39 CFR § 501.4 - Changes in ownership or control, bankruptcy, or insolvency.
---
identifier: "/us/cfr/t39/s501.4"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "39 CFR § 501.4 - Changes in ownership or control, bankruptcy, or insolvency."
title_number: 39
title_name: "Postal Service"
section_number: "501.4"
section_name: "Changes in ownership or control, bankruptcy, or insolvency."
chapter_name: "UNITED STATES POSTAL SERVICE"
subchapter_number: "G"
subchapter_name: "POSTAGE PROGRAMS"
part_number: "501"
part_name: "AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE EVIDENCING SYSTEMS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
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."
regulatory_source: "71 FR 65733, Nov. 9, 2006, unless otherwise noted."
cfr_part: "501"
---
# 501.4 Changes in ownership or control, bankruptcy, or insolvency.
(a) Any person or entity authorized under § 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 § 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 § 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 § 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 § 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 § 501.2 modified or terminated.