Page:United States Statutes at Large Volume 120.djvu/3254

 PUBLIC LAW 109–435—DEC. 20, 2006

120 STAT. 3223

‘‘(G) may be entitled to such relative priorities of claim on the assets of the Postal Service with respect to principal and interest payments; and ‘‘(H) shall be subject to such other terms and conditions, as the Postal Service determines. ‘‘(4) Obligations issued by the Postal Service under this subsection— ‘‘(A) shall be negotiable or nonnegotiable and bearer or registered instruments, as specified therein and in any indenture or covenant relating thereto; ‘‘(B) shall contain a recital that such obligations 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; ‘‘(C) shall 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; ‘‘(D) shall not be exempt either as to principal or interest from any taxation now or hereafter imposed by any State or local taxing authority; and ‘‘(E) except as provided in section 2006(c), shall not be obligations of, nor shall payment of the principal thereof or interest thereon be guaranteed by, the Government of the United States, and the obligations shall so plainly state. ‘‘(5) The Postal Service shall make payments of principal, or interest, or both on obligations issued under this section out of revenues and receipts from competitive products and assets related to the provision of competitive products (as determined under subsection (h)), or for purposes of any period before accounting practices and principles under subsection (h) have been established and applied, the best information available, including the audited statements required by section 2008(e). For purposes of this subsection, the total assets of the Competitive Products Fund shall be the greater of— ‘‘(A) the assets related to the provision of competitive products as calculated under subsection (h); or ‘‘(B) the percentage of total Postal Service revenues and receipts from competitive products times the total assets of the Postal Service. ‘‘(f) The receipts and disbursements of the Competitive Products Fund shall be accorded the same budgetary treatment as is accorded to receipts and disbursements of the Postal Service Fund under section 2009a. ‘‘(g) A judgment (or settlement of a claim) against the Postal Service or the Government of the United States shall be paid out of the Competitive Products Fund to the extent that the judgment or claim arises out of activities of the Postal Service in the provision of competitive products. ‘‘(h)(1)(A) The Secretary of the Treasury, in consultation with the Postal Service and an independent, certified public accounting firm and other advisors as the Secretary considers appropriate, shall develop recommendations regarding—

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