-CITE-

39 USC CHAPTER 20 - FINANCE 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

CHAPTER 20 - FINANCE

-MISC1-

Sec.

2001. Definitions.

2002. Capital of the Postal Service.

2003. The Postal Service Fund.

[2004. Repealed.]

2005. Obligations.

2006. Relationship between the Treasury and the Postal

Service.

2007. Public debt character of the obligations of the Postal

Service.

2008. Audit and expenditures.

2009. Annual budget.

2009a. Budgetary treatment of the Postal Service Fund.

2010. Restrictions on agreements.

AMENDMENTS

1997 - Pub. L. 105-33, title VII, Sec. 7003(a)(2)(A), Aug. 5,

1997, 111 Stat. 663, struck out item 2004 "Transitional

appropriations".

1989 - Pub. L. 101-239, title IV, Sec. 4001(a)(2), Dec. 19, 1989,

103 Stat. 2133, added item 2009a.

-End-

-CITE-

39 USC Sec. 2001 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

Sec. 2001. Definitions

-STATUTE-

As used in this chapter -

(1) "Fund" means the Postal Service Fund established by section

2003 of this chapter; and

(2) "obligations", when referring to debt instruments issued by

the Postal Service, means notes, bonds, debentures, mortgages,

and any other evidence of indebtedness.

-SOURCE-

(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 738.)

-MISC1-

EFFECTIVE DATE

Chapter effective July 1, 1971, pursuant to Resolution No. 71-9

of the Board of Governors. See section 15(a) of Pub. L. 91-375, set

out as a note preceding section 101 of this title.

-End-

-CITE-

39 USC Sec. 2002 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

Sec. 2002. Capital of the Postal Service

-STATUTE-

(a) The initial capital of the Postal Service shall consist of

the equity, as reflected in the budget of the President, of the

Government of the United States in the former Post Office

Department. The value of assets and the amount of liabilities

transferred to the Postal Service upon the commencement of

operations of the Postal Service shall be determined by the Postal

Service subject to the approval of the Comptroller General, in

accordance with the following guidelines:

(1) Assets shall be valued on the basis of original cost less

depreciation, to the extent that such value can be determined.

The value recorded on the former Post Office Department's books

of account shall be prima facie evidence of asset value.

(2) All liabilities attributable to operations of the former

Post Office Department shall remain liabilities of the Government

of the United States, except that upon commencement of operations

of the Postal Service, the unexpended balances of appropriations

made to, held or used by, or available to the former Post Office

Department and all liabilities chargeable thereto shall become

assets and liabilities, respectively, of the Postal Service.

(b) The capital of the Postal Service at any time shall consist

of its assets, including the balance in the Fund, less its

liabilities.

(c) The Postal Service, and the Administrator of General Services

where properties under the jurisdiction of the Administrator are

involved, with the approval of the Director of the Office of

Management and Budget, shall determine which Federal properties

shall be transferred to the Postal Service and which shall remain

under the jurisdiction of any other department, agency, or

establishment of the Government of the United States upon the

commencement of operations of the Postal Service. The transfer

shall be accomplished at the time of or as near as possible to the

commencement of operations of the Postal Service and the valuation

of the assets and capital of the Postal Service shall be adjusted

accordingly. The following properties shall be included in the

transfer:

(1) the mail equipment shops located in Washington, District of

Columbia;

(2) all machinery, equipment, and appurtenances of the former

Post Office Department;

(3) all real property whose ownership was acquired by the

Postmaster General under former section 2103 of this title, as in

effect immediately prior to the effective date of this section,

or which immediately prior to such effective date, is under the

administration of the former Post Office Department for the

purpose of constructing a postal building from funds appropriated

or transferred to the former Post Office Department, together

with all funds appropriated or allocated therefor;

(4) all real property 55 percent or more of which is occupied

by or under control of the former Post Office Department

immediately prior to the effective date of this section;

(5) all contracts, records, and documents relating to the

operation of the departmental service and the postal field

service of the former Post Office Department; and

(6) all other property and assets of the former Post Office

Department.

