---
kind: "section"
citation: "27 C.F.R. § 19.168"
title: "27"
number: "19.168"
heading: "Superseding bonds and new bonds for existing proprietors."
url: "https://uscodex.org/cfr/27/19.168"
---

# §19.168. Superseding bonds and new bonds for existing proprietors.

- (a) **Superseding bonds.** A new bond that replaces another bond is called a superseding bond. The proprietor must replace an existing bond with a superseding bond in any of the following circumstances:
  - (1) **Surety company no longer acceptable.** The proprietor must file a superseding bond if the surety on the proprietor's current bond becomes insolvent or if the surety is removed from the list of approved sureties in Treasury Department Circular 570 (see [§ 19.153](/cfr/27/19.153.md)). TTB may also require the filing of a superseding bond if any other contingency affecting the validity or efficiency of the bond arises.
  - (2) **Change of control.** An executor, administrator, assignee, receiver, trustee, or other person acting in a fiduciary capacity, continuing or liquidating the business of the principal on a bond, must either provide TTB with a superseding bond, or obtain consent from the surety on each existing bond when assuming control of the business.
  - (3) **Termination of bond by surety.** If the surety applies to terminate a bond under [§ 19.171](/cfr/27/19.171.md), and the proprietor wishes to continue the activity covered by the bond, the proprietor must file a superseding bond that becomes effective on or before the termination date of the existing bond. The superseding bond must show both its execution date and its effective date.
- (b) **New bonds for existing proprietors—**
  - (1) **General.** Subject to [paragraph (b)(2)](#b-2) of this section, if an existing proprietor has not furnished a bond or bonds covering operations and withdrawals of distilled spirits for nonindustrial use because the proprietor was exempt from bond requirements under [§ 19.151(d)](/cfr/27/19.151.md?p=d), the proprietor must furnish a bond or bonds as provided in this subpart beginning in any portion of a calendar year following the first date on which the aggregate amount of tax due from the proprietor during the calendar year exceeds $50,000. When furnishing the bond or bonds, the proprietor must also file an amendment to TTB F 5110.41, Registration of Distilled Spirits Plant, as provided in [§ 19.136](/cfr/27/19.136.md) to change the proprietor's bond status.
  - (2) **Grace period for bonds covering operations.** An existing proprietor who must furnish an operations bond as provided in [paragraph (b)(1)](#b-1) of this section will be treated as having furnished the required bond if the proprietor submits the bond on TTB F 5110.56 no later than 30 days following the first date on which the aggregate amount of tax due from the proprietor during the relevant calendar year exceeds $50,000. The proprietor will be treated as having furnished the required operations bond for purposes of this paragraph until TTB approves or disapproves the bond.
  - (3) **Bonds covering withdrawals.** [Paragraph (b)(2)](#b-2) of this section does not apply to withdrawal bonds. If an existing proprietor must furnish a withdrawal bond as provided in [paragraph (b)(1)](#b-1) of this section, the proprietor may not withdraw distilled spirits from the bonded premises on a tax deferred basis until TTB approves the withdrawal bond.

## Notes

### Amendments

[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]

### Authority

Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006, 5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5114, 5121-5124, 5142, 5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181, 5201-5204, 5206, 5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271, 5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

### Source

Source: T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, unless otherwise noted.

### Amendments

[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]