---
kind: "section"
citation: "39 C.F.R. § 501.4"
title: "39"
number: "501.4"
heading: "Changes in ownership or control, bankruptcy, or insolvency."
url: "https://uscodex.org/cfr/39/501.4"
---

# §501.4. Changes in ownership or control, bankruptcy, or insolvency.

- (a) Any person or entity authorized under [§ 501.2](/cfr/39/501.2.md) 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 [§ 501.2](/cfr/39/501.2.md) must provide the Postal Service satisfactory evidence that upon completion of the contemplated transaction, it will satisfy the conditions for approval stated in [§ 501.2](/cfr/39/501.2.md). 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 [§ 501.2](/cfr/39/501.2.md) 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 [§ 501.2](/cfr/39/501.2.md) who experiences a change in the status of its financial condition may, at the discretion of the Postal Service, have its authorization under [§ 501.2](/cfr/39/501.2.md) modified or terminated.

## Notes

### Authority

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 410, 2601, 2605; Inspector General Act of 1978, as amended (Pub. L. 95-452, as amended); 5 U.S.C. App. 3.

### Source

Source: 71 FR 65733, Nov. 9, 2006, unless otherwise noted.