B-126203, OCT. 25, 1957

B-126203: Oct 25, 1957

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WHILE IT APPEARS THAT SINCE NO FUNDS OR REVENUES NOW ARE AVAILABLE FOR THE RETIREMENT OF THE UNREDEEMED BONDS ISSUED BY THE MUNICIPALITY AND THERE IS. THE GENERAL ACCOUNTING OFFICE IS NOT AUTHORIZED TO EXECUTE A RELEASE OF ANY CLAIM IN FAVOR OF THE UNITED STATES. NO PURPOSE IS APPARENT FOR THE EXECUTION OF A RELEASE. THE PROPER AGENCY FOR DETERMINATION OF THE MATTER IS THE DEPARTMENT OF JUSTICE TO WHICH AGENCY YOU ARE HEREBY REFERRED. THE PERTINENT FILES OF THIS OFFICE WILL BE MADE AVAILABLE TO THAT AGENCY UPON RECEIPT OF A REQUEST THEREFOR.

B-126203, OCT. 25, 1957

TO MR. HARRY C. HAVERKOS, TRUST DEPARTMENT, THE FIRST NATIONAL BANK OF CINCINNATI:

YOUR LETTER OF OCTOBER 7, 1957, SETS FORTH THE BANKS' DESIRE TO BE RELEASED FROM FURTHER RESPONSIBILITY AS TRUSTEE COVERING DEFAULTED BONDS BY THE VILLAGE OF WINCHESTER, OHIO, (PWA PROJECT NO. 8363).

WHILE IT APPEARS THAT SINCE NO FUNDS OR REVENUES NOW ARE AVAILABLE FOR THE RETIREMENT OF THE UNREDEEMED BONDS ISSUED BY THE MUNICIPALITY AND THERE IS, THEREFORE, NO PRESENT TRUST OBLIGATION TO ADMINISTER, THE RELEASE OF THE BANK AS TRUSTEE WOULD ENTAIL THE SURRENDER OF THE BONDS TO THE TRUSTEES, WHICH ACTION UNDER DEFEASANCE PROVISION OF SECTION 54 OF THE MORTGAGE INDENTURE, AMOUNTS TO THE SATISFACTION AND DISCHARGE OF THE MORTGAGE AND THE RELEASE OF A CLAIM FOR MONEYS DUE THE UNITED STATES. THE GENERAL ACCOUNTING OFFICE IS NOT AUTHORIZED TO EXECUTE A RELEASE OF ANY CLAIM IN FAVOR OF THE UNITED STATES. IT FOLLOWS THAT THE EXECUTION HERE OF SUCH RELEASE WOULD NOT BE BINDING ON THE UNITED STATES. WE SUGGEST THAT SINCE NO LIABILITY INHERES IN THE TRUSTEE UNDER THE TERMS OF THE INDENTURE, IN THE ABSENCE OF INCOME OR REVENUES, NO PURPOSE IS APPARENT FOR THE EXECUTION OF A RELEASE.

HOWEVER, THE PROPER AGENCY FOR DETERMINATION OF THE MATTER IS THE DEPARTMENT OF JUSTICE TO WHICH AGENCY YOU ARE HEREBY REFERRED. THE PERTINENT FILES OF THIS OFFICE WILL BE MADE AVAILABLE TO THAT AGENCY UPON RECEIPT OF A REQUEST THEREFOR.

YOU ARE ADVISED THAT OUR OFFICE WOULD NOT BE REQUIRED TO OBJECT TO ANY DISPOSITION EFFECTED BY ..END :