Setoff of Payments Retained under a Contract in Which the Contractor Defaulted
B-167886,B-174985: Jun 1, 1978
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A state agency appealed a settlement determining that the setoff of payments, retained under a contract in which the contractor defaulted, against debts owed to the government by the surety was proper. Although the surety is now being liquidated in a state court proceeding, the setoff was affirmed because the debts and credits being set off accrued before the liquidation.
