Discharge by purchase, colloquially called buying oneself out of service, is the obtaining of a military discharge by payment. The purchase price is in effect a fine for leaving military service earlier than the date contracted for when enlisting.
“Discharge by purchase” pertains to voluntary enlistment; “exemption by purchase” is a similar privilege pertaining to conscription. In the United States military, discharge by purchase was introduced in 1890 for the Army, 1902 for the Marine Corps and 1906 for the Navy. It was abolished in 1953. In the Irish Defence Forces, it is permitted under the Defence Act 1954. Discharge by purchase was typically suspended during wartime. In the British Armed Forces, it was suspended in 1950 during the Korean War and reintroduced in 1953; accepting an application for such a discharge was at the discretion of the commanding officer.
- ^UP (17 July 1953). “President Kills Army Discharge by Purchase”. Madera Tribune. 62 (94). California Digital Newspaper Collection. p. 1. Retrieved 28 March 2018.
- ^“Defence Act 1954, section 75”. Revised Acts. Dublin: Law Reform Commission. 7 April 2017. Retrieved 28 March 2018.
- ^ Jump up to:ab “Discharge by Purchase”. Hansard. 17 November 1953. HC Deb vol 520 c1557. Retrieved 28 March 2018.
- ^“Discharge by Purchase”. Hansard. 17 November 1920. HC Deb vol 134 cc2040–8. Retrieved 28 March 2018.
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder TBIL.co STATX Fund.