(d) After the commencement of operations of the Postal Service,

the President is authorized to transfer to the Postal Service, and

the Postal Service is authorized to transfer to other departments,

agencies, or independent establishments of the Government of the

United States, with or without reimbursement, any property of that

department, agency, or independent establishment and the Postal

Service, respectively, when the public interest would be served by

such transfer.

-SOURCE-

(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 738.)

-REFTEXT-

REFERENCES IN TEXT

The effective date of this section, referred to in subsec.

(c)(3), (4), is July 1, 1971. See Effective Date note set out under

section 2001 of this title.

-MISC1-

ASSETS OF POSTAL SERVICE

Section 4(b) of Pub. L. 91-375 provided that: "Postal revenues

and fees collected on and after the effective date of this section

[see note below] shall be considered assets of the Postal Service."

Provisions of section 4(b) of Pub. L. 91-375 effective within 1

year after Aug. 12, 1970, on date established therefor by the Board

of Governors of the United States Postal Service and published by

it in the Federal Register, see section 15(a) of Pub. L. 91-375,

set out as an Effective Date note preceding section 101 of this

title.

-EXEC-

EX. ORD. NO. 11672. TRANSFER OR FURNISHING OF PROPERTY

Ex. Ord. No. 11672, June 6, 1972, 37 F.R. 11455, provided:

By virtue of the authority vested in me by the Postal

Reorganization Act (39 U.S.C. 2002(d)) and section 301 of title 3

of the United States Code, and as President of the United States it

is hereby ordered as follows:

Section 1. The authority conferred upon the President by section

2002(d) of title 39 of the United States Code is hereby delegated

to the Administrator of General Services subject to the provisions

of this order.

Sec. 2. Property transferred to the Postal Service under this

order shall be subject to reimbursement at fair market value, as

agreed to by the Administrator of General Services and the

Postmaster General, unless the Director of the Office of Management

and Budget finds that a different basis of valuation, or transfer

without reimbursement, is more equitable or better serves the

public interest.

Sec. 3. Reimbursement of fair market value required for property

transfers to the Postal Service under this order may consist of

cash payments or, subject to approval by the Director of the Office

of Management and Budget, property transferred from the Postal

Service to other departments, agencies, or independent

establishments of the Government of the United States, or both cash

and approved properties.

Sec. 4. Heads of agencies furnishing property to the Postal

Service under section 411 of title 39 of the United States Code

shall require reimbursement at fair market value of such property

or at a rate based on appropriate commercial charges for comparable

property, as agreed to by the agency head and the Postmaster

General, unless the Director of the Office of Management and Budget

finds that a different basis of valuation is more equitable or

better serves the public interest.

Sec. 5. Delegations of authority made in this order may be

redelegated.

Richard Nixon.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 401 of this title.

-End-

-CITE-

39 USC Sec. 2003 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

Sec. 2003. The Postal Service Fund

-STATUTE-

(a) There is established in the Treasury of the United States a

revolving fund to be called the Postal Service Fund which shall be

available to the Postal Service without fiscal-year limitation to

carry out the purposes, functions, and powers authorized by this

title.

(b) There shall be deposited in the Fund, subject to withdrawal

by check by the Postal Service -

(1) revenues from postal and nonpostal services rendered by the

Postal Service;

(2) amounts received from obligations issued by the Postal

Service;

(3) amounts appropriated for the use of the Postal Service;

(4) interest which may be earned on investments of the Fund;

(5) any other receipts of the Postal Service;

(6) the balance in the Post Office Department Fund established

under former section 2202 of title 39 as of the commencement of

operations of the Postal Service;

(7) amounts (including proceeds from the sale of forfeited

items) from any civil forfeiture conducted by the Postal Service;

and

(8) any transfers from the Secretary of the Treasury from the

Department of the Treasury Forfeiture Fund which shall be

available to the Postmaster General only for Federal law

enforcement related purposes.

(c) If the Postal Service determines that the moneys of the Fund

are in excess of current needs, it may request the investment of

such amounts as it deems advisable by the Secretary of the Treasury

in obligations of, or obligations guaranteed by, the Government of

the United States, and, with the approval of the Secretary, in such

other obligations or securities as it deems appropriate.

