An Act to facilitate the financing of the defense contracts by banks and other financing institutions, to amend the Assignment of Claims Act of 1940, and for other purposes
PL 82-30 (S.998), enacted 05/15/1951

65 STAT.] 
PUBLIC LAW 30—MAY 15, 1951 
41 
unit of such property sold, or upon persons en|[:^aged in furnish-
ing services at retail, which is measured by the gross receipts 
for furnishing such services, if the amount of such tax is sepa-
rately stated, then to the extent that the amount so stated is paid 
by the consumer (otherwise than in connection with this con-
sumer's trade or business) to his vendor such amount shall be 
allowed as a deduction in computing the net income of such 
consumer as if such amount constituted a tax imposed upon and 
paid by such consumer." 
SEC. 2. The amendment made by this Act shall apply to taxable 
years beginning after December 31, 1950. 
Approved May 12, 1951. 
Public Law 30 
CHAPTER 75 
AN ACT 
To facilitate the financing of the defense contracts by banks and other financing 
institutions, to amend the Assignment of Claims Act of 1940, and for other 
purposes. 
May 15, 1951 
[S. 998] 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 1 of the 
Assignment of Claims Act of 1940, approved October 9,1940 (54 Stat. 
1029), is amended by striking out all after clause 3 of the proviso and 
inserting in lieu thereof the following: 
"4. That in the event of any such assignment, the assignee thereof 
shall file written notice of the assignment^ogether with a true copy of 
the instrument of assignment with (a) the contracting officer or the 
head of his department or agency; (b) the surety or sureties upon the 
bond or bonds, if any, in connection with siich contract; and (c) the 
disbursing officer, if any, designated in such contract to make payment. 
"Notwithstanding any law to the contrary governing the validity 
of assignments, any assignment pursuant to the Assignment of Claims 
Act of 1940, as amended, shall constitute a valid assignment for all 
purposes. 
"In any case in which moneys due or to become due under any con-
tract are or have been assigned pursuant to this section, no liability 
of any nature of the assignor to the United States or any department 
or agency thereof, whether arising from or independently of such 
contract, shall create or impose any liability on the part of the assignee 
to make restitution, refund, or repayment to the United States of any 
amount heretofore since July 1, 1950, or hereafter received under the 
assignment. 
"Any contract of the Department of Defense, the General Services 
Administration, the Atomic Energy Commission, or any other depart-
ment or agency of the United States designated by the President, 
except any such contract under which full payment has been made, 
may, in time of war or national emergency proclaimed by the Presi-
dent (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, provide 
or be amended without consideration to provide that payments to be 
made to the assignee of any moneys due or to become due under such 
contract shall not be subject to reduction or set-off, and if such pro-
vision 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 
Assignment 
of 
Claims Act of 1940, 
amendment. 
31 U. S. C. § 203; 
Sup. IV, § 203; 41 
U. S. C. S 15. 
Filing of written 
notice by assignee. 
Validity of assign-
ment. 
N o n l i a b i l i t y 
assignee. 
of 
Defense 
Depart-
ment, etc., contracts. 
Set-ofl, etc., of assign-
or's liability to U. S. 
SOU. S. C.,Sup. IV, 
app., note prec. § 2. 
42 
- 
PUBLIC LAW 31—MAY 16, 1951 
[65 STAT. 
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, 
shall not be subject to reduction or set-off for any liability of any 
nature of the assignor to the United States or any department or 
agency thereof which arises independently of such contract, or here-
after for any liability of the assignor on account of (1) renegotiation 
under any renegotiation statute or under any statutory renegotiation 
article in the contract, (2) fines, (3) penalties (which term does not 
include amounts which may be collected or withheld from the assignor 
in accordance with or for failure to comply with the terms of the con-
tract) , or (4) taxes, social security contributions, or the withholding 
or nonwithholding of taxes or social security contributions, whether 
arising from or independently of such contract. 
riorri^ts'e^^"* °* 
"^xccpt as herein otherwise provided, nothing in this Act, as 
amended, shall be deemed to affect or impair rights or obligations 
heretofore accrued." 
Approved May 15, 1951. 
Public Law 31 
CHAPTER 81 
May 16,1951 
^ ^ 
^^'^ 
[H- R- 3291] 
To amend subdivision a of section 34 of the Bankruptcy Act, as amended. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That subdivision a 
iiu^s c^n2(a), ^^ section 34 of the Bankruptcy Act, as amended, is hereby amended 
7
1 (b).' 
' b y adding at the end thereof the following additional sentence: "Upon 
the expiration of his term, a referee in bankruptcy shall continue to 
perform the duties of his office until his successor is appointed and 
qualifies provided the filling of the vacancy has been authorized by 
the Conference as provided m subdivision b of section 43 of this Act.^ 
Approved May 16, 1951. 
Public Law 32 
CHAPTER 82 
May 16,1951 
^'^ 
^^^ 
IH. R. 3292] 
To amend subdivision a of section 55 of the Bankruptcy Act, as amended. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assenribled^ That subdivision 
1
1 u *s c^'s 9
1 (a) ^ ^^ section 55 of the Bankruptcy Act, as amended, is hereby amended 
to read as follows: 
cr^'ftors™^^**"^ "' 
"^- T^^6 court shall cause the first meeting of the creditors of a 
bankrupt to be held not less than ten nor more than* thirty days after 
the adjudication, at the place or at one of the places designated by the 
n u.*s.^^.'§ 6
6 (b) conference pursuant to paragraph (1) of subdivision b of section 37 
(!)• 
of this Act as a place at which court shall be held within the judicial 
district in which the proceeding is pending or if that place would be 
unreasonably inconvenient as a place of meeting for the parties in 
interest, the court shall fix a place for the meeting within said judicial 
district which is not unreasonably inconvenient for the parties in 
interest. If such meeting should by any mischance not be held within 
such time, the court shall fix the date as soon as may be thereafter, 
when it shall be held." 
Approved May 16, 1951.