42-3207. Secured cigarette stamp purchases on
credit; cancellation of credit privileges; collection
action
A. Subject to subsections B and C, a licensed cigarette distributor who furnishes a
bond of a surety company qualified to do business in this state, in an amount equal to
two times the amount of the distributor's current monthly stamp purchases and conditioned
upon the payment within the time prescribed, may make payment for the official stamp on
or before the twentieth day of the month next following the purchase of an official
stamp. All other cigarette distributors shall pay for each stamp at the time of
purchase.
B. Upon a finding that the amount of stamp purchases, or meter machine usage,
exceeds seventy-five per cent of the amount of the bond the department may cancel the
credit privileges provided to qualified cigarette distributors pursuant to subsection A.
C. If the indebtedness of a cigarette distributor whose credit privileges have been
canceled pursuant to this section remains unpaid for thirty days after cancellation the
director shall request the attorney general to take suitable action on behalf of the
department to collect either on the indebtedness or the surety bond.
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