Section 3 AAC 305.125 - Compelled transfer of a license to the prior licensee with a security interest in the license(a) If a former licensee seeks to compel the transfer of a license because of a promise given as collateral by the current licensee under AS 04.11.670 to the former licensee during an earlier transfer of the license, followed by a default in payment related to property conveyed or a lease made as part of the previous transfer, the board will deny the transfer if the creditors are not satisfied under AS 04.11.360(4)(A). The board may approve the transfer if circumstances clearly show that (1) the security interest was established in the previous transfer in accordance with 3 AAC 305.065.(2) the former licensee operated the license that was transferred for at least 240 hours; and(3) the term of a security interest in a license to secure payment for personal property did not exceed 10 years.(b) The director may identify applications for transfer of ownership that are secured as described in this section in board meeting agendas.(c) After the foreclosure of real property that secures payment of debt that is also secured by a promise under AS 04.11.670, a license may not be retransferred without satisfaction of creditors under AS 04.11.360(4)(A) unless (1) the board approved an application for retransfer before the foreclosure; or(2) the amount owed to the former licensee for the real property at the time of foreclosure exceeds the fair market value of the property; the former licensee carries the burden of proof to show that the fair market value is less than the amount owed.Eff. 1/1/2024, Register 248, January 2024Authority:AS 04.06.005
AS 04.06.090
AS 04.06.100
AS 04.11.050
AS 04.11.260
AS 04.11.270
AS 04.11.280
AS 04.11.290
AS 04.11.450
AS 04.11.670