Scope of Treasury Department Purchase Rights with Respect to Financing Initiatives of the U.S. Postal Service: Memorandum for Mary S. Elcano, Vice President and Gerneral Counsel, United States Postal Service [and] Edward S. Knight, General Counsel, Department of the Treasury [October 10, 1995]   [open pdf - 36KB]

"This memorandum responds to the U.S. Postal Service's (USPS) request that this office reconsider and rescind an opinion issued on January 19, 1993, in which we responded to the Department of the Treasury's (Treasury) request for an opinion regarding the statutory relationship between the USPS and Treasury with respect to the USPS's financing initiatives. In the 1993 opinion, we concluded that (1) under 39 U.S.C. § 2006(a), Treasury's failure to purchase a USPS bond issue prior to the scheduled date of sale on the market proposed by USPS does not relieve USPS of further obligation to negotiate with the Treasury towards agreeable terms of sale, or permit USPS to proceed with the market sale as originally scheduled, as long as Treasury has duly declared its 'election' to purchase and continues to negotiate in good faith towards the purchase; and (2) the transfer of the proceeds of a bond offering by the USPS to a trustee for the purpose of having the trustee employ those proceeds to make and use investments to discharge outstanding USPS debt would require the prior approval of the Treasury under the provisions of 39 U.S.C. § 2003."

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