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The Assignment of Claims Act of 1940: Assignee v. Surety
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Editors, Law Review (1952) "The Assignment of Claims Act of 1940: Assignee v. Surety," University of Chicago Law Review : Vol. 20: Iss. 1, Article 7. Available at: https://chicagounbound.uchicago.edu/uclrev/vol20/iss1/7
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22 U.S. Code § 2392 - Government agencies
The President may allocate or transfer to any agency of the United States Government any part of any funds available for carrying out the purposes of this chapter, including any advance to the United States Government by any country or international organization for the procurement of commodities, defense articles, military education and training, or services (including defense services) . Such funds shall be available for obligation and expenditure for the purposes for which authorized, in accordance with authority granted in this chapter or under authority governing the activities of the agencies of the United States Government to which such funds are allocated or transferred.
Any officer of the United States Government carrying out functions under this chapter may utilize the services (including defense services ) and facilities of, or procure commodities, defense articles , or military education and training from, any agency of the United States Government as the President shall direct, or with the consent of the head of such agency, and funds allocated pursuant to this subsection to any such agency may be established in separate appropriation accounts on the books of the Treasury.
In the case of any commodity , service, or facility procured from any agency of the United States Government to carry out subchapter I of this chapter, reimbursement or payment shall be made to such agency from funds available to carry out such subchapter. Such reimbursement or payment shall be at replacement cost, or, if required by law, at actual cost, or, in the case of services procured from the Department of Defense to carry out part VIII of subchapter I of this chapter, the amount of the additional costs incurred by the Department of Defense in providing such services, or at any other price authorized by law and agreed to by the owning or disposing agency. The amount of any such reimbursement or payment shall be credited to current applicable appropriations, funds, or accounts, from which there may be procured replacements of similar commodities, services, or facilities, except that where such appropriations, funds, or accounts are not reimbursable except by reason of this subsection, and when the owning or disposing agency determines that such replacement is not necessary, any funds received in payment therefor shall be deposited into the Treasury as miscellaneous receipts.
Except as otherwise provided in section 2318 of this title , reimbursement shall be made to any United States Government agency, from funds available for use under subchapter II of this chapter, for any assistance furnished under subchapter II of this chapter, from, by, or through such agency. Such reimbursement shall be in an amount equal to the value (as defined in section 2403(m) of this title ) of the defense articles or of the defense services (other than salaries of members of the Armed Forces of the United States), or other assistance furnished, plus expenses arising from or incident to operations under subchapter II of this chapter (other than salaries of the Armed Forces of the United States and unfunded estimated costs of civilian retirement and other benefits). The amount of such reimbursement shall be credited to the current applicable appropriations, funds, or accounts of such agency.
In furnishing assistance under this chapter, accounts may be established on the books of any agency of the United States Government or, on terms and conditions approved by the Secretary of the Treasury, in banking institutions in the United States, (1) against which letters of commitment may be issued which shall constitute recordable obligations of the United States Government, and moneys due or to become due under such letters of commitment shall be assignable under the Assignment of Claims Act of 1940 , as amended [1] (second and third paragraphs of 31 U.S.C. 203 and 41 U.S.C. 15 ), and (2) from which disbursements may be made to, or withdrawals may be made by, recipient countries or agencies, organizations, or persons upon presentation of contracts, invoices, or other appropriate documentation. Expenditure of funds which have been made available through accounts so established shall be accounted for on standard documentation required for expenditure of funds of the United States Government: Provided, That such expenditures for commodities, defense articles, military education and training, services (including defense services) , or facilities procured outside the United States may be accounted for exclusively on such certification as may be prescribed in regulations approved by the Comptroller General of the United States.
Credits made by the Export-Import Bank of the United States with funds allocated thereto under subsection (a) of this section or under section 1782(a) 1 of this title, shall not be considered in determining whether the Bank has outstanding at any one time loans and guaranties to the extent of the limitation imposed by section 635e of title 12 .
Any appropriation or account available to carry out provisions of subchapter I of this chapter may initially be charged in any fiscal year, within the limit of available funds, to finance expenses for which funds are available in other appropriations or accounts under subchapter I of this chapter: Provided, That as of the end of such fiscal year such expenses shall be finally charged to applicable appropriations or accounts with proper credit to the appropriations or accounts initially utilized for financing purposes: Provided further, That such final charge to applicable appropriations or accounts shall not be required in the case of expenses (other than those provided for under section 2397(a) of this title ) incurred in furnishing assistance by the agency primarily responsible for administering subchapter I of this chapter where it is determined that the accounting costs of identifying the applicable appropriation or account to which such expenses should be charged would be disproportionate to the advantage to be gained.
