Contracts for data processing or maintenance — Us Code Code § 5725

Us Code Code § 5725 — Contracts for data processing or maintenance. Reproduced from the official United States Code, with a citation summary, verification link, and related provisions.

§ 5725. Contracts for data processing or maintenance

(a) Contract Requirements.—If the Secretary enters into a contract for the performance of any Department function that requires access to sensitive personal information, the Secretary shall require as a condition of the contract that—

(1) the contractor shall not, directly or through an affiliate of the contractor, disclose such information to any other person unless the disclosure is lawful and is expressly permitted under the contract;

(2) the contractor, or any subcontractor for a subcontract of the contract, shall promptly notify the Secretary of any data breach that occurs with respect to such information.


(b) Liquidated Damages.—Each contract subject to the requirements of subsection (a) shall provide for liquidated damages to be paid by the contractor to the Secretary in the event of a data breach with respect to any sensitive personal information processed or maintained by the contractor or any subcontractor under that contract.

(c) Provision of Credit Protection Services.—Any amount collected by the Secretary under subsection (b) shall be deposited in or credited to the Department account from which the contractor was paid and shall remain available for obligation without fiscal year limitation exclusively for the purpose of providing credit protection services pursuant to section 5724(b) of this title.

(Added Pub. L. 109–461, title IX, §902(a), Dec. 22, 2006, 120 Stat. 3456.)

About This Section

38 U.S.C. § 5725 is part of Title 38 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.

This section may be cited in legal writing as 38 U.S.C. § 5725. For the most current official text, including any recent amendments, use the official source links below. Do not rely on this page as the sole authority for legal citation or litigation.

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Sources

Source: official Us Code text · Last verified 2026-08-27

At a glance

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Common questions

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What subject does United States Code § 5725 address?

It addresses "Contracts for data processing or maintenance". Read the section together with the surrounding provisions listed under "Nearby provisions" for the full picture.

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