Tenn. Comp. R. & Regs. 0100-06-.04 - LIMITATION ON CREDIT SALES

(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).

Notes

Tenn. Comp. R. & Regs. 0100-06-.04

Original rule filed September 9, 1983; effective October 11, 1983. Amendment filed August 15, 1997; effective December 29, 1997. Repeal and new rule filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date 6/24/2019.

Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-202, 57-3-404, and 57-3-815.