
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC3727]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
                           CHAPTER 37--CLAIMS
 
       SUBCHAPTER III--CLAIMS AGAINST THE UNITED STATES GOVERNMENT
 
Sec. 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 decided, 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 certificate 
shall state that the official completely explained the assignment when 
it was acknowledged. 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 institution of money due or to become due under a 
contract providing for payments totaling at least $1,000 when--
        (1) the contract does not forbid an assignment;
        (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 trustee 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 agency, the surety on a bond on the contract, and any disbursing 
    official for the contract.

    (d) During a war or national emergency proclaimed 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 
consideration to provide, that a future payment under the contract to an 
assignee is not subject to reduction or setoff. A payment subsequently 
due under the contract (even after the war or emergency 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 failing to withhold taxes or social 
    security contributions, 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 reclaim money paid to a person 
receiving an amount under an assignment or allotment of pay or 
allowances authorized by law when liability 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    R.S. Sec
.  3477; May 27, 1908, ch.
                                        9th comma).                     206(las
t par. on p. 411), 35 Stat. 411;
                                                                        Oct. 9,
 1940, ch. 779, Sec.  1(related
                                                                        to Sec.
  3477), 54 Stat. 1029; May 15,
                                                                        1951, c
h. 75, Sec.  1(related to Sec.  1
                                                                        related
 to Sec.  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, Sec.  45, 70A
                                                                        Stat. 6
38.
-------------------------------------------------------------------------------
---------------------------------

    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 substituted 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 assignments'' 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 department thereof, under a 
contract providing for payments aggregating $1,000 or more'' to 
eliminate unnecessary 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 President 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 duties and powers formerly 
carried out by the Atomic Energy 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 . . . except 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 subsequently due under the contract (even after the war or 
emergency is ended) shall be paid to the assignee without'' are 
substituted for ``and if such provision or one to the same general 
effect has been at any time heretofore or is hereafter included or 
inserted in any such contract, payments to be made thereafter to an 
assignee of any moneys due or to become due under such contract, whether 
during or after such war or emergency . . . 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 substituted for ``assignees, 
transferees, or allottees'' for clarity and consistency. The words ``or 
to others for them'' and ``with respect to such assignments, transfers, 
or allotments or the use of such moneys'' are omitted as surplus. The 
words ``person making the assignment or allotment'' are substituted for 
``assignors, transferors, or allotters'' for clarity and consistency.

                  Section Referred to in Other Sections

    This section is referred to in title 22 sections 2392, 4060; title 
25 section 1725; title 26 section 6422; title 43 section 1628; title 50 
section 1651.
