Corpus

Face value of credit instrument included in computation of gross revenue; exceptions; cash received in payment of debt not included in gross revenue.

Miss. Code Ann. § 75-76-181
in effect
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For the purposes of this chapter, except as otherwise provided in subsection (3) of this section, the computation of gross revenue must include the face value of any credit instrument accepted on or after June 29, 1991, if, within five (5) years after the last day of the month following the month in which the instrument was accepted by the licensee, the executive director determines that: The instrument was not signed by the patron or otherwise acknowledged by him in a written form satisfactory to the executive director; The licensee did not have an address for the patron at the time of accepting the instrument, or, in lieu of that address, has not provided the executive director, within a reasonable time after its request, the current address of the patron to whom the credit was extended; The licensee has not provided the executive director any evidence that the licensee made a reasonable effort to collect the debt; The licensee has not provided the executive director any evidence that the licensee checked the credit history of the patron before extending the credit to him; The licensee has not produced the instrument within a reasonable time after a request by the executive director for the instrument unless it: Is in the possession of a court, governmental agency or financial institution; Has been returned to the patron upon his partial payment of the instrument and the licensee has obtained a substitute credit instrument for the remaining balance; Has been stolen and the licensee has made a written report of the theft to the appropriate law enforcement agency; or Cannot be produced because of any other circumstance which is beyond the licensee’s control; The signature of the patron on the instrument was forged and the licensee has not made a written report of the forgery to the appropriate law enforcement agency; or Upon an audit by the State Tax Commission, the licensee requested the auditors not to confirm the unpaid balance of the debit with the patron and there is no other satisfactory means of confirmation. For the purpose of this chapter, the computation of gross revenue must not include cash or its equivalent which is received in full or partial payment of a debt previously included in the computation of gross revenue pursuant to subsection (1). Subsection (1) does not apply to any credit instrument which is settled for less than its face amount to: Induce a partial payment; Compromise a dispute; Retain a patron’s business for the future; or Obtain a patron’s business if: An agreement is entered into to discount the face amount of a credit instrument before it is issued to induce timely payment of the credit instrument; and The percentage of discount of the instrument is reasonable as compared to the prevailing practice in the industry.