A-22570, MAY 7, 1928, 7 COMP. GEN. 706

A-22570: May 7, 1928

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

THE PROCEEDS ARE PROPERLY PAYABLE TO THE LIENOR. IF SAME HAVE BEEN DEPOSITED AND COVERED INTO THE TREASURY PAYMENT IS AUTHORIZED UNDER THE APPROPRIATION "REFUNDING MONEYS ERRONEOUSLY RECEIVED AND COVERED.'. 1928: THERE IS FOR CONSIDERATION THE CLAIM OF THE STUDEBAKER SALES CO. IT APPEARS FROM THE RECORD THAT THIS AUTOMOBILE WAS SEIZED UNDER SECTION 3450. THE AUTOMOBILE WAS SOLD TO THE HIGHEST BIDDER UNDER AN AGREEMENT OR UNDERSTANDING THAT THE PROCEEDS WOULD BE HELD IN THE COURT REGISTRY IN PLACE OF THE AUTOMOBILE. WERE FORWARDED BY THE CLERK OF THE COURT TO THE COLLECTOR OF INTERNAL REVENUE AND DEPOSITED BY HIM IN THE UNITED STATES TREASURY. THAT UPON THE CASE COMING TO A HEARING A DECREE WAS ISSUED BY THE COURT JANUARY 18.

A-22570, MAY 7, 1928, 7 COMP. GEN. 706

PROHIBITION ENFORCEMENT - SEIZED AUTOMOBILES - LIENS WHERE, IN THE PROCEEDINGS FOR FORFEITURE OF AN AUTOMOBILE SEIZED IN THE ENFORCEMENT OF THE PROHIBITION LAWS, A LIENOR INTERVENES AND THE COURT DECREES A LIEN AGAINST THE PROCEEDS OF SALE OF THE VEHICLE, AND SUCH DECREE BECOMES FINAL, THE PROCEEDS ARE PROPERLY PAYABLE TO THE LIENOR, AND IF SAME HAVE BEEN DEPOSITED AND COVERED INTO THE TREASURY PAYMENT IS AUTHORIZED UNDER THE APPROPRIATION "REFUNDING MONEYS ERRONEOUSLY RECEIVED AND COVERED.'

DECISION BY COMPTROLLER GENERAL MCCARL, MAY 7, 1928:

THERE IS FOR CONSIDERATION THE CLAIM OF THE STUDEBAKER SALES CO. FOR THE PROCEEDS RECEIVED FROM THE SALE OF ONE STUDEBAKER BIG-SIX SEDAN, MOTOR NO. 36415, SERIAL NO. 7034923. IT APPEARS FROM THE RECORD THAT THIS AUTOMOBILE WAS SEIZED UNDER SECTION 3450, REVISED STATUTES; THAT IN THE PROCEEDINGS FOR ITS FORFEITURE, UNITED STATES V. ONE BIG-SIX STUDEBAKER SEDAN AUTOMOBILE, AT LAW 3012, THE STUDEBAKER SALES CO. INTERVENED AS THE HOLDER OF UNPAID SALES NOTES; THAT PENDING FINAL HEARING, THE AUTOMOBILE WAS SOLD TO THE HIGHEST BIDDER UNDER AN AGREEMENT OR UNDERSTANDING THAT THE PROCEEDS WOULD BE HELD IN THE COURT REGISTRY IN PLACE OF THE AUTOMOBILE; THAT THE PROCEEDS AMOUNTING TO $140, LESS $12.50 EXPENSES, WERE FORWARDED BY THE CLERK OF THE COURT TO THE COLLECTOR OF INTERNAL REVENUE AND DEPOSITED BY HIM IN THE UNITED STATES TREASURY; AND THAT UPON THE CASE COMING TO A HEARING A DECREE WAS ISSUED BY THE COURT JANUARY 18, 1928, FINDING THE STUDEBAKER SALES CO. ENTITLED TO THE POSSESSION OF THE AUTOMOBILE OR TO THE PROCEEDS RECEIVED FROM THE SALE THEREOF.

IT IS NOT APPARENT FROM THE RECORD UPON WHAT LEGAL BASIS THE COURT DECREED A LIEN AGAINST THE AUTOMOBILE OR ITS PROCEEDS IF, AS STATED, IT WAS FORFEITED UNDER SECTION 3450, REVISED STATUTES. SEE UNITED STATES V. ONE FORD COUPE, 272 U.S. 321, AND 6 COMP. GEN. 38. HOWEVER, THE LIEN HAVING BEEN DECREED AND THE JUDGMENT HAVING BECOME FINAL, THE LIEN BECAME A "LEGAL AND JUST CHARGE" AGAINST THE PROCEEDS WITHIN THE PURVIEW OF THE INDEFINITE APPROPRIATION MADE BY SECTION 3689, REVISED STATUTES, AND THE DEPOSIT OF THE PROCEEDS IN THE UNITED STATES TREASURY WITHOUT THE PAYMENT OF SUCH LIEN WAS AN ERROR. A-21326, FEBRUARY 10, 1928. ACCORDINGLY, THERE IS CERTIFIED DUE CLAIMANT $127.50, PAYABLE FROM THE APPROPRIATION FOR "REFUNDING MONEYS ERRONEOUSLY RECEIVED AND COVERED.'