(2) Under such military department regulations as the Governor may prescribe, the Governor or, subject to appeal to the Governor, the Adjutant General, may settle and pay in an amount not more than $500 a claim against the state for:

(a) Damage to or loss of real property, including damage or loss incident to use and occupancy; and

(b) Damage to or loss of personal property, either caused by a member of the organized militia acting within the scope of assigned duties, or otherwise incident to noncombat activities of the organized militia.

(3) A claim may be allowed under subsection (2) of this section only if:

(a) It is presented in writing within one year after it accrues;

(b) It is not payable under section 2733 or 2734 of title 10, United States Code, under section 2672 of title 28, United States Code or under section 715 of title 32, United States Code;

(c) The damage to, or loss of, property was not caused wholly or partly by a negligent or wrongful act of the claimant, agent or employee of the claimant; and

(d) It is substantiated as prescribed in regulations issued pursuant to this chapter and ORS chapters 398 and 399.

(4) No claim may be paid under this section unless the amount tendered is accepted by the claimant in full satisfaction.

(5) Notwithstanding any other provision of law, the settlement of a claim under this section is final and conclusive.

(6) Claims approved for payment under this section shall be paid from moneys available to the military department. [1961 c.454 §29; 1963 c.169 §6; 1981 c.471 §1]