NAC584.5911. Extension of credit by distributor.

     1. A sale by a distributor for which payment is not made before or at delivery is an extension of credit by the distributor.

     2. Except for a sale to the Federal Government, no sale of milk or dairy products from a distributor to a wholesale customer or to another distributor may be made on terms of credit under which the final payment for the milk or dairy products is due more than 60 days after the date of delivery.

     3. Any violation of subsection 2 is an unfair practice by the seller and the purchaser.

     4. For the purpose of this section:

     (a) The period for which credit is extended is the period between the day when the milk or dairy products are delivered and the day when the payment is received by the distributor; and

     (b) The giving of a promissory note, postdated check or other evidence of indebtedness is not payment of a debt unless it is immediately payable.

     [Dairy Comm’n, Stabiliza. & Mktg. Plan - ENMA Art. V § A, eff. 9-15-79]—(NAC A 8-26-96; R082-11, 5-30-2012)