(72 Stat. 1370; 26 U.S.C. 5271) (T.D. 7058, 35 FR 14396, Sept. 12, 1970. Redesignated at 40 FR 16835, Apr. 15, 1975)

ry, to the regional regulatory administrator; such permit may remain in effect with respect to the operation covered thereby until the expiration of 30 days after such change, whereupon such permit shall automatically terminate: Provided, That if within such 30-day period an application for a new permit covering such operation is made, then the outstanding permit may remain in effect with respect to the continuation of the operation covered thereby until final action is taken on such application. When such final action is taken, such outstanding permit shall thereupon automatically terminate.

8 211.60 Adoption of documents by a fidu.

ciary. If the business is to be operated by a fiduciary, such fiduciary may, in lieu of qualifying as a new proprietor, file an application on Form 1474, Form 1479, or Form 4326, as the case may be, to amend his predecessor's industrial use permit, furnish a consent of surety on Form 1533 extending the terms of the predecessor's bond, if any, and adopt the formulas and processes of the predecessor. The effective date of the qualifying documents filed by a fiduciary shall coincide with the effective date of the court order or the date specified therein for him to assume control. If the fiduciary was not appointed by the court, the date of his assuming control shall coincide with the effective date of the qualifying documents filed by him.

8 211.57 Change in name of permittee.

Where there is to be a change in the individual, firm, or corporate name, the permittee shall file application on Form 1474, Form 1479, or Form 4326, as the case may be, to amend his industrial use permit. Operations may not be conducted under the new name prior to issuance of the amended permit. (T.D. 7058, 35 FR 14396, Sept. 12, 1970. Redesignated at 40 FR 16835, Apr. 15, 1975)

(T.D. 7058, 35 FR 14396, Sept. 12, 1970. Redesignated at 40 FR 16835, Apr. 15, 1975)

$ 211.58 Change in trade name.

Where there is to be a change in, or addition of, a trade name, the permittee shall file application on Form 1474, Form 1479, or Form 4326, as the case may be, to amend his industrial use permit. A new bond or consent of surety will not be required. Operations may not be conducted under the trade name prior to issuance of the amended permit. (T.D. 7058, 35 FR 14396, Sept. 12, 1970. Redesignated at 40 FR 16835, Apr. 15, 1975)

§ 211.61 Change in proprietorship.

An industrial use permit shall not be transferred. In the event of a change in proprietorship of the business of a permittee (as for instance, by reason of incorporation, the withdrawal or taking in of one or more partners, or succession by any person who is not a fiduciary) the successor shall qualify in the same manner as the proprietor of a new business, except that he may adopt the formulas and processes of his predecessor.

8 211.59 Change in location.

When a permittee intends to move to a new location within the same region, he shall file application on Form 1474, Form 1479, or Form 4326, as the case may be, for an amended industrial use permit and, except in the case of a user not required to file bond, furnish a consent of surety on Form 1533, or a new bond to cover the new location. Business may not be commenced at the location prior to issuance of the amended permit.

$ 211.62 Adoption of formulas and proc

esses, Forms 1479-A. The adoption of formulas and processes, as provided in $ $ 211.60 and 211.61, shall be in the form of a certificate, in quadruplicate, to be made a part of the application and submitted to the regional regulatory administrator, in which shall be set forth a list of all such approved articles or processes in which denatured spirits are used or recovered, the formulas of specially denatured spirits used, the laboratory number of the sample (if any), the date of approval, and the code number

PERMANENT DISCONTINUANCE OF

BUSINESS

8 211.65 Notice of permanent discontinu

ance.

prescribed for the article or process. The certificate shall contain the name of the successor followed by the phrase "Formula of (Name of predecessor) is hereby adopted.” If it is desired to change the labels on such articles, other than to reflect the name of the successor, the permittee shall submit new labels or facsimiles thereof, attached to Form 1479-A, to the Director for approval. (72 Stat. 1370; 26 U.S.C. 5271)

use

$ 211.63 Continuing partnerships.

