32-11-310. Contemporaneous financing assistance.
32-11-310. Contemporaneous financing assistance. (1) If the terms on which a licensee provides financing assistance to a business are less favorable to the licensee than the terms on which an associate of the licensee provides financing assistance to the business, the licensee may not directly or indirectly provide the assistance to the business within 1 year before or after the associate provides assistance.
(2) If the financing assistance provided by the licensee's associate is of a different kind from the financing assistance provided by the licensee, the burden is on the licensee to prove that the terms on which the licensee provided the financing assistance were at least as favorable to the licensee as the terms on which the associate provided the assistance.
(3) This section does not apply:
(a) if the associate is a controlling person of the licensee and is also the only shareholder of the licensee;
(b) if the associate is an affiliate or subsidiary of the licensee; or
(c) to a transaction of an associate of a licensee in the normal course of the associate's business involving either a line of credit or financing assistance with a term of not more than 5 years.
History: En. Sec. 38, Ch. 411, L. 2007.