Title 39 — Postal Service

Part III · Chapter 20 — Finance

§ 2005. Obligations

Statutory text

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, other than any of the purposes for which the corresponding authority is available to the Postal Service under section 2011. The aggregate amount of obligations issued by the Postal Service which may be 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 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 a combined total of $3,000,000,000.

The maximum amount allowable under this paragraph is—

$10,000,000,000 for fiscal year 1990;

$12,500,000,000 for fiscal year 1991; and

$15,000,000,000 for fiscal year 1992 and each fiscal year thereafter.

For purposes of applying the respective limitations under this subsection, the aggregate amount of obligations issued by the Postal Service which are outstanding as of any one time, and the net increase in the amount of obligations outstanding issued by the Postal Service for the purpose of capital improvements or for the purpose of defraying operating expenses of the Postal Service in any fiscal year, shall be determined by aggregating the relevant obligations issued by the Postal Service under this section with the relevant obligations issued by the Postal Service under section 2011.

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 obligations issued by the Postal Service under this section, 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.

Notwithstanding any other provision of this section—

the authority to pledge assets of the Postal Service under this subsection shall be available only to the extent that such assets are not related to the provision of competitive products (as determined under section 2011(h) or, for purposes of any period before accounting practices and principles under section 2011(h) have been established and applied, the best information available from the Postal Service, including the audited statements required by section 2008(e)); and

any authority under this subsection relating to the pledging or other use of revenues or receipts of the Postal Service shall be available only to the extent that they are not revenues or receipts of the Competitive Products Fund.

Obligations issued by the Postal Service under this section—

shall be in such forms and denominations;

shall be sold at such times and in such amounts;

shall mature at such time or times;

shall be sold at such prices;

shall bear such rates of interest;

may be redeemable before maturity in such manner, at such times, and at such redemption premiums;

may be entitled to such relative priorities of claim on the assets of the Postal Service with respect to principal and interest payments; and

shall be subject to such other terms and conditions;

as the Postal Service determines.

Obligations issued by the Postal Service under this section shall—

be negotiable or nonnegotiable and bearer or registered instruments, as specified therein and in any indenture or covenant relating thereto;

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;

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;

