Financing A Liquor License

[vdo167]

California.

Can someone finance a liquor license, for example:
50% paid on transfer
50% paid over 3 years

Until 100% of the Purchase Price is paid to the Landlord by the Tenant, should there be a default in payment, the Landlord will have the right to repurchase the liquor for $1.

Once the Tenant pays for 100% of the Purchase Price, the Landlord shall have the right to repurchase the license, upon termination of the Lease, for the value of the Liquor License.


The ABC has the following restriction, so what happens when the tenant does not pay 100%. Can it be transferred back to the landlord?

According to the Business & Professions Code 24076. : No licensee shall enter into any agreement wherein he pledges the transfer of his license as security for a loan or as security for the fulfillment of any agreement. No license shall be transferred if the transfer is to satisfy a loan or to fulfill an agreement entered into more than 90 days preceding the date on which the transfer application is filed or to gain or establish a preference to or for any creditor of the transferor.

 

[quincy]

California.

Can someone finance a liquor license, for example:
50% paid on transfer
50% paid over 3 years

Until 100% of the Purchase Price is paid to the Landlord by the Tenant, should there be a default in payment, the Landlord will have the right to repurchase the liquor for $1.

Once the Tenant pays for 100% of the Purchase Price, the Landlord shall have the right to repurchase the license, upon termination of the Lease, for the value of the Liquor License.


The ABC has the following restriction, so what happens when the tenant does not pay 100%. Can it be transferred back to the landlord?

According to the Business & Professions Code 24076. : No licensee shall enter into any agreement wherein he pledges the transfer of his license as security for a loan or as security for the fulfillment of any agreement. No license shall be transferred if the transfer is to satisfy a loan or to fulfill an agreement entered into more than 90 days preceding the date on which the transfer application is filed or to gain or establish a preference to or for any creditor of the transferor.

Here are two links to California's ABC, one to FAQ on licenses, and one to Questions on licenses:

http://www.abc.ca.gov/questions/licenses_faq.html

http://www.abc.ca.gov/questions.html

Any additional questions can be asked directly to the California Department of Alcoholic Beverage Control, accessible through the second link provided above.