(d) With the approval of the Secretary of the Treasury, the

Postal Service may deposit moneys of the Fund in any Federal

Reserve bank, any depository for public funds, or in such other

places and in such manner as the Postal Service and the Secretary

may mutually agree.

(e)(1) The Fund shall be available for the payment of all

expenses incurred by the Postal Service in carrying out its

functions as provided by law and, subject to the provisions of

section 3604 of this title, all of the expenses of the Postal Rate

Commission. The Postmaster General shall transfer from the Fund to

the Secretary of the Treasury for deposit in the Department of the

Treasury Forfeiture Fund amounts appropriate to reflect the degree

of participation of Department of the Treasury law enforcement

organizations (described in section 9703(p) (!1) of title 31) in

the law enforcement effort resulting in the forfeiture pursuant to

laws enforced or administered by the Postal Service. Neither the

Fund nor any of the funds credited to it shall be subject to

apportionment under the provisions of subchapter II of chapter 15

of title 31.

(2) Funds appropriated to the Postal Service under section 2401

of this title shall be apportioned as provided in this paragraph.

From the total amounts appropriated to the Postal Service for any

fiscal year under the authorizations contained in section 2401 of

this title, the Secretary of the Treasury shall make available to

the Postal Service 25 percent of such amount at the beginning of

each quarter of such fiscal year.

(f) Notwithstanding any other provision of this section, any

amounts appropriated to the Postal Service under subsection (d) of

section 2401 of this title and deposited into the Fund shall be

expended by the Postal Service only for the purposes provided in

such subsection.

(g) Notwithstanding any provision of section 8147 of title 5,

whenever the Secretary of Labor furnishes a statement to the Postal

Service indicating an amount due from the Postal Service under

subsection (b) of that section, the Postal Service shall make the

deposit required pursuant to that statement (and any additional

payment under subsection (c) of that section, to the extent that it

relates to the period covered by such statement) not later than 30

days after the date on which such statement is so furnished. Any

deposit (and any additional payment) which is subject to the

preceding sentence shall, once made, remain available without

fiscal year limitation.

(h) Liabilities of the former Post Office Department to the

Employees' Compensation Fund (appropriations for which were

authorized by former section 2004, as in effect before the

effective date of this subsection) shall be liabilities of the

Postal Service payable out of the Fund.

-SOURCE-

(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 739; Pub. L. 94-421, Sec.

2(c), Sept. 24, 1976, 90 Stat. 1304; Pub. L. 97-35, title XVII,

Sec. 1725, Aug. 13, 1981, 95 Stat. 760; Pub. L. 97-258, Sec.

3(l)(1), Sept. 13, 1982, 96 Stat. 1066; Pub. L. 99-500, Sec. 101(m)

[title II, Sec. 201(b)], Oct. 18, 1986, 100 Stat. 1783-308,

1783-314, and Pub. L. 99-591, Sec. 101(m) [title II, Sec. 201(b)],

Oct. 30, 1986, 100 Stat. 3341-308, 3341-314; Pub. L. 100-690, title

VI, Sec. 6252, Nov. 18, 1988, 102 Stat. 4362; Pub. L. 101-239,

title IV, Sec. 4004(a), Dec. 19, 1989, 103 Stat. 2135; Pub. L.

102-393, title VI, Sec. 638(g), Oct. 6, 1992, 106 Stat. 1790; Pub.

L. 105-33, title VII, Sec. 7003(a)(2)(B), (b), Aug. 5, 1997, 111

Stat. 663.)

-REFTEXT-

REFERENCES IN TEXT

Former section 2202 of title 39, referred to in subsec. (a)(6),

means section 2202 of former Title 39, The Postal Service, prior to

the general revision and reenactment of Title 39 by Pub. L. 91-375,

Aug. 12, 1970, 84 Stat. 719.

Section 9703(p) of title 31, referred to in subsec. (e)(1),

probably means the section 9703 of title 31 added by section

638(b)(1) of Pub. L. 102-393, title VI, Oct. 6, 1992, 106 Stat.

1779.

Section 2004, as in effect before the effective date of this

subsection, referred to in subsec. (h), means section 2004 of this

title, as in effect before Oct. 1, 1997. Section 2004 was repealed

by Pub. L. 105-33, title VII, Sec. 7003(a)(1), Aug. 5, 1997, 111

Stat. 663.

