Legal Question in Landlord & Tenant Law in California
I own a bar dinner house and I got behind in my rent last year and my landloards want to do a UCC and use my California Liquor License as collatoral until paid off. Is this legal? And if I defaulted can they take my license?
2 Answers from Attorneys
Be careful about using anything as security for a loan or obligation, especially your liquor license, which is valuable and, I imagine, quite important to the success of your business. I'm sure that you can work something out with the landlord that doesn't require you to use the liquor license.
I'm not sure a liquor license can be subject to a UCC-1. I think the transfer regulations on liquor licenses prevent it, but I'm not an ABC specialist. You should check with one. If it is legal, then, Yes, they would take your license if you defaulted.
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