B-123342, APR 8, 1955

B-123342, APR 8, 1955

PRECIS-UNAVAILABLE

LIEUTENANT COLONEL H. D. LLOYD:

REFERENCE IS MADE TO 1ST INDORSEMENT OF MARCH 17, 1955, FROM ASSISTANT CHIEF OF FINANCE FOR OPERATIONS, FORWARDING YOUR LETTER OF MARCH 9, 1955, REQUESTING AN ADVANCE DECISION AS TO THE PROPRIETY OF MAKING PAYMENT TO THE ASSIGNEE, THE FIRST NATIONAL BANK OF AKRON, OHIO, OF A VOUCHER IN THE AMOUNT OF $60,000, SINCE THE ASSIGNER, PANCO CORPORATION, IS INDEBTED TO THE UNITED STATES.

IT APPEARS THAT ABOUT JANUARY 1, 1955, AS A RESULT OF A REPRICING AGREEMENT UNDER CONTRACT DA 23-072 ORD-441, YOU WERE NOTIFIED THAT THE CONTRACTOR WAS PREPARING TO SUBMIT VOUCHERS FOR SOME $230,000. AT THAT TIME THE CONTRACTOR WAS INDEBTED TO THE UNITED STATES IN THE APPROXIMATE AMOUNT OF $165,000, AS FOLLOWS:

RECONSTRUCTION FINANCE CORPORATION $148,546.49

INTERNAL REVENUE SERVICE 15,004.23

U. S. AIR FORCE 1,629.43

INTEREST ACCRUCE ON THE R. F. C. INDEBTEDNESS AT THE RATE OF $19.86 DAILY AND ON THE INTERNAL REVENUE DEBT OF $2.30 DAILY.

WE HAVE RECEIVED INFORMAL ADVICE THAT THE CONTRACTOR IS INDEBTED TO THE ASSIGNEE BACK IN THE AMOUNT OF $50,000, PLUS INTEREST AT 5 PERCENT FROM FEBRUARY 3, 1955, AND THAT THE BANK WILL RELEASE THE ASSIGNMENT TO IT UPON SATISFACTION OF THIS INDEBTEDNESS.

IT IS SUGGESTED, THEREFORE, THAT THE CONTRACTOR BE REQUESTED TO SUBMIT A VOUCHER OR VOUCHERS COVERING THE FULL AMOUNT DUE UNDER THE CONTRACT, AND THAT UPON RECEIPT THEREOF THERE BE DEDUCTED AND EFFECT THE FULL AMOUNT OF ITS INDEBTEDNESS TO THE GOVERNMENT. AFTER CHECKS IN PAYMENT OF THE INDEBTEDNESS HAVE BEEN ISSUED TO THE RECONSTRUCTION FINANCE CORPORATION, THE COLLECTOR OF INTERNAL REVENUE, AND THE DEPARTMENT OF THE AIR FORCE, THE CONTRACT BALANCE SHOULD THEN BE PAID TO THE ASSIGNEE BANK.