A manufacturer of cigarette papers and tubes shall file a new bond to supersede the current bond immediately when:
(a) The corporate surety on the current bond becomes insolvent,
(b) The appropriate TTB officer approves a request from the surety of the current bond to terminate liability under the bond,
(c) Payment of any liability under a bond is made by the surety thereon, or
(d) The appropriate TTB officer considers such a superseding bond necessary for the protection of the revenue.
(72 Stat. 1421; 26 U.S.C. 5711)
authority: 26 U.S.C. 448,
5701,
5703,
5711,
5721,
5731,
5741,
5751,
5753,
5761,
6061,
6065,
6109,
6151,
6301,
6302,
6311,
6313,
6402,
6404,
6423,
6676,
6806,
7011,
7212,
7325,
7342,
7502,
7503,
7606,
7805;
31 U.S.C. 9301,
9303,
9304,
9306
source: 26 FR 8174, Aug. 31, 1961, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975; 54 FR 48839, Nov. 27, 1989, and further redesignated by T.D. ATF-460, 66 FR 39093, July 27, 2001.
cite as: 27 CFR 40.406