Where, under the laws of the particular State, the partnership is not terminated on death or insolvency of a partner, but continues until the winding up of the partnership affairs is completed, and the surviving partner has the exclusive right to the control and possession of the partnership assets for the purpose of liquidation and settlement, such surviving partner may continue to withdraw and to deal in or use specially denatured spirits under the prior qualification of the partnership: Provided, That a consent of surety, wherein the surety and the surviving partner agree to remain liable on any bond given on Form 1475 or 1480, is filed. If such surviving partner acquires the business on completion of the settlement of the partnership, he shall qualify in his own name from the date of acquisition, as provided in § 211.61. The rule set forth in this section shall also apply where there is more than one surviving partner. (72 Stat. 1349; 26 U.S.C. 5172)

Where a permittee permanently discontinues business, he shall file with the regional regulatory administrator a letterhead notice to cover such discontinuance. Such notice shall be accompanied by the industrial permit and any withdrawal permits issued to the permittee and by a report on Form 1478 or Form 1482, as the case may be, covering the discontinuance and marked “Final Report. The notice shall contain (a) a request that such permits be canceled, (b) a statement of the disposition made, as provided in $§ 211.254 and 211.257, of all denatured spirits, recovered denatured alcohol, and articles, and (c) the date of discontinuance. The bond of a permittee shall not be canceled until all specially denatured spirits and all articles manufactured therewith have been properly disposed of in accordance with the provisions of this part.

(72 Stat. 1370; 26 U.S.C. 5271)

Subpart E-Bonds and Consents of

Surety

REGISTRY OF STILLS

8 211.64 Registry of stills.

The provisions of Part 196 of this chapter are applicable to stills located on the premises of a permittee. The listing of the stills on Form 1479 and the issuance of the industrial use permit shall constitute registration of the stills. The alternate use of a registered still or distilling apparatus for the distillation of a byproduct or chemical for which registry is not required will not require the filing of Form 26.

$ 211.71 Dealer's bond, Form 1475.

Every person filing an application on Form 1474 shall, before issuance of the industrial use permit, file bond, Form 1475, with the regional regulatory administrator. The penal sum of the bond shall be computed on each gallon of specially denatured alcohol and specially denatured rum authorized to be on hand, in transit to the premises of the bonded dealer, and unaccounted for at any one time, at double the rate prescribed by law as the internal revenue tax on a proof gallon of distilled spirits: Provided, That the penal sum of any such bond (or the total of the penal sums where original and strengthening bonds are filed) shall not exceed $100,000 nor be less than $10,000.

(72 Stat. 1314, 1372; 26 U.S.C. 5001, 5272)

notify the principal and the regional regulatory administrator with whom the bond is filed, that he desires, after a date named, to be relieved of liability under such bond. Such date shall be not less than 90 days after the date the notice is received by the regional regulatory administrator. The surety shall also file with the regional regulatory administrator an acknowledgment or other proof of service of such notice on the principal.

(72 Stat. 1372; 26 U.S.C. 5272) [T.D. 6715, 29 FR 3657, Mar. 24, 1964. Redesignated at 40 FR 16835, Apr. 15, 1975)

8 211.76 Strengthening bonds.

In all cases where the penal sum of any bond becomes insufficient, the principal shall either give a strengthening bond with the same surety to attain a sufficient penal sum or give a new bond to cover the entire liability. Strengthening bonds shall not be approved where any notation is made thereon which is intended or which may be construed to be a release of any former bond or as limiting the amount of any bond to less than its full penal sum. Strengthening bonds shall show the date of execution and the effective date, and be marked "Strengthening Bond.” (72 Stat. 1372; 26 U.S.C. 5272)

a

§ 211.79 Termination of rights and liabili.

ty under a bond. If the notice of termination given by the surety is not thereafter in writing withdrawn, the rights of the principal as supported by the subject bond shall be terminated on the date named in the notice. The surety shall be relieved from his liability under a bond as to any operations which are wholly subsequent to:

(a) The date named in a notice of termination (§ 211.78); (b) the effective date of superseding bond (§ 211.77); or (c) the date of approval of the discontinuance of operations by the principal. If the principal fails to file a valid superseding bond prior to the date on which the surety desires to be relieved from liability under the bond, the surety, notwithstanding his release from liability as specified in paragraph (a) of this section, shall continue to remain liable under the bond for all specially denatured spirits or articles on hand or in transit to the principal on said date until the same have been lawfully disposed of or a new bond has been filed by the principal covering the same.

