§ 2006. — Relationship between the Treasury and the Postal Service.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 39USC2006]
TITLE 39--POSTAL SERVICE
PART III--MODERNIZATION AND FISCAL ADMINISTRATION
CHAPTER 20--FINANCE
Sec. 2006. Relationship between the Treasury and the Postal
Service
(a) At least 15 days before selling any issue of obligations under
section 2005 of this title, the Postal Service shall advise the
Secretary of the Treasury of the amount, proposed date of sale,
maturities, terms and conditions, and expected maximum rates of interest
of the proposed issue in appropriate detail and shall consult with him
or his designee thereon. The Secretary may elect to purchase such
obligations under such terms, including rates of interest, as he and the
Postal Service may agree, but at a rate of yield no less than the
prevailing yield on outstanding marketable Treasury securities of
comparable maturity, as determined by the Secretary. If the Secretary
does not purchase such obligations, the Postal Service may proceed to
issue and sell them to a party or parties other than the Secretary upon
notice to the Secretary and upon consultation as to the date of
issuance, maximum rates of interest, and other terms and conditions.
(b) Subject to the conditions of subsection (a) of this section, the
Postal Service may require the Secretary of the Treasury to purchase
obligations of the Postal Service in such amounts as will not cause the
holding by the Secretary of the Treasury resulting from such required
purchases to exceed $2,000,000,000 at any one time. This subsection
shall not be construed as limiting the authority of the Secretary to
purchase obligations of the Postal Service in excess of such amount.
(c) Notwithstanding section 2005(d)(5) of this title, obligations
issued by the Postal Service shall be obligations of the Government of
the United States, and payment of principal and interest thereon shall
be fully guaranteed by the Government of the United States, such
guaranty being expressed on the face thereof, if and to the extent
that--
(1) the Postal Service requests the Secretary of the Treasury to
pledge the full faith and credit of the Government of the United
States for the payment of principal and interest thereon; and
(2) the Secretary, in his discretion, determines that it would
be in the public interest to do so.
(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 741.)