-COD-

CODIFICATION

Pub. L. 99-591 is a corrected version of Pub. L. 99-500.

-MISC1-

AMENDMENTS

1997 - Subsec. (e)(2). Pub. L. 105-33, Sec. 7003(a)(2)(B),

substituted "section 2401" for "sections 2401 and 2004" in two

places.

Subsec. (h). Pub. L. 105-33, Sec. 7003(b), added subsec. (h).

1992 - Subsec. (b)(8). Pub. L. 102-393, Sec. 638(g)(1), added

par. (8).

Subsec. (e)(1). Pub. L. 102-393, Sec. 638(g)(2), inserted after

first sentence "The Postmaster General shall transfer from the Fund

to the Secretary of the Treasury for deposit in the Department of

the Treasury Forfeiture Fund amounts appropriate to reflect the

degree of participation of Department of the Treasury law

enforcement organizations (described in section 9703(p) of title

31) in the law enforcement effort resulting in the forfeiture

pursuant to laws enforced or administered by the Postal Service."

1989 - Subsec. (g). Pub. L. 101-239 added subsec. (g).

1988 - Subsec. (b)(7). Pub. L. 100-690 struck out

"administrative" after "civil" and "under title 18" after

"Service".

1986 - Subsec. (b)(7). Pub. L. 99-500 and Pub. L. 99-591, Sec.

101(m) [title II, Sec. 201(b)(1)-(3)], added par. (7).

Subsec. (e)(1). Pub. L. 99-500 and Pub. L. 99-591, Sec. 101(m)

[title II, Sec. 201(b)(4)], substituted "as provided by law" for

"under this title".

1982 - Subsec. (e)(1). Pub. L. 97-258 substituted "subchapter II

of chapter 15 of title 31" for "section 665 of title 31".

1981 - Subsec. (e). Pub. L. 97-35 redesignated existing

provisions as par. (1) and added par. (2).

1976 - Subsec. (f). Pub. L. 94-421 added subsec. (f).

EFFECTIVE DATE OF 1997 AMENDMENT

Section 7003(c) of Pub. L. 105-33 provided that:

"(1) In general. - This section [amending this section and

repealing section 2004 of this title] and the amendments made by

this section shall take effect on the date of the enactment of this

Act [Aug. 5, 1997] or October 1, 1997, whichever is later.

"(2) Provisions relating to payments for fiscal year 1998. -

"(A) Amounts not yet paid. - No payment may be made to the

Postal Service Fund, on or after the date of the enactment of

this Act, pursuant to any appropriation for fiscal year 1998

authorized by section 2004 of title 39, United States Code (as in

effect before the effective date of this section).

"(B) Amounts paid. - If any payment to the Postal Service Fund

is or has been made pursuant to an appropriation for fiscal year

1998 authorized by such section 2004, then, an amount equal to

the amount of such payment shall be paid from such Fund into the

Treasury as miscellaneous receipts before October 1, 1998."

EFFECTIVE DATE OF 1989 AMENDMENT

Section 4004(b) of Pub. L. 101-239 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect on

October 1, 1989."

EFFECTIVE DATE OF 1981 AMENDMENT

Section 1727 of Pub. L. 97-35 provided that: "The provisions of

this subtitle [subtitle B (Secs. 1721-1727) of title XVII of Pub.

L. 97-35, amending this section and section 2401 of this title and

enacting provisions set out as notes under sections 403, 2004, and

2401 of this title] (other than section 1726 and this section)

shall take effect on October 1, 1981. The provisions of sections

1726 [enacting a provision set out as a note under section 403 of

this title] and this section [enacting this provision] shall take

effect on the date of the enactment of this Act [Aug. 13, 1981]."

CONTRIBUTIONS BY UNITED STATES POSTAL SERVICE TO CIVIL SERVICE

RETIREMENT AND DISABILITY FUND

Pub. L. 100-203, title VI, Sec. 6002, Dec. 22, 1987, 101 Stat.

