Iowa Admin. Code r. 185-16.43

Current through Regsiter Vol. 46, No. 26, June 12, 2024

Rule 185-16.43 - Extension of credit and prepaid accounts

(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).

Iowa Admin. Code r. 185-16.43

Adopted by IAB May 13, 2015/Volume XXXVII, Number 23, effective 6/17/2015

Amended by IAB May 31, 2023/Volume XLV, Number 24, effective 7/5/2023