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Industry Advisory - Clarification of Extending Credit during COVID-19

https://lcc.nebraska.gov/sites/lcc.nebraska.gov/files/Industry%20Advisory-Extending%20Credit%203-26-20.pdf

March 26, 2020

 

Industry Advisory- Clarification of Extending Credit during COVID-19

Nebraska Liquor Control Commission

 

This advisory is temporary in nature and specific to those in the Liquor industry in Nebraska.

The following are Rule and Statutory provisions that the Nebraska Liquor Control Commission is modifying during the pendency of this crisis

In response to the ongoing disruption caused by the COVID-19 emergency, the NLCC will be modifying its operations. The NLCC is also offering additional answers in regards to Governor Ricketts Executive Order No. 20-06.

1. Allow the credit time on non-beer products to extend beyond 30 days.   Neb. Rev. Stat. 53-168. Beer must be paid for upon delivery of the product from a Nebraska Wholesaler to a Nebraska retailer. Wine and spirits are normally allowed to have a credit for up to thirty days before payment is due.  With the current closures and restrictions of sales on many bars and restaurants, these payments may become due when the establishment is closed or during modified operations. Executive Order 20-06 allows a temporary extension of credit to 90 days to provide some ease during this crisis. Please be aware that credit may only be extended to wine and spirits and does not apply to beer.

​There have been many questions about the impact of the ability to extend the credit date from 30 days to 90 days.

  1. The Credit terms between a Retailer and Wholesaler are a business decision between them. There is no right to credit. Executive Order 20-06 allows the possible extension without being in violation of state law, but is not a mandate.
  2. The NLCC will not consider anyone delinquent until 90 days or until a termination of the Executive Order.
  1. If you have repayment concerns, the NLCC encourages you to contact your wholesale partner to discuss options.

 

Thank you,

 

 

Hobert Rupe

Executive Director