[Code of Federal Regulations]

[Title 19, Volume 1]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR113.40]



[Page 548-549]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

              HOMELAND SECURITY; 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.





[[Page 549]]





    (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]