Lease-purchase agreement provisions

§ 2108. Lease-purchase agreement provisions (a) Each lease-purchase agreement shall include such provisions as the Postmaster General deems to be in the best interest of the United States and appropriate to secure the performance of the obligations imposed upon the party that enters into an agreement with the United States. The agreement may not provide for any payment to be made by the United States in excess of the amount necessary, as determined by the Postmaster General, to— (1) amortize— (A) the cost of improvements to be constructed plus the fair market value, on the date of the agreement, of the site, if owned or acquired by the contractor, or (B) the fair market value, on the date of the agreement, of completed improvements together with the site thereof, or (C) a combination of the foregoing in the case of existing improvements to be remodeled by the contractor; and (2) provide a reasonable rate of interest on the outstanding principal as determined under item (1) of this subsection, and (3) reimburse the contractor for the cost of any other obligations assumed by him under the contract, including, but not limited to, payment of taxes, costs of carrying appropriate insurance, and costs of repair and maintenance if assumed by the contractor. (b) Each lease-purchase agreement entered into pursuant to sections 2104 and 2105 of this title shall provide for equal annual payments for the amortization of principal with interest thereon. The Postmaster General may not enter into the contract unless the amount of the annual payment required by it plus the aggregate of the an-74 Stat. 593nual payments required by all other lease-purchase agreements entered into during the same fiscal year do not exceed the specific limitations on the payments which are provided in appropriation acts.