Page:United States Statutes at Large Volume 68A.djvu/670

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INTERNAL REVENUE CODE OF 1.954

fix the penal sum of the distiller's bond, but in no case shall the amount of the minimum bond required under subsection (a) be less than $5,000 nor the amount of the maximum bond so required be greater than $100,000. (e) CROSS R E F E R E N C E S. —

For deposit of United States bonds or notes in lieu of sureties, see 6 U.S.C. 15, and for penalty and forfeiture for failure or refusal to give bond or for giving false, forged or fraudulent bond, see section 5604, and for carrying on the business of a distiller without giving bond, see section 5606. SEC. 5177. CONDITIONS OF APPROVAL OF DISTILLER'S BOND. (a) GENERAL,—No officer shall approve the bond of any distiller until all the requirements of the law and all regulations made by the Secretary or his delegate in relation to distilleries, in pursuance thereof, have been complied with. (b)

OWNERSHIP, CONSENT OF OWNER, OR INDEMNITY B O N D, — N o

bond of a distiller shall be approved unless— (1) The distiller is the owner in fee, unencumbered by any mortgage, judgment, or other lien, of the lot or tract of land on which the distillery is situated; or (2) The distiller files with the officer designated for the purpose by the Secretary or his delegate, in connection with his notice, the written consent of the owner of the fee, and of any mortgagee, judgment creditor, or other person having a lien, thereon, duly acknowledged, that the premises may be used for the purpose of distilling spirits, subject to the provisions of law, and expressly stipulating that the lien of the United States for taxes and penalties shall have priority of such mortgage, judgment, or other encumbrance, and that in the case of the forfeiture of the distillery premises, or any part thereof, the title to the same shall vest in the United States, discharged from such mortgage, judgment, or other encumbrance; or (3) If consent as required under paragraph (2) cannot be obtained, the distiller, with the approval of the Secretary or his delegate, files with the officer designated by the Secretary or his delegate a bond, approved by the Secretary or his delegate, in the penal sum equal to the appraised value of the lot or tract of land on which the distillery is situated, the distillery, the buildings, and the distilling apparatus. Such value shall be determined, and such bond shall be executed, in such form and with such sureties, and filed with the officer designated by the Secretary or his delegate, under such regulations as the Secretary or his delegate shall prescribe. (4) In the case of any distillery sold a t judicial or other sale in favor of the United States, a bond may be taken at the discretion of the Secretary or his delegate, in lieu of the written consent required by this subsection, and the person giving such bond may be allowed to operate such distillery during the existence of the right of redemption from such sale, on complying with all the other provisions of law. (c) SITUATION OP D I S TITLE R Y. — The officer designated by the Secretary or his delegate may refuse to approve the bond of a distillery when, in his judgment, the situation of the distillery is such § 5176(d)

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