Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.12 - LIQUOR LICENSES AND PERMITS › Subchapter 42.12.2 - License Transfer, Suspension, and Revocation › Rule 42.12.205 - REQUIREMENTS WHEN LICENSE SUBJECT TO LIEN

Current through Register Vol. 13, July 5, 2024
(1)
				All-beverages and on-premises beer licenses may be subject to a mortgage,
				security interest, and other valid lien. Upon written request to the
				department, accompanied by a copy of the note or mortgage, security agreement,
				or other loan document (in which the license or licenses to be affected are
				described with common certainty such as inclusion of license number), together
				with a fee as required in ARM
				42.12.111, the department will add
				the name of the mortgagee, secured party, or other lien holder, which must be
				endorsed upon the license. All such requests shall be upon forms prescribed by
				the department and signed in each case by the licensee and the mortgagee,
				secured party, or other lien holder.
(2) No transfer of any license subject to any
				mortgage security interest, or other lien shall be approved unless the
				mortgagee, secured party, or lien holder shall subscribe and acknowledge the
				instrument of assignment. If the mortgagee, secured party, or lien holder is
				deceased, or otherwise unavailable, the instrument of assignment may be
				subscribed and acknowledged by the personal representative, heir, devisee, or
				other person upon providing sufficient proof that the person has authority to
				act on behalf of the estate or has otherwise received the right to the security
				interest or lien.
(3) At such time
				as any mortgage, security interest, or lien affecting any license has been
				satisfied and fulfilled, the name of the mortgagee, secured party, or lien
				holder shall be removed upon written request of all parties in interest . If
				the mortgagee, secured party, or lien holder is deceased, or otherwise
				unavailable, the written request may be made by the personal representative,
				heir, devisee, or other person upon providing sufficient proof that the person
				has authority to act on behalf of the estate or has otherwise received the
				right to the security interest or lien. Any name of a mortgagee, secured party,
				or lien holder may also be removed upon the written request of the licensee or
				applicant for the license if accompanied by a court order releasing the
				security interest or lien, or other sufficient proof showing that the security
				interest or lien has expired, been discharged, or otherwise
				extinguished.
(4) Alcoholic
				beverage licenses may be subject to security interests as defined in
				30-1-201, MCA, and other valid
				liens. The perfection of a security interest or other lien in an alcoholic
				beverages license does not depend upon filing with the department, but rather
				by the statutory requirements, which apply to the particular security interest
				or lien. If a secured party or a lien creditor, as defined in
				30-9A-102, MCA, desires to give
				additional public notice, he may do so by filing a claim of security interest
				or other lien with the department. The department acts only as an additional
				source of public notice for voluntarily filed claims of security interest and
				other liens. The licensee must be the debtor. A loan guarantee by a licensee
				does not establish a valid security interest or lien by the lender under this
				rule.
(5) The consent of a secured
				party or a lien creditor is not required by the department to transfer a
				license. Persons who have filed a claim of a security interest or lien will be
				given notice by the department of any application for transfer of the
				license.
(6) Upon written request
				to the department, together with a fee as required in ARM 42.12.111, the name
				of a person claiming a security interest shall be endorsed upon the license and
				shall be kept on file with the department. All such requests shall be upon
				forms prescribed by the department and signed in each case by the licensee and
				the person claiming the security interest.
(7) The name of a lien creditor shall not be
				endorsed upon the license. However, upon written request to the department, the
				department shall keep the name of the lien creditor on file. The request must
				be accompanied by sufficient proof of perfection of the lien claimed. No fee is
				required.
(8) Any notice of
				security interest or other lien may be deleted from the department's file upon
				written request of the secured party or lien creditor on forms prescribed by
				the department. If the secured party or lien creditor is deceased, or otherwise
				unavailable, the written request for deletion may be made by a personal
				representative, heir, devisee, or other person upon providing sufficient proof
				that the person has authority to act on behalf of the estate or has otherwise
				received the right to the security interest or lien. Any notice of security
				interest or other lien may also be deleted from the department's file upon the
				written request of the licensee or applicant for the license if accompanied by
				a court order releasing the security interest or lien, or other sufficient
				proof showing that the security interest or lien has expired, been discharged,
				or otherwise extinguished.
(9) A
				security interest or other lien may be foreclosed upon in any manner provided
				by law. In non-judicial foreclosures, the department will require sufficient
				documentation that the proper foreclosure proceedings were followed, pursuant
				to 16-4-801, MCA. Purchasers of a
				license at a foreclosure sale must apply to the department for transfer of the
				license and are subject to all statutes and rules required of any other
				applicant.
(10) Sections (1)
				through (3) will apply to all security interests and liens filed with the
				department prior to September 1, 1990. Beginning September 1, 1990, (4) through
				(9) will apply to all new security interests and liens filed with the
				department.
Sec.
					 16-1-303, MCA; IMP, Sec.
					 16-4-204,
					 16-4-404,
					 16-4-801,
					 MCA;