204 CMR 2.00:

204-2.13: Notice of Credit Delinquency

(1) The Commission shall make available for use of licensees forms for
notification of credit delinquency, notification of credit delinquency
beyond 210 days, notification of delinquent's payment in full, notification
of a delinquent's default check, and request for inspection of delinquent
list. Any notifications by use of other than such forms need not be
recognized by the Commission.

(2) The delinquent list shall be available for inspection by any licensee
or his authorized agent on the premises of the Commission during regular
business hours upon the signing of a licensee of a request for inspection of
the delinquent list. The publication of said list with the name and address
of a delinquent licensee shall constitute the posting by the Commission,
and said delinquent list so published and available for inspection shall
constitute notice to all licensees of the filing of the name of a licensee
on the delinquent list and the removal of the name of a delinquent list.

(3) Within four days after receipt of a notice of delinquency, the licensee
who has received said notice may deliver to the Commission in writing a
notice of protest setting forth with particularity the reason or reasons
consistent with M.G.L. c. 138, s. 25 why said licensee should not be placed
on the delinquent list. The licensee who has extended credit may within four
days after receipt of a copy of the protest file with the Commission in
writing any objection to the protest. If it appears from the protest and
any objection to the protest that there is no genuine issue of fact, the
Commission as soon as practicable will determine whether or not the
licensee should be placed on the delinquent list. If from the protest and
objection there is a genuine issue of fact, the Commission shall afford
parties an opportunity to be heard before placing a licensee on the
delinquent list.

(4) If a licensee who has filed a notice of delinquency, resulting in a
licensee being placed on the delinquent list, fails thereafter to notify
the Commission of the discharge of indebtedness as required by M.G.L. c.
138, s. 25, the delinquent licensee may file with the Commission in writing
a request for discharge setting forth all relevant facts. If the licensee
who has filed the notice of delinquency does not thereafter file in writing
an objection to the request for discharge within two days after receipt of
a copy of the request for discharge, the Commission will strike the name of
the licensee from the delinquent list forthwith. If within two days the
Commission receives an objection to the request for discharge which raises
a genuine dispute of a relevant fact, the Commission shall as soon as
practicable afford the parties an opportunity to be heard before
determining whether or not the name of the licensee shall be struck from
the delinquent list.

(5) Any indebtedness may not be considered discharged unless the creditor
has received an amount equivalent to the outstanding indebtedness by cash,
bank, cashier's, or certified check, or its equivalent, or a check which
after deposit has become "final" (as that term is used under the uniform
commercial code), or a return of merchandise. All checks received in
payment shall be deposited by the creditor before the close of banking as
of the next business day following receipt of any check.

(6) If through error or mistake the name of a licensee appears on the
delinquent list not as a result of a notice of delinquency, the licensee
may deliver a notice in writing to the Commission of the fact and the
Commission will thereafter and forthwith strike the name of the licensee
from the delinquent list.

(7) Copies of all notices delivered to the Commission will simultaneously
be mailed to the licensee extending credit or the delinquent or proposed
delinquent as the case may be by certified mail, return receipt requested,
and the licensee delivering said notice shall certify to the Commission
notification of that fact.

(8) The parties may attach to any notice of protest, objection to notice
of protest, request for discharge of indebtedness such documents,
affidavits and legal memoranda as may be relevant and helpful to the
Commission. All statements of fact, exhibits and documents shall have
attached thereto an affidavit of the person having personal knowledge of
the facts attesting to the accuracy and authenticity of the same.

(9) Any licensee who has been posted as delinquent prior to the adoption
of 204 CMR 2.16(1) through 2.16(9) may protest that posting as provided therein
within ten days of the adoption of 204 CMR 2.16(1) THROUGH 2.19(9).

(10) A service bureau or interested person may obtain from the Commission
delinquency notices filed by wholesalers on a daily basis.

A service bureau shall compile on a daily basis all delinquency notices
and prepare therefrom a daily delinquency list which shall not be published
or circulated and shall have no legal effect until certified by the
Commission. The Commission shall certify on a daily basis the delinquency
list prepared by a service bureau in accordance with these procedures on
the condition that such delinquency list shall be made available to any
wholesaler or retail licensee who may request a copy of same upon payment
of such charge as may be reasonably assessed by the service bureau for
the preparation, printing, and distribution of such lists. Copies of
delinquency lists may also be obtained at the office of the Commission.

Any protest by either a wholesaler or retailer relating to the appearance
of a retailer on the list, or the failure of a retailer to be placed on
the list, shall be filed with the Commission which shall, pursuant to
statute and applicable regulations, adjudicate the protest and direct the
service bureau to delete or add such retailer to the delinquency list in
accordance with its decision. The service bureau shall under no
circumstances entertain any protest relative to the status of any retailer
on a delinquency list and shall make changes in a delinquency list only
in accordance with directives for the Commission.

The delinquency list prepared in accordance with these standards shall
be in two parts:

(a) A list shall be prepared and filed daily with the Commission for the
sole use of the Commission which will contain the following information:

1. the assigned code number of each delinquent retailer.

2. the name and address of each delinquent retailer.

3. the number of consecutive days that a retailer has been delinquent.

4. the name of each wholesaler posting each retailer delinquent.

(b) A delinquency list which shall be printed and circulated to every
wholesaler and retailer on a weekly basis in accordance with the third
paragraph herein which shall contain all of the information set forth in
item 204 CMR 2.13(10)(a)1. through 3. This list shall be available in two forms:

1. a list organized alphabetically by all retail licensees.

2. a list broken down alphabetically by cities and towns.

The service bureau shall prepare on a daily basis and shall offer to
every wholesaler and retailer in accordance with the provisions of the
third paragraph herein a list of daily additions and deletions only, which
list contain the same information as required by 204 CMR 2.13(10)(a)1.through 3.


204 CMR 2.00