This chapter, referred to in subsecs. (a), (b), and (e), was in the original “this Act”, meaning Pub. L. 87–195 , Sept. 4, 1961 , 75 Stat. 424 , known as the Foreign Assistance Act of 1961 . For complete classification of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
The Assignment of Claims Act of 1940 , as amended, referred to in subsec. (e), means act Oct. 9, 1940, ch. 779, 54 Stat. 1029 , which added the second and third pars. to section 203 of former Title 31, Money and Finance, and the second and third pars. to section 15 of former Title 41, Public Contracts. Section 203 of former Title 31 was repealed by Pub. L. 97–258, § 5(b) , Sept. 13, 1982 , 96 Stat. 1068 , and reenacted by the first section thereof as section 3727 of Title 31 , Money and Finance. Such second and third pars. were restated in section 3727(b) (last sentence) and (c) of Title 31. Section 15 of former Title 41 was amended generally by Pub. L. 103–355, title II, § 2451 , Oct. 13, 1994 , 108 Stat. 3324 , and was repealed and restated as section 6305 of Title 41 , Public Contracts, by Pub. L. 111–350 , §§ 3, 7(b), Jan. 4, 2011 , 124 Stat. 3677 , 3855.
Section 1782(a) of this title , referred to in subsec. (f), was repealed by Pub. L. 87–195 , pt. III, § 642(a)(2), Sept. 4, 1961 , 75 Stat. 460 .
1989—Subsec. (d). Pub. L. 101–165 inserted at end of second sentence “(other than salaries of the Armed Forces of the United States and unfunded estimated costs of civilian retirement and other benefits)”.
1988—Subsec. (c). Pub. L. 100–690 inserted “or, in the case of services procured from the Department of Defense to carry out part VIII of subchapter I of this chapter, the amount of the additional costs incurred by the Department of Defense in providing such services,” after “at actual cost,”.
1976—Subsec. (a). Pub. L. 94–329, § 106(b)(4)(A) , inserted “military education and training” after “articles”.
Subsec. (b). Pub. L. 94–329, § 106(b)(4)(B) , substituted “defense articles, or military education and training” for “and defense articles” .
Subsec. (e). Pub. L. 94–329, § 106(b)(4)(A) , inserted “military education and training” after “articles”.
1968—Subsec. (d). Pub. L. 90–629 struck out references to sections 2342 and 2343 of this title in the exception provision.
1967—Subsec. (d). Pub. L. 90–137 substituted reference to sections 2318, 2342, and 2343 for former reference to sections 2315 and 2318 of this title.
References to subchapter I of this chapter are deemed to include parts IV ( § 2346 et seq.), VI (§ 2348 et seq.), and VIII (§ 2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of Pub. L. 92–226 , set out as a note under section 2346 of this title , and sections 2348c and 2349aa–5 of this title.
“Export-Import Bank of Washington” changed to “ Export-Import Bank of the United States ” in text to conform to such change in name in the Export-Import Bank Act of 1945 , section 635 et seq. of Title 12, Banks and Banking, provided for in section 1(a) of Pub. L. 90–267 , Mar. 13, 1968 , 82 Stat. 47 .
Amendment by Pub. L. 90–629 effective July 1, 1968 , see section 41 of Pub. L. 90–629 , set out as an Effective Date note under section 2751 of this title .
Charge of expenses to appropriation or account not affected by provisions for accounting adjustments between appropriations, see section 3 of Pub. L. 89–473 , June 29, 1966 , 80 Stat. 221 , set out as a note under section 628a of Title 31 , Money and Finance.
For delegation of functions of President under this section, see Ex. Ord. No. 12163 , Sept. 29, 1979 , 44 F.R. 56673 , as amended, set out as a note under section 2381 of this title .
FAC Number: 2024-05 Effective Date: 05/22/2024
32.800 Scope of subpart.
This subpart prescribes policies and procedures for the assignment of claims under the Assignment of Claims Act of1940, as amended, ( 31 U.S.C.3727 , 41 U.S.C.6305 ) (hereafter referred to as "the Act").
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IMAGES
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COMMENTS
(a) Any assignment of claims that has been made under the Act to any type of financing institution listed in 32.802(b) may thereafter be further assigned and reassigned to any such institution if the conditions in 32.802(d) and (e) continue to be met. (b) A contract may prohibit the assignment of claims if the agency determines the prohibition to be in the Government's interest.
31 U.S. Code § 3727 - Assignments of claims. a transfer or assignment of any part of a claim against the United States Government or of an interest in the claim; or. the authorization to receive payment for any part of the claim. An assignment may be made only after a claim is allowed, the amount of the claim is decided, and a warrant for ...
Formerly, assignment of claims against the government had been barred.2 The Act of 1940 enabled lenders to accept as se-curity assignments by contractors of payments due and to become due under such contracts. Banking interests attribute the success of the World. War II V-loan program to the liberalizing effect of the 1940 Act.3.
claims act of 1940. and the 1951. amendments. james m. condon*. It is clear that neither the Assignment of Claims Act of 19401 or its. 1951 amendments2 altered the priorities established by the courts. In decisions as recent as 1969 and 1970 in National Shawmut Bank. of Boston v. New Amsterdam Casualty Company and in Home.
