137E. Joint Financial Liability InvestigationsAbsent a loan agreement stating otherwise, the regulation of the Service that owns the property (property is located on that service’s property account) is the appropriate regulation to apply.
The Army and Air Force have a reciprocal agreement outlined in paragraph 14-36 of AR
735-5 that explains the process for processing financial liability investigations that find Air Force
personnel liable for the loss, damage, or destruction of Army property. Upon completion
of the investigation, it should be forwarded to the appropriate Air Force approval authority for final action and possible collection.
For all other situations where non-Army personnel are found
to be liable for the loss, damage, or destruction of Army property, the procedures of AR 735-5, paragraph 14-35 should be followed. Upon completion of the investigation, the respondent will be formally notified and requested to make payment in full. If after 60 days, the respondent fails to pay, the investigation should be sent to the respondent’s servicing finance office for processing.
Financial liability investigations that find contractors liable should be processed by the contracting office IAW the applicable contract.
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