Md. Code Regs. 14.17.17.03

Current through Register Vol. 51, No. 24, December 2, 2024

Section 14.17.17.03 - Selection of an Eligible Receiver

A. Subject to approval by the Administration under Regulation .04 of this chapter, a creditor may select an eligible receiver who is a third party to oversee the disposition of a cannabis license, including the licensee's assets, if the licensee:

(1) Is the subject of an order requiring appointment of a receiver;

(2) Becomes insolvent; or

(3) Otherwise materially breaches or defaults on its material obligations secured by the associated license.

B. Not later than 10 business days before the Administration approves the receiver, the creditor who selects a prospective receiver for approval under Regulation .04 of this chapter shall submit the following information to the Administration:

(1) Proof of the creditor's secured interest in the proceeds from a sale of the license of the associated licensee;

(2) Proof of an order requiring appointment of a receiver, insolvency, or evidence of the licensee's material breach or default on its material obligations, as set forth in the associated Administration-approved security agreement; and

(3) Any additional information requested by the Administration.

Md. Code Regs. 14.17.17.03

Regulation .03 adopted effective 50:14 Md. R. 559, eff. 7/1/2023 (EMERGENCY); adopted effective 51:14 Md. R. 676, eff. 6/7/2024, exp. 8/31/2024 (Emergency); adopted effective 51:14 Md. R. 678, eff. 7/22/2024.