Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 100 - THE ILLINOIS LIQUOR CONTROL COMMISSION › Section 100.90 - Credit to Retail Licensees

Current through Register Vol. 48, No. 28, July 12, 2024
The following rule shall govern in the application of the
				provisions of Section 6-5 of the Act [235 ILCS
				5/6-5 ] relating to extension of credit to retail
				licensees by manufacturers, distributors and manufacturers with limited
				self-distribution privileges:
a) When
			 two or more retail licensees are controlled by common ownership and one or more
			 of the retail licensees becomes delinquent, all retail licensees under the
			 common ownership shall be deemed delinquent. "Common ownership" shall be any
			 ownership interest of more than 5% of the total ownership interests in each
			 retailer.
b) In totaling the 30 day
			 period for the purpose of determining the delinquency of a retailer, the first
			 day shall be the day immediately following the date of the invoice of the
			 purchase in question, if the invoice date and delivery are the same, and on the
			 delivery date if the invoice is dated before the date of delivery, and all
			 successive days shall be included, Sunday as well as holidays, up to and
			 including the thirtieth successive day.
c) When a bona fide sale of a retail business
			 occurs, the purchaser shall not be deemed delinquent because of the delinquency
			 of the purchaser's predecessor in interest; however, in the event there is a
			 continuity of interest, direct or indirect, between the seller and the
			 purchaser, including, but not limited to, a change in control of the retailer
			 licensee that requires notification to be filed with either the Commission or
			 any local liquor control commissioner, the latter shall be deemed delinquent in
			 the same manner, and to the same extent, as was the seller. In the event any
			 bankruptcy proceeding is instituted by or against a retail liquor licensee, the
			 "automatic stay" provision of the federal bankruptcy law mandates that the
			 retail liquor licensee not be reported as "delinquent" pursuant to Section 6-5
			 of the Act. In order for that retail liquor licensee to continue to purchase
			 alcoholic liquors, although not on credit, the properly filed bankruptcy
			 petition must be served upon the Commission and the Wine and Spirits
			 Distributors of Illinois (WSDI). Upon service of the filed petition on the
			 Commission and WSDI, that retailer shall be automatically suspended from the
			 delinquency list, if the retail liquor licensee was on the list. Additionally,
			 proper service shall automatically suspend the application of the Illinois
			 30-day credit law (Section 6-5 of the Act) to any importing distributor,
			 distributor or self-distributing manufacturer as to that retailer during the
			 pendency of the bankruptcy petition. Nothing in this Section shall limit or
			 foreclose importing distributors, distributors or self-distributing
			 manufacturers from requiring retailers with pending bankruptcy actions to remit
			 payment for wine and distilled spirits products on a COD or pre-payment prior
			 to delivery basis.
d) When there
			 exists a bona fide dispute between the retailer and the importing distributor,
			 distributor or manufacturer as to the fact of payment for a given sale, the
			 sale in itself shall not be deemed sufficient grounds for considering the
			 retailer delinquent. Bona fide disputes shall be submitted to the Commission
			 for hearing, which shall be expedited and heard at the next regularly scheduled
			 meeting of the Commission.
e) When
			 a retailer pays a salesman, or other agent of the importing distributor,
			 distributor or manufacturer, the payment shall be deemed effective upon the
			 receipt of the money or check by the salesman or other agent.
f) When a retailer is deemed delinquent and,
			 therefore, not able to purchase for cash, or otherwise, any alcoholic liquors,
			 the retailer may, nevertheless, purchase beer for cash.
g) Payment received from a delinquent
			 retailer after the first business day of the calendar week and before a
			 verified written statement of delinquency has been submitted to the Commission
			 will entitle the manufacturer, importing distributor or distributor submitting
			 the list to delete that retailer's name from the list.
h) Determinations of delinquency or
			 non-delinquency shall be made by the Chairman, Executive Director or any
			 individual so authorized by the Chairman or Executive Director on the basis of
			 the verified report of delinquency and any affidavits or counter-affidavits
			 before him or her. Any retail licensee objecting to the determination may
			 request the Commission in writing for a hearing that will be set at the next
			 regularly scheduled meeting of the Commission.
i) A copy of any verified written list of
			 delinquencies shall be simultaneously caused to be forwarded to listed retail
			 licensees by the manufacturer, importing distributor or distributor submitting
			 the list.
j) Payment in cash by the
			 retail licensee shall mean payment in legal tender as provided by the United
			 States Code, checks (including certified checks, cashier's checks, teller's
			 checks or traveler's checks), debit cards, drafts and electronic transfer of
			 funds, provided the transfer of funds is initiated by an irrevocable payment
			 order on or before the date payment is due.
k) Checks are the equivalent of payment in
			 cash so long as they are not post-dated and are deposited by the importing
			 distributor, distributor or manufacturer in the ordinary course of business.
			 For purchases of wine and spirits, a post-dated check cleared prior to the end
			 of the 30-day credit period, including any properly disclosed finance, delivery
			 or other usual and customary charges in the industry, is considered to be a
			 valid payment. An "NSF", void or stop payment check for purchases of wine and
			 spirits that is properly replaced with cash or cash equivalent before the end
			 of the 30-day period, including any properly disclosed usual and customary
			 charges in the industry, is considered a valid payment.
l) Manufacturers, importing distributors or
			 distributors may include finance, delivery and any and all usual and customary
			 charges in the industry on credit issued and not paid and may charge usual and
			 customary charges for NSF, void or stop-payment checks, provided a statement is
			 printed on the original invoice delivered to the retailer at the time the
			 merchandise is received indicating that the usual and customary charges will be
			 assessed, with a statement specifying the terms and amounts of charges imposed.
			 The charges, properly disclosed to the retailer, are considered to be part of
			 the cost of the merchandise sold as of the invoice date and, therefore, the
			 entire amount, including any usual and customary charges, must be paid before
			 the retailer can be considered to be non-delinquent. All such usual and
			 customary charges must be applied uniformly to all retailers.
m) A retailer may not charge a distributor,
			 importing distributor or manufacturer for the costs of electronic transfers,
			 nor may a distributor, importing distributor or manufacturer charge a retailer
			 for the costs of electronic transfers. A retailer may not require a
			 distributor, importing distributor or manufacturer to purchase or lease any
			 software necessary to effectuate electronic transfers, nor may a distributor,
			 importing distributor or manufacturer require a retailer to purchase or lease
			 software necessary to effectuate electronic transfers. The use of the system
			 must be available, but cannot be mandated as a requirement for conducting
			 business, to all distributors, importing distributors, manufacturers and
			 retailers. The use of a specific Value Added Network (VAN) cannot be mandated;
			 all users of the system must be allowed to transmit information through any
			 VAN. The users of the system must continue to maintain all required records of
			 alcoholic beverage purchases and sales. The Commission shall have access, upon
			 reasonable notice, to the systems for the purpose of inspection and
			 review.
n) The use of electronic
			 fund transfers shall be allowed so long as the transfer of funds is initiated
			 by an irrevocable payment order on or before delivery of the alcoholic liquor
			 and the transfer is supported by appropriate documentation.