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.

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.