Page:United States Statutes at Large Volume 84 Part 1.djvu/798

 740

Issuance, forms, etc.

Negotiability, etc.

Tax exemption, exception.

PUBLIC LAW 91-375-AUG. 12, 1970

[84 STAT.

" (a) 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 $10,000,000,000. i n any one fiscal year the net increase in the amount of obligations outstanding issued for the purpose of capital improvements shall not exceed $1,500,000,000, 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 $500,000,000. " (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 m 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 ether matters as the Postal Service deems necessary or desirable to enhance the marketability of such obligations. "(c) Oblig.itions 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
 * §2005. Obligations

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