Edward Terry Sanford

“ Is a bond conditioned upon compliance with the law of the United States and regulations issued pursuant thereto, respecting the sale or use of distilled spirits and wines for other than beverage purposes, given the United States by one to whom a permit to sell intoxicating liquors for other than beverage purposes has been issued under the provisions of section 6 of Title 2 of the National Prohibition Act and regulations promulgated thereunder, forfeitable upon breach of the condition in the full amount of its penal sum? ”

“ A permit bond on Form 738 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. ”

“ Clark v. Barnard, 108 U.S. 436, 461, 2 S.C.t. 878, 27 L. Ed. 780; United States v. Dieckerhoff, 202 U.S. 302, 309, 26 S.C.t. 604, 50 L. Ed. 4041; United States v. Montell (Taney, 47) 26 Fed. Cas. 1293, 1296. ”