OAR 845-006-0365: Payment for Alcoholic Beverages; NSF Checks, Including Third Party Checks

(1) No retail licensee will pay for malt beverages, cider, or wines purchased from a wholesale licensee with an NSF check. (2) A wholesale licensee must report any NSF check(s), including third party NSF checks, received during a calendar month to the Commission. The written report must include the trade name of the licensed premises, name of maker, amount of check, date wholesaler received check, date wholesaler was notified check was NSF, date wholesaler informed retailer of NSF check, and the date redeemed. The Commission must receive this report by the 20th day of the month following the month being reported. (Example: The Commission must receive the NSF check report for January by February 20.) Wholesale licensees must maintain a legible photocopy of the front and back of each NSF check at the licensed premises for two years. (3) Any wholesale licensee who fails to make immediate and reasonable efforts to redeem an NSF check or who continues to accept checks from a retail licensee whose checks, including third party checks, are repeatedly returned, violates the prohibition against extending credit in ORS 471.398. (4) No Full On-Premises Sales licensee will pay for distilled spirits purchased from or through the Commission with an NSF check. (5) Any retail licensee who fails to immediately redeem an NSF check or who continues to give a wholesaler checks, including third party checks, that are repeatedly returned, violates the prohibition against accepting gratuities from wholesalers in ORS 471.398. (6) As used in this rule: (a) NSF check includes any check or other instrument that is not immediately paid upon presentation or that is later dishonored; (b) Third-party check means a check or other negotiable instrument written by anyone other than the retailer.