business, whether such interest appears in the name of the interested party or in the name of another for the interested person. INDUSTRIAL ALCOHOL USER PERMIT, § 22.48 Conditions of permits. Permits to withdraw and use taxfree alcohol will designate the acts which are permitted, and include any limitations imposed on the performance of these acts. All of the provisions of this part relating to the use or recovery of tax-free alcohol are considered to be included in the provisions and conditions of the permit, the same as if set out in the permit. § 22.49 Duration of permits. Permits to withdraw and use taxfree alcohol are continuing unless automatically terminated by the terms thereof, suspended or revoked as provided in § 22.51, or voluntarily surrendered. The provisions of § 22.58 are considered part of the terms and conditions of all permits. § 22.50 Correction of permits. If an error on a permit is discovered, the permittee shall immediately return the permit to the regional director (compliance) for correction. § 22.51 Suspension or revocation of permits. The regional director (compliance) may institute proceedings under Part 200 of this chapter to suspend or revoke a permit whenever there is reason to believe that the permittee (a) Has not in good faith complied with the provisions of 26 U.S.C. Chapter 51, or regulations issued under that chapter; (b) Has violated the conditions of that permit; (c) Has made any false statements as to any material fact in the application for the permit; (d) Has failed to disclose any material information required to be furnished; (e) Has violated or conspired to violate any law of the United States relating to intoxicating liquor or has been convicted of an offense under Title 26, U.S.C., punishable as a felony or of any conspiracy to commit such offense; (f) Is, by reason of its operations, no longer warranted in procuring and using tax-free alcohol authorized by the permit; or (g) Has not engaged in any of the operations authorized by the permit for a period exceeding two years. § 22.52 Rules of practice in permit proceedings. The regulations of Part 200 of this chapter apply to the procedure and practice in connection with the disapproval of any application for a permit and in connection with suspension or revocation of a permit. § 22.53 Powers of attorney. An applicant or permittee shall execute and file with the regional director (compliance) a Form 1534, in accordance with the instructions on the form, for each person authorized to sign or to act in its behalf. Form 1534 is not required for persons whose authority is furnished in accordance with § 22.42(a)(10). § 22.54 Photocopying of permits. A permittee may make photocopies of its permit exclusively for the purpose of furnishing proof of authorization to withdraw tax-free alcohol from a distilled spirits plant. § 22.55 Posting of permits. Permits issued under this part will be kept posted and available for inspection on the permit premises. CHANGES AFTER ORIGINAL QUALIFICATION § 22.57 Changes affecting applications and permits. (a) General-(1) Changes affecting application. When there is a change relating to any of the information contained in, or considered a part of the application on Form 5150.22 for a permit, the permittee shall, within 30 days (except as otherwise provided in this subpart) file a written notice with the regional director (compliance) to amend the application. (2) Changes affecting waivers. When any waiver under § 22.43 is terminated by a change to the application, the permittee shall include the current information as to the item previously waived with the written notice required in paragraph (a)(1) of this section. (3) Changes affecting permit. When the terms of a permit are affected by a change, the written notice required by paragraph (a)(1) of this section (except as otherwise provided in this subpart) will serve as an application to amend the permit. (4) Form of notice. All written notices to amend an application on Form 5150.22 will— (i) Identify the permittee; (ii) Contain the permit identification number; (iii) Explain the nature of the change and contain any required supporting documents; (iv) Identify the serial number of the applicable application, Form 5150.22; and (v) Be consecutively numbered and signed by the permittee or any person authorized to sign on behalf of the permittee. (b) Amended application. The regional director (compliance) may require a permittee to file an amended application on Form 5150.22 when the number of changes to the previous application are determined to be excessive, or when a permittee has not timely filed the written notice prescribed in paragraph (a)(1) of this section. If items on the amended application remain unchanged, they will be marked "No change since Form 5150.22, Serial No. (c) Changes in officers, directors and stockholders-(1) Officers. In the case of a change in the officers listed under the provisions of § 22.45(a)(2), the notice required by paragraph (a)(1) of this section shall only apply (unless otherwise required, in writing, by the regional director (compliance)) to those offices, the incumbents of which are responsible for the operations covered by the permit. (2) Directors. In the case of a change in the directors listed under the provisions of § 22.45(a)(2), the notice re quired by paragraph (a)(1) of this section shall reflect the changes. (3) Stockholders. In lieu of reporting all changes, within 30 days, to the list of stockholders furnished under the provisions of § 22.45(c)(1), a permittee may, upon filing written