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![handle is hein.gao/gaobadlyh0001 and id is 1 raw text is:
THE COMPTROLLER UU11NENAL
OECmSION Op TMU UNITED STATES
WASIHINGTON, 0.0. Uo4U
B-216246 October 2, 1984
PILE: DATE:
Request for Advance Decision from Army
MATTER OF: Finance and Accounting Officer
DIGEST:
Where assignment was properly executed and
notice given, in accordance with statutory
requirements., the assignee is entitled vo
payment. Obligor (United States. in this
case) which had notice of valid assignment
and, nevertheless, paid assignor is liable to
the assignee for amount of erroneous payment.
The Finance and Accounting Officer (FAO), Headquarters
Tobyhanna Army Depot (TOAD), Tobyhanna, Pennsylvania,
requests an advance decision in connection with an erroneo- --
payment of contract funds to a contractor, Navigation Sys-
tems, Inc. (NSI), which had assigned these funds to the
Lorain National Bank (Lorain) pursuant to the Assignment of-
Claims Act of 1940, as amended, 31 U.S.C. 6 3727, 41 U.S.C.-
§ 15 (1982).
On May 31, 1984, the FAO paid contract proceeds of
$12,459.72 to NSI under TOAD contract No. DAAG-38-84-M-0854.
Subsequent to this payment, the FAO discovered that the con-
tract file contained a notice of assignment executed by an
NSI official, and acknowledged by the contracting officer on-
April 30, 1984, assigning to Lorain $12,350 and any addi-
tional proceeds which might become payable later. By the
instrument of assignment, NSI and Lorain agreed that Lorain.
was to deposit the contract proceeds into the account of
Western Reserve Tool and Machine Company (Western), a sub-
contractor to NSI. To date, the Army has attempted, without
success, to recoup the $12,459.72 from NSI.
In his request for an advance decision, the FAO asks
the following questions:
Ma. Is this Office . . . obligated to make
* * . payment to (Western]?
b. Is this Office obligated to make an
additional payment to the assignee, [Lorain],
or, since this Office has already made](ViewImageLocal?handle=hein.gao/gaobadlyh0001&div=1&collection=&method=preview&ext=.png&size=3)