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UNITED STATES V. ZERBEY, 271 U. S. 332 (1926)

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U.S. Supreme Court

United States v. Zerbey, 271 U.S. 332 (1926)

United States v. Zerbey

No. 790

Argued March 3, 1926

Decided May 24, 1926

271 U.S. 332


A surety bond, required by the Commissioner of Internal Revenue under § 6, Tit. II of the Prohibition Act, in connection with a permit issued to the obligor to sell wines and distilled spirits for other than beverage purposes, and conditioned

"that, if the said

Page 271 U. S. 333

principal shall fully and faithfully comply with all the requirements of the laws of the United States now or hereafr enacted and regulations issued pursuant thereto respecting the sale or use of distilled spirits and wines for other than beverage.purpose, then this obligation to be void; otherwise to remain in full force and virtue,"

is not a bond for a penalty forfeitable in its entire amount upon a breach of condition, but is a bond for indemnity securing the payment of the internal revenue taxes, interest, penalties, and liabilities accruing to the United States by reason of the breach. P. 271 U. S. 337.

Response to questions certified by the circuit court of appeals upon a review of a judgment of the district court which dismissed an action brought by the United States on the bond of a permittee under the Prohibition Act and his surety to recover the full penal sum of the bond because of alleged breaches of condition. chanroblesvirtualawlibrary

Page 271 U. S. 336

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