(c)
The Secretary concerned may pay, from applicable current appropriations, a claim for the loss of pay, allowances, compensation, emoluments, or other pecuniary benefits, or for the repayment of a fine or forfeiture, if, as a result of correcting a record under this section, the amount is found to be due the claimant on account of his or another’s service in the Army, Navy, Air Force, Marine Corps, or Coast Guard, as the case may be, or on account of his or another’s service as a civilian employee. If the claimant is dead, the money shall be paid, upon demand, to his legal representative. However, if no demand for payment is made by a legal representative, the money shall be paid—
(1)
to the surviving spouse, heir, or beneficiaries, in the order prescribed by the law applicable to that kind of payment;
(2)
if there is no such law covering order of payment, in the order set forth in section
2771 of this title; or
(3)
as otherwise prescribed by the law applicable to that kind of payment.
A claimant’s acceptance of a settlement under this section fully satisfies the claim concerned. This section does not authorize the payment of any claim compensated by private law before October 25, 1951.