License: Transfers: Application: Establishment of Escrow: License not to be Pledged

Each license is separate and distinct and is transferable from the licensee to another person upon the approval of the Board as provided in this Title and upon the payment of a transfer fee equal to the fee payable upon an original application for the license, subject however to the reductions specified § 3208 of this Code, except as hereinafter provided.

(a)The license or licenses of one spouse may be transferred to the other spouse when the application for transfer is made prior to the entry of a final decree of divorce, and the license or licenses of a decedent, minor ward, incompetent person, bankrupt person, person for whose estate a receiver is appointed, or assignor for the benefit of creditors may be transferred by or to the surviving partner or partners of a deceased licensee, the executor, administrator, or guardian of an estate of a licensee, the surviving spouse of a deceased licensee in the event that the deceased licensee leaves no estate to be administered, the trustee of a bankrupt estate of a licensee, receiver of the estate of a licensee, or an assignee for the benefit of creditors of a licensee with the consent of the assignor, or licenses may be transferred between partners where no new partner is being licensed. All such transfers shall be approved by the Board upon application therefor without further proceedings. The fee for transfer for each such license is twenty-five dollars ($25.00).

(b)Each license is transferable from the premises for which issued upon the approval of the Board, the payment of a transfer fee of twenty-five dollars ($25.00) and compliance with the provisions of this Title relating to the issuance of an original license.

(c)[No text]

(1)No retail license limited in numbers shall be transferred, unless before the filing of the transfer application with the Board, the licensee or the intended transferee records in the Department of Revenue and Taxation, government of Guam, a notice of the intended transfer, stating all of the following:

(A)The name and address of the licensee.

(B)The name and address of the intended transferee.

(C)The kind of license or licenses intended to be transferred.

(D)The address or addresses of the premises to which the license or licenses have been issued.

(E)The date when, which shall be at least ten

(10)days after the recording of the notice, and the place where the purchase price or consideration for the transfer of the license or licenses, if any there be, is to be paid, and the amount of the purchase price or consideration, if any there be.

(F)The name and address of the escrow holder provided herein.

(2)A copy of the notice of intended transfer, certified by the Department of Revenue and Taxation, shall be filed with the Board together with a transfer application. CH. 3 ALCOHOLIC BEVERAGE CONTROL

(3)Before the filing of such a transfer application with the Board the licensee and the intended transferee shall establish in escrow with some person, corporation, or association not a party to the transfer acting as escrow holder, and the intended transferee shall deposit with the escrow holder the full amount of the purchase price or consideration, if any there be, to be paid in connection with the transfer. The licensee and intended transferee shall also enter into an agreement, which agreement shall be deposited with the escrow holder, directing the escrow holder, out of the purchase price or consideration, to pay the claims of the bona fide creditors of the licensee who file their claims with the escrow holder on or before the date when the purchase price or consideration which is to be paid for the transfer of the license is fixed in the recorded notice of intended transfer; or if the purchase price or consideration is not sufficient to pay the claims in full, to distribute the consideration pro rata to the creditors of the licensee. The agreement shall also provide that the escrow holder shall make the payment or distribution within reasonable time after the completion of the transfer of the license.

(d)The provision of this section relative to the filing of an application for transfer and on the establishment of escrow shall not apply to transfer of license made pursuant to subparagraph

(a)of § 3310 of this Code by or to an executor, administrator, guardian, trustee, receiver, or other person acting in the legal or proper discharge of official duty, or in the discharge of any trust imposed upon him by law, nor to any transfer or assignment, statutory or otherwise, made for the benefit of creditors.

(e)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. Each application for the transfer of a license shall be accompanied by or contain a statement verified by both the transferrer and transferee specifically stating that the transfer application or proposed transfer is not made to satisfy the payment or a loan or to fulfill an agreement entered into more than ninety

(90)days preceding the day on which the transfer application is filed with the Board, or to gain or establish a preference to or for any creditor of the transferrer or to defraud or injure any creditor of the transferrer. This statement shall become part of the application, and any misrepresentation contained in the statement shall be considered the misrepresentation of a material fact.