B-104273 August 20, 1951

B-104273 August 20, 1951

Mr. William L. Lynn P. O. Box 27 Denver, Tennessee

Dear Mr. Lynn:

Reference is made to your letter of May 21, 1951, acknowledged on June 20, with regard to Office settlement of March 28, 1951, which $1,088.95 as of April 16, 1951, on account of your default on a promissory note executed by you to the order of The First National Bank in Tuscombia, Tuscombia, Alabama, which indebtedness is set out in detail in the settlement.

You state that since the house and lot in Hartselle, Alabama, which you arranged to purchase in June, 1947, was turned back to the bank three years ago and has been resold you do not feel that you are indebted therefor.

The record shows that on June 17, 1947, you executed a mortgage note in the amount of $3,150, with interest to be payable to The First National Bank in Tuscumbia in monthly installaments of $19.09 commencing on July 1, 1947. The record also shows that said note was secured by real estate in Hartselle, Alabama, apparently the house and let you refer to in your letter of May 21, 1951. The record further shows that the bank requested authority to foreclose the mortgage because you were delinquent in your payments and that such authority was granted.

Aa a result of such foreclosure The First National Bank in Tuscumbia presented a claim for $998.02, and under the guaranty provisions of the Servicemen's Readjustment Act of 1944, as amended, 59 Stat. 623, payment was made by the Veterans Administration in that amount on January 7, 1949, which amount plus interest at 4 percent per annum from January 7, 1949, constitutes the amount of your indebtedness to the United States on account of your default on said loan.

Accordingly, the settlement of March 28, 1951, holding you indebted to the United States in the amount of $998.02 plus interest at the rate of 4 percent per annum from January 7, 1949, is sustained and you are requested to liquidate said indebtedness by remittance within 30 days to the General Accounting Office, Claims Division, Washington 25, D. C. , by check, draft or money order, payable to the Treasurer of the United States. However, if payment in a lump sum would work a hardship upon you, this Office will not object to the liquidation of the debt by installment payments periodcally made so that the indebtness may be paid within a reasonable time not in excess of one year. Unless you make satisfactory arrangements to take care of the matter as set out above, it will be necessary to institute more formal collection proceedings against you.

Very truly yours,

Lindsay C. Warren

Comptroller General of the United States