1330-276, provided that:

"(a) Establishment of Postal Service Escrow Fund. - There is

established as a separate account in the United States Treasury,

the 'Postal Service Escrow Fund'. Such Fund shall -

"(1) have such amounts described under subsection (b)(2)

deposited no later than October 31, 1988;

"(2) not be available for expenditures of any amounts therein

during the existence of such Fund; and

"(3) cease to exist on October 1, 1989, and on such date all

amounts deposited in such Fund under subsection (b)(2) shall be

deposited in the Postal Service Fund established under section

2003 of title 39, United States Code.

"(b) Deposit of Certain Savings in Certain Funds. -

"(1) Fiscal year 1988. - From all funds available to the United

States Postal Service in fiscal year 1988, the Postal Service

shall deposit into the Civil Service Retirement and Disability

Fund established under section 8348 of title 5, United States

Code, an amount of $350,000,000 in fiscal year 1988, in addition

to any amount deposited pursuant to subsection (h) of such

section.

"(2) Fiscal year 1989. - From all funds available to the United

States Postal Service in fiscal year 1989, the Postal Service

shall deposit into the Postal Service Escrow Fund an amount of

$465,000,000 no later than October 31, 1988.

"(c) Capital Limitations for Fiscal Years 1988 and 1989. -

"(1) The United States Postal Service may not make any

commitment or obligation to expend any monies deposited in the

Postal Service Fund established under section 2003 of title 39,

United States Code, for the capital investment program -

"(A) in excess of $625,000,000 in fiscal year 1988; and

"(B) in excess of $1,995,000,000 in fiscal year 1989.

"(2) Capital investment programs. - For the purposes of

paragraph (1) the term 'capital investment program' shall include

all investments in long-term assets and capital investment

expenditures (including direct and indirect costs associated with

such investments and expenditures, such as obligations through

contracts)."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2001, 3604 of this title;

title 18 section 2254; title 21 section 881; title 28 section 524;

title 31 sections 3806, 9703; title 42 section 10601.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

39 USC Sec. 2004 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

[Sec. 2004. Repealed. Pub. L. 105-33, title VII, Sec. 7003(a)(1),

Aug. 5, 1997, 111 Stat. 663]

-MISC1-

Section, Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 739, authorized

appropriations to ensure a sound financial transition for the

Postal Service.

EFFECTIVE DATE OF REPEAL

Repeal effective Oct. 1, 1997, with special provisions relating

to payments for fiscal year 1998, see section 7003(c) of Pub. L.

105-33, set out as an Effective Date of 1997 Amendment note under

section 2003 of this title.

-End-

-CITE-

39 USC Sec. 2005 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

Sec. 2005. Obligations

-STATUTE-

(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 or any other officer or agency having

authority over or control of any such fiduciary, trust, or public

funds, may at any time sell any of the obligations of the Postal

Service acquired under this section;

(4) be exempt both as to principal and interest from all

taxation now or hereafter imposed by any State or local taxing

authority except estate, inheritance, and gift taxes; and

(5) not be obligations of, nor shall payment of the principal

thereof or interest thereon be guaranteed by, the Government of

the United States, except as provided in section 2006(c) of this

title.

-SOURCE-

(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 740; Pub. L. 101-227, Sec.

3(a), Dec. 12, 1989, 103 Stat. 1944.)

-MISC1-

AMENDMENTS

1989 - Subsec. (a). Pub. L. 101-227 designated existing

provisions as par. (1), substituted "the maximum amount then

allowable under paragraph (2) of this subsection" for

"$10,000,000,000", "$2,000,000,000" for "$1,500,000,000", and

"$1,000,000,000" for "$500,000,000" and added par. (2).

EFFECTIVE DATE OF 1989 AMENDMENT

Section 3(b) of Pub. L. 101-227 provided that:

"(1) Subject to the provisions of paragraph (2), the amendments

made by subsection (a) [amending this section] shall take effect on

October 1, 1990.

"(2) Notwithstanding any other provision of this section, the

amendments made by subsection (a) shall not take effect, if no law

to provide for reconciliation pursuant to section 5 of the

concurrent resolution on the budget for the fiscal year 1990 is

enacted before October 1, 1990." [Omnibus Budget Reconciliation Act

of 1989, Pub. L. 101-239, Dec. 19, 1989, 103 Stat. 2106, was

enacted Dec. 19, 1989.]

