[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 39USC2005]
TITLE 39--POSTAL SERVICE
PART III--MODERNIZATION AND FISCAL ADMINISTRATION
CHAPTER 20--FINANCE
Sec. 2005. Obligations
(a)(1) The Postal Service is authorized to borrow money and to issue
and sell such obligations as it determines necessary to carry out the
purposes of this title. The aggregate amount of any such obligations
outstanding at any one time shall not exceed the maximum amount then
allowable under paragraph (2) of this subsection. In any one fiscal year
the net increase in the amount of obligations outstanding issued for the
purpose of capital improvements shall not exceed $2,000,000,000, and the
net increase in the amount of obligations outstanding issued for the
purpose of defraying operating expenses of the Postal Service shall not
exceed $1,000,000,000.
(2) The maximum amount allowable under this paragraph is--
(A) $10,000,000,000 for fiscal year 1990;
(B) $12,500,000,000 for fiscal year 1991; and
(C) $15,000,000,000 for fiscal year 1992 and each fiscal year
thereafter.
(b) The Postal Service may pledge the assets of the Postal Service
and pledge and use its revenues and receipts for the payment of the
principal of or interest on such obligations, for the purchase or
redemption thereof, and for other purposes incidental thereto, including
creation of reserve, sinking, and other funds which may be similarly
pledged and used, to such extent and in such manner as it deems
necessary or desirable. The Postal Service is authorized to enter into
binding covenants with the holders of such obligations, and with the
trustee, if any, under any agreement entered into in connection with the
issuance thereof with respect to the establishment of reserve, sinking,
and other funds, application and use of revenues and receipts of the
Postal Service, stipulations concerning the subsequent issuance of
obligations or the execution of leases or lease purchases relating to
properties of the Postal Service and such other matters as the Postal
Service deems necessary or desirable to enhance the marketability of
such obligations.
(c) Obligations issued by the Postal Service under this section--
(1) shall be in such forms and denominations;
(2) shall be sold at such times and in such amounts;
(3) shall mature at such time or times;
(4) shall be sold at such prices;
(5) shall bear such rates of interest;
(6) may be redeemable before maturity in such manner, at such
times, and at such redemption premiums;
(7) may be entitled to such relative priorities of claim on the
assets of the Postal Service with respect to principal and interest
payments; and
(8) shall be subject to such other terms and conditions;
as the Postal Service determines.
(d) Obligations issued by the Postal Service under this section
shall--
(1) be negotiable or nonnegotiable and bearer or registered
instruments, as specified therein and in any indenture or covenant
relating thereto;
(2) contain a recital that they are issued under this section,
and such recital shall be conclusive evidence of the regularity of
the issuance and sale of such obligations and of their validity;
(3) be lawful investments and may be accepted as security for
all fiduciary, trust, and public funds, the investment or deposit of
which shall be under the authority or control of any officer or
agency of the Government of the United States, and the Secretary of
the Treasury o
