B-33501 April 1, 1943

B-33501 April 1, 1943

Mr. H. D. Bowman, Acting Manager, Loan Agency of the Reconstruction Finance Corporation, Kansas City, Missouri.

Dear Mr. Bowman:

I have your letter of March 27, 1943, as follows:

"On March 3, 1943 we wrote you a letter requesting a ruling as to whether a contract under Assignment of Claims Act of 1940, can be once assigned, released, and again assigned to another party.

"We enclose herewith copy of our letter of March 3, 1943. We have not received a reply to our letter of March 3 and desire to have a ruling at your earliest convenience on the question involved."

There is no record of the receipt in this office of the referred to letter of March 3. However, the copy thereof transmitted with your letter is as follows:

"Under an Assignment of Claims Act October 9, 1940, the Act specifically states 'That unless otherwise expressly permitted by such contract, any such assignment shall cover all amounts payable under such contract and not already paid, shall not be made to more than one party, and shall not be subject to further assignment, except that any such assignment may be made to one party as agent or trustee for two or more parties participating in such financing'.

"We have been offered an assignment of funds due under a contract which has been assigned to another party but the other party has been paid in full and the assignment released.' The Act states that 'it shall not be subject to further assignment.' We desire an interpretation as to whether it may be assigned again after it has been released.

"We shall appreciate a ruling on the above."

This office has not construed the prohibition against further assignment contained in section 1 of the Assignment of Claims Act of 1940, 54 Stat. 1029, as comprehending, upon the release of an original assignment, the assignment of any remaining amount payable and not already paid under the contract.

Respectfully,

Lindsay C. Warren Comptroller General of the United States