B-122071, DEC 1, 1954

B-122071: Dec 1, 1954

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DEPARTMENT OF THE ARMY: REFERENCE IS MADE TO YOUR RADIO MESSAGES OF NOVEMBER 17. UNDER WHICH PAYMENTS WERE ASSIGNED TO THE FIRST NATIONAL BANK. YOU STATE THAT PAYMENTS UNDER THE CONTRACT WERE SUBSEQUENTLY REASSIGNED ON OCTOBER 27. THAT NOTICE THEREOF WAS RECEIVED BY THE DISBURSING OFFICER ON NOVEMBER 18. REPORTING THAT CERTAIN PAYMENTS WERE WITHHELD UNDER THE CONTRACT THEN IN CONTEMPLATION OF REASSIGNMENT. THAT THE CONTRACTOR OTHERWISE WAS INDEBTED TO THE UNITED STATES. YOU WERE ADVISED IN OFFICE TELEGRAM OF NOVEMBER 17. IT WAS HELD THAT WHERE AN ASSIGNMENT OF "ALL CLAIMS FOR MONEYS DUE AND/OR TO BECOME DUE. " UNDER A GOVERNMENT CONTRACT WAS RECEIVED BY AN AGENCY PRIOR TO DISBURSEMENT OF AMOUNTS DUE UNDER A VOUCHER.

B-122071, DEC 1, 1954

PRECIS-UNAVAILABLE

COLONEL LLOYD, DEPARTMENT OF THE ARMY:

REFERENCE IS MADE TO YOUR RADIO MESSAGES OF NOVEMBER 17, 18, AND 23, 1954, RELATIVE TO THE DISPOSITION OF CERTAIN VOUCHERS AGGREGATING $28,323.36, COVERING INVOICES OF VARIOUS DATES BETWEEN FEBRUARY 24 AND SEPTEMBER 1, 1954, IN CONNECTION WITH CONTRACT NO. DA 23-072-ORD-530, UNDER WHICH PAYMENTS WERE ASSIGNED TO THE FIRST NATIONAL BANK, LUBBOCK, TEXAS. THAT ASSIGNEE EXECUTED A RELEASE OF THE ASSIGNMENT EFFECTIVE SEPTEMBER 25, 1954. YOU STATE THAT PAYMENTS UNDER THE CONTRACT WERE SUBSEQUENTLY REASSIGNED ON OCTOBER 27, 1954, TO THE FIRST NATIONAL BANK, AKRON, OHIO, AND THAT NOTICE THEREOF WAS RECEIVED BY THE DISBURSING OFFICER ON NOVEMBER 18, 1954, THE SAME DATE ON WHICH HE RECEIVED THE VOUCHERS.

IN REPLY TO YOUR RADIO MESSAGE OF NOVEMBER 9, 1954, REPORTING THAT CERTAIN PAYMENTS WERE WITHHELD UNDER THE CONTRACT THEN IN CONTEMPLATION OF REASSIGNMENT, AND THAT THE CONTRACTOR OTHERWISE WAS INDEBTED TO THE UNITED STATES, YOU WERE ADVISED IN OFFICE TELEGRAM OF NOVEMBER 17, 1954, THAT, ON THE BASIS OF THE REPORTED FACTS, MONEYS DUE OR BECOMING DUE THE CONTRACTOR AFTER RELEASE OF THE ORIGINAL ASSIGNMENT MAY BE SET OFF ONLY PRIOR TO RECEIPT OF NOTICE BY THE DISBURSING OFFICER OF THE NEW ASSIGNMENT.

SO FAR AS CONCERNS THE ORIGINAL ASSIGNMENT, IN THE ABSENCE OF ANY RESERVATION OR EXCEPTION IN THE EXECUTED RELEASE WITH RESPECT TO THE AMOUNTS DUE UNDER THE INVOICES IN QUESTION, ANY RIGHT OF THE ORIGINAL ASSIGNEE TO PAYMENT THEREOF WOULD APPEAR TO BE WAIVED UNDER THE RELEASE.

IN THE CASE OF THE CENTRAL NATIONAL BANK OF RICHMOND V. UNITED STATES, 117 C. CLS. 389, IT WAS HELD THAT WHERE AN ASSIGNMENT OF "ALL CLAIMS FOR MONEYS DUE AND/OR TO BECOME DUE," UNDER A GOVERNMENT CONTRACT WAS RECEIVED BY AN AGENCY PRIOR TO DISBURSEMENT OF AMOUNTS DUE UNDER A VOUCHER, PAYMENT SHOULD HAVE BEEN MADE ONLY TO THE ASSIGNEE, NOTWITHSTANDING THE FACT THAT THE VOUCHER IN QUESTION ANTEDATED THE ASSIGNMENT OR COVERED SERVICES RENDERED PRIOR TO THE ASSIGNMENT. APPLYING THE RULE OF THAT DECISION TO THE SITUATION HERE, IT MUST BE CONCLUDED THAT SINCE THE NOTICE OF THE REASSIGNMENT BY THE PAMCO CORPORATION TO THE FIRST NATIONAL BANK, AKRON, OHIO, WAS RECEIVED BY THE DISBURSING OFFICER ON NOVEMBER 18, 1954, OR BEFORE ANY DISBURSEMENT UNDER THE VOUCHERS AGGREGATING $28,323.36 WAS ACCOMPLISHED, PAYMENT THEREOF IS REQUIRED TO BE MADE PURSUANT TO THAT ASSIGNMENT WITHOUT OFF SET AGAINST THE CONTRACTOR'S INDEBTEDNESS TO THE UNITED STATES.