About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-187456 1 (1976-11-04)

handle is hein.gao/gaobadegc0001 and id is 1 raw text is: o ' THE corIV'TROLLER GENERAL DECISION . O aF THE UNTEn STATES 1 - WASHJNGTON. D.C. 2054B FILE: B-187456 DATE: November 4, ac6 MATTER OF: Travelers Indemnity Co. DIGEST: 1. An assignment of accounts receivable from the United States %,,an only be effectively accomplished pursuant to the Assign ment of Claims Act (1940) as amended, 31 U.S.C. B 203, - 41 U.S.C. 15, and a surety does not qualify as a proper assignee, since it is not a financing institution within the meaning of the Act, 2. The Government's right of set-off is superior to that of a surety whose claim is based upon payment to laborers and materialmen under the paymentLond. United States v. Munsey Trust Co., 332 U.S. 234 (1947). The Department of the Air Force, tashington Area Procurement Center, (HQ COND. USAF) Andrews Air Force Base (AFB), Washington, D.C., has requested an advance decisio4 as to whether contract retainages should be paid to Travelers Indemnity Company (Travelers), the contractor's surety and assignee, or to the Internal Revenue Service (IRS). The contractor was required to furnish performance and payment bonds pursuant to the Miller Act, as amended, 40 U.S.C. 6 270a-270e. These bonds were underwritten by Travelers. The contractor subse- quently attempted to assign to Travelers all monies due under the contract.. (No notice of assignment dated and signed by the contract- ing officer is on the recbrd before us.) On May 21, 1976, the contracting officer received and acknoitedged an IRS Notice of Levy for unpaid taxes in the amount of $111,883.25. The Department advises that there is presently diue and owing the sum of $55,687.22 on the contract, performaace having been satisfactorily completed. The record before us shows that various payments were made by Travelers for wages and materials commencing in November 1975 and continuing through June 1976, so that all pay- ments made by Travelers would have been made under the provisions of the payment bond. The firm has not alleged completion of the contract pursuant to the performance bond. I--1J

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most