B-48240, MARCH 15, 1945, 24 COMP. GEN. 679

B-48240: Mar 15, 1945

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AS FOLLOWS: THERE IS TRANSMITTED HEREWITH FOR CONSIDERATION AS TO ITS DISPOSAL UNITED STATES WAR SAVINGS BOND NO. FREITAS THERE ARE ALSO ATTACHED LETTERS DATED OCTOBER 23. STATING THAT THE BOND WAS ISSUED AS A RESULT OF THE PAYROLL ALLOTMENT OF JOAQUIN FREITAS. THERE ARE ALSO ATTACHED COPIES OF MEMORANDA DATED DECEMBER 21 AND DECEMBER 28. WHICH ARE SELF-EXPLANATORY. IT IS REQUESTED THAT THIS OFFICE BE ADVISED OF THE DECISION REACHED IN THIS CASE. IT APPEARS FROM THE ENCLOSURES ACCOMPANYING YOUR LETTER THAT DOUBT AS TO THE PROPER DISPOSITION OF THE BOND INVOLVED ARISES BECAUSE OF WHAT WAS SAID IN DECISION OF APRIL 20. THAT IS. UNDER THOSE CIRCUMSTANCES AND ON THAT BASIS THIS OFFICE WILL NOT BE REQUIRED TO OBJECT TO SUCH A PROCEDURE.

B-48240, MARCH 15, 1945, 24 COMP. GEN. 679

WAR SAVINGS BONDS PURCHASED BY PAY ROLL DEDUCTIONS - DISPOSITION OF UNDELIVERED BOND UPON PURCHASER'S DEATH WHERE A WAR SAVINGS BOND, INSCRIBED IN THE NAME OF AN OWNER OR OWNERS OTHER THAN THE PURCHASER, HAS BEEN FULLY PAID FOR FROM DEDUCTIONS FROM THE COMPENSATION OF AN EMPLOYEE ACCUMULATED PRIOR TO HIS DEATH, PURSUANT TO A DULY EXECUTED PAY ROLL DEDUCTION AUTHORIZATION, AND THE EMPLOYEE HAD TAKEN NO ACTION WHICH COULD BE CONSTRUED AS A REVOCATION OF SUCH AUTHORIZATION, THE BOND MAY BE DELIVERED TO THE DESIGNATED OWNER OR OWNERS UPON PROPER IDENTIFICATION AND THE OBTAINING OF A RECEIPT THEREFOR FROM SUCH OWNER OR OWNERS. 21 COMP. GEN. 942, AMPLIFIED.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF THE TREASURY, MARCH 15, 1945:

THERE HAS BEEN CONSIDERED YOUR LETTER OF FEBRUARY 10, 1945, AS FOLLOWS:

THERE IS TRANSMITTED HEREWITH FOR CONSIDERATION AS TO ITS DISPOSAL UNITED STATES WAR SAVINGS BOND NO. C82547541E, IN THE AMOUNT OF $100.00, ISSUED IN THE OFFICE OF THE ASSISTANT DISBURSING OFFICER IN CHARGE, HONOLULU, HAWAII, FOR G. F. ALLEN, AUTHORIZED ISSUING AGENT, PURSUANT TO THE PAYROLL DEDUCTION PLAN, ON OCTOBER 23, 1944, AND INSCRIBED AS FOLLOWS:

MRS. CEZIDA FREITAS

740 S. QUEEN ST.

HONOLULU, T.H.

OR

MR. ADRIAN C. FREITAS

THERE ARE ALSO ATTACHED LETTERS DATED OCTOBER 23, AND 24, 1944, FROM THE COLLECTOR OF CUSTOMS AT HONOLULU, AND THE ASSISTANT DISBURSING OFFICER IN CHARGE AT HONOLULU, STATING THAT THE BOND WAS ISSUED AS A RESULT OF THE PAYROLL ALLOTMENT OF JOAQUIN FREITAS, AN EMPLOYEE OF THE OFFICE OF COLLECTOR OF CUSTOMS AT HONOLULU WHO DIED OCTOBER 19, 1944, AND FROM WHOM NO ACQUITTANCE COULD THEREFORE BE OBTAINED. THERE ARE ALSO ATTACHED COPIES OF MEMORANDA DATED DECEMBER 21 AND DECEMBER 28, 1944, BETWEEN MR. CUNNINGHAM, CHIEF COUNSEL, BUREAU OF THE PUBLIC DEBT, AND MR. ALLEN, CHIEF DISBURSING OFFICER, WHICH ARE SELF-EXPLANATORY.

IT IS REQUESTED THAT THIS OFFICE BE ADVISED OF THE DECISION REACHED IN THIS CASE.