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2006 of this title.

-End-

-CITE-

39 USC Sec. 2006 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

Sec. 2006. Relationship between the Treasury and the Postal Service

-STATUTE-

(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.

-SOURCE-

(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 741.)

-End-

-CITE-

39 USC Sec. 2007 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

Sec. 2007. Public debt character of the obligations of the Postal

Service

-STATUTE-

For the purpose of any purchase of the obligations of the Postal

Service, the Secretary of the Treasury is authorized to use as a

public debt transaction the proceeds from the sale of any

securities issued under chapter 31 of title 31, as now or hereafter

in force, and the purposes for which securities may be issued under

chapter 31 of title 31, as now or hereafter in force, are extended

to include any purchases of the obligations of the Postal Service

under this chapter. The Secretary of the Treasury may, at any time,

sell any of the obligations of the Postal Service acquired by him

under this chapter. All redemptions, purchases, and sales by the

Secretary of the obligations of the Postal Service shall be treated

as public debt transactions of the United States.

-SOURCE-

(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 741; Pub. L. 97-452, Sec.

2(f), Jan. 12, 1983, 96 Stat. 2479.)

-MISC1-

AMENDMENTS

1983 - Pub. L. 97-452 substituted "chapter 31 of title 31" for

"the Second Liberty Bond Act" wherever appearing.

-End-

-CITE-

39 USC Sec. 2008 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

Sec. 2008. Audit and expenditures

-STATUTE-

(a) The accounts and operations of the Postal Service shall be

audited by the Comptroller General and reports thereon made to the

Congress to the extent and at such times as he may determine.

(b) The Postal Service shall maintain an adequate internal audit

of the financial transactions of the Postal Service.

(c) Subject only to the provisions of this chapter, the Postal

Service is authorized to make such expenditures and to enter into

such contracts, agreements, and arrangements, upon such terms and

conditions and in such manner as it deems necessary, including the

final settlement of all claims and litigation by or against the

Postal Service.

(d) Nothing in this section shall be construed as denying to the

Postal Service the power to obtain audits of the accounts of the

Postal Service and reports concerning its financial condition and

operations by certified public accounting firms. Such audits and

reports shall be in addition to those required by this section.

(e) At least once each year beginning with the fiscal year

commencing after June 30, 1971, the Postal Service shall obtain a

certification from an independent, certified public accounting firm

of the accuracy of any financial statements of the Postal Service

used in determining and establishing postal rates.

-SOURCE-

(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 741.)

-End-

-CITE-

39 USC Sec. 2009 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

Sec. 2009. Annual budget

-STATUTE-

The Postal Service shall cause to be prepared annually a budget

program which shall be submitted to the Office of Management and

Budget, under such rules and regulations as the President may

establish as to the date of submission, the form and content, the

classifications of data, and the manner in which such budget

program shall be prepared and presented. The budget program shall

be a business-type budget, or plan of operations, with due

allowance given to the need for flexibility, including provision

for emergencies and contingencies, in order that the Postal Service

may properly carry out its activities as authorized by law. The

budget program shall contain estimates of the financial condition

and operations of the Postal Service for the current and ensuing

fiscal years and the actual condition and results of operation for

the last completed fiscal year. Such budget program shall include a

statement of financial condition, a statement of income and

expense, an analysis of surplus or deficit, a statement of sources

and application of funds, and such other supplementary statements

and information as are necessary or desirable to make known the

financial condition and operations of the Postal Service. Such

statements shall include estimates of operations by major types of

activities, together with estimates of administrative expenses and

estimates of borrowings. The budget program shall also include

separate statements of the amounts which the Postal Service

requests to be appropriated under subsections (b) and (c) of

section 2401 of this title. The President shall include these

amounts, with his recommendations but without revision, in the

budget transmitted to Congress under section 1105 of title 31.

-SOURCE-

(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 742; Pub. L. 93-328, Sec.

3, June 30, 1974, 88 Stat. 288; Pub. L. 97-258, Sec. 3(l)(2), Sept.

13, 1982, 96 Stat. 1066.)

-MISC1-

AMENDMENTS

1982 - Pub. L. 97-258 substituted "section 1105 of title 31" for

"section 11 of title 31".

