Section 3 AAC 306.052 - 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 marijuana establishment license because of a promise under 3 AAC 306.049 given as collateral by the current licensee to the former licensee in the course of an earlier transfer of the license, followed by a default in payment in connection with property conveyed or a lease made in the course of the previous transfer, the board will deny the transfer if the creditors are not satisfied under 3 AAC 306.080(d)(2)(A), unless it clearly appears that (1) the security interest was established in the previous transfer in accordance with 3 AAC 306.051; and(2) 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, in board meeting agendas, those applications for transfer of ownership that are secured as described in this section.(c) After the foreclosure of real property that secures payment of debt also secured by a promise under 3 AAC 306.049, a marijuana establishment license may not be retransferred without satisfaction of creditors under 3 AAC 306.080(d)(2)(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. 3/22/2024, Register 249, April 2024Authority:AS 17.38.010
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