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B-186783 1 (1976-08-20)

handle is hein.gao/gaobaddhd0001 and id is 1 raw text is: * -I. -~' * 6 Cd FILE: B- 86783 MATTER OF: DIGEST: DATE: AUG 20W176 9 Robert R. Pugh - Relocation Expenses - Initial Service Charge Transferred civilian employee of Army Corps of Engineers seeking reimbursement of initial service charge incurred incident to purchase of new residence may not be reimbursed since Federal Travel Regulations, FPMR 101-7t (May 1973), para. 2-6.2d preclude reimburse- ment of any item determined to be finance charge under Federal Reserve Board Regulation . Reliance on superseded regulation can form no basis for reimbursement. Survey, photo- graph, and legal (closing) fees may be reimbursed because they are excludable from finance charge. This action is taken in response to an appeal by Mr. Robert R. Pugh, -an employee of the Department of the Army U.S. Corps of Entineers, of a settlement letter DWZ-255430-KBR-.2 issued by our Claims Division on e¶ay 6, 1975, denying his claim for reimbursement of an initial zvortgage service charge of' 1490. The record'discloses that, pursuant to Travel Order No. 456, issued August 20, 1973, Mr. Pugh was transferred from Pineville, West -Virginia, to Paintsville, Kentucky, and that he incurred certain expenses incident to the purchase of a new residence. The Loan Settlement Statement, dated August 23, 1973, included $630 as an Initial Service Charge, which was 2 per cent of the mortgage loan. No further itemization of the $630 was set out in the Settlement Statement. However, the record does contain an unsigned and undated Itemnization of Closing Costs on the stationery of the mortgagee, the First Federal Savings and Loan Association, Paintsville, Kentucky, which breaks down the fee as follows: THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON,. D. C. 20548 V

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