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B-210638 1 (1984-02-08)

handle is hein.gao/gaobadlnj0001 and id is 1 raw text is: e THE COMPTROLLER GENERAL OEC18ION -'oP T H UNITEO TATES WASHINGTON. O.C. 20546 FILE: B-210638 )T~ OATE: February 8, 1984 Department of Army--Lienholder Claim Under Military Claims Act A lienholder is not a proper party under 10 U.S.C. S 2575 (1982) and is not entitled under that statute to proceeds collected from the Army's sale of unclaimed vehicle even though the vehicle should not have been sold when still subject to a lien. 2. Where Army erroneously sold vehicle subject to claimant's lien and deposited proceeds in Treasury, claimant may be paid in satisfac- tion of its secured interest from appropria- tion for moneys erroneously received and covered into the Treasury, 31 U.S.C. s 1322(b)(2), as there is no other specific appropriation or account available for this purpose. The Chief of the General Claims Branch, Europe, APO New York, has referred to our Office a claim of the Fort Monmouth Federal Credit Union under 10 U.S.C. S 2575 (1982) and DoD Regulation 4160.21-M. The claim concerns the Army's disposal at public auction of a car belonging to a non- commissioned officer in which the claimant had a security interest. Since the Army should not have sold the car prior to the claimant signing a release form, the money collected from the sale was erroneously received and covered into the Treasury as a miscellaneous receipt and may be refunded from the permanent appropriation for moneys so received. 31 U.S.C. S 1322(b)(2). The claimant is not a proper party under 10 U.S.C. S 2575 and therefore is not entitled to the proceeds of the sale under that provision. According to the material submitted with this case, in 1979 under military orders the non-commissioned officer shipped his automobile to Bremerhaven, Germany, from Bayonne, New Jersey. The automobile arrived in Bremerhaven and was kept in an Army terminal. Frequent attempts to con- tact the owner were unsuccessful. On December 8, 1980, the automobile was sold at public auction for $2,400 and this amount was deposited in the Treasury as a miscellaneous O~7~L MATTER OF: DIGEST: 1.

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