2005 Minnesota Statutes

     349.191 Sales on credit. 

    Subdivision 1.    Credit restriction.  A manufacturer 
 may not offer or extend to a distributor, a linked bingo game 
 provider may not offer or extend to an organization, and a 
 distributor may not offer or extend to an organization, credit 
 for a period of more than 30 days for the sale or lease of any 
 gambling equipment.  No right of action exists for the 
 collection of any claim based on credit prohibited by this 
 subdivision.  The 30-day period allowed by this subdivision 
 begins with the day immediately following the day of invoice and 
 includes all successive days, including Sundays and holidays, to 
 and including the 30th successive day. 

    Subd. 1a.    Credit and sales to delinquent organizations. 
  (a) If a distributor or linked bingo game provider does not 
 receive payment in full from an organization within 35 days of 
 the day immediately following the date of the invoice, the 
 distributor or linked bingo game provider must notify the board 
 in writing of the delinquency on the next business day. 

    (b) If a distributor or linked bingo game provider who has 
 notified the board under paragraph (a) has not received payment 
 in full from the organization within 60 days of the notification 
 under paragraph (a), the distributor or linked bingo game 
 provider must notify the board of the continuing delinquency. 

    (c) On receipt of a notice under paragraph (a), the board 
 shall order all distributors and linked bingo game providers 
 that until further notice from the board, they may sell gambling 
 equipment to the delinquent organizations only on a cash basis 
 with no credit extended.  On receipt of a notice under paragraph 
 (b), the board shall order all distributors and linked bingo 
 game providers not to sell any gambling equipment to the 
 delinquent organization. 

    (d) No distributor or linked bingo game provider may extend 
 credit or sell gambling equipment to an organization in 
 violation of an order under paragraph (c) until the board has 
 authorized such credit or sale. 

    Subd. 1b.    Credit and sales to delinquent distributors. 
  (a) If a manufacturer does not receive payment in full from a 
 distributor within 35 days of the day immediately following the 
 date of invoice, the manufacturer must notify the board in 
 writing of the delinquency on the next business day. 

    (b) If a manufacturer who has notified the board under 
 paragraph (a) has not received payment in full from the 
 distributor within 60 days of the notification under paragraph 
 (a), the manufacturer must notify the board of the continuing 
 delinquency. 

    (c) On receipt of a notice under paragraph (a), the board 
 shall order all manufacturers that until further notice from the 
 board, they may sell gambling equipment to the delinquent 
 distributor only on a cash basis with no credit extended.  On 
 receipt of a notice under paragraph (b), the board shall order 
 all manufacturers not to sell any gambling equipment to the 
 delinquent distributor. 

    (d) No manufacturer may extend credit or sell gambling 
 equipment to a distributor in violation of an order under 
 paragraph (c) until the board has authorized such credit or sale.

    Subd. 2.    Invoices.  All invoices prepared by a 
 manufacturer or distributor and presented as part of a credit 
 transaction for the purchase of gambling equipment must clearly 
 bear the words "Notice:  State Law Prohibits the Extension of 
 Credit For This Sale For More Than 30 Days." 

    Subd. 3.    Rules.  Any rule of the board which requires 
 a manufacturer to report to the board any distributor who is 
 delinquent in payment for gambling equipment must provide that a 
 distributor is subject to the rule if the distributor is more 
 than 30 days delinquent in payment to a manufacturer. 

    Subd. 4.    Credit; postdated checks.  For purposes of 
 this section, "credit" includes acceptance by a manufacturer or 
 distributor of a postdated check in payment for gambling 
 equipment. 

    HIST: 1990 c 590 art 1 s 33; 1994 c 633 art 5 s 82-85; 1995 c 
 261 s 24; 1997 c 231 art 7 s 35; 2002 c 386 art 1 s 10,11; 2003 
 c 110 s 39,40