B-102521, APRIL 11, 1951, 30 COMP. GEN. 399

B-102521: Apr 11, 1951

Additional Materials:

Contact:

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

 

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

WHEN APPROPRIATE NOTICES AND COPIES THEREOF ARE FILED BY THE BANK. THE PARTIAL ASSIGNMENT WILL BE VALID AND FULLY EFFECTIVE UNDER SAID ACT. 1951: REFERENCE IS MADE TO YOUR LETTER OF APRIL 3. THAT CONSUMMATION OF THE LOAN IS CONDITIONED UPON THE EXECUTION OF A CONTRACT FOR THE SALE OF THREE MILLION TONS OF SUCH ORE TO THE UNITED STATES (THROUGH THE ADMINISTRATOR OF GENERAL SERVICES). THAT THE LOAN AGREEMENT WILL REQUIRE. THAT SOBRAMIL AND THE GENERAL SERVICES ADMINISTRATION HAVE INDICATED THAT THE CONTRACT BEING NEGOTIATED BY THEM WILL EXPRESSLY PERMIT AND RECOGNIZE THE PARTIAL ASSIGNMENT SO PROVIDED FOR. IT THUS IS EVIDENT THAT AN ASSIGNMENT EXECUTED IN ACCORDANCE WITH THE ARRANGEMENTS PROPOSED WILL COMPLY WITH THE PARTIAL ASSIGNMENT CONDITION OF THE ASSIGNMENT OF CLAIMS ACT OF 1940.

B-102521, APRIL 11, 1951, 30 COMP. GEN. 399

ASSIGNMENT OF CONTRACT PAYMENTS - PARTIAL ASSIGNMENTS UNDER THE ASSIGNMENT OF CLAIMS ACT OF 1940, WHICH EXPRESSLY AUTHORIZES THE ASSIGNMENT OF MONEYS DUE OR TO BECOME DUE FROM ANY AGENCY OF THE UNITED STATES TO ANY FEDERAL LENDING AGENCY, MONEYS OWED BY THE UNITED STATES UNDER A CONTRACT FOR THE PURCHASE OF ORE BY THE GENERAL SERVICES ADMINISTRATION MAY BE PARTIALLY ASSIGNED TO THE EXPORT IMPORT BANK OF WASHINGTON AS PROVIDED FOR BY THE TERMS OF THE CONTRACT, AND WHEN APPROPRIATE NOTICES AND COPIES THEREOF ARE FILED BY THE BANK, AS ASSIGNEE, THE PARTIAL ASSIGNMENT WILL BE VALID AND FULLY EFFECTIVE UNDER SAID ACT.

COMPTROLLER GENERAL WARREN TO THE CHAIRMAN, EXPORT-IMPORT BANK OF WASHINGTON, APRIL 11, 1951:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 3, 1951, REQUESTING ADVICE AS TO THE VALIDITY OF A PROPOSED PARTIAL ASSIGNMENT IN FAVOR OF THE EXPORT- IMPORT BANK UNDER THE ASSIGNMENT OF CLAIMS ACT OF 1940 (54 STAT. 1029, 41 U.S.C. 15).

YOU ADVISE THAT THE BANK HAS AUTHORIZED A LOAN TO SOCIEDADE BRASILEIRA CE MINERACAO, LTDA. (KNOWN AS SOBRAMIL), TO ASSIST IT IN EXPANDING FACILITIES FOR THE PRODUCTION AND TRANSPORTATION OF MANGANESE ORE; THAT CONSUMMATION OF THE LOAN IS CONDITIONED UPON THE EXECUTION OF A CONTRACT FOR THE SALE OF THREE MILLION TONS OF SUCH ORE TO THE UNITED STATES (THROUGH THE ADMINISTRATOR OF GENERAL SERVICES); AND THAT THE LOAN AGREEMENT WILL REQUIRE, AMONG OTHER THINGS, THE FURNISHING OF GENERAL OBLIGATIONS SUPPORTED BY AN IRREVOCABLE ASSIGNMENT OF---

(A) 40 PERCENT OF ALL AMOUNTS, EXCEPT THE TERMINATION PAYMENT REFERRED TO IN (B) BELOW, PAYABLE AND NOT ALREADY PAID FOR MANGANESE ORE DELIVERED UNDER THE AFORESAID SOMBRAMIL-GSA CONTRACT; AND

(B) AN ADDITIONAL 100 PERCENT OF THE TERMINATION PAYMENT DETERMINED TO BE DUE AND PAYABLE UNDER SAID CONTRACT, IN THE EVENT GSA EXERCISES ITS OPTION UNDER SAID CONTRACT TO TERMINATE DELIVERIES FOR ITS CONVENIENCE PRIOR TO COMPLETION OF PERFORMANCE OF SAID CONTRACT.

YOU STATE, ALSO, THAT SOBRAMIL AND THE GENERAL SERVICES ADMINISTRATION HAVE INDICATED THAT THE CONTRACT BEING NEGOTIATED BY THEM WILL EXPRESSLY PERMIT AND RECOGNIZE THE PARTIAL ASSIGNMENT SO PROVIDED FOR.

THE ASSIGNMENT OF CLAIMS ACT OF 1949 EXPRESSLY AUTHORIZES ASSIGNMENTS OF MONEYS DUE OR TO BECOME DUE FROM ANY AGENCY OF THE UNITED STATES TO ANY FEDERAL LENDING AGENCY; AND IT PROVIDES THAT ASSIGNMENTS EXECUTED PURSUANT TO CONDITIONS SET FORTH THEREIN SHALL BE VALID FOR ALL PURPOSES, NOTWITHSTANDING ANY LAW TO THE CONTRARY GOVERNING THE VALIDITY OF ASSIGNMENTS. CONDITIONS PERTINENT TO THE PRESENT MATTER INCLUDE REQUIREMENTS THAT THE PARTIAL ASSIGNMENT BE EXPRESSLY PERMITTED BY THE TERMS OF THE CONTRACT INVOLVED AND THAT COPIES AND NOTICES OF THE ASSIGNMENT BE FILED WITH CERTAIN PERSONS OR AGENCIES DESIGNATED IN THE ACT.

IT THUS IS EVIDENT THAT AN ASSIGNMENT EXECUTED IN ACCORDANCE WITH THE ARRANGEMENTS PROPOSED WILL COMPLY WITH THE PARTIAL ASSIGNMENT CONDITION OF THE ASSIGNMENT OF CLAIMS ACT OF 1940, AND THAT WHEN APPROPRIATE NOTICES AND COPIES THEREOF ARE FILED BY THE BANK, AS ASSIGNEE, THE PARTIAL ASSIGNMENT WILL BE VALID AND FULLY EFFECTIVE UNDER THAT ACT.