The transfer, assignment, sale or lease of any license shall not be approved until the director is satisfied that all wholesalers who are creditors of the licensee have been paid or that satisfactory arrangements have been made between the licensee and the wholesaler for the payment of such debts. Such debts shall constitute a lien on the license, and the lien shall be deemed to have arisen on the date when the debt was originally incurred.
History: 1978 Comp., § 60-6B-3, enacted by Laws 1991, ch. 257, § 2.
ANNOTATIONSCross references. — For definition of "director," see 60-3A-3G NMSA 1978.
Repeals and reenactments. — Laws 1991, ch. 257, § 2 repeals former 60-6B-3 NMSA 1978, as amended by Laws 1984, ch. 58, § 2, relating to transfer of licenses, and enacts the above section, effective June 14, 1991.
General lien law not applicable. — General lien law does not apply to a claim made under this section. D & M, Inc. v. United N.M. Bank, 114 B.R. 274 (Bankr. D.N.M. 1990).
Notice of lien. — This section does not require that notice of the lien be recorded to effectuate the liquor wholesaler's lien. In re What D'Ya Call It, Inc., 1986-NMSC-098, 105 N.M. 164, 730 P.2d 467.
This section does not require notice of the lien to be filed to perfect the liquor wholesaler's lien. Automatic perfection of the wholesaler's lien occurs on the date the debt is incurred. The statute allows a wholesale liquor distributor to forego the requirement of filing a financing statement each time a credit sale is made to a retail distributor. D & M, Inc. v. United N.M. Bank, 114 B.R. 274 (Bankr. D.N.M. 1990).
Priority of lien. — A lien pursuant to this section has a superpriority status over other lienholders, including the tax lien in favor of the state, unless the latter liens were perfected under Section 7-1-38 NMSA 1978 or under applicable general law prior to the date the licensee incurred debts owed to wholesaler creditors. In re What D'Ya Call It, Inc., 1986-NMSC-098, 105 N.M. 164, 730 P.2d 467.
Liquor wholesalers have a superpriority lien over all lien holders, with the exception of the New Mexico taxation and revenue department, if the tax lien is perfected pursuant to Section 7-1-38 NMSA 1978. The tax lien is effective as of the date the notice is filed. D & M, Inc. v. United N.M. Bank, 114 B.R. 274 (Bankr. D.N.M. 1990).
Liquor wholesalers' superpriority liens created by this section were prior to a bank's perfected security interest even if there was a violation of Section 60-7A-9 NMSA 1978, governing credit extension by wholesalers. D & M, Inc. v. United N.M. Bank, 114 B.R. 274 (Bankr. D.N.M. 1990).
This section does not allow the wholesaler to claim priority for each subsequent sale as of the date of the first transaction. Instead, each separate credit sale creates a separate lien. All liens other than tax liens become subordinate to the wholesaler's liens regardless of the date of perfection. D & M, Inc. v. United N.M. Bank, 114 B.R. 274 (Bankr. D.N.M. 1990).
Am. Jur. 2d, A.L.R. and C.J.S. references. — Security interests in liquor licenses, 56 A.L.R.4th 1131.