Rules & Regulations of the State of Tennessee
Title 0100 - Alcoholic Beverage Commission
Chapter 0100-06 - Intra-Industry Conduct and Regulations
Section 0100-06-.04 - LIMITATION ON CREDIT SALES
Universal Citation: TN Comp Rules and Regs 0100-06-.04
Current through December 26, 2024
(1) No alcoholic beverage shall be sold by any wholesaler nor shall any retailer purchase any alcoholic beverages except for cash or on terms requiring payment by the purchaser within ten (10) days.
(2) Each and every delivery of merchandise by a wholesaler to a retailer must be accompanied by an invoice of sale bearing the actual date of the delivery. A wholesaler must keep and maintain a current and accurate accounts receivable ledger as a part of his records.
(3)
(a) The
ten-day period begins from delivery and receipt by the retail licensee. The
ten- day period cannot include any day that the wholesaler is not open to make
deliveries, receive payment, or receive mail.
(b) Any suspension of deliveries is a credit
decision to be made by a wholesaler and a retail licensee.
(4)
(a)
Wholesalers must deposit all checks for payment of retail accounts no later
than the first banking day following actual receipt of said check.
(b) An account paid for by check within the
ten-day (10) credit period but which is dishonored for any reason after the
ten-day (10) credit period has elapsed is delinquent.
(c) A wholesaler shall not accept and a
licensee shall not offer a postdated check.
(5) Payment by Electronic Funds Transfer ("EFT").
(a) Electronic Funds Transfer shall
mean any transfer of funds other than a transaction originated by check, draft,
or similar paper instrument, which is initiated through an electronic terminal,
telephonic instrument, or computer, or magnetic tape so as to order, instruct,
or authorize a financial institution to debit or credit an account. Such term
includes, but is not limited to, point-of-sale transfers, automated teller
machine transactions, direct deposits or withdrawals of funds, and transfers
initiated by telephone.
(b) To
facilitate payment between wholesale licensees and the retail on-premise and
off-premise consumption licensees, Electronic Funds Transfers are an approved
method of payment; however, participation by the retail on-premise and
off-premise consumption licensees shall be voluntary. The wholesaler shall
initiate the Electronic Fund Transfer transmittal. Payment is considered to be
made when the funds are deposited in the wholesale licensee's
account.
(c) The provisions of
paragraph (5) are not intended to otherwise affect or amend paragraphs
(1)-(4).
Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-202, 57-3-404, and 57-3-815.
Disclaimer: These regulations may not be the most recent version. Tennessee 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.
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