[Code of Federal Regulations]
[Title 32, Volume 5]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR756.7]

[Page 446]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 756_NONAPPROPRIATED-FUND CLAIMS REGULATIONS--Table of Contents
 
Sec. 756.7  Payment.

    (a) Claims that can be settled for less than $1000.00. A claim not 
covered by insurance (or not paid by the insurer), that can be settled 
for $1000.00 or less, may be adjudicated by the commanding officer of 
the activity concerned or designee. The claim shall be paid out of funds 
available to the commanding officer.
    (b) Claims that cannot be settled for less than $1000.00. A claim 
negotiated by the Navy, not covered by insurance, that cannot be settled 
for less than $1000.00, shall be forwarded to the appropriate 
nonappropriated-fund headquarters command for payment from its 
nonappropriated-funds.
    (c) When payment is possible under another statute. In some cases 
neither the NAFI nor its insurer may be legally responsible. In those 
instances, when there is no negligence, and payment is authorized under 
some other statute, such as the Foreign Claims Act, 10 U.S.C. 2734-2736, 
the claim may be considered for payment from appropriated funds or may 
be referred to the Judge Advocate General for appropriate action.
    (d) Other claims. A NAFI's private insurance policy is usually not 
available to cover losses which result from some act or omission of a 
mere participant in a nonappropriated-fund activity. In the event the 
NAFI declines to pay the claim, the file shall be forwarded to the Judge 
Advocate General for determination.