B-126772, MAR. 12, 1956

B-126772, MAR. 12, 1956

TO THE HONORABLE PHILIP YOUNG, CHAIRMAN, UNITED STATES CIVIL SERVICE COMMISSION:

REFERENCE IS MADE TO LETTERS DATED JANUARY 24 AND MARCH 6, 1956, FROM MR. JACK GOLDBERG, CHIEF, CLAIMS SECTION, RETIREMENT DIVISION, ADDRESSED TO THE CLAIMS DIVISION OF THIS OFFICE REQUESTING ADVICE AS TO THE APPLICABILITY OF SUBSECTION 21/C) OF THE ACT OF JUNE 30, 1953, 67 STAT. 121, 126, TO THE INDEBTEDNESS OF MR. LEWIS C. MELVIN, IN THE AMOUNT OF $519.13 DUE TO A DEFICIENCY IN REPAYMENT OF A MORTGAGE LOAN TO THE FORMER HOME OWNERS LOAN CORPORATION. IT APPEARS THAT BY LETTERS DATED JANUARY 16, 1943, AND MARCH 30, 1944, THE ASSISTANT GENERAL COUNSEL OF THE CORPORATION REQUESTED THE ASSISTANCE OF YOUR COMMISSION IN WITHHOLDING RETIREMENT DEDUCTIONS UNTIL THE DEBTOR SHOULD TAKE STEPS TO PAY THE INDEBTEDNESS.

DECISIONS OF THE COMPTROLLER GENERAL ORDINARILY MAY BE RENDERED ONLY AT THE REQUEST OF A DISBURSING OFFICER, THE HEAD OF A DEPARTMENT OR AGENCY OR AN AUTHORIZED CERTIFYING OFFICER. SEE 31 U.S.C. 74, 82D. IT APPEARS, HOWEVER, THAT MR. MELVIN'S REQUEST FOR REFUND OF HIS RETIREMENT DEDUCTIONS IS BEFORE YOUR OFFICE FOR ADJUDICATION, AND THAT A DETERMINATION AS TO THE EFFECT OF THE STATUTE IS NEEDED IN ORDER TO EXPEDITE THE ACTION. ACCORDINGLY, WE WILL IN THIS INSTANCE REGARD THE REQUEST AS HAVING BEEN MADE IN YOUR BEHALF.

THE FINAL SENTENCE OF SUBSECTION 21/C) OF THE CITED ACT PROVIDES:

"ALL LIENS OF THE CORPORATION UPON REAL OR PERSONAL PROPERTY ON ACCOUNT OF JUDGMENTS RENDERED IN ITS FAVOR, EXCEPT JUDGMENTS FOR MORTGAGE DEBTS WHICH HAVE BEEN ASSIGNED BY THE CORPORATION, AND ALL CLAIMS NOW HELD BY THE CORPORATION ARISING OUT OF ITS MORTGAGES AND REAL ESTATE OPERATIONS, WHETHER FOR RENT OR OTHERWISE, ARE HEREBY RELEASED AND DISCHARGED IN FULL.'

THE LEGISLATIVE HISTORY OF THE ACT CLEARLY INDICATES THAT THIS PROVISION WAS INTENDED TO EXTINGUISH ALL DEBTS, CLAIMS AND JUDGMENTS OWED TO THE CORPORATION AT THE TIME OF ITS LIQUIDATION, WHETHER ON THE BOOKS OF THE CORPORATION OR PREVIOUSLY CHARGED OFF AS UNCOLLECTIBLE, EXCEPT THOSE JUDGMENTS FOR MORTGAGE DEBTS WHICH HAD ALREADY BEEN ASSIGNED. SEE PAGE 22, HOUSE REPORT 653, 83D CONGRESS AND PAGE 18, SENATE REPORT 455, 83D CONGRESS. SEE ALSO PAGE 40, HEARINGS BEFORE THE COMMITTEE ON BANKING AND CURRENCY, UNITED STATES SENATE, EIGHTY THIRD CONGRESS ON S. 1621, S. 1848, S. 1864 AND S. 2103. THUS, IN A PARTICULAR CASE THE DEBT MAY BE REGARDED AS HAVING BEEN RELEASED UNLESS THE RECORD DISCLOSES A PREVIOUS ASSIGNMENT TO ANOTHER GOVERNMENT INSTRUMENTALITY.

FROM THE RECORDS AVAILABLE IN THE INSTANT CASE THERE APPEARS TO HAVE BEEN NO ASSIGNMENT. ACCORDINGLY, THE DEBT MAY BE REGARDED AS HAVING BEEN RELEASED BY THE STATUTE.