(a) The amount allowable for damage to or loss of any item of
property may not exceed the lowest of:
(1) the amount requested by the claimant for the item as a result of
its loss, damage or the cost of its repair;
(2) the actual or estimated cost of its repair; or
(3) the actual value at the time of its loss, damage, or
destruction. The actual value is determined by using the current
replacement cost or the depreciated value of the item since its
acquisition, whichever is lower, less any salvage value of the item in
question.
(b) Depreciation in value is determined by considering the type of
article involved, its cost, its condition when damaged or lost, and the
time elapsed between the date of acquisition and the date of damage or
loss.
(c) Current replacement cost and depreciated value are determined by
use of publicly available adjustment rates or through use of other
reasonable methods at the discretion of the official authorized to issue
a determination upon the claim in question.
(d) Replacement of lost or damaged property may be made in kind
wherever appropriate.
(e) At the discretion of the official authorized to issue the
determination upon the claim in question, a claimant may be required to
turn over an item alleged to have been damaged beyond economical repair
to the United States, in which case no deduction for salvage value will
be made in the calculation of actual value.
(f) Notwithstanding any other provisions of law, settlement of
claims under the Act are final and conclusive.
