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B-120956, OCT. 6, 1955

B-120956 Oct 06, 1955
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TO THE HONORABLE SECRETARY OF AGRICULTURE: REFERENCE IS MADE TO LETTER DATED JULY 26. CONCERN IS EXPRESSED OVER OUR RULING FOR THE REASON THAT IT WAS MORE STRINGENT THAN WAS ANTICIPATED. THIS IS PREMISED UPON THE UNDERSTANDING IN YOUR DEPARTMENT THAT OUR DECISION REQUIRED THAT PROOF OF THE UNCOLLECTIBILITY OF JUDGMENTS IS ESTABLISHED WHERE "THEY HAVE BEEN RETURNED UPON EXECUTION UNSATISFIED AND THEIR UNCOLLECTIBILITY OTHERWISE HAS BEEN ESTABLISHED.'. IT IS STATED THAT THIS IMPOSES UPON YOUR DEPARTMENT THE BURDEN OF REQUIRING THE RETURN OF UNSATISFIED EXECUTION OF JUDGMENT AND OTHER EVIDENCE AS WELL TO ESTABLISH THE UNCOLLECTIBILITY OF JUDGMENTS. SEVERAL TYPES OF CASES ARE REPORTED WHERE JUDGMENTS HAVE BEEN OBTAINED BY THE FARMERS HOME ADMINISTRATION UNDER ITS LOAN PROGRAM WHERE EXECUTION ON JUDGMENTS IS NOT WARRANTED.

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B-120956, OCT. 6, 1955

TO THE HONORABLE SECRETARY OF AGRICULTURE:

REFERENCE IS MADE TO LETTER DATED JULY 26, 1955, FROM THE UNDER SECRETARY OF AGRICULTURE, WHICH REQUESTS FURTHER CONSIDERATION OF OUR DECISION B- 120956, DATED SEPTEMBER 28, 1954, 34 COMP. GEN. 148,CONCERNING THE REMOVAL FROM THE ACCOUNTING RECORDS OF YOUR DEPARTMENT OF UNCOLLECTIBLE JUDGMENTS IN ACCORDANCE WITH PARAGRAPH 5 OF GENERAL REGULATION NO. 120, REVISED, DATED MAY 18, 1954.

CONCERN IS EXPRESSED OVER OUR RULING FOR THE REASON THAT IT WAS MORE STRINGENT THAN WAS ANTICIPATED. THIS IS PREMISED UPON THE UNDERSTANDING IN YOUR DEPARTMENT THAT OUR DECISION REQUIRED THAT PROOF OF THE UNCOLLECTIBILITY OF JUDGMENTS IS ESTABLISHED WHERE "THEY HAVE BEEN RETURNED UPON EXECUTION UNSATISFIED AND THEIR UNCOLLECTIBILITY OTHERWISE HAS BEEN ESTABLISHED.' IT IS STATED THAT THIS IMPOSES UPON YOUR DEPARTMENT THE BURDEN OF REQUIRING THE RETURN OF UNSATISFIED EXECUTION OF JUDGMENT AND OTHER EVIDENCE AS WELL TO ESTABLISH THE UNCOLLECTIBILITY OF JUDGMENTS.

SEVERAL TYPES OF CASES ARE REPORTED WHERE JUDGMENTS HAVE BEEN OBTAINED BY THE FARMERS HOME ADMINISTRATION UNDER ITS LOAN PROGRAM WHERE EXECUTION ON JUDGMENTS IS NOT WARRANTED. THE LETTER FURTHER POINTS TO THE INTERNAL ADMINISTRATIVE PROCEDURE WHICH HAS BEEN ADOPTED TO ESTABLISH THE UNCOLLECTIBILITY OF JUDGMENTS, WHICH PROCEDURE IS BELIEVED TO BE SUFFICIENT TO DETERMINE THE FACT OF UNCOLLECTIBILITY WITHOUT GOING TO THE TROUBLE AND EXPENSE OF ISSUING EXECUTION. IN ADDITION, IT IS REPORTED THAT THE DEPARTMENT OF JUSTICE WILL NOT ISSUE EXECUTION UNLESS EVIDENCE OF COLLECTIBILITY CAN BE FURNISHED.

IN OUR DECISION OF SEPTEMBER 28, 1954, B-120556, THE LANGUAGE QUOTED ABOVE WAS USED BECAUSE FROM INFORMATION OBTAINED INFORMALLY CONCERNING THE HANDLING OF LOAN DEFAULT CASES WITHIN YOUR DEPARTMENT IT WAS OUR UNDERSTANDING THAT EXECUTION WAS TAKEN AND RETURNED UNSATISFIED IN JUDGMENT CASES AS A MATTER OF COURSE. HOWEVER, IN THE LIGHT OF THE PRESENTATIONS NOW MADE IN THE LETTER OF JULY 25, 1955, YOU ARE ADVISED THAT WE WILL NOT OBJECT TO THE REMOVAL FROM THE ACCOUNTING RECORDS OF YOUR DEPARTMENT OF JUDGMENT DEBTS WHICH HAVE BEEN ADMINISTRATIVELY DETERMINED TO BE UNCOLLECTIBLE AND WITHOUT THE NEED FOR EXECUTION ON SUCH JUDGMENTS IN CASES WHERE SUCH ACTION IS NOT WARRANTED.

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