https://www.gao.gov/products/106179

B-167886,B-174985: Jun 1, 1978

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...

https://www.gao.gov/products/402581

B-167886,B-174985: Jun 1, 1978

DIGEST: SETOFF OF PAYMENTS RETAINED UNDER CONTRACT AGAINST DEBTS OWED GOVERNMENT BY PERFORMANCE BOND SURETY THAT COMPLETED CONTRACT IS PROPER EVEN THOUGH SURETY IS BEING LIQUIDATED IN STATE COURT PROCEEDING. FEDERAL WAS AWARDED CONTRACT NO. 116.06 WERE RETAINED BY THE GOVERNMENT. THIS AMOUNT WAS SET OFF AGAINST THE $22. ITS RIGHT TO THEM AS A COMPLETING SURETY UNDER A PERFORMANCE BOND WAS RECOGNIZ...