Loans to wholesale customers by distributors.

1. Except as otherwise provided in subsection 2, a distributor shall not make or renew a loan of money to a current or prospective wholesale customer or in any way assist such a customer to obtain a loan of money. 2. A distributor may make or renew a loan of money to a prospective wholesale customer or a member of a cooperative grocery which is a current wholesale customer if: (a) The distributor advises the Director that he or she wishes to make or renew the loan; (b) The loan is appropriately secured and requires payment of the prevailing market rate of interest; (c) The loan is not contingent upon the purchase of dairy products; and (d) The Director approves the loan. 3. As used in this section, “wholesale customer” means any customer of a distributor other than a retail customer.