2013 New York Consolidated Laws
ABC - Alcoholic Beverage Control
Article 8 - (100 - 131) GENERAL PROVISIONS
101-AA - Terms of sale.

 
    § 101-aa. Terms of sale. 1. As used in this section:
    a.  "Credit  period"  means  a  period beginning on the date alcoholic
  beverages are delivered and ending thirty days thereafter.
    b. "payment period" means the period beginning on the  date  alcoholic
  beverages  are  delivered  and ending on the thirtieth day following the
  date on which alcoholic beverages are delivered.
    c. "Final payment date" means the last day of a payment period.
    d. "Notification date" means, notwithstanding section  twenty-five  of
  the general construction law, for deliveries on:
    (i) Monday, the Monday immediately following a final payment date;
    (ii)  Tuesday,  the  Tuesday  immediately  following the final payment
  date;
    (iii) Wednesday, the Wednesday immediately following the final payment
  date;
    (iv) Thursday, the Thursday immediately following  the  final  payment
  date;
    (v) Friday, the Friday immediately following the final payment date.
    e.  "Retail  licensee"  means  a person licensed to sell liquor and/or
  wine at retail for on-premise consumption or for off-premise consumption
  (including a person holding a permit granted by the  authority  pursuant
  to subdivision six of section sixty-four of this chapter).
    f. "Cash" means and includes currency and coin of the United States of
  America,  certified  check, money order, electronic funds transfer, bank
  officer's check or draft, or a check drawn on the account of the  retail
  licensee  payable  to  the manufacturer or wholesaler and dated no later
  than the date of delivery  of  the  alcoholic  beverages  and  which  is
  honored  upon  presentment  for  payment, provided, however, that if any
  check or other instrument described herein tendered by a retail licensee
  on the delinquent list is not honored upon presentment for payment,  the
  license  of  such  retail  licensee  may  be suspended for not more than
  fifteen days for the first offense, and not more than sixty days  for  a
  subsequent  offense,  which  penalty shall be in addition to the penalty
  provided for by the provisions of subdivision six of this  section,  and
  provided   further,  that  nothing  herein  contained  shall  require  a
  manufacturer or wholesaler to accept a check tendered by or drawn on the
  account of a retail licensee on the delinquent list unless the same  has
  been certified.
    2.  No  manufacturer  or  wholesaler licensed under this chapter shall
  sell or deliver any liquor or wine to  any  retail  licensee  except  as
  provided for in this section:
    (a) for cash to be paid at the time of delivery; or
    (b)  on  terms  requiring  payment  by  such  retail licensee for such
  alcoholic beverages on or before the final payment date  of  the  credit
  period for which delivery is made.
    3.  Each  such  manufacturer  and wholesaler is hereby required, on or
  before the respective notification dates for  each  retail  license,  to
  give  written  notice  of  default,  by  first  class  mail, to all such
  licensees therein who have failed to make payment to him or  her  on  or
  before  their  final  payment  date  for  alcoholic  beverages  sold  or
  delivered to them during a credit period ending on their  final  payment
  date.  No  retail  licensee shall be placed in default if the wholesaler
  has issued an account credit to the licensee, which after application to
  all debts owed by the retail licensee, is equal to or greater  than  the
  amount  of  the  default. Any such retail licensee receiving such notice
  shall not thereafter purchase alcoholic beverages except for cash  until
  such  time as the authority determines that his or her name shall not be
  published on the delinquent list as provided in subdivision four of this
  section, or until such time as the authority permits sales or deliveries

  to him or her as provided in subdivision five of this section. Each such
  manufacturer  and  wholesaler  is  hereby  required  to  file  with  the
  authority,  on  or  before each notification date, copies of the notices
  sent  by  him  or  her to all delinquent retail licensees as required in
  this subdivision, and in addition, if the authority shall so require,  a
  written  list  setting  forth  the  names  and  addresses  of  all  such
  delinquent licensees. The authority, in its discretion, may extend for a
  period not exceeding three days the date for giving  written  notice  of
  default  to  delinquent  retail  licensees and extend for three days the
  date for filing with the authority the copies of notices  sent  to  such
  licensees  and/or  the  written  list  of delinquent retail licensees as
  required in this subdivision. The  authority,  in  its  discretion,  may
  limit  the  documents to be filed to those relating to licensees who are
  to be added or deleted  from  the  default  list  and  direct  that  the
  manufacturer  or  wholesaler  maintain  copies  of  all  other documents
  required under this section for future inspection by the authority.  The
  authority  shall,  as  soon as practicable after each notification date,
  compile  and  publish  and  furnish  each  manufacturer  and  wholesaler
  licensed under this chapter a list, to be designated the delinquent list
  containing the names and addresses of all retail licensees who have been
  reported  by manufacturers and wholesalers pursuant to the provisions of
  this section or section one hundred one-aaa of this  article  as  having
  failed  to  make  payment  as  required  by  this  section for alcoholic
  beverages sold or  delivered  to  them,  and  no  such  manufacturer  or
  wholesaler,  on  or  after  the  fifth  day  after  the  receipt of such
  delinquent list, shall knowingly,  wilfully  or  intentionally  sell  or
  deliver  any alcoholic beverages to any such licensee whose name appears
  on such list, except for cash, until such  time  as  the  name  of  such
  licensee  is  removed  therefrom,  except  as hereinafter permitted. The
  receipt of a delinquent list  by  a  manufacturer  or  wholesaler  shall
  constitute  knowledge  of  the  names  of  the retail licensees who have
  failed to make payment for  alcoholic  beverages  as  required  by  this
  section.  The  failure  of any manufacturer or wholesaler to comply with
  the foregoing provisions of this section may, at the discretion  of  the
  authority,  subject  the  license  of such manufacturer or wholesaler to
  suspension for not more than five days for the first  offense,  and  not
  more  than  thirty  days  for  a  subsequent  offense. The authority may
  publish the delinquent list on its website; provided, however, that full
  access shall  be  restricted  to  those  manufacturers  and  wholesalers
  licensed under this chapter and access to their specific status shall be
  provided  to  retailers  licensed  under  this chapter. Such publication
  shall  be  considered  receipt  thereof   by   all   manufacturers   and
  wholesalers.
    4.  In the event that any dispute shall exist between any manufacturer
  or wholesaler and a retail licensee to whom he shall have sold alcoholic
  beverages, either as to the fact of payment or as to the amount due  for
  such  alcoholic  beverages  or  as  to  the  quantity  of  the alcoholic
  beverages sold or delivered, which dispute cannot  be  adjusted  between
  them, the authority is hereby authorized to receive statements from each
  of the parties to such dispute as to the facts and circumstances thereof
  and  to  determine  whether or not such retail licensee's name should be
  published on the appropriate delinquent list.
    5. The authority in the case of a retail  licensee  who  has  actually
  made  payment for alcoholic beverages, or on good cause shown to it, may
  permit sales or deliveries to  any  retail  licensee  who  has  received
  notice of default or who is named on any delinquent list, on terms other
  than  for cash, but within the limitations of this section, prior to the
  publication of the next appropriate delinquent list.

