§40.401. Corporate surety. — Inbound Citations

Every person, before commencing business as a manufacturer of cigarette papers and tubes, shall file a bond on TTB F 5200.29 (or TTB F 5200.25 or 5200.26). Such bond shall be filed in accordance with the applicable provisions of §§ 40.401 through 40.410 and conditioned upon compliance with the provisions of 26 U.S.C. Chapter 52, and regulations thereunder, including, but not limited to, the timely payment of taxes imposed by such chapter and penalties and interest in connection therewith for which the manufacturer may become liable to the United States.

A bond executed by two or more corporate sureties shall be the joint and several liability of the principal and the sureties. However, each corporate surety may limit its liability in terms upon the face of the bond in a definite, specific amount, which amount shall not exceed the limitations prescribed for such corporate surety by the Secretary, as set forth in the current revision of Treasury Department Circular 570 (Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies); see § 40.401(c). When the sureties so limit their liability, the aggregate of such limited liabilities must equal the required amount of the bond.