[Payment of Judgment]

GAO reviewed the issue of whether the compromise settlements in two legal cases are payable from the permanent indefinite appropriation established by statute or from funds available to the Department of Housing and Urban Development (HUD). HUD had provided building mortgage insurance on two projects for which the agency agreed to make payments to two plaintiff construction contractors which had cause of action against the Secretary on the theory of quantum meruit. GAO held that judgments and compromise settlements in cases arising from the various mortgage insurance programs of HUD are payable from the insurance funds applicable to those programs and not from the permanent judgment appropriation. Accordingly, the payments may be made.