notice to the regional director (compliance) and establishing a reporting date, file an annual notice of changes. The notice of changes in stockholders does not apply if the sale or transfer of capital stock results in a change in ownership or control which is required to be reported under § 22.58. (Approved by the Office of Management and Budget under control number 15120335) [T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985] § 22.58 Automatic termination of permits. (a) Permit not transferable. Permits issued under this part are not transferable. In the event of the lease, sale, or other transfer of such a permit, or of the operations authorized by the permit, the permit shall, except as provided for in this section, automatically terminate. (b) Corporations. (1) If actual or legal control of any corporation holding a permit issued under this part changes, directly or indirectly, whether by reason of a change in stock ownership or control (in the permittee corporation or any other corporation), by operation of law, or in any other manner, the permittee shall within 10 days of the change, give written notice to the regional director (compliance). The written notice shall be accompanied by (or within 30 days of the change) an application and supporting documents on Form 5150.22 for a new permit. If an application on Form 5150.22 for a new permit is not filed within 30 days of the change, the outstanding permit will automatically terminate. (2) If an application on Form 5150.22 for a new permit is filed within the 30day period prescribed in paragraph (b)(1) of this section, the outstanding permit will remain in effect until final action is taken on the application. When final action is taken, the outstanding permit will automatically ter minate and the permittee shall forward it to the regional director (compliance) for cancellation. (c) Proprietorships. In the event of a change in proprietorship of a business of a permittee (as for instance, by reason of incorporation, the withdrawal or taking in of additional partners, or succession by any person who is not a fiduciary), the successor shall file written notice and make application on Form 5150.22 for a new permit under the same conditions provided for in paragraph (b) of this section. (Approved by the Office of Management and Budget under control number 15120335) § 22.59 Adoption of documents by a fiduciary. If the business covered by a permit issued under this part, is to be operated by a fiduciary, the fiduciary may, in lieu of qualifying as a new proprietor, file a written notice, and any necessary supporting documents, to amend the predecessor's permit. The fiduciary shall furnish a consent of surety on Form 1533, extending the terms of the predecessor's bond, if any. 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 the fiduciary to assume control. If the fiduciary was not appointed by the court, the date the fiduciary assumed control shall coincide with the effective date of the filing of the qualifying documents. § 22.60 Continuing partnerships. (a) Continuing partnerships. If, under the laws of a particular State, a partnership is not terminated on death or insolvency of a partner, but continues until final settlement 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, the surviving partner may continue to withdraw and use tax-free alcohol under the prior qualifications of the partnership. (b) Bonds. If a bond was required under the previous partnership, the surviving partner shall furnish a con sent of surety, in which the surety and surviving partner agree to remain liable. (c) Requalification. If a surviving partner acquires the business on completion of the settlement of the partnership, that partner shall qualify as a new proprietor, from the date of acquisition, under the same conditions and limitations prescribed in § 22.58(b). (d) More than one partner. The rule set forth in this section also applies if there is more than one surviving partner. § 22.61 Change in name of permittee. When the only change is a change in the individual, firm, or corporation name, a permittee may not conduct operations under the new name until a written notice, accompanied by necessary supporting documents, to amend the application and permit has been filed and an amended permit has been issued by the regional director (compliance). (Approved by the Office of Management and Budget under control number 15120335) [T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985] § 22.62 Change in trade name. Where there is to be a change in, or addition of, a trade name, the permittee may not conduct operations under the new trade name until a written notice has been filed and an amended permit has been issued by the regional director (compliance). A new bond or consent of surety is not required for changes in trade names. (Approved by the Office of Management and Budget under control number 15120335) § 22.63 Change in location. (a) Permit. When there is to be a change in location within the same region, a permittee may not conduct operations at the new location until a written notice, accompanied by necessary supporting information, to amend the application and permit has been filed and an amended permit has been issued by the regional director (compliance). (b) Bond. If required to file a bond, the permittee shall furnish a consent of surety on Form 1533 or a new bond to cover the new location. (Approved by the Office of Management and Budget under control number 15120335) § 22.64 Return of permits. Following the termination, surrender or revocation