Iowa Administrative Code
Agency 185 - ALCOHOLIC BEVERAGES DIVISION
Chapter 16 - TRADE PRACTICES
Rule 185-16.43 - Extension of credit and prepaid accounts
Universal Citation: IA Admin Code 185-16.43
Current through Register Vol. 46, No. 19, March 20, 2024
(1) Extension of credit. An industry member is prohibited from extending credit on the sale of alcoholic liquor or beer to a retailer. An industry member may extend credit to a retailer on the sale of wine for not more than 30 days from the date of the sale.
(2) Prepaid accounts.
a. An industry member may establish prepaid
accounts in which retailers deposit a sum of money to pay for future purchases
of alcoholic beverages products.
b.
An industry member may not hold the money deposited in a prepaid account for
future payment of a debt.
c. An
industry member shall transfer the amount of the invoice from the retailer's
prepaid account each time that the industry member makes a sale and a delivery
to the retail establishment.
d. An
industry member is not required to establish separate escrow accounts for
prepaid accounts.
e. An industry
member is responsible for accurately and honestly accounting for the funds held
in a prepaid account.
f. A retailer
may withdraw the money placed in a prepaid account at any time.
g. An industry member is prohibited from
utilizing prepaid accounts to require a retailer to purchase any quota of
alcoholic liquor, wine, or beer.
This rule is intended to implement Iowa Code sections 123.45 and 123.181(2).
Disclaimer: These regulations may not be the most recent version. Iowa may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
