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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 27 - Alcohol, Tobacco Products and Firearms |
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Chapter I - Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury |
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SubChapter B - Tobacco |
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Part 40 - Manufacture of Tobacco Products, Cigarette Papers and Tubes, and Processed Tobacco |
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Subpart G - Bonds and Extensions of Coverage of Bonds |
§ 40.136 - Superseding bond.
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§ 40.136 Superseding bond.
A manufacturer of tobacco products shall immediately file a new bond to supersede his current bond when
(a) The corporate surety on the current bond becomes insolvent,
(b) The appropriate TTB officer approves a request from the surety on the current bond to terminate his liability under the bond,
(c) Payment of any liability under a bond is made by the surety thereon,
(d) The amount of the bond is no longer sufficient under the provisions of § 40.133 or § 40.134 and a strengthening bond has not been filed, or
(e) The appropriate TTB officer considers such a superseding bond necessary for the protection of the revenue.
Where a bond is not filed as required under the provisions of this section the manufacturer shall discontinue forthwith the operations to which such bond relates.