(a) (1) Subject to subsection (b) of this section, the Board may not approve an application for the transfer of a license unless: (i) all obligations of the transferor pertaining to the licensed establishment have been paid; or (ii) an arrangement concerning debts and obligations satisfactory to the transferor's creditors has been made. (2) Paragraph (1) of this subsection also applies to approval of an application for a new license if the Board believes that the application is being used to avoid provisions regarding the transfer of a license. (b) (1) The Board is not bound by subsection (a) of this section unless: (i) a creditor submits a claim, under affidavit, to the Board before the hearing held on the transfer; and (ii) the claim involves an indebtedness incurred through the purchase or sale of alcoholic beverages in connection with the licensed premises. (2) If the Board determines that a properly filed claim is outside the expertise of the Board, the Board may approve an application for the transfer of a license or an application for a new license if there is: (i) an amicable resolution of the claim; or (ii) a judicial determination on the claim. (c) Within 1 year after the date of final approval by the Board, and in accordance with all applicable laws and regulations on transfers of licenses, an approved applicant may transfer the license to other premises within one-half mile if the premises for which the license was issued is: (1) substantially destroyed by fire, explosion, or catastrophe; (2) taken by condemnation; (3) taken by the exercise of the power of eminent domain; or (4) no longer leased by the license holder due to the delay of a court case or other administrative process delay.
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