16-3-406. Financial interest in retailers prohibited. (1) No winery or table wine distributor shall advance or loan money to, or furnish money for, or pay for or on behalf of any retailer, any license or tax which may be required to be paid by any retailer, and no winery or table wine distributor shall be financially interested, either directly or indirectly, in the conduct or operation of the business of a retailer.
     (2) A winery or table wine distributor shall be deemed to have such a financial interest if:
     (a) such winery or table wine distributor owns or holds any interest in or a lien or mortgage against the retailer or his premises; or
     (b) such winery or table wine distributor is under any contract with a retailer concerning future purchases and/or sale of merchandise by one from or to the other; or
     (c) such table wine distributor extends more than 7 days' credit to a retail licensee or furnishes to any retail licensee any furniture, fixtures, or equipment to be used in the dispensation or sale of table wine; or
     (d) any retailer holds an interest as a stockholder, or otherwise, in the business of the table wine distributor.

     History: En. Sec. 8, I.M. No. 81, app. Nov. 7, 1978.