of a permit, or the issuance of a new or amended permit, caused by a change, the permittee shall (a) obtain and destroy all photocopies of the previous permit from its suppliers, and (b) return the original of the permit or obsolete permit to the regional director (compliance) for cancellation. REGISTRY OF STILLS § 22.66 Registry of stills. The provisions of Subpart C of Part 170 of this chapter are applicable to stills on the premises of a permittee used for distilling. As provided in § 170.55, the listing of a still in the permit application (Form 5150.22), and approval of the application, constitutes registration of the still. (Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended (26 U.S.C. 5179)) [T.D. ATF-207, 50 FR 23682, June 5, 1985] PERMANENT DISCONTINUANCE OF USE OF TAX-FREE ALCOHOL § 22.68 Notice of permanent discontinu ance. (a) Notice. A permittee who permanently discontinues the use of tax-free alcohol shall file a written notice with the regional director (compliance) to cover the discontinuance. The notice will be accompanied by the permit, and contain (1) A request to cancel the permit, (2) A statement of the disposition made, as provided in § 22.154, of all tax-free and recovered alcohol, and (3) The date of discontinuance. (b) Bonds. The bond of a permittee may not be canceled until all tax-free and recovered alcohol has been properly disposed of in accordance with the provisions of this part. (Approved by the Office of Management and Budget under control number 15120335) Subpart E-Bonds and Consents of Surety § 22.71 Bond. (a) Any bond previously approved, under this chapter, on Form 1448 (5150.25) which fulfills the penal sum requirements of paragraph (b) of this section shall remain valid and will be regulated by the same provisions of this subpart as it refers to bonds on Form 5150.25. (b) Each person who intends to withdraw more than 1,500 proof gallons of tax-free alcohol per annum shall file a bond, Form 5150.25, before issuance of the permit. However, no bond is required if the permittee is a State, any political subdivision of a State, or the District of Columbia. The penal sum of the bond will be as follows: § 22.72 Evaluation of bond penal sum. (a) Permittee's evaluation. Each permittee shall, for the period from January 1 through the following December 31, make an annual evaluation of its previous and future needs for tax-free alcohol. Based on the results of this evaluation: (1) The permittee shall file a new bond in increased penal sum, if the existing bond no longer meets the penal sum requirements of § 22.71, or (2) The permittee may file a new bond in decreased penal sum, if the existing bond exceeds the penal sum requirements of § 22.71. (b) Authority of regional director (compliance). The regional director (compliance) may, at any time, require a permittee to file a new bond in a larger penal sum, or require a satisfactory explanation why a new bond should not be filed. § 22.73 Corporate surety. (a) Surety bonds required by this part may be given only with corporate sureties holding certificates of authority from, and subject to the limitations prescribed by, the Secretary in the current revision of Treasury Department Circular No. 570. (b) Treasury Department Circular No. 570 is published in the FEDERAL REGISTER annually as of the first workday in July. As they occur, interim revisions of the circular are published in the FEDERAL REGISTER. Copies may be obtained from the Surety Bond Branch, Financial Management Service, Department of the Treasury, Washington, DC 20226. (Chapter 390, Pub. L. 80-280, 61 Stat. 648 (6 U.S.C. 6, 7)) [T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985] § 22.74 Filing of powers of attorney. Each bond, and each consent to changes in the terms of a bond, shall be accompanied by a power of attorney authorizing the agent or officer who executed the bond or consent to act on behalf of the surety. The regional director (compliance) may require additional evidence of the authority of the agent or officer to execute the bond or consent. (Chapter 390, Pub. L. 80-280, 61 Stat. 648 (6 U.S.C. 6, 7)) § 22.75 Execution of powers of attorney. The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is not a manually signed original, it shall be accompanied by certification of its validity. (Chapter 390, Pub. L. 80-280, 61 Stat. 648 (6 U.S.C. 6, 7)) § 22.76 Deposit of securities instead of corporate surety. Instead of corporate surety, the principal may pledge and deposit as surety for the bond, securities which are transferable and which are guaranteed as to both interest and principal by the United States, under the provisions of 31 CFR Part 225. (Chapter 390, Pub. L. 80-280, 61 Stat. 648 (6 U.S.C. 6, 7)) § 22.77 Consents of surety. Consents of surety to changes in the terms of bonds shall be executed on Form 1533 by the principal and by the surety with the same formality and proof of authority as is required for the execution of bonds. § 22.78 Strengthening bonds. (a) When the penal sum of any bond becomes insufficient based on projected annual withdrawals, 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. A strengthening bond will not be approved if it bears any notation which is intended or which may be considered (1) To be a release of any former bond, or (2) As limiting the amount of any bond to less than its full sum. (b) Strengthening bonds will show the date of execution and the effective date, and will be marked "Strengthening Bond." § 22.79 Superseding bonds. Superseding bonds are required when insolvency or removal of any |