The Anti-Assignment Act: A Comprehensive Guide to Its Legal Definition

Definition & Meaning

The Anti-Assignment Act is a federal law that prevents individuals and entities from transferring or assigning claims against the United States government. Codified in 31 USCS § 3727, this statute specifies that assignments can only occur after a claim has been approved, the claim's amount is determined, and a payment warrant has been issued. The assignment must be clearly documented, acknowledged by an official, and witnessed by two individuals.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A contractor has a claim of $5,000 against the federal government for work completed. After the claim is approved and a warrant is issued, the contractor can assign the claim to a bank to secure a loan.

Example 2: A small business receives a payment from the government and wishes to assign that payment to a supplier. They must follow the proper procedures outlined in the Anti-Assignment Act to ensure the assignment is valid.

Comparison with related terms

Term Definition Key Differences
Assignment Transfer of rights or claims to another party. Anti-Assignment Act restricts assignments of claims against the government.
Claim A demand for payment or compensation. Claims must be allowed before they can be assigned under the Anti-Assignment Act.

What to do if this term applies to you

If you are considering assigning a claim against the U.S. government, ensure you understand the requirements of the Anti-Assignment Act. It may be beneficial to consult with a legal professional or utilize US Legal Forms to access templates that can help you navigate the assignment process correctly.

Quick facts

  • Jurisdiction: Federal
  • Minimum claim amount for assignment: $1,000
  • Witness requirement: Two witnesses
  • Official acknowledgment required

Key takeaways

Frequently asked questions

It is a federal law that prohibits the assignment of claims against the U.S. government unless certain conditions are met.