31 U.S.C. § 3727 — Assignments of claims

Page 333 TITLE 31—MONEY AND FINANCE § 3727 Subsec. (b)(2). Pub. L. 104–88, § 306(4), added par. (2). Former par. (2) redesignated (3). Subsec. (b)(3). Pub. L. 104–88, § 306(3), (5), redesignated par. (2) as (3) and substituted ‘‘sections 10721, 13712, and 15504’’ for ‘‘sections 10721–10724’’. 1994—Subsec. (b)(1). Pub. L. 103–272, § 5(i)(2), sub- stituted ‘‘section 40102(a) of title 49’’ for ‘‘the Federal Aviation Act of 1958’’. Subsec. (d). Pub. L. 103–272, § 4(f)(1)(N), which directed the substitution of ‘‘miscellaneous receipts’’ for ‘‘mis- cellaneous receipt’’, was repealed by Pub. L. 103–429. 1993—Subsecs. (c) and (d). Pub. L. 103–123 amended subsecs. (c) and (d) generally. Prior to amendment, sub- secs. (c) and (d) read as follows: ‘‘(c) Expenses of transportation audit contracts and contract administration shall be financed from over- payments collected from carriers on transportation bills paid by the Government and other similar type re- funds at not to exceed 40 percent of such collections an- nually. Payment to any contractor shall not exceed 50 percent of the overpayments identified by any contract audit. ‘‘(d) At least annually, and as determined by the Ad- ministrator, after making adequate provision for ex- penses of refunds to carriers, transportation audit con- tracts, and contract administration authorized in sub- section (c), the balance of the overpayments collected by the General Services Administration shall be trans- ferred to miscellaneous receipt of the Treasury. A re- port of receipts, disbursements, and transfers (to mis- cellaneous receipts) pursuant to this section shall be made annually in connection with the budget estimates to the Director of the Office of Management and Budget and to the Congress.’’ 1986—Subsec. (a). Pub. L. 99–627, § 1(1), amended first sentence generally, substituting ‘‘may be paid before the Administrator of General Services conducts an audit, in accordance with regulations that the Admin- istrator shall prescribe’’ for ‘‘shall be paid before the Administrator of General Services conducts an audit’’. Subsecs. (c) to (g). Pub. L. 99–627, § 1(2), (3), added sub- secs. (c) to (e) and redesignated former subsecs. (c) and (d) as (f) and (g), respectively. 1984—Subsec. (b)(1). Pub. L. 98–443 substituted ‘‘Sec- retary of Transportation with respect to foreign air transportation (as defined in the Federal Aviation Act of 1958)’’ for ‘‘Civil Aeronautics Board’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–264 effective 18 months after Oct. 19, 1998, see section 3(b) of Pub. L. 105–264, set out as a note under section 3322 of this title. EFFECTIVE DATE OF 1995 AMENDMENT Amendment by Pub. L. 104–88 effective Jan. 1, 1996, see section 2 of Pub. L. 104–88, set out as an Effective Date note under section 1301 of Title 49, Transpor- tation. EFFECTIVE DATE OF 1994 AMENDMENT Pub. L. 103–429, § 7(a), Oct. 31, 1994, 108 Stat. 4388, pro- vided that the amendment made by that section is ef- fective July 5, 1994. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–443 effective Jan. 1, 1985, see section 9(v) of Pub. L. 98–443, set out as a note under section 5314 of Title 5, Government Organization and Employees. TASK FORCE Pub. L. 99–627, § 2, Nov. 7, 1986, 100 Stat. 3508, provided that: ‘‘(a) Within 60 days after the date of enactment of this Act [Nov. 7, 1986], the Administrator of General Services shall establish a task force to study and inves- tigate the feasibility, desirability, and economy of an integrated, automated system that Federal agencies may use in managing the transportation of property for the United States. ‘‘(b) The task force established under subsection (a) shall— ‘‘(1) be chaired by a representative of the Adminis- trator; ‘‘(2) include representatives of the Department of Defense and other Federal agencies significantly in- volved in the transportation of property for the United States; and ‘‘(3) solicit the views of private businesses with ex- pertise in the matters being considered by the task force. ‘‘(c) In studying and investigating the integrated, automated system, the task force shall consider includ- ing in that system such elements as automated rout- ing, rating, documentation, payment, and auditing. ‘‘(d) Each department, agency, and instrumentality of the Federal Government shall furnish to the task force, upon its request, such data, reports, and other in- formation (not otherwise prohibited by law) as the task force deems necessary to carry out its functions under this section. ‘‘(e) The head of each such department, agency, and instrumentality may provide to the task force such services and personnel as the task force requests on such basis (reimbursable or otherwise) as may be agreed upon between such department, agency, or in- strumentality and the task force. ‘‘(f) The task force shall submit a final report on the results of its study and investigation to the Congress not later than July 1, 1988.’’ § 3727. Assignments of claims (a) In this section, ‘‘assignment’’ means— (1) a transfer or assignment of any part of a claim against the United States Government or of an interest in the claim; or (2) the authorization to receive payment for any part of the claim. (b) An assignment may be made only after a claim is allowed, the amount of the claim is de- cided, and a warrant for payment of the claim has been issued. The assignment shall specify the warrant, must be made freely, and must be attested to by 2 witnesses. The person making the assignment shall acknowledge it before an official who may acknowledge a deed, and the official shall certify the assignment. The certifi- cate shall state that the official completely ex- plained the assignment when it was acknowl- edged. An assignment under this subsection is valid for any purpose. (c) Subsection (b) of this section does not apply to an assignment to a financing institu- tion of money due or to become due under a con- tract providing for payments totaling at least $1,000 when— (1) the contract does not forbid an assign- ment; (2) unless the contract expressly provides otherwise, the assignment— (A) is for the entire amount not already paid; (B) is made to only one party, except that it may be made to a party as agent or trust- ee for more than one party participating in the financing; and (C) may not be reassigned; and (3) the assignee files a written notice of the assignment and a copy of the assignment with the contracting official or the head of the Page 334 TITLE 31—MONEY AND FINANCE § 3728 agency, the surety on a bond on the contract, and any disbursing official for the contract. (d) During a war or national emergency pro- claimed by the President or declared by law and ended by proclamation or law, a contract with the Department of Defense, the General Services Administration, the Department of Energy (when carrying out duties and powers formerly carried out by the Atomic Energy Commission), or other agency the President designates may provide, or may be changed without consider- ation to provide, that a future payment under the contract to an assignee is not subject to re- duction or setoff. A payment subsequently due under the contract (even after the war or emer- gency is ended) shall be paid to the assignee without a reduction or setoff for liability of the assignor— (1) to the Government independent of the contract; or (2) because of renegotiation, fine, penalty (except an amount that may be collected or withheld under, or because the assignor does not comply with, the contract), taxes, social security contributions, or withholding or fail- ing to withhold taxes or social security con- tributions, arising from, or independent of, the contract. (e)(1) An assignee under this section does not have to make restitution of, refund, or repay the amount received because of the liability of the assignor to the Government that arises from or is independent of the contract. (2) The Government may not collect or re- claim money paid to a person receiving an amount under an assignment or allotment of pay or allowances authorized by law when liabil- ity may exist because of the death of the person making the assignment or allotment. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 976.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3727(a) ..... 31:203(1st par. words before 9th comma). R.S. § 3477; May 27, 1908, ch. 206(last par. on p. 411), 35 Stat. 411; Oct. 9, 1940, ch. 779, § 1(related to § 3477), 54 Stat. 1029; May 15, 1951, ch. 75, § 1(related to § 1 related to § 3477), 65 Stat. 41. 3727(b) ..... 31:203(1st par. words after 9th comma, 3d, last pars.). 3727(c) ..... 31:203(2d par.). 3727(d) ..... 31:203(5th par.). 3727(e)(1) 31:203(4th par.). 