8 April 2002

ACTION LETTER 03-02

2. Background/Discussion. Over the past year there have been a few incidents and evolutions that impacted heavily on the NSCC program. The incidents fall into two categories; (1) embezzlement of funds or (2) legal matters which required significant funds for settlement of lawsuits. This action letter only addresses legal matters and limitations of officers to make contractual obligations.

NHQ became involved in an incident when an NSCC officer signed a promissory note for purchase of a boat. The officer could not pay the note, and as a consequence, NHQ became involved in the suit as a result of the plaintiff convincing the legal system the NSCC officer was representing the national organization. This occurred even though the officer had advised the plaintiff in the case, that he (NSCC Officer) had no authority to act for NHQ. In trying to ensure this type of legal situation does not occur again, NSCC adult personnel are reminded:

1. Unless specifically authorized in writing, no NSCC officer or instructor represents NSCC NHQ or the NSCC organization when dealing with other organizations or activities.
   
   
2. No NSCC officer or instructor can make any legal contractual commitment, sign any contract/ legal document for national headquarters unless authorized by NHQ.
   
   
3. When dealing with other organizations/activities whether it is a group or individual, the NSCC officer or instructor will make it perfectly clear that the NSCC adult does not represent the national NSCC organization or NHQ unless so authorized by NHQ in writing.
   
   
4. No NSCC officer or instructor can enter into any local contractual agreement, written or oral that involves the NSCC national organization or the national NHQ unless so authorized in writing from NHQ. Any local agreement entered into, oral or in writing, shall clearly indicate in the contractual agreement that the agreement is solely at the local level, and is being executed only at the local level.
   
   
5. For COTC's and SEO'S. NHQ orders for COTC or SEO and/or assignment in the annual International Exchange Program/Summer Training Schedule Information letter constitutes authorization in writing. This positional authority is included in enclosure (1).

3. Action. Field Representatives, Regional Directors and commanding officers shall brief all officers under their individual cognizance on the contents of this action letter. A roster shall be maintained locally which indicates all current officers have been briefed on the contents of this action letter. All new prospective officers and instructors shall be required to sign enclosure (1) upon entering the NSCC. This shall be part of the officer/instructor enrollment package.

4. Cancellation. This action letter will remain current until the contents are incorporated into applicable manuals and publications.

M. D. FORD

Distribution:
Headquarters Representatives, Regional Directors, Unit Commanding Officers
Copy to:
National Chairman
National President
NSCC Committee Chairman