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

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.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1970
Postal Reorganization Act
Pub. L. 91–375 · 84 Stat. 719
Enacted · 39 U.S.C. § 2005
Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 740
Source evidence
Code source credit
Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 740
1989
Pub. L. 101–227 § 3(a) · 103 Stat. 1943
1. Amended · 39 U.S.C. § 2005(a)
  Pub. L. 101–227 designated existing provisions as par. (1)
2. Substituted · 39 U.S.C. § 2005(a)
  Pub. L. 101–227 substituted “the maximum amount then allowable under paragraph (2) of this subsection” for “$10,000,000,000”
3. Substituted · 39 U.S.C. § 2005(a)
  Pub. L. 101–227 substituted “$2,000,000,000” for “$1,500,000,000”
4. Substituted · 39 U.S.C. § 2005(a)
  Pub. L. 101–227 substituted “$1,000,000,000” for “$500,000,000”
5. Added · 39 U.S.C. § 2005(a)
  Pub. L. 101–227 added par. (2)
Source evidence
Code amendment note
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).
Enacted provision · exact public law section
(a) In General.— Section 2005(a) of title 39, United States Code, is amended— (1) by striking “(a)” and inserting “(a)(1)”; (2) by striking “$10,000,000,000.” and inserting “the maximum amount then allowable under paragraph (2) of this subsection.”; (3) by striking “$1,500,000,000” and inserting “$2,000,000,000”; (4) by striking “$500,000,000” and inserting “$1,000,000,000”; and (5) by adding at the end the following: “(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.”.
Effective date note
Pub. L. 101–227, § 3(b), Dec. 12, 1989, 103 Stat. 1944, provided that: [Omnibus Budget Reconciliation Act of 1989, Pub. L. 101–239, Dec. 19, 1989, 103 Stat. 2106, was enacted Dec. 19, 1989.]
2006
Pub. L. 109–435 § 502(c)(2) · 120 Stat. 3198
Substituted · 39 U.S.C. § 2005(a)(1)
Pub. L. 109–435, § 502(c)(2), substituted “obligations issued by the Postal Service which may be” for “any such obligations” in second sentence
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 109–435, § 502(c)(2), substituted “obligations issued by the Postal Service which may be” for “any such obligations” in second sentence.
Enacted provision · exact public law section
(2) Conforming amendment.— The second sentence of section 2005(a)(1) of title 39, United States Code, is amended by striking “any such obligations” and inserting “obligations issued by the Postal Service which may be”.
2006
Pub. L. 109–435 § 502(b) · 120 Stat. 3198
Substituted · 39 U.S.C. § 2005(a)(1)
Pub. L. 109–435, § 502(b), substituted third sentence for former third sentence which read: “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.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–435, § 502(b), substituted third sentence for former third sentence which read: “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.”
Enacted provision · exact public law section
(b) Limitation on Net Annual Increase in Obligations Issued for Certain Purposes.— The third sentence of section 2005(a)(1) of title 39, United States Code, is amended to read as follows: “In any one fiscal year, the net increase in the amount of obligations outstanding issued for the purpose of capital improvements 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 a combined total of $3,000,000,000.”.
2006
Pub. L. 109–435 § 502(a) · 120 Stat. 3198
Substituted · 39 U.S.C. § 2005(a)(1)
Pub. L. 109–435, § 502(a), substituted “title, other than any of the purposes for which the corresponding authority is available to the Postal Service under section 2011” for “title” in first sentence
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–435, § 502(a), substituted “title, other than any of the purposes for which the corresponding authority is available to the Postal Service under section 2011” for “title” in first sentence.
Enacted provision · exact public law section
(a) Purposes for Which Obligations May Be Issued.— The first sentence of section 2005(a)(1) of title 39, United States Code, is amended by striking “title.” and inserting “title, other than any of the purposes for which the corresponding authority is available to the Postal Service under section 2011.”.
2006
Pub. L. 109–435 § 502(c)(1) · 120 Stat. 3198
Added · 39 U.S.C. § 2005(a)(3)
Pub. L. 109–435, § 502(c)(1), added par. (3)
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 109–435, § 502(c)(1), added par. (3).
Enacted provision · exact public law section
(1) In general.— Subsection (a) of section 2005 of title 39, United States Code, is amended by adding at the end the following: “(3) For purposes of applying the respective limitations under this subsection, the aggregate amount of obligations issued by the Postal Service which are outstanding as of any one time, and the net increase in the amount of obligations outstanding issued by the Postal Service for the purpose of capital improvements or for the purpose of defraying operating expenses of the Postal Service in any fiscal year, shall be determined by aggregating the relevant obligations issued by the Postal Service under this section with the relevant obligations issued by the Postal Service under section 2011.” .
2006
Pub. L. 109–435 § 502(d) · 120 Stat. 3198
1. Substituted · 39 U.S.C. § 2005(b)
  Pub. L. 109–435, § 502(d), substituted “obligations issued by the Postal Service under this section,” for “such obligations,”
2. Amended · 39 U.S.C. § 2005(b)
  Pub. L. 109–435, § 502(d), designated existing provisions as par. (1)
3. Added · 39 U.S.C. § 2005(b)
  Pub. L. 109–435, § 502(d), added par. (2)
Source evidence
Code amendment note
Subsec. (b). Pub. L. 109–435, § 502(d), substituted “obligations issued by the Postal Service under this section,” for “such obligations,”, designated existing provisions as par. (1), and added par. (2).
Enacted provision · exact public law section
(d) Amounts Which May Be Pledged.— (1) Obligations to which provisions apply.— The first sentence of section 2005(b) of title 39, United States Code, is amended by striking “such obligations,” and inserting “obligations issued by the Postal Service under this section,”. (2) Assets, revenues, and receipts to which provisions apply.— Subsection (b) of section 2005 of title 39, United States Code, is amended by striking “(b)” and inserting “(b)(1)”, and by adding at the end the following: “(2) Notwithstanding any other provision of this section— “(A) the authority to pledge assets of the Postal Service under this subsection shall be available only to the extent that such assets are not related to the provision of competitive products (as determined under section 2011(h) or, for purposes of any period before accounting practices and principles under section 2011(h) have been established and applied, the best information available from the Postal Service, including the audited statements required by section 2008(e)); and “(B) any authority under this subsection relating to the pledging or other use of revenues or receipts of the Postal Service shall be available only to the extent that they are not revenues or receipts of the Competitive Products Fund.” .

12 of 13 references resolved to an enrolled provision · 1 partial

Editorial Notes

Amendments1989–2006 · 2 rounds

2006

Subsec. (a)(1). Pub. L. 109–435, § 502(c)(2), substituted “obligations issued by the Postal Service which may be” for “any such obligations” in second sentence.

Pub. L. 109–435, § 502(b), substituted third sentence for former third sentence which read: “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.”

Pub. L. 109–435, § 502(a), substituted “title, other than any of the purposes for which the corresponding authority is available to the Postal Service under section 2011” for “title” in first sentence.

Subsec. (a)(3). Pub. L. 109–435, § 502(c)(1), added par. (3).

Subsec. (b). Pub. L. 109–435, § 502(d), substituted “obligations issued by the Postal Service under this section,” for “such obligations,”, designated existing provisions as par. (1), and added par. (2).

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).

Statutory Notes and Related Subsidiaries

Effective Date of 1989 Amendment

Pub. L. 101–227, § 3(b), Dec. 12, 1989, 103 Stat. 1944, 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.]

Effective Date

Section 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.

Credits

1970–2006 · 3 acts

1970Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 740
1989Pub. L. 101–227, § 3(a), Dec. 12, 1989, 103 Stat. 1944
2006Pub. L. 109–435, title V, § 502, Dec. 20, 2006, 120 Stat. 3233.

Show as published

(Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 740; Pub. L. 101–227, § 3(a), Dec. 12, 1989, 103 Stat. 1944; Pub. L. 109–435, title V, § 502, Dec. 20, 2006, 120 Stat. 3233.)