1974 - Pub. L. 93-328 required the budget program to include

separate statements of the amounts which the Postal Service

requests to be appropriated under section 2401(b) and (c) of this

title and the President to include these amounts in the budget

transmitted to Congress.

OPERATIONS OF INSPECTOR GENERAL AS MAJOR TYPE OF ACTIVITY FOR

BUDGET PURPOSES

Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VI, Sec.

662(a)(3)], Sept. 30, 1996, 110 Stat. 3009-314, 3009-379, provided

that: "For purposes of the fifth sentence of section 2009 of title

39, United States Code, the operations of the Office of Inspector

General of the United States Postal Service shall be considered a

major type of activity."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2401 of this title.

-End-

-CITE-

39 USC Sec. 2009a 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

Sec. 2009a. Budgetary treatment of the Postal Service Fund

-STATUTE-

Notwithstanding any other provision of law, the receipts and

disbursements of the Postal Service Fund, including disbursements

for administrative expenses incurred in connection with the Fund -

(1) shall not be included in the totals of -

(A) the budget of the United States Government as submitted

by the President, or

(B) the congressional budget (including allocations of budget

authority and outlays provided therein);

(2) shall be exempt from any general budget limitation imposed

by statute on expenditures and net lending (budget outlays) of

the United States Government; and

(3) shall be exempt from any order issued under part C of the

Balanced Budget and Emergency Deficit Control Act of 1985, and

shall not be counted for purposes of calculating the deficit

under section 3(6) of the Congressional Budget and Impoundment

Control Act of 1974 for purposes of comparison with the maximum

deficit amount under the Balanced Budget and Emergency Deficit

Control Act of 1985 nor counted in calculating the excess deficit

for purposes of sections 251 and 252 (!1) of the Balanced Budget

and Emergency Deficit Control Act of 1985, for any fiscal year.

-SOURCE-

(Added Pub. L. 101-239, title IV, Sec. 4001(a)(1), Dec. 19, 1989,

103 Stat. 2133.)

-REFTEXT-

REFERENCES IN TEXT

The Balanced Budget and Emergency Deficit Control Act of 1985,

referred to in par. (3), is title II of Pub. L. 99-177, Dec. 12,

1985, 99 Stat. 1038, as amended. Part C of the Act is classified

generally to subchapter I (Sec. 900 et seq.) of chapter 20 of Title

2, The Congress. Sections 251 and 252 of the Act are classified to

sections 901 and 902, respectively, of Title 2, and were amended

generally by Pub. L. 101-508, title XIII, Sec. 13101(a), Nov. 5,

1990, 104 Stat. 1388-577, 1388-581. For complete classification of

this Act to the Code, see Short Title note set out under section

900 of Title 2 and Tables.

Section 3(6) of the Congressional Budget and Impoundment Control

Act of 1974, referred to in par. (3), is classified to section

622(6) of Title 2.

-MISC1-

EFFECTIVE DATE

Section 4001(c) of Pub. L. 101-239 provided that: "The amendments

made by this section [enacting this section] shall apply with

respect to budgets for fiscal years beginning after September 30,

1989."

CONSTRUCTION

Section 4001(b) of Pub. L. 101-239 provided that: "Nothing in any

amendment made by subsection (a) [enacting this section] shall be

considered to diminish the oversight responsibilities or authority

of the Congress under law, rule, or regulation with respect to the

budget and operations of the United States Postal Service."

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

39 USC Sec. 2010 01/06/03

-EXPCITE-

TITLE 39 - POSTAL SERVICE

PART III - MODERNIZATION AND FISCAL ADMINISTRATION

CHAPTER 20 - FINANCE

-HEAD-

Sec. 2010. Restrictions on agreements

-STATUTE-

The Postal Service shall promote modern and efficient operations

and should refrain from expending any funds, engaging in any

practice, or entering into any agreement or contract, other than an

agreement or contract under chapter 12 of this title, which

restricts the use of new equipment or devices which may reduce the

cost or improve the quality of postal services, except where such

restriction is necessary to insure safe and healthful employment

conditions.

-SOURCE-

(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 742.)

-End-