§ 25.94 - Strengthening bonds.

§ 25.94 Strengthening bonds.

(a) Requirement. When the penal sum of the brewer's bond (calculated as provided in § 25.93) in effect is not sufficient, the principal may prepay the tax on beer as provided in subpart K of this part, or give a strengthening bond in sufficient penal sum if the surety is the same as on the bond in effect. If the surety is not the same, a new bond covering the entire liability is required.

(b) Restrictions. A strengthening bond may not in any way release a former bond or limit a bond to less than the full penal sum.

(c) Date of execution. Strengthening bonds will show the current date of execution and their effective date.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))