(1) A Montana brewer license, a beer wholesaler license, a Montana winery registration, 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 brewer, a winery, a wholesaler, or distributor 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.