Sec. 12. (a) Except as provided in subsections (b) through (d) and subsection (g), it is unlawful for a permittee to sell, offer to sell, purchase or receive, an alcoholic beverage for anything other than cash. A permittee who extends credit in violation of this section shall have no right of action on the claim.

     (b) A permittee may credit to a purchaser the actual price charged for a package or an original container returned by the original purchaser as a credit on a sale and refund to a purchaser the amount paid by the purchaser for a container, or as a deposit on a container, if it is returned to the permittee.

     (c) A manufacturer may extend usual and customary credit for alcoholic beverages sold to a customer who maintains a place of business outside this state when the alcoholic beverages are actually shipped to a point outside this state.

     (d) An artisan distiller, a distiller, a farm winery, or a liquor or wine wholesaler may extend credit on liquor, flavored malt beverages, and wine sold to a permittee for a period of fifteen (15) days from the date of invoice, date of invoice included. However, if the fifteen (15) day period passes without payment in full, the:

(1) wholesaler;

(2) farm winery that sells and delivers under IC 7.1-3-12-5(a)(14); or

(3) artisan distillery that sells and delivers under IC 7.1-3-27-8(a)(11);

shall sell to that permittee on a cash on delivery basis only.

     (e) A person who knowingly or intentionally violates this section commits a Class B misdemeanor.

     (f) Nothing in this section may be construed to prohibit a hotel, restaurant, caterer, or a club that is not open to the general public from extending credit to a consumer purchasing alcohol for personal use at any time.

     (g) Nothing in this section may be construed to prohibit a retailer or dealer from accepting a:

(1) credit card;

(2) debit card;

(3) charge card; or

(4) stored value card;

from a consumer purchasing alcohol for personal use.

[Pre-1973 Recodification Citation: 7-1-2-1.]

Formerly: Acts 1973, P.L.55, SEC.1. As amended by P.L.72-1996, SEC.23; P.L.109-2013, SEC.14; P.L.159-2014, SEC.77; P.L.234-2017, SEC.5; P.L.285-2019, SEC.64; P.L.156-2020, SEC.33; P.L.194-2021, SEC.65.