ARM 42.13.109. SEVEN-DAY CREDIT LIMITATION

(1) A brewer, beer importer, beer wholesaler, winery, or table wine distributor is subject to a penalty under 16-4-406, MCA, if credible evidence demonstrates that they extended credit to a retail licensee for more than seven days or sold and delivered beer to a retailer who has unpaid deliveries that exceed seven days. (2) A retail licensee is subject to a penalty under 16-4-406, MCA, if credible evidence demonstrates that the retail licensee accepted credit extended by a brewer, beer importer, beer wholesaler, winery, or table wine distributor for more than seven days for the purchase of beer or table wine or failed to pay a brewer, beer importer, beer wholesaler, winery, or table wine distributor within seven days from the date the beer or table wine was delivered. (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.