IT APPEARS FROM THE ENCLOSURES ACCOMPANYING YOUR LETTER THAT DOUBT AS TO THE PROPER DISPOSITION OF THE BOND INVOLVED ARISES BECAUSE OF WHAT WAS SAID IN DECISION OF APRIL 20, 1942, 21 COMP. GEN. 942, PARTICULARLY THE LAST TWO PARAGRAPHS THEREOF, WHICH READ:

IN THE TYPE OF CASES REFERRED TO IN THE THIRD PARAGRAPH OF YOUR LETTER OF APRIL 9, 1941, THAT IS, WHERE THE SO-CALLED ALLOTMENT COVERS THE FULL PURCHASE PRICE OF A BOND ON EACH PAY PERIOD, IT WOULD APPEAR THAT THE DELIVERY OF THE BOND TO THE PARTICIPATING EMPLOYEE SIMULTANEOUSLY WITH A CHECK OR CASH FOR THE BALANCE OF HIS PAY FOR THE PERIOD, PURSUANT TO HIS PREVIOUSLY EXECUTED REQUEST AND AUTHORIZATION, AND THE OBTAINING OF A RECEIPT THEREFOR FROM THE EMPLOYEE IN FULL PAYMENT OF HIS SALARY FOR THE PERIOD INVOLVED, WOULD FURNISH THE GOVERNMENT AN ADEQUATE ACQUITTANCE. UNDER THOSE CIRCUMSTANCES AND ON THAT BASIS THIS OFFICE WILL NOT BE REQUIRED TO OBJECT TO SUCH A PROCEDURE.

WITH RESPECT TO THOSE CASES WHERE THE SO-CALLED ALLOTMENT EACH PAY PERIOD IS NOT SUFFICIENT TO PURCHASE A BOND THE SITUATION PRESENTED IS A LITTLE MORE DIFFICULT; AND THERE MIGHT BE ROOM FOR DOUBT WHETHER AN ADVANCE AGREEMENT BY THE PARTICIPATING EMPLOYEE, IN HIS REQUEST AND AUTHORIZATION, THAT THE DEDUCTION ON THE PAY ROLL IN ACCORDANCE WITH THE SO-CALLED ALLOTMENT AUTHORIZATION SHALL CONSTITUTE A RECEIPT FOR HIS PAY TO ACCRUE IN THE FUTURE, WOULD NECESSARILY, IN ALL CASES, FURNISH THE GOVERNMENT AN ADEQUATE ACQUITTANCE. HOWEVER, IF IN ADDITION TO SUCH AGREEMENT THE EMPLOYEE BE REQUIRED, WHEN THE BOND IS ISSUED AND DELIVERED TO OR AS DIRECTED BY HIM, TO GIVE A RECEIPT THEREFOR AS IN COMPLIANCE WITH HIS ALLOTMENT AUTHORIZATION AND IN FULL SATISFACTION OF ANY CLAIM HE MAY HAVE AGAINST THE GOVERNMENT FOR DEDUCTIONS FROM HIS SALARY DURING THE PERIOD INVOLVED, IT IS BELIEVED THE INTERESTS OF THE GOVERNMENT WILL BE FULLY PROTECTED AND THIS OFFICE WILL NOT OBJECT TO SUCH PROCEDURE.

THE PURPOSE IN REQUIRING A RECEIPT BY THE EMPLOYEE UPON DELIVERY OF THE BONDS IS, OF COURSE, TO AFFORD ADDED OR MAXIMUM PROTECTION TO THE GOVERNMENT; BUT WHEN SUCH REQUIREMENT IS IMPOSSIBLE OF FULFILLMENT BECAUSE OF THE HAPPENING OF SOME CONTINGENCY, THE EXECUTION BY THE EMPLOYEE OF A REQUEST AND AUTHORIZATION FOR THE MAKING OF PAY ROLL DEDUCTIONS FOR THE PURCHASE OF BONDS, TOGETHER WITH EVIDENCE OF THE ISSUANCE AND DELIVERY OF THE BONDS IN ACCORDANCE WITH SUCH REQUEST, CONSTITUTE WEIGHTY FACTORS IN THE MATTER OF DETERMINING A PROPER ACQUITTANCE WITH RESPECT TO THE PAYMENT OF SALARY FOR THE PERIOD INVOLVED. ACCORDINGLY, WHERE, AS HERE, A BOND IS FULLY PAID FOR FROM DEDUCTIONS ACCUMULATED PRIOR TO THE DEATH OF THE EMPLOYEE, PURSUANT TO A DULY EXECUTED PAY ROLL DEDUCTION AUTHORIZATION, AND THE EMPLOYEE HAS TAKEN NO ACTION PRIOR TO HIS DEATH WHICH COULD IN ANY WAY BE CONSIDERED AS A REVOCATION OF SUCH PREVIOUSLY EXECUTED AUTHORIZATION, THIS OFFICE WOULD NOT BE REQUIRED TO OBJECT TO THE DELIVERY OF THE BOND TO THE DESIGNATED OWNER OR OWNERS UPON PROPER IDENTIFICATION AND THE OBTAINING OF A RECEIPT THEREFOR FROM SUCH OWNER OR OWNERS.

THE BOND TRANSMITTED WITH YOUR LETTER IS RETURNED HEREWITH FOR DISPOSITION AS HEREIN INDICATED.