Superseding bond.

§ 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. (72 Stat. 1421: 26 U.S.C. 5711)