8 211.77 Superseding bonds.

New bonds shall be required in case of insolvency or removal of any surety, and may, at the discretion of the regional regulatory administrator, be required in any other contingency affecting the validity or impairing the efficiency of the bond. Where, under the provisions of $ 211.78, the surety on any bond given under this subpart has filed an application to be relieved of liability under said bond and the principal desires or intends to continue the transactions to which such bond relates, he shall file a valid superseding bond to be effective on or before the date specified in the surety's notice. Superseding bonds shall show the date of execution and the effective date, and be marked "Superseding Bond.” If the principal does not file a new bond when required, he shall not conduct any operation under his permit. (72 Stat. 1372; 26 U.S.C. 5272)

(72 Stat. 1372; 26 U.S.C. 5272)

8 211.80 Release of pledged securities.

Securities of the United States, pledged and deposited as provided in § 211.74, shall be released only in accordance with the provisions of 31 CFR Part 225. When the regional regulatory administrator is satisfied that they may be released, he shall fix the date or dates on which a part or all of

211.78 Notice by surety of termination

of bond. A surety on any bond required by this part may at any time, in writing,

such securities may be released. At any time prior to the release of such securities the regional regulatory administrator may extend the date of release for such additional length of time as he deems necessary. (61 Stat. 650; 6 U.S.C. 15)

manner as to control access to the denatured spirits. Means shall be provided whereby the contents can be accurately measured. Each such tank shall be durably marked to show its serial number, capacity, and use. The marks for underground tanks shall be placed at a convenient and suitable location. (72 Stat, 1372; 26 U.S.C. 5273)

Subpart F-Premises and Equipment

EQUIPMENT FOR RECOVERY AND RESTORATION OF DENATURED SPIRITS

$ 211.91 Premises.

A permittee shall have premises suitable for the business being conducted and adequate for the protection of the revenue. When specially denatured spirits are to be stored, storage facilities shall be provided on the premises for such spirits received or recovered thereon. Except as otherwise provided in this section, these storage facilities shall consist of storerooms or stationary storage tanks (not necessarily in a room or building), or a combination thereof. A user receiving specially denatured spirits in tank cars or tank trucks and storing all such spirits therein, as provided in § 211.168, need not provide stationary storage tanks. Where specially denatured spirits are to be received at or removed from a permittee's premises in bulk conveyances, suitable facilities for such operations shall be provided. (72 Stat. 1372; 26 U.S.C. 5273)

8 211.94 Stills and other equipment.

If recovered denatured spirits or articles are to be restored on the user's premises, all equipment to be used shall be located on the permit premises. Distilling apparatus or other equipment, including pipelines for such restoration or for recovery shall be constructed and secured in such a manner as to prevent unauthorized access to the denatured spirits and so arranged as to be readily inspected. (72 Stat. 1395; 26 U.S.C. 5552)

8 211.95 Recovered and restored denatured

spirits tanks. Suitable storage tanks shall be provided for recovered and restored denatured spirits. Each such tank shall bear an identifying number and be durably marked to show its serial number, capacity, and use, and shall be provided with locking facilities to prevent access to the contents. Means shall be provided whereby the contents can be accurately measured. (72 Stat. 1395; 26 U.S.C. 5552)

$ 211.92 Storerooms.

Storerooms shall be so constructed and secured as to prevent unauthorized access, and the entrance doors shall be so equipped that they may be locked on the outside. A sign shall be placed on or near the entrance door of the storeroom of a bonded dealer or user bearing, in plain and legible letters, the words “Specially Denatured Alcohol (and/or Rum) Storeroom,” or an appropriate abbreviation thereof. If more than one such storeroom is provided, each shall be designated alphabetically and such designation shall appear on the sign. (72 Stat. 1372, 1395; 26 U.S.C. 5273, 5552)

8 211.96 Denaturing material storage facil.

ities. Where the user desires to store denaturants, he shall provide a separate storage tank or storeroom constructed in accordance with $ $ 211.92 and 211.93. The regional regulatory administrator may require such storage facilities to be secured with Government locks and/or seals.

$ 211.93 Storage tanks.

Each stationary tank used for the storage of specially denatured spirits shall be equipped for locking in such a