(A) A license/permit shall be purely a personal privilege, valid for the term set forth on the license/permit, unless sooner revoked as set forth in this chapter. The license/permit shall not constitute property, shall be non-transferrable and inalienable, and shall not be subject to attachment, garnishment, execution, or being encumbered or hypothecated. As to a closely held corporation, an illegal transfer will be deemed to have been attempted and the license/permit shall become null and void if any person owning 20% or more of the stock, transfers the stock to another person who previously held less than 50% of the stock. As to a public corporation, an illegal transfer will be deemed to have been attempted and the license/permit shall become null and void if there has been a buyout, a takeover or any other transaction involving the sale or transfer of more than 50% of the stock or assets of the corporation.
(B) A license/permit issued to an individual or a partnership shall cease upon the death of the licensee or a partner of a licensee and shall not descend by the laws of testate or intestate devolution. However, the executors or administrators of the estate of any deceased licensee, and the trustee of any insolvent or bankrupt licensee, when the estate consists in part of alcoholic liquor may, upon written notice to the Local Liquor Control Commissioner, continue the business of the sale of alcoholic liquor under the order of the appropriate court. In such cases, the executor, administrator or trustee may exercise the privileges of the deceased or insolvent or bankrupt licensee after the death of decedent, or such insolvency or bankruptcy until the expiration of the license/permit, but not longer than six months after the death, bankruptcy or insolvency of the licensee.
(C) If a corporation to whom a license/permit has been issued is ordered into receivership or files for bankruptcy, the receiver or trustee may continue the operation of the business under the existing license under order of the appropriate court until the expiration of the license/permit or until the passage of six months from the date of appointment of a receiver or trustee, whichever comes first.
(D) Upon the death of any person owning 5% or more of the shares in a closely held corporation, the Local Liquor Control Commission shall be notified and if the shares are transferred to a person who is not currently named in the application as a shareholder, then the licensee shall apply for a new license/permit.
(Ord. 2023-05, passed 8-8-2023)