(a) Bonds on TTB Form 5154.3 shall be terminated by the appropriate TTB officer, as to liability on drawback allowed after a specified future date, in the following circumstances:
(1) Pursuant to a notice by the surety as provided in Sec. 17.112.
(2) Following approval of a superseding bond, as provided in Sec. 17.108.
(3) Following notification by the principal of an intent to discontinue the filing of claims on a monthly basis.
(b) However, the bond shall not be terminated until all outstanding liability under it has been discharged. Upon termination, the appropriate TTB officer shall mark the bond ``canceled,'' followed by the date of cancellation, and shall issue a notice of termination of bond. A copy of this notice shall be given to the principal and to each surety.