Section 35-8A-8 - Brewery may assume wholesaler's business--Time limitation--Brewer as limitedpartner with wholesaler. - South Dakota Statutes

35-8A-8. Brewery may assume wholesaler's business--Time limitation--Brewer as limited partner with wholesaler. If the brewery assumes ownership of the wholesaler's business upon payment of full value to the wholesaler or upon repossession under a loan from the brewer to the wholesaler, the brewery may operate the wholesalership for only a reasonable period of time thereafter, not to exceed two years. Otherwise, no manufacturer or brewer, or party directly interested in either of them, may be granted a wholesale license. Nothing in this chapter may be construed to prohibit an interest by a brewer in a wholesaler's business as a limited partner as defined by chapter 48-7, or to the extent of any amount loaned by the brewer to the wholesaler in acquiring the wholesaler's business. Such arrangement may exist for no longer than ten years. If the general partner defaults in the agreement with the limited partner, and the latter acquires title to the general partner's interest, the limited partner shall divest itself of the general partner's interest within two years.

Source: SL 1990, ch 300, § 8; SL 1995, ch 208, § 2.