B-105655 October 10, 1951

B-105655: Oct 10, 1951

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Olson: Reference is made to a letter. Indicate that you were granted a loan. That the matter was referred to this Offfice for collection of the balance administratively determined due the United States. Information is requested why you were charged with such a large amount because of the default and why the Veterans Administration failed to exercise its authority and take over the property instead of waiving its rights to such security. you are advised that in addition to the fact that the Veterans Administration purchased the guaranteed portion of the defaulted loan. Since it appears that your indebtedness as stated in the aforementioned settlement is predicated on the basis of the determination made by the Administrator of Veterans Affairs under the above-quoted and conclusive provisions of law and since.

B-105655 October 10, 1951

Mr. Clarence A. Olson c/o Arnett & Haver, Attorneys at Law 412 Wolverine Tower Battle Creek, Michigan

Dear Mr. Olson:

Reference is made to a letter, dated August 11, 1951, from Thomas F. Arnett, Attorney at Law, in your behalf, requesting review of the matter of your indebtedness to the United States in the amount of $3,853.42, as certified in General Accounting Office settlement No. US-65682, dated June 25, 1951.

The facts in the matter, as appear from the administrative fundings transmitted to this Office by the Veterans Administration, indicate that you were granted a loan, No. LHG-16824-Michigan, on August 19, 1946, in the amount of $8,000 for which you executed a promissory note to the order of the Michigan National Bank, Battle Creek, Michigan, payable in 17 years in montly installments of $54.16, including interest at 4 percent per annum. Upon your default in the scheduled payments the Veterans Administration, pursuant tothe provisions of the Serviceman's Readjustment Act of 1944, 58 Stat, 284, 291, as amended (59 Stat. 623), purchased the guaranteed portion of the outstanding loan and thereafter instituted recovery action against you. The record shows that you failed to reply to administrative demands for payment mailed to you on December 8, 1950, and January 17, 1951, and that the matter was referred to this Offfice for collection of the balance administratively determined due the United States, said amount being reflected in the settlement, dated June 25, 1951.

In the letter of August 11, 1951, information is requested why you were charged with such a large amount because of the default and why the Veterans Administration failed to exercise its authority and take over the property instead of waiving its rights to such security. you are advised that in addition to the fact that the Veterans Administration purchased the guaranteed portion of the defaulted loan, as heretofore stated, the matter falls within the purview of section 509(c) of the act of December 28, 1945, 59 Stat. 623, amending the Serviceman's Readjustment Act of 1944, which provides, at page 631, that:

"The financial transcations of the Administrator incident to or arising out of, the guaranty of loans pursuant to this title, and the acquistion, management, and disposition of property, rea, personal or mixed, as incident to such activities and pursuant to this section, shall be final and conclusive upon all officers of the Government."

Since it appears that your indebtedness as stated in the aforementioned settlement is predicated on the basis of the determination made by the Administrator of Veterans Affairs under the above-quoted and conclusive provisions of law and since, thereunder, such determination is final and conclusive upon all officers of the Government, any adjustment authorized in connection therewith would appear to be a matter solely within the Jurisdiction of that offical. Also, see section 11, act of October 17, 1940, 54 Stat. 1197, 38 U.S.C. 11a-2.

Accordingly, the action taken by the General Accounting Office on June 25, 1951, in certifying you to be indebted to the United States in the amount of $3,853.42 must be, and is sustained.

Very truly yours,

Comptroller General of the United States