Active duty pay and allowances, amounts due for accrued or accumulated leave, or retired or retainer pay, that are otherwise payable to a member to whom this chapter applies and who is mentally incapable of managing his affairs, may be paid for that member’s use or benefit to—

(1) a legal committee, guardian, or other representative that has been appointed by a court of competent jurisdiction;

(2) an individual to whom the member has granted authority to manage such funds pursuant to a valid and legally executed durable power of attorney; or

(3) any person designated by the Secretary concerned, or by any officer to whom he delegates his authority under this section, without the appointment in judicial proceedings of a committee, guardian, or other legal representative.

An individual may not be designated under subsection (a)(3) to receive payments unless a board consisting of at least three qualified medical officers or physicians, one of whom is specially qualified in the treatment of mental disorders, determines that the member is mentally incapable of managing the member’s affairs. Any such board shall be appointed from available medical officers or physicians under his jurisdiction by the head of whichever of the following is providing medical treatment for the member, or by a person designated by that head—

(1) Department of the Army;

(2) Department of the Navy;

(3) Department of the Air Force;

(4) Department of Health and Human Services; or

(5) Department of Veterans Affairs.

A payment made to a person who is authorized to receive payments under this section discharges the obligation of the United States as to the amount paid.

A person serving in a legal, medical, fiduciary, or other capacity, may not demand or accept a fee, commission, or other charge for any service performed under this chapter, unless a court of competent jurisdiction orders payment of such fee, commission, or other charge.

A person who is designated under subsection (a)(3) to receive payments under this section shall furnish satisfactory assurance that the amounts received by him will be applied to the use and benefit of the incompetent member, and, where the payments may reasonably be expected to be more than $25,000, shall provide a suitable bond to be paid for out of amounts due the incompetent member.

(Pub. L. 87–649, Sept. 7, 1962, 76 Stat. 483; Pub. L. 96–513, title V, § 516(17), Dec. 12, 1980, 94 Stat. 2939; Pub. L. 101–189, div. A, title XVI, § 1621(b)(1), Nov. 29, 1989, 103 Stat. 1604; Pub. L. 114–328, div. A, title VI, § 645, Dec. 23, 2016, 130 Stat. 2167.)