Section 27-3250. ASSIGNMENT OF CONTRACT PAYMENTS BY CONTRACTORS

 

3250.1A contractor may assign moneys due or to become due under a contract if all the following conditions are met:

 

(a)The contract specifies payments aggregating one thousand dollars ($1,000) or more;

 

(b)The assignment is made to a bank, trust company, or other financing institution; and

 

(c)The contract does not prohibit the assignment.

 

3250.2Unless otherwise expressly permitted in the contract, an assignment shall cover all unpaid amounts payable under the contract.

 

3250.3Unless expressly permitted in the contract, an assignment may be made only to one (1) party, except that any assignment may be made to one (1) party as agent or trustee for two (2) or more parties participating in the financing of the contract.

 

3250.4Unless expressly permitted in the contract, an assignment of contract payments shall not be subject to further assignment.

 

3250.5The assignee shall be required to send written notice of assignment together with a true copy of the assignment instrument to the following in accordance with §3251.4:

 

(a)The contracting officer;

 

(b)The surety on any bond applicable to the contract; and

 

(c)The disbursing officer designated in the contract to make payment.

 

3250.6A contract may prohibit the assignment of contract payments if the contracting officer determines that the prohibition is in the best interests of the District.

 

3250.7Under a requirements or indefinite quantity type contract that authorizes ordering and payment by multiple District agencies, amounts due based on estimated quantities may be assigned.

 

3250.8The District may apply against payments to the assignee any liability of the contractor to the District arising independently of the assigned contract if the liability existed at the time notice of the assignment was received even though that liability had not yet matured so as to be due and payable.

 

source

Final Rulemaking published at 35 DCR 1646 (February 26, 1988).