    6. The license  of  any  retail  licensee  who  purchases  or  accepts
  delivery  of alcoholic beverages on any terms, other than as provided in
  this section, may be suspended for not more than five days for the first
  offense and not more than thirty days  for  a  subsequent  offense.  The
  failure  of any such retail licensee to pay any amount in default before
  the  expiration  of  the  period  of  suspension  shall  be  deemed  and
  punishable  as  a  subsequent  offense  until  paid.  In  addition,  the
  authority may require any such retail licensee, after default in  making
  payment  in  accordance  with  the  provisions  of  this section to make
  payment in cash for alcoholic beverages subsequently delivered.
    7.  a.  All  retail  licensees  who  fail  to  pay  manufacturers   or
  wholesalers  for  alcoholic  beverages  sold or delivered to such retail
  licensees  by  such  manufacturers  or  wholesalers  subsequent  to  the
  effective  date  of  this  section,  shall liquidate and pay such unpaid
  balances  to  such  manufacturers  or  wholesalers  in   equal   monthly
  installments over a period of three months from the date upon which such
  unpaid  balances  become due. The authority, shall not, however, because
  of such an indebtedness or failure to  pay  such  refuse  to  renew  the
  license of any such licensee.
    b.  All  retail  licensees shall, on or before October tenth, nineteen
  hundred  sixty-five,  make  payment  in  full   to   manufacturers   and
  wholesalers  of  all  unpaid  balances  for alcoholic beverages sold and
  delivered to such licensees during  the  month  of  September,  nineteen
  hundred  sixty-five. All retail licensees in groups two, three, four and
  one shall, on or before November  tenth,  nineteen  hundred  sixty-five,
  make  payment  in  full  to  manufacturers and wholesalers of all unpaid
  balances for alcoholic beverages  sold  and  delivered  between  October
  first  and  October  seventh, fourteenth, twenty-first and thirty-first,
  nineteen hundred sixty-five, respectively. The authority may impose  any
  penalty or condition otherwise authorized by this section in the case of
  any  such  retail  licensee  who  fails  or refuses to liquidate and pay
  unpaid balance becoming due under this subdivision.
    8.  Nothing  herein  contained  shall  be  construed  to  require  any
  manufacturer  or  wholesaler to extend credit to any retail licensee nor
  to restrain any manufacturer or wholesaler from seeking  to  enforce  by
  legal  action  or  otherwise, payment of any sum or sums of money due or
  alleged to be due to any such manufacturer or wholesaler  for  alcoholic
  beverages sold or delivered to any such retail licensee.
    9.  The  state  liquor authority is hereby authorized to do such acts,
  prescribe such forms and make such rules, regulations and orders  as  it
  may  deem necessary or proper fully to effectuate the provisions of this
  section, including but not limited to the changing of any date on  which
  any  act  or function pursuant to this section is to be performed by any
  licensee or by the liquor authority.
    10. For the purpose of raising the  moneys  necessary  to  defray  the
  expenses  incurred  in  the administration of this section, on or before
  the tenth day after this section becomes a law, there shall be  paid  to
  the  liquor authority by each manufacturer and wholesaler licensed under
  this chapter to sell to retailers liquor and/or wines  or  beer,  a  sum
  equivalent  to  ten  per  centum of the annual license fee prescribed by
  this chapter for each such licensee. A like sum shall be  paid  by  each
  person  hereafter  applying  for  any such license or the renewal of any
  such license, and such sum  shall  accompany  the  application  and  the
  license  fee  prescribed by this chapter for such license or renewal, as
  the case may be.