[Code of Federal Regulations]
[Title 32, Volume 5, Parts 700 to 799]
[Revised as of  July 1, 1998]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR726.9]

[Page 271]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 726--PAYMENTS OF AMOUNTS DUE MENTALLY INCOMPETENT MEMBERS OF THE NAVAL SERVICE--Table of Contents
 
Sec. 726.9  Reports and supervision of trustees.

    (a) Accounting reports. The trustee designated under this chapter 
will submit accounting reports annually or at such other times as the 
Judge Advocate General or his designee directs. The Judge Advocate 
General will provide forms to be used by trustees for the required 
accounting report. The report will account for all funds received from 
the Navy or Marine Corps on behalf of the member. When payments to a 
trustee are terminated for any reason, the trustee will submit a final 
accounting report to the Judge Advocate General. Upon approval of the 
final accounting report, the trustee and the surety will be discharged 
from liability.
    (b) Failure to submit a report and default. If an accounting report 
is not received by the date designated by the Judge Advocate General or 
his designee, or an accounting is unsatisfactory, the Judge Advocate 
General or his designee will notify the trustee in writing. If a 
satisfactory accounting is not received by the Judge Advocate General 
within the time specified, the trustee will be declared in default of 
the trustee agreement and will become liable for all unaccounted trustee 
funds. If a trustee is declared in default of the trustee agreement, the 
appropriate finance center will be directed to terminate payments to the 
trustee and, if necessary, a successor trustee may be appointed. The 
trustee and surety will be notified in writing by the Judge Advocate 
General or his designee of the declaration of default. The notification 
will state the reasons for default, the amount of indebtedness to the 
Government, and will demand payment for the full amount of indebtedness. 
If payment in full is not received by the Judge Advocate General within 
an appropriate period of time from notification of default, the account 
may be forwarded to the Department of Justice for recovery of funds 
through appropriate civil action.