License not to be pledged as security -- Prohibited transfers.

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  • (1) An alcohol licensee may not enter into any agreement under which the alcohol licensee pledges the alcohol license as security for a loan or as security for the fulfillment of any agreement.
  • (2) An alcohol licensee may not transfer an alcohol license if the transfer is to:
    • (a) satisfy a loan or to fulfill an agreement entered into more than 90 days before the day on which the transfer application is filed;
    • (b) gain or establish a preference to or for any creditor of the transferor or seller, except as provided by Section 32B-8a-202; or
    • (c) defraud or injure a creditor of the transferor or seller.
  • (3) An alcohol licensee may not transfer a bar establishment license in a manner that circumvents the limitations of Subsection 32B-8d-103(3)(b) or (c).
  • (4) An alcohol licensee may not transfer an alcohol license except in accordance with this chapter.




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