter to military control. If oral notification was

made in lieu of written notification, the claimant will so certify and provide the date of notification and the name, rank or rate, title, and organization of the person who made the authorized notice of reward for apprehension of the absentee or deserter.

(b) Reimbursement for actual expenses-(a) Authority. When a reward has not been offered or when conditions for payment of a reward otherwise cannot be met, reimbursement, not to exceed $25, may be made to any person or agency for actual expenses incurred in the apprehension and detention or delivery to military control of an absentee or deserter. If two or more persons or agencies join in performing these services, payment may be made jointly or severally, but the total payment or payments may not exceed $25. Reimbursement may not be made for the same apprehension and detention or delivery for which a reward has been paid. Actual expenses for which reimbursement may be made include

(i) Transportation costs, including mileage at the rate of $0.07 per mile for travel by privately owned vehicle, for a round trip from either the place of apprehension or civil police headquarters to place of return to military control;

(ii) Meals furnished the service member for which the cost was assumed by the apprehending person or agency representative;

(iii) Telephone or telegraph communication costs;

(iv) Damages to property of the apprehending person or agency if caused directly by the service member during the apprehension, detention, or delivery;

(v) Such other reasonable and necessary expenses incurred in the actual apprehension, detention, or delivery as may be considered justifiable and reimbursable by the commanding officer. Reimbursement will not be made for

(i) Lodging at nonmilitary confinement facilities;

(ii) Transportation performed by the use of official Federal, State, county, or municipal vehicles;

(iii) Personal services of the apprehending, detaining, or delivering person or agency.

(2) Payment procedure. The disbursing officer or special disbursing agent of the military activity to which an absentee or deserter is first delivered will be responsible for making reimbursement for actual expenses. Reimburse