A-13303, MARCH 20, 1926, 5 COMP. GEN. 749

A-13303: Mar 20, 1926

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IS PROHIBITED BY SECTIONS 3477 AND 3737. PROVIDED THE CHECKS ARE MADE PAYABLE TO THE ORDER OF THE LESSOR AS PRESCRIBED BY TREASURY DEPARTMENT CIRCULAR NO. 52 OF APRIL 29. 1926: THERE IS FOR CONSIDERATION THE QUESTION WHETHER PAYMENTS OF RENTAL FOR CERTAIN OFFICE SPACE IN THE EARLE BUILDING. THE ASSIGNMENT OF TRANSFER OF ALL MANNER OF CLAIMS AGAINST OR CONTRACTS WITH THE UNITED STATES IS PROHIBITED. 6 COMP. SUCH IS NOT THE SITUATION. AS SAID POWER OF ATTORNEY IS NOT IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION 3477. THERE IS NO OBJECTION. PROVIDED THE CHECKS ARE DRAWN PAYABLE TO THE ORDER OF THE PRINCIPAL AS PRESCRIBED IN TREASURY DEPARTMENT CIRCULAR NO. 52. WILL BE ALLOWED.

A-13303, MARCH 20, 1926, 5 COMP. GEN. 749

LEASES - PAYMENT OF RENT TO AGENTS OF LESSOR THE ASSIGNMENT TO RENTAL AGENTS, HOLDING A POWER OF ATTORNEY FROM THE LESSOR, OF CLAIMS FOR RENT ON PROPERTY LEASED TO THE UNITED STATES, OR OF THE CONTRACT OF LEASE, IS PROHIBITED BY SECTIONS 3477 AND 3737, REVISED STATUTES. RECEIPTS FOR RENTAL CHECKS FOR PROPERTY LEASED TO THE UNITED STATES MAY BE ACCEPTED WHEN SIGNED BY RENTAL AGENTS HOLDING A VALID POWER OF ATTORNEY FROM THE LESSOR TO RECEIVE SAME, PROVIDED THE CHECKS ARE MADE PAYABLE TO THE ORDER OF THE LESSOR AS PRESCRIBED BY TREASURY DEPARTMENT CIRCULAR NO. 52 OF APRIL 29, 1903.

DECISION BY COMPTROLLER GENERAL MCCARL, MARCH 20, 1926:

THERE IS FOR CONSIDERATION THE QUESTION WHETHER PAYMENTS OF RENTAL FOR CERTAIN OFFICE SPACE IN THE EARLE BUILDING, WASHINGTON, D.C., OCCUPIED BY THE UNITED STATES BOARD OF TAX APPEALS UNDER CONTRACT OF LEASE EXECUTED BY THE COSMOS THEATER CO. (INC.), AS OWNER AND LESSOR OF THE EARLE BUILDING, MAY BE MADE TO THE MUNSEY TRUST CO. AS RENTAL AGENTS OF THE BUILDING UNDER POWER OF ATTORNEY GRANTED BY THE OWNER AND LESSOR MAY 29, 1925, AND FILED IN THIS OFFICE WITH THE CONTRACT OF LEASE.

BY THE PROVISIONS OF SECTIONS 3477 AND 3737, REVISED STATUTES, THE ASSIGNMENT OF TRANSFER OF ALL MANNER OF CLAIMS AGAINST OR CONTRACTS WITH THE UNITED STATES IS PROHIBITED. 6 COMP. DEC. 88; 9 ID. 611; 12 ID. 267; 3 COMP. GEN. 625; 4 COMP. GEN. 361.

IF, UNDER A PROPER POWER, THE MUNSEY TRUST CO., AS ATTORNEY IN FACT FOR THE COSMOS THEATER CO. (INC.), HAD ENTERED INTO THE CONTRACT OF LEASE AS LESSOR WITH THE BOARD OF TAX APPEALS, THE MONTHLY RENTAL MIGHT PROPERLY BE PAID TO THE MUNSEY TRUST CO. AS AGENT LESSOR OF THE OWNER. 9 COMP. DEC. 611. HOWEVER, SUCH IS NOT THE SITUATION. THE COSMOS THEATER CO. (INC.), OWNER OF THE EARLE BUILDING, EXECUTED THE CONTRACT OF LEASE AS LESSOR AND FILED THEREWITH POWER OF ATTORNEY TO AUTHORIZE PAYMENT OF RENT TO THE MUNSEY TRUST CO. AS RENTAL AGENTS. AS SAID POWER OF ATTORNEY IS NOT IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION 3477, REVISED STATUTES, ALL PAYMENTS OF RENT UNDER THE PRESENT LEASE MUST BE MADE TO THE LESSOR AND NOT TO THE MUNSEY TRUST CO.

THERE IS NO OBJECTION, IN VIEW OF THE POWER OF ATTORNEY PRESENTED, TO THE DISBURSING OFFICER'S DELIVERING RENTAL CHECKS UPON PROPER RECEIPT TO THE MUNSEY TRUST CO., AS AGENT OF THE LESSOR, PROVIDED THE CHECKS ARE DRAWN PAYABLE TO THE ORDER OF THE PRINCIPAL AS PRESCRIBED IN TREASURY DEPARTMENT CIRCULAR NO. 52, APRIL 29, 1903.

THE POWER OF ATTORNEY OF RECORD BEING SUFFICIENT TO PROTECT THE GOVERNMENT AGAINST A DUPLICATE CLAIM BY THE LESSOR, CREDIT FOR PAYMENT HERETOFORE MADE TO THE MUNSEY TRUST CO. WILL BE ALLOWED, BUT FUTURE PAYMENTS MAY BE MADE ONLY AS HEREIN INDICATED.