Indiana statute
Ind. Code § 7.1-5-10-12 — Credit sales prohibited; exceptions
Current through 2026 Regular Session
Part of Chapter 10: Unlawful Sales, Indiana Code.
Criminal charges under this statute
Full text of Ind. Code § 7.1-5-10-12
Statutory text current through the 2026 Regular Session. This publication reproduces the official statutory text; it is not the official statutes of the State of Indiana.
Sec. 12. (a) Except as provided in subsections (b) through (d) and subsection (g), it is unlawful for a permittee to sell, offer to sell, purchase or receive, an alcoholic beverage for anything other than cash. A permittee who extends credit in violation of this section shall have no right of action on the claim. (b) A permittee may credit to a purchaser the actual price charged for a package or an original container returned by the original purchaser as a credit on a sale and refund to a purchaser the amount paid by the purchaser for a container, or as a deposit on a container, if it is returned to the permittee. (c) A manufacturer may extend usual and customary credit for alcoholic beverages sold to a customer who maintains a place of business outside this state when the alcoholic beverages are actually shipped to a point outside this state. (d) An artisan distiller, a distiller, a farm winery, or a liquor or wine wholesaler may extend credit on liquor, flavored malt beverages, and wine sold to a permittee for a period of fifteen (15) days from the date of invoice, date of invoice included. However, if the fifteen (15) day period passes without payment in full, the: (1) wholesaler; (2) farm winery that sells and delivers under IC 7.1-3-12-5 (a)(13); or (3) artisan distillery that sells and delivers under IC 7.1-3-27-8 (a)(11); shall sell to that permittee on a cash on delivery basis only. (e) A person who knowingly or intentionally violates this section commits a Class B misdemeanor. (f) Nothing in this section may be construed to prohibit a hotel, restaurant, caterer, or a club that is not open to the general public from extending credit to a consumer purchasing alcohol for personal use at any time. (g) Nothing in this section may be construed to prohibit a retailer or dealer from accepting a: (1) credit card; (2) debit card; (3) charge card; or (4) stored value card; from a consumer purchasing alcohol for personal use. [Pre-1973 Recodification Citation: 7-1-2-1.]
Official sources
Legal terms used in this section
Questions this section answers
Is credit sales prohibited; exceptions a felony or a misdemeanor in Indiana?
Credit sales prohibited; exceptions is a Class B Misdemeanor in Indiana under Ind. Code § 7.1-5-10-12.
Which Indiana statute covers credit sales prohibited; exceptions?
Credit sales prohibited; exceptions is governed by Ind. Code § 7.1-5-10-12 (Credit sales prohibited; exceptions).
This reference is informational and is not legal advice.