[Code of Federal Regulations]
[Title 39, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 39CFR501.4]

[Page 162]
 
                        TITLE 39--POSTAL SERVICE
 
                 CHAPTER I--UNITED STATES POSTAL SERVICE
 
PART 501_AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE
 
Sec.  501.4  Changes in ownership or control, bankruptcy, or insolvency.

    (a) Any person or entity authorized under Sec.  501.2 must promptly 
notify the Postal Service when it has a reasonable expectation that 
there may be a change in its ownership or control including changes in 
the ownership of an affiliate which exercises control over its Postage 
Evidencing System operations in the United States. A change of ownership 
or control within the meaning of this section includes entry into a 
strategic alliance or other agreement whereby a third party either has 
access to data related to the security of the system or is a competitor 
to the Postal Service. Any person or entity seeking to acquire ownership 
or control of a person or entity authorized under Sec.  501.2 must 
provide the Postal Service satisfactory evidence that upon completion of 
the contemplated transaction, it will satisfy the conditions for 
approval stated in Sec.  501.2. Early notification of a proposed change 
in ownership or control will facilitate expeditious review of an 
application to acquire ownership or control under this section.
    (b) Any person or entity authorized under Sec.  501.2 must promptly 
notify the Postal Service when it has a reasonable expectation that 
there may be a change in the status of its financial condition either 
through bankruptcy, insolvency, assignment for the benefit of creditors, 
or other similar financial action. Any person or entity authorized under 
Sec.  501.2 who experiences a change in the status of its financial 
condition may, at the discretion of the Postal Service, have its 
authorization under Sec.  501.2 modified or terminated.