[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR113.40]

[Page 493]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 113--CUSTOMS BONDS--Table of Contents
 
                   Subpart D--Principals and Sureties
 
Sec. 113.40  Acceptance of cash deposits or obligations of the United States in lieu of sureties on bonds.

    (a) General provision. In lieu of sureties on any bond required or 
authorized by any law, regulation, or instruction which the Secretary of 
the Treasury or the Commissioner of Customs is authorized to enforce, 
the port director is authorized to accept United States money, United 
States bonds (except for savings bonds), United States certificates of 
indebtedness, Treasury notes, or Treasury bills in an amount equal to 
the amount of the bond.
    (b) Authority to sell United States obligations on default. At the 
time of deposit of any obligation of the United States, other than 
United States money, with the port director or other appropriate Customs 
officer, the obligor shall deliver a duly executed power of attorney and 
agreement authorizing the port director or other appropriate Customs 
officer, as, in case of any default in the performance of any of the 
conditions of the bond, to sell the obligation so deposited and to apply 
the proceeds of sale, in whole or in part, to the satisfaction of any 
damages, demands, or deficiency arising by reason of default. The format 
of the power of attorney and agreement, when the obligor is a 
corporation, is set forth below, and shall be modified as appropriate 
when the obligor is either an individual or a partnership:

                     Power of Attorney and Agreement

                            (For Corporation)

    ----, (name of corporation) a corporation duly incorporated under 
the laws of the State of ----, and having its principal office in the 
City of ----, State of ----, as authorized by a resolution of the board 
of directors of the corporation, passed on the ---- day of ----, 19--, a 
duly certified copy of which is attached, does constitute and appoint --
-- (name and official title of bond-approving officer), and his 
successors in office, as attorney for said corporation, for and in the 
name of the corporation to collect or to sell, assign, and transfer the 
securities described as follows:
________________________________________________________________________

The securities having been deposited by it as security for the 
performance of the agreements undertaken in a bond with the United 
States, executed on the date of --------, 19--, the terms and conditions 
of which are incorporated by reference into this power of attorney and 
agreement and made a part hereof. The undersigned agrees that in case of 
any default in the performance of any of the agreements the attorney 
shall have full power to collect the securities or any part thereof, or 
to sell, assign, and transfer the securities or any part thereof at 
public or private sale, without notice, free from any equity of 
redemption and without appraisement or valuation, notice and right to 
redeem being waived and to apply the proceeds of the sale or collection 
in whole or in part to the satisfaction of any obligation arising by 
reason of default. The undersigned further agrees that the authority 
granted by this agreement is irrevocable. The corporation for itself, 
its successors and assigns, ratifies and confirms whatever the attorney 
shall do by virtue of this agreement.
    Witnessed, signed, and sealed, this ---- day of ---- 19--.
[Corporate seal.]
By ----_________________________________________________________________
    Before me, the undersigned, a notary public within and for the 
County of ----, in the State of ---- (or the District of Columbia), 
personally appeared ---- (name and title of officer) and for and in 
behalf of said ----, a corporation, acknowledged the execution of the 
foregoing power of attorney.
    Witness my hand and notarial seal this -- day of ----, 19--.
[Notarial seal.]
Notary Public --------------------

    Note: Securities must be described by title, date of maturity, rate 
of interest, denomination, serial number, and whether coupon or 
registered. Failure to give a complete description will warrant 
rejection of this power of attorney.

    (c) Application of United States money on default. If cash is 
deposited in lieu of sureties on the bond, the port director or other 
appropriate Customs officer, as appropriate is authorized to apply the 
cash, in whole or in part, to the satisfaction of any damages, demands, 
or deficiency arising by reason of a default under the bond.

[T.D. 84-213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984]

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