3727(e)(2) 31:239. Aug. 10, 1956, ch. 1041, § 45, 70A Stat. 638. In subsection (a)(1), the words ‘‘or share thereof’’ and ‘‘whether absolute or conditional, and whatever may be the consideration therefor’’ are omitted as surplus. In clause (2), the word ‘‘authorization’’ is substituted for ‘‘powers of attorney, orders, or other authorities’’ to eliminate unnecessary words. In subsections (b) and (c), the word ‘‘official’’ is sub- stituted for ‘‘officer’’ for consistency in the revised title and with other titles of the United States Code. In subsection (b), the words ‘‘Except as hereinafter provided’’ are omitted as unnecessary. The words ‘‘read and’’ are omitted as surplus. The words ‘‘to the person acknowledging the same’’ are omitted as unnecessary. The text of 31:203(1st par. last sentence) is omitted as superseded by 39:410. The words ‘‘Notwithstanding any law to the contrary governing the validity of assign- ments’’ and the text of 31:203(last par.) are omitted as unnecessary. In subsection (c), before clause (1), the words ‘‘bank, trust company, or other . . . including any Federal lending agency’’ are omitted as surplus. The words ‘‘of money due or to become due under a contract providing for payments totaling at least $1,000’’ are substituted for ‘‘in any case in which the moneys due or to become due from the United States or from any agency or de- partment thereof, under a contract providing for pay- ments aggregating $1,000 or more’’ to eliminate unnec- essary words. The text of 31:203(2d par. proviso cl. 1) is omitted as executed. In clause (1), the words ‘‘in the case of any contract entered into after October 9, 1940’’ are omitted as executed. In clause (2)(A), the words ‘‘payable under such contract’’ are omitted as surplus. In clause (3), the words ‘‘true’’ and ‘‘instrument of’’ are omitted as surplus. The words ‘‘department or’’ are omitted because of the restatement. The words ‘‘if any’’ and ‘‘to make payment’’ are omitted as surplus. In subsection (d), before clause (1), the words ‘‘During a war or national emergency proclaimed by the Presi- dent or declared by law and ended by proclamation or law’’ are substituted for ‘‘in time of war or national emergency proclaimed by the President (including the national emergency proclaimed December 16, 1950) or by Act or joint resolution of the Congress and until such war or national emergency has been terminated in such manner’’ to eliminate unnecessary words. The words ‘‘Department of Energy (when carrying out du- ties and powers formerly carried out by the Atomic En- ergy Commission)’’ are substituted for ‘‘Atomic Energy Commission’’ (which was reconstituted as the Energy Research and Development Administration by 42:5813 and 5814) because of 42:7151(a) and 7293. The words ‘‘other department or . . . of the United States . . . ex- cept any such contract under which full payment has been made’’ and ‘‘of any moneys due or to become due under such contract’’ before ‘‘shall not be subject’’ are omitted as surplus. The words ‘‘A payment subse- quently due under the contract (even after the war or emergency is ended) shall be paid to the assignee with- out’’ are substituted for ‘‘and if such provision or one to the same general effect has been at any time here- tofore or is hereafter included or inserted in any such contract, payments to be made thereafter to an as- signee of any moneys due or to become due under such contract, whether during or after such war or emer- gency . . . hereafter’’ to eliminate unnecessary words. The words ‘‘of any nature’’ are omitted as surplus. In clause (1), the words ‘‘or any department or agency thereof’’ are omitted as unnecessary. In clause (2), the words ‘‘under any renegotiation statute or under any statutory renegotiation article in the contract’’ are omitted as surplus. Subsection (e)(1) is substituted for 31:203(4th par.) to eliminate unnecessary words. In subsection (e)(2), the words ‘‘person receiving an amount under an assignment or allotment’’ are sub- stituted for ‘‘assignees, transferees, or allottees’’ for clarity and consistency. The words ‘‘or to others for them’’ and ‘‘with respect to such assignments, trans- fers, or allotments or the use of such moneys’’ are omitted as surplus. The words ‘‘person making the as- signment or allotment’’ are substituted for ‘‘assignors, transferors, or allotters’’ for clarity and consistency. § 3728. Setoff against judgment (a) The Secretary of the Treasury shall with- hold paying that part of a judgment against the United States Government presented to the Sec- retary that is equal to a debt the plaintiff owes the Government. (b) The Secretary shall— (1) discharge the debt if the plaintiff agrees to the setoff and discharges a part of the judg- ment equal to the debt; or (2)(A) withhold payment of an additional amount the Secretary decides will cover legal