NAC584.5971. Loans to wholesale customers by distributors.

     1. Except as otherwise provided in subsection 2, a distributor shall not make or renew a loan of money to a current or prospective wholesale customer or in any way assist such a customer to obtain a loan of money.

     2. A distributor may make or renew a loan of money to a prospective wholesale customer or a member of a cooperative grocery which is a current wholesale customer if:

     (a) The distributor advises the Commission that he or she wishes to make or renew the loan;

     (b) The loan is appropriately secured and requires payment of the prevailing market rate of interest;

     (c) The loan is not contingent upon the purchase of dairy products; and

     (d) The Commission approves the loan

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