1. COLLECTION OF CHARGES WHERE CREDIT HAS NOT BEEN EXTENDED:
Charges accruing under the provisions of this tariff are due and payable and shall be collected by the carrier at the time an outbound prepaid shipment is tendered by the shipper to the carrier for transportation, or at the time an inbound collect shipment is delivered by the carrier to the consignee, or, in the case of accessorial service charges such as storage, reweighing, marking or COD charges, at the time such service is requested or when possession of the shipment, or any part thereof, is relinquished by the carrier, except where credit has been extended by the carrier to the shipper, consignee, or other party obligated to pay the charges, under the provisions of this item.
2. EXTENSION OF CREDIT:
A. CARRIER MAY EXTEND CREDIT TO SHIPPER: Upon taking precautions deemed by carrier to be sufficient to assure payment of the tariff charges within the credit period herein specified, carrier may relinquish possession of freight in advance of the payment of the tariff charges and may extend credit in the amount of such charges to those who undertake to pay them, such persons herein being called shippers, for a period of 7 days, excluding Saturdays, Sundays and legal holidays. When the Freight Bill covering a shipment is presented to the shipper on or before the date of delivery, the credit period shall run from first 12 o'clock midnight following the presentation of the Freight Bill. In regard to traffic of nonprofit shippers associations and shippers' agents, within the meaning of Section 10562 (3) and (4) of the Interstate Commerce Act, the carriers shall require such organizations to furnish the names of the beneficial owners of the property in the Bills of Lading or at least have the Bills of Lading incorporate by reference a document containing the names of the beneficial owners.
B. CREDIT FOR ADDITIONAL CHARGES AFTER FREIGHT RELINQUISHED: Where a common carrier by motor vehicle has relinquished possession of freight and collected the amount of tariff charges represented in a Freight Bill presented by it as the total amount of such charges, and another Freight Bill for additional charges is thereafter presented to the shipper, the carrier may extend credit in the amount of such additional charges for a period of 30 calendar days, to be computed from the first 12 o'clock midnight following the presentation of the subsequently presented Freight Bill.
C. PERIOD OF CREDIT FOLLOWING DELIVERY OF FREIGHT: Freight Bills for all transportation charges shall be presented to the shippers within 7 calendar days from the first 12 o'clock midnight following delivery of the freight.
D. FREIGHT BILLS MAY BE PRESENTED BY MAIL: Shippers may elect to have their Freight Bills presented by means of the United States mails, and when the mail service is so used the time of the mailing by the carrier shall be deemed to be the time of presentation of the bills. In case of dispute as to the time of mailing, the postmark shall be accepted as showing such time.
E. PAYMENT BY CHECKS, DRAFTS, OR MONEY ORDERS: The mailing by the shipper of valid checks, drafts, or money orders, which are satisfactory to the carrier, in payment of freight charges within the credit period allowed such shipper, may be deemed to be the collection of the tariff charges within the credit period for the purposes of the rules in this part. In case of dispute as to the time of mailing, the postmark shall be accepted as showing such time.
NOTE A: The provisions of this item shall not be construed to prohibit the extension of credit in connection with rates and charges on freight transported for the United States, for any department, bureau, or any agency thereof, or for any State or Territory or political subdivision thereof, or for the District of Columbia.