“C.O.D.” mandates that retailers who have defaulted on credit payments to wholesalers must purchase all alcoholic beverages from wholesalers on a cash (non-credit) basis until the original debt(s) are repaid. Section 101-aa of the ABC Law requires manufacturers and wholesalers to notify licensees who have failed to make payments for alcoholic beverages sold or delivered to them. The wholesaler or manufacturer is required to send default notices to retailers who have failed to make payment by the Final Payment Date for purchases made during the preceding Credit Period. The default notices must be sent by registered or certified mail to the retail licensee on the Delinquent Notice Day, which is the 4th business day after the Final Payment Date. On the same day the wholesaler or manufacturer is required to notify the Authority of delinquent retailers by sending duplicate copies of the notices of default mailed to the retailer.

A separate Delinquent List is published weekly covering each of the four groups of retail licenses and copies sent to each manufacturer and wholesaler. No manufacturer or wholesaler, after receipt of the delinquent list, shall “knowingly, willfully or intentionally” sell any liquor or wine to any retail licensee whose name appears on such list, except for cash, until such time as the name of the retailer is removed from the delinquent list.

The Authority may grant a release from the Delinquent List to any retail licensee who has received a Notice of Default or is named on any Delinquent List when Notices of Payment have been filed with the Authority by the manufacturers and wholesalers involved, or on good cause shown to it and after the investigation of the facts. Such release shall permit the sale and delivery of alcoholic beverages on terms other than for cash prior to the publication of the next appropriate Delinquent List.