# KRS § 244.040: 244.040 Sales for cash only

> Kentucky · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.040

## Section

- **Citation:** KRS § 244.040
- **Heading:** 244.040 Sales for cash only
- **Jurisdiction:** Kentucky
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** KY Code / Title XX / Chapter 244 / Section 244.040

## Text

244.040 Sales for cash only.

(1) A brewer or distributor shall not sell alcoholic beverages to any person in this state

for any consideration except for cash paid at or before the time of delivery.

For purposes of this section, "cash" includes the sale of malt beverages by electronic

transfers if the following conditions are met:

(a) The use of electronic transfers shall be voluntary and shall be agreed to by the

affected brewer, distributor, and retailer;

(b) The brewer shall not pay or credit back in any way to the distributor any share

of the cost that is attributable to the electronic transfer;

(c) The distributor shall not pay or credit back in any way to the retailer any share

of the cost that is attributable to the electronic fund transfer;

(d) The transfer of funds shall be initiated by the brewer or the distributor;

(e) The distributor may debit the retailer's bank account for the exact amount due

based on the amount of alcoholic beverages delivered;

(f) Electronic fund transfers that are rejected or denied at the time of sale for any

reason shall be treated in the same manner as checks drawn on insufficient

funds; and

(g) Each participating retail licensee and each distributor maintain accurate

records of all electronic fund transfers in accordance with department statutes

and administrative regulations.

(2) A brewer or distributor shall not furnish or deliver any returnable bottled malt

beverage without collecting a minimum container charge or deposit of sixty cents

($0.60) per case of twenty-four (24) twelve-ounce bottles or its equivalent in the

same manner that the price of the malt beverage is collected.

(3) This section shall not prohibit a licensee from crediting to a purchaser the actual

prices charged for packages or containers returned by the original purchaser as a

credit on any sale, or from refunding to any purchaser the amount paid by the

purchaser for containers or as a deposit on containers when the title is retained by

the vendor, if the containers or packages have been returned to the brewer or

distributor.

(4) No right of action shall exist to collect any claim for credit extended contrary to this

section.

(5) This section shall not apply to sales by wholesalers or distributors to licensees that

are private clubs or voluntary associations.

## Nearby sections

- [KRS § 244.010 244.010 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.010.md)
- [KRS § 244.030 244.030 Soliciting orders -- When prohibited](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.030.md)
- [KRS § 244.040 244.040 Sales for cash only](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.040.md)
- [KRS § 244.050 244.050 "Treating" prohibited -- Exceptions](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.050.md)
- [KRS § 244.060 244.060 Licensee to purchase from and sell only to persons authorized to sell or purchase](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.060.md)
- [KRS § 244.080 244.080 Retail sales to certain persons prohibited -- Affirmative defense in prosecution for selling to a minor](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.080.md)
- [KRS § 244.083 244.083 Licensee to display notice as to sale to minors](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.083.md)
- [KRS § 244.085 244.085 Minors not to possess or purchase liquor nor to misrepresent age -- Use of fraudulent identification -- Prohibition against minors remaining on premises where alcoholic beverages sold](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.085.md)
- [KRS § 244.090 244.090 Persons whom licensees may not employ -- Exceptions](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.090.md)
- [KRS § 244.105 244.105 Gift card for alcoholic beverages to be redeemed only by persons 21 and older](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.105.md)
- [KRS § 244.110 244.110 Retail premises to furnish clear view from sidewalk or entrance](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.110.md)
- [KRS § 244.120 244.120 Retail premises not to be disorderly -- Acts constituting disorderly behavior](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.120.md)
- [KRS § 244.125 244.125 Prohibition against possession of loaded firearm in room where alcoholic beverages are being sold by the drink](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.125.md)
- [KRS § 244.130 244.130 Advertising to comply with regulations of board -- Types of advertising not prohibited](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.130.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_KY_TXX_C244_S244.040. Check the current official text before relying on it. Not legal advice.
