42.13.109 SEVEN-DAY CREDIT LIMITATION
(1) A brewery license, a beer wholesaler license, a winery license, or a table wine distributor license will be suspended or revoked or otherwise sanctioned under 16-4-406, MCA, if credible evidence demonstrates that a licensee extended credit to a retail licensee for more than seven days.
(2) A retailer's license will be suspended or revoked or otherwise sanctioned under 16-4-406, MCA, if credible evidence demonstrates that the retail licensee accepted credit extended by a brewer or a beer wholesaler for more than seven days for the purchase of beer.
(3) The first day of the seven-day credit period begins at 8:00 a.m. on the day after the delivery.
(4) Criteria which demonstrates credit has been extended are:
(a) wholesaler delivered product to retailer;
(b) retailer or wholesaler does not have documentation of payment;
(c) wholesaler has been without payment for more than seven days; and
(d) wholesaler does not have documentation of efforts to collect payment; or
(e) (a), (b), (c), and the wholesaler has no documentation to show further product delivery was terminated.
(5) Criteria which demonstrates credit has been accepted are:
(a) wholesaler delivered product to retailer;
(b) retailer or wholesaler does not have documentation of payment;
(c) wholesaler has been without payment for more than seven days; and
(d) product has not been returned by retailer.
(6) When a license is sold and a debt to a beer and wine wholesaler remains unpaid, the debt becomes the obligation of the new owner of the license. Based on the seven-day credit limitation, the wholesaler may not sell to the new licensee until the previous debt is paid in full.
History: 16-1-303, MCA; IMP, 16-3-243, 16-3-406, 16-4-404, MCA; NEW, 1993 MAR p. 158, Eff. 1/29/93; AMD, 2001 MAR p. 449, Eff. 3/23/01; AMD, 2002 MAR p. 2337, Eff. 8/30/02; AMD, 2008 MAR p. 2183, Eff. 10/10/08.