Assignment of Claims Act of 1940. Assignment of Claims Act of 1940. Oct. 9, 1940, ch. 779, 54 Stat. 1029. Pub. L. 106-113. div. B, Sec. 1000 (a) (7) [div. B] this act refers to only a portion of the Public Law; the tables below are for the entire Public Law. Classification.
To mitigate this risk, the Assignment of Claims Act of 1940 (31 U.S.C. § 3727, 41 U.S.C. § 15) should be consulted.The Assignment of Claims Act permits a government contractor to assign its right to receivables due under a federal contract only if certain conditions are met, including (1) that the contract does not prohibit the assignment and ...
52.232-23 Assignment of Claims. The Contractor, under the Assignment of Claims Act, as amended, 31 U.S.C.3727, 41 U.S.C.6305 (hereafter referred to as "the Act"), may assign its rights to be paid amounts due or to become due as a result of the performance of this contract to a bank, trust company, or other financing institution, including any ...
This subpart prescribes policies and procedures for the assignment of claims under the Assignment of Claims Act of 1940, as amended, (31 U.S.C. 3727, 41 U.S.C. 6305) (hereafter referred to as the Act). [48 FR 42328, Sept. 19, 1983, as amended at 51 FR 2665, Jan. 17, 1986; 79 FR 24212, Apr. 29, 2014]
A. A. D., JR. Assignment of Claims Act of 1940. The Assignment of Claims Act of 19401 was enacted to assist the national defense program by amending Sections 34772 and. 42. As early as 1852 New Hampshire had a retaliatory tax law applying to insurance companies. See Haverhill Ins. Co. v. Prescott, 42 N. H. 547, 551. (1861).
The Assignment of Claims Act of 1940: Assignee v. Surety. Authors. Law Review Editors Follow. Start Page. 119. Recommended Citation. Editors, Law Review (1952) "The Assignment of Claims Act of 1940: Assignee v. Surety," University of Chicago Law Review: Vol. 20: Iss. 1, Article 7.
1951-Act May 15, 1951, made it clear that a bank or other financing institution taking an assignment of claims pursuant to this section would not be subject to later recovery by the Government of amounts previously paid to the bank by the assignee except in cases of fraud. 1940-Act Oct. 9, 1940, inserted second and third pars.
The Assignment of Claims Act (31 U.S.C. § 3727, 41 U.S.C. § 6305) was passed in 1940 and provides for an important function in government contract financing. One of the benefits of the assignment of claims policy is to authorize third-party financial institutions to collect on payments made to contractors for performance of a federal contract.
THE ASSIGNMENT OF GOVERNMENT CONTRACTS AS COLLATERAL. Outstanding among recent legislation designed to improve the position of small business in a defense economy ' is the Assignment of Claims Act of 1940.2 The greater risk involved in loans to smaller concerns places them at a competitive disadvantage in satisfying their credit needs.3 Ad ...
The Assignment of Claims Act of 1940, as amended, referred to in subsec. (e), means act Oct. 9, 1940, ch. 779, 54 Stat. 1029, which added the second and third pars. to section 203 of former Title 31, Money and Finance, and the second and third pars. to section 15 of former Title 41, Public Contracts.
The Assignment of Claims Act of 1940 (Assignment of Claims Act or Act) 3 . addressed this problem by allowing the government contractor to assign its government receivables as collateral for commercial loans. 4. Much of the lending to government contractors takes the form of lines
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 ...
32.800 Scope of subpart. This subpart prescribes policies and procedures for the assignment of claims under the Assignment of Claims Act of1940, as amended, ( 31 U.S.C.3727, 41 U.S.C.6305) (hereafter referred to as "the Act"). Parent topic: Subpart 32.8 - Assignment of Claims.
On May 15,1951, an amendment to the Assignment of Claims Act of 1940 became law. Its purpose is to facilitate the financing of defense contracts by banks and other financing institutions. This legislation clarifies the rights of financing institutions taking assign ments of moneys due or to become due under government contracts as security for ...
Assignment of Claims Act of 1940, as amended, 31 U. S. C. 203, 41 U. S. C. 15 (1970). Under 31 U. S. C. 203 (1970) moneys due under a Government contract may be assigned to a "bank, trust company, or other financing institution. " Assignees are required to comply -with requirement for written notice of assignments as provided in the Act. ...
We are often asked, by lenders and borrowers alike, what the current market trend is with respect to lenders requiring documentation proscribed by the Federal Assignment of Claims Act of 1940, as ...
Assignment of Claims Act means the Assignment of Claims Act of 1940 (41 U.S.C. Section 15, 31 U.S.C. Section 3737, and 31 U.S.C. Section 3727), including all amendments thereto and regulations promulgated thereunder. United States Bankruptcy Code means the Bankruptcy Reform Act of 1978, as amended and as codified in Title 11 of the United ...