§ 19.172. Relief of surety from bond liability.
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/us/cfr/t27/s§ 19.172·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A surety that has provided proper notice under § 19.171 will be relieved from liability under the bond in question as set forth below:
(a)Operations or unit bond. When a superseding bond is submitted, the surety will be relieved of future liability related to production and deposits that take place after the effective date of the superseding bond. However, the surety remains liable for the tax on all distilled spirits or wines produced, or for other liabilities incurred, during the term of the bond. Further, if a superseding bond is not submitted, the surety will remain liable under the bond for all spirits or wines that are on hand or in transit to the bonded premises or bonded wine cellar on the date specified in the notice. The liability of the surety will continue until all such spirits or wines have been lawfully disposed of, or until a new bond has been submitted by the principal covering the spirits or wine.
(b)Withdrawal or unit bonds. The surety will be relieved from liability for withdrawals made after the date specified in the notice, or upon the effective date of a new bond if one is given. (26 U.S.C. 5173, 5176)
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§ 19.172
Relief of surety from bond liability.
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