Page:United States Statutes at Large Volume 84 Part 1.djvu/799

 84 STAT. ]

PUBLIC LAW 91-375-AUG. 12, 1970

741

"(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. "§ 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 proix)sed 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 l)urchases 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 ^j^P°g"^\^J^se^^^^^^^ issued by the Postal Service shall be obligations of the Government of Government'gu'arthe United States, and payment of principal and interest thereon shall ^"'ybe 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. "§2007. Public debt character of the obligations of the Postal Service ^ "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 the Second Liberty Bond Act, as now or hereafter in force, and 1° J*sc 7?4' the purposes for which securities may be issued under the Second Liberty Bond Act, 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. "§ 2008. Audit and expenditures "(a) The accounts and operations of the Postal Service shall be audited by the Comptroller General and reports thereon made to the Reports to Congress to the extent and at